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    Sunteck Realty Limited

    SUNTECK
    Realty·20 Oct 2025
    Management Summary

    Sunteck Realty delivered strong pre-sales growth in Q2 and H1 FY26, driven by new project additions and robust business development investments. While operating revenues saw a slight decline in H1, profitability metrics like EBITDA and Net Profit showed significant YoY growth. The company maintained a low net debt-to-equity ratio and received high recognition for its sustainability efforts, with a strong pipeline of luxury and premium projects planned for launch.

    Highlights

    5
    • Strong pre-sales performance with Q2 FY26 at ₹702 crores (34% YoY growth) and H1 FY26 at ₹1,359 crores (32% YoY growth).

    • Robust net operating cash flow surplus of ₹258 crores in H1 FY26, marking a 35% YoY increase.

    • Significant investment in business development, deploying ₹430 crores in H1 FY26 to expand the development portfolio.

    • Successful addition of two new projects in MMR with a total Gross Development Value (GDV) of ₹23 billion.

    • Achieved a 5-star rating from Global Real Estate Sustainability Benchmark (GRESB) with an outstanding score of 99 out of 100, highlighting ESG excellence.

    Concerns

    2
    • H1 FY26 operating revenues declined by 9.07% YoY to ₹441 crores from ₹485 crores in H1 FY25.

    • Collections growth for H1 FY26 was 12% YoY (₹682 crores), which was lower than the pre-sales growth rate, though management noted an 80% collection efficiency.

    Key financials

    Metrics

    16

    Periods

    3

    Headline

    1
    • Net Debt-to-Equity
      0.04 x

    Q2 FY26

    7
    • Pre-sales
      ₹702 Cr
      YoY+34%
    • Collections
      ₹331 Cr
      YoY+24%
    • Operating Revenues
      ₹252 Cr
      YoY+49.1%
    • EBITDA
      ₹78 Cr
      YoY+110.8%
    • EBITDA Margins
      31%

    H1 FY26

    8
    • Pre-sales
      ₹1,359 Cr
      YoY+32%
    • Collections
      ₹682 Cr
      YoY+12%
    • Net Operating Cash Flow Surplus
      ₹258 Cr
      YoY+35%
    • Operating Revenues
      ₹441 Cr
      YoY-9.1%
    • EBITDA
      ₹126 Cr
      YoY+83%

    Order Book

    high confidence

    Total Value

    ₹ 1,359 crores

    as of 2025-09-30

    quantified
    32.0% YoY

    Inflow this qtr

    ₹ 702 crores

    Pipeline

    other

    Upcoming launches include Nepeansea Road, Dubai, Andheri redevelopment, Mira Road (Sunteck Sky Park, fourth tower), Vasai (two more towers), Naigaon (one more phase), and 5th Avenue residential and commercial.

    "The company reported strong pre-sales growth in Q2 and H1 FY26, driven by projects in both Uber luxury and premium luxury segments, and expects similar growth for the full year."

    Source:
    Prepared remarks

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹430 crores

    Enabled by strong net operating cash flow surplus and preferential issue.

    Debt

    Debt disclosed

    M&A

    Redevelopment project at Andheri

    acquisition · closed · AUM ₹1,100 crores

    M&A

    Joint development at Mira Road

    joint venture · closed · AUM ₹1,200 crores

    Liquidity

    Liquidity disclosed

    Generated a strong net operating cash flow surplus of Rs. 2.6 billion in first half of FY'26, a growth of 35% year-on-year.

    Guidance & targets

    5
    CategoryTargetPriority
    Pre-sales
    Pre-sales growth
    30%-35%
    High
    GDV
    Gross Development Value (GDV)
    Double current GDV
    Medium
    Project Launch
    Nepeansea Road official launch
    Q4 FY26
    High
    Project Launch
    Dubai project launch
    ASAP
    Medium
    Project Launch
    5th Avenue commercial construction start
    Similar timelines as 5th Avenue residential
    Medium

    What to watch in Q3 FY26

    5

    Nepeansea Road official launch

    Q4 FY26
    CurrentDemolition nearing completion, approvals in advanced stage
    TargetOfficial launch in Q4 FY26

    Why it matters

    This is a marquee project under the new 'Emaance' brand, crucial for demonstrating the company's luxury segment execution.

    So, official launch, we are looking definitely Q4.

    Risks & concerns

    1
    RiskSeverity

    Collections growth lagging pre-sales growth

    Analyst noted that collections growth was slower than pre-sales growth, raising concerns about cash flow quality, though management highlighted 80% collection efficiency and expected improvement from new luxury projects.Analyst acknowledged

    medium

    Q&A highlights

    8

    “So, Pritesh, collections, you will definitely obviously see further improvement as the new projects like the many pre-sales are coming from the Nepeansea road. So, we all know that and from the luxury. So, it will catch up for sure. And you may start seeing that catch up in maybe the last Q4 of this financial year and definitely in the next financial year for sure.”

    Analyst inquired about the timeline for collections improvement, given past challenges, and management provided a forward-looking estimate.

    asked by Pritesh Sheth

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Pre-sales and Collections Performance

    Sunteck Realty reported robust pre-sales performance, with Q2 FY26 reaching ₹702 crores, a 34% year-on-year growth. For the first half of FY26, pre-sales stood at ₹1,359 crores, growing 32% YoY. Collections also saw growth, with Q2 FY26 at ₹331 crores (24% YoY) and H1 FY26 at ₹682 crores (12% YoY). The company maintained a collection efficiency of 80% for H1 FY26, with management expecting further improvement from new luxury projects in Q4 FY26 and the next financial year.

    02

    Profitability and Financial Health

    Despite a slight decline in H1 FY26 operating revenues to ₹441 crores from ₹485 crores in H1 FY25, profitability metrics showed significant improvement. Q2 FY26 EBITDA grew 108% YoY to ₹78 crores, with margins expanding to 31%. H1 FY26 EBITDA increased 83% YoY to ₹126 crores, with margins at 28% (up 1,433 basis points YoY). Net profit for Q2 FY26 was ₹49 crores (41% YoY growth), and for H1 FY26, it was ₹82 crores (44% YoY growth), both with a net profit margin of 19%. The company maintained a negligible net debt-to-equity ratio of 0.04x, supported by a strong net operating cash flow surplus of ₹258 crores in H1 FY26.

    03

    Aggressive Business Development and New Project Additions

    Sunteck Realty demonstrated a strong commitment to expanding its development portfolio, investing ₹430 crores in business development during H1 FY26, a significant increase compared to ₹180 crores for the full year of FY25. This investment led to the addition of two new projects in the western suburbs of MMR: a large redevelopment project in Andheri with a GDV of ₹11 billion and a joint development in Mira Road with a GDV of ₹12 billion. The company aims to continue this aggressive BD activity, targeting a doubling of its current GDV of approximately ₹39,000 crores within 3 to 4 years.

    04

    Launch of 'Emaance' Luxury Brand and Project Pipeline

    The company introduced 'Emaance,' a new by-invite-only real estate lifestyle brand focused on Uber luxury and premium luxury segments. The inaugural project under this brand is the marquee Nepeansea Road development, which is slated for an official launch in Q4 FY26. The pipeline for upcoming quarters is robust, including ODC, 5th Avenue residential and commercial, the new redevelopment project in Andheri, additional towers in Mira Road and Vasai, a new phase in Naigaon, and the Dubai project, all of which are in advanced stages of approvals and preparation for launch.

    05

    Sustainability Recognition

    Sunteck Realty received a coveted 5-star rating from the Global Real Estate Sustainability Benchmark (GRESB) in 2025, achieving an outstanding score of 99 out of 100. This marks a significant three-point improvement over the previous year, underscoring the company's strong focus on environmental, social, and governance (ESG) excellence.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.