Sunteck Realty Limited — Q2 FY26 earnings call

Call held 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

  • 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

  • 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

3 periods

Headline

  • Net Debt-to-Equity
    0.04×

Q2 FY26

  • 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%
  • Net Profit
    ₹49 Cr
    YoY +40%
  • Net Profit Margins
    19%

H1 FY26

  • 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%
  • EBITDA Margins
    28%
  • Net Profit
    ₹82 Cr
    YoY +44%
  • Net Profit Margins
    19%

What they filed

Q1 FY27: revenue up 2.1%, net profit up 27.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue169 162 206 188 252 +49%344 +112%339 +65%192 +2%
EBITDA37 48 69 48 78 +111%81 +69%97 +41%67 +40%
Net profit35 43 50 33 49 +40%57 +33%63 +26%42 +27%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹1,359 Cr

as of 2025-09-30 quantified

32% YoY

Inflow this quarter

₹702 Cr

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

high confidence
  • Capex ₹430 Cr Enabled by strong net operating cash flow surplus and preferential issue.
    • Business development (land acquisition and joint ventures) ₹430 Cr
    We have invested Rs. 4.3 billion in first half of the year in business development compared to Rs. 1.8 billion for the full year of FY'25.
  • Debt Debt disclosed
    This has enabled us to maintain our net debt equity at negligible levels of 0.04x despite the strong investments in business development.
  • M&A Redevelopment project at Andheri Acquisition · Closed · AUM ₹1,100 Cr

    Expansion of development portfolio in western suburbs of MMR.

    Added a project with a GDV value of Rs. 11 billion.

    The first one is a large redevelopment project at Andheri near Western Express Highway with a GDV value of Rs. 11 billion.
  • M&A Joint development at Mira Road Joint venture · Closed · AUM ₹1,200 Cr

    Expansion of development portfolio in western suburbs of MMR.

    Added a project with a GDV value of Rs. 12 billion.

    and second one in joint development at Mira Road on Western Express Highway with a GDV of Rs. 12 billion.
  • 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.
    We have 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

Pre-sales

  • Pre-sales growth Pre-sales · FY26 · High confidence 30%-35%
    So, we want to be prepared in every three segments and we will continue to maintain this. That's why we are confident of 30%-35% growth in even our pre-sales and GDV as well.

    — Kamal Khetan

GDV

  • Gross Development Value (GDV) GDV · 3 to 4 years · Medium confidence Double current GDV
    So, we have always, you see a doubled, almost that GDV in 3 to 4 years, and we will continue to do that.

    — Kamal Khetan

Project Launch

  • Nepeansea Road official launch Project Launch · Q4 FY26 · High confidence Q4 FY26
    So, official launch, we are looking definitely Q4.

    — Kamal Khetan

  • Dubai project launch Project Launch · Near term · Medium confidence ASAP
    And looking forward to the launch ASAP, that's how it is both the projects Dubai and Nepeansea Road.

    — Kamal Khetan

  • 5th Avenue commercial construction start Project Launch · Near term · Medium confidence Similar timelines as 5th Avenue residential
    So, if you see 5th Avenue commercial, we are very clear that we want to start the construction of even 5th Avenue commercial also and we want to continue to build our commercial portfolio. But as you know, we are awaiting our approval for our 5th Avenue residential. At the same time, we will be similar timelines, we'll get the approval for our commercial.

    — Kamal Khetan

What to watch in Q3 FY26

Nepeansea Road official launch

Q4 FY26
Current Demolition nearing completion, approvals in advanced stage
Target Official 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

  • Collections growth lagging pre-sales growth

    medium

    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

Q&A highlights

7 direct
Timeline for improvement in collections Partial
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

Official launch timeline for Nepeansea Road project Direct
So, if you see, we are already doing the sales for the existing customers and all. And we have done the substantial sales there. So, official launch, we are looking definitely Q4.

Clarified the specific quarter for the official launch of the marquee Nepeansea Road project.

Asked by Pritesh Sheth

Utilization of funds from the recent preferential issue Direct
So, Pritesh, definitely, obviously, we do not want to definitely slow down our BD activity. But at the same time, we were seeing that there will be a lot of requirement of the funds, which will be required in Nepeansea Road and Dubai, as well as commercial building of 5th Avenue, plus the new business development.

Addressed how the ₹500 crore preferential issue would be deployed across existing projects and new business development.

Asked by Pritesh Sheth

Future segment focus for new projects Direct
So, we do not want to speculate too much. So, that is why looking at the market, we see already a good demand like in the ODC already and most of the sales that you are seeing is not only coming from Uber luxury segment, but also the premium luxury. So, we are looking in both this segment, definitely not in the aspirational luxury segment, but more into the premium luxury segment going forward than the Uber luxury segment. But we want to be balanced in both the segments.

Provided clarity on the company's strategic focus on Uber luxury and premium luxury segments for future developments.

Asked by Pritesh Sheth

Strategy and timeline for commercial development, specifically 5th Avenue Direct
So, if you see 5th Avenue commercial, we are very clear that we want to start the construction of even 5th Avenue commercial also and we want to continue to build our commercial portfolio. But as you know, we are awaiting our approval for our 5th Avenue residential. At the same time, we will be similar timelines, we'll get the approval for our commercial.

Outlined the company's commitment to building its commercial portfolio and the expected timeline for 5th Avenue commercial construction.

Asked by Sourabh Gilda

Launch pipeline for the next two quarters Direct
So, Sourabh, we don't want to commit which one will come first and which one will be second, but as you see, there are enough launches which are going to happen, plethora of launches, I would say, for Sunteck, which we are seeing, ODC, obviously, 5th Avenue residential, then when we are talking about the new redevelopment project, which we have acquired, even that is in the advanced stage in Andheri Western Express Highway, then we are looking to launch one tower in Mira Road, which is Sunteck Sky Park, fourth tower, and then Vasai, we are looking to launch two more towers. Again, Naigaon, we are looking to launch now... Plus, obviously, the launch of Dubai, which whenever it comes, even that we are looking at.

Provided a comprehensive overview of the numerous projects slated for launch in the near future, indicating strong growth visibility.

Asked by Sourabh Gilda

Status of Nepeansea Road construction and Dubai project launch Direct
Yes, so, good afternoon, Harsh. So, in Nepeansea, we already started the demolition of the main building, which is Baug-E-Sara, the first phase of Nepeansea Road. And so, demolition is at very, very advanced stage. We should complete the demolition in the next 15 days to one month, and our approvals are at a very advanced stage. So, we will look for those completion of approval, and obviously, thereafter RERA and we'll be looking to launch that ASAP. Then, when it comes to Dubai project, so, just to give you one good news that obviously, we have already taken a big office where we can do a sales pavilion as well as in Dubai. And we have already started setting up already that interiors and everything have started on that Dubai office and the sales pavilion. Designs of all the full project in Dubai has been totally finalized and as good as freezed. Approvals again to mention is in the advanced stage. And looking forward to the launch ASAP, that's how it is both the projects Dubai and Nepeansea Road.

Provided detailed updates on the progress of key luxury projects, including demolition status for Nepeansea and readiness for Dubai launch.

Asked by Harsh Pathak

Future BD deployment and target for inventory GDV Direct
So, we have been always very clear that looking at the strong balance sheet, we will not stop our BD development activity anywhere looking, due to any fund constraint for Sunteck. Sunteck, today the balance sheet strength is so strong. I think one of the strongest balance sheet in the industry. Even we don't, didn't want it to even have a 0% hesitation while we do BD, hence we raised that Rs. 500 crores also as a Pref. And that's the reason that we don't want to compromise on BD at all when we are, and we'll continue to pour money as and when we see a good opportunity coming with a Sunteck style where we have a good IRR and good ROI, we will continue to take good projects. ... So, we have always, you see a doubled, almost that GDV in 3 to 4 years, and we will continue to do that.

Reiterated commitment to aggressive business development, leveraging a strong balance sheet and preferential issue funds, with a long-term target to double GDV.

Asked by Harsh Pathak

2 min read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

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