Sunteck Realty Limited

Sunteck Realty reported robust financial results for Q3 and 9M FY26. For the first nine months, operating revenue grew 21% year-on-year to INR785 crores, while EBITDA surged 77% year-on-year to INR207 crores, achieving a 26% margin. Net profit for the period increased 39% year-on-year to INR139 crores, with an 18% margin. Q3 FY26 alone saw operating revenue of INR344 crores, EBITDA of INR82 crores (24% margin), and net profit of INR57 crores (17% margin), representing a 34% growth over Q3 FY25.

The company achieved decent presales of INR734 crores in Q3 FY26, a 16% year-on-year growth. For the nine-month period, presales reached INR2,093 crores, marking a 26% year-on-year increase and representing the best-ever performance. Collections for Q3 FY26 stood at INR319 crores, and for 9M FY26, they totaled INR1,001 crores. These strong collections contributed to a net operating cash flow surplus of INR349 crores for 9M FY26, a 12% growth over the previous year.

Sunteck Realty continued its aggressive business development, investing INR6.8 billion in the first nine months of FY26, significantly higher than INR1.8 billion in the full FY25. A key acquisition was a 1.75-acre land parcel in Andheri near the International Airport, with a development potential of 6 lakh square feet and an estimated gross development value (GDV) of INR25 billion. This acquisition, along with the Mira Road project and an Andheri redevelopment project, brings the combined estimated GDV of the three new projects to INR50 billion.

The company has a strong launch pipeline for the next 2-3 quarters. This includes the ongoing launch of 5th Avenue in Goregaon West ODC, the redevelopment project in Andheri near Western Express Highway, an additional tower at Mira Road, at least two towers at Vasai SBR, and 2-3 more towers in Naigaon. Management noted that pricing for the new ODC Goregaon West project is 10-12% higher than previous phases, reflecting its premium positioning, while Naigaon pricing remains stable.

Management expressed high confidence in achieving its annual presales guidance of INR3,000 crores for FY26. They highlighted that the 9-month presales already show a 26% year-on-year growth, and with the ongoing launches, particularly 5th Avenue, they are well-positioned to meet or even surpass this target. The implied Q4 run rate for this guidance is approximately INR900 crores.

For the ultra-luxury Nepeansea Road project under the 'Emaance' brand, sales are ongoing by invitation only, focusing on tenancy sales which do not require RERA approval. Groundwork has commenced, and management expects to secure RERA approval for other sales by the end of Q4 FY26 or Q1 FY27. Regarding the Dubai project, the office and sales pavilion setup has begun, designs are finalized, and approvals are in advanced stages, with a launch expected 'very soon'.

Kamal Khetan acknowledged that the market is 'slightly fragile' but emphasized the company's decent performance even in Q3. He noted a slight improvement in the lower, mid-segment, and affordable housing categories, which was not previously observed. The company remains confident in its growth numbers, assuming market stability.