Suraj Estate Developers Limited — Q3 FY26 earnings call

Call held 29 Jan 2026

Management summary

Suraj Estate Developers reported a robust Q3 FY26, marked by substantial growth in sales value and area, largely driven by the successful launch of Suraj One Business Bay and strong demand in the Mumbai office market. The company maintained its FY26 presales guidance and highlighted a healthy net debt position. However, 9M FY26 EBITDA saw a slight dip, and a project delay for Palette was noted, alongside the unlikelihood of INR 50 crores in warrants converting.

Highlights

  • Q3 FY26 Total Income grew 6% YoY to INR 182 crores.

  • Q3 FY26 EBITDA increased to INR 55 crores from INR 48 crores in Q3 FY25.

  • Q3 FY26 PAT grew to INR 25 crores from INR 20 crores in Q3 FY25.

  • Q3 FY26 Sales area increased to 51,826 sq ft, registering a 211% year-over-year increase.

  • Q3 FY26 Sales value rose to INR 253 crores, a 137% year-over-year increase.

  • Suraj One Business Bay witnessed a strong start with 40,000 square feet sold within 45 days of launch, translating into a sales value of INR 200 crores out of a total GDV of INR 1,200 crores.

  • Acquired 2 additional land parcels in Bandra (1,760 sq meters and 906 sq meters) for future aggregation.

Concerns

  • 9M FY26 EBITDA stood at INR 171 crores, a decline from INR 176 crores in 9M FY25.

  • Warrants worth INR 50 crores are unlikely to culminate due to a significant price variation between current market price and committed price.

  • Palette project RERA date extended by 9 months to September 2026 due to delays in importing lifts.

Key financials

2 periods

Q3 FY26

  • Total Income
    ₹182 Cr
    YoY +6%
  • EBITDA
    ₹55 Cr
    YoY +14.5%
  • PAT
    ₹25 Cr
    YoY +25%

9M FY26

  • Total Income
    ₹460 Cr
    YoY +11%
  • EBITDA
    ₹171 Cr
    YoY -2.8%
  • PAT
    ₹80 Cr

What they filed

Q1 FY27: revenue up 9.8%, net profit up 9.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue109 170 136 132 145 +33%180 +6%99 −27%145 +10%
EBITDA63 46 30 50 65 +3%54 +17%50 +67%53 +6%
Net profit32 20 18 21 33 +3%25 +25%11 −39%23 +10%
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

₹487 Cr

as of 2025-12-31 quantified

38% YoY

Inflow this quarter

₹253 Cr

Composition

Mix 2 segments
  • Commercial 81.6%
  • Residential 18.4%

Share of order book by segment

Pipeline

other

Exciting pipeline, especially in commercial with value addition, and 2-3 good opportunities under consideration in South Central Mumbai. Bandra launch targeted for next year (FY27).

The company has an exciting and robust pipeline, particularly in the commercial segment, with new opportunities being evaluated in South Central Mumbai.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Net ₹500 Cr
    Mr. Ravi, today's net debt of the company stands at INR500 crores, which is less than 0.5x of the total equity base.
  • M&A Land parcels in Bandra Acquisition · Closed

    Part of larger strategy of aggregation to consolidate and launch as a single project.

    Two additional land parcels acquired: one measuring 1,760 sq meters and the other 906 sq meters.

    Recently, we have also acquired 2 additional land parcels, one is measuring 1,760 square meters and the other 906 square meters in Bandra.

Guidance & targets

Presales

  • Presales Value Presales · FY26 · High confidence INR 600 crores
    Rajendra-ji, we'll still continue to maintain INR600 crores right now. Rather we commit what we can achieve definitely and we try to overperform. So I think right now, still -- guidance still remains the same. We want to achieve it. And then if we do better, everyone will be happy. So I think we still continue to remain at INR600 crores, but we're going to definitely strive for more.

    — Rahul Thomas

Profitability

  • EBITDA Margin (Blended Average) Profitability · Steady State · High confidence 35%
    Blended average, you can consider 35%.

    — Shreepal Shah

Project Launch

  • Bandra Project Launch Project Launch · FY27-FY28 · Medium confidence Launch next year (FY27), sales contribution in FY28
    It will not reflect from next year. Maybe we are targeting next year for it to maybe launch. So it will reflect in the numbers the following year.

    — Rahul Thomas

Strategy

  • FY27 Focus Areas Strategy · FY27 · High confidence Focus more on commercial, continue with 1 & 2 BHK homes, prepare for Bandra launch
    So the strategy for the coming year would be going a little as I said, focus a little more on the commercial because that's the traction we're seeing and work on that, continue with our 1 and 2 BHK homes because that has been selling well and prepare for a launch of the Bandra project,

    — Rahul Thomas

What to watch in Q4 FY26

FY27 Launch Pipeline GDV

March call
Current Qualitative (exciting, robust)
Target Specific GDV numbers for FY27 launches

Why it matters

Specific numbers for the launch pipeline are crucial for assessing future revenue potential and growth trajectory.

So Ravi ji, we have an exciting pipeline, especially in the commercial with some value addition we are getting on the table. So I think we as soon as we crystallize things a little more, we will inform you by closer to March call, once we're done with the March numbers, I think we'll be in a better position to answer what our pipeline looks like. But it's going to definitely be robust.

Risks & concerns

  • Palette Project Delay

    medium

    Palette project's RERA date extended by 9 months to September 2026 due to delays in importing lifts, though management states it's now on track.

    Analyst acknowledged

  • Warrants Non-Conversion

    low

    INR 50 crores worth of warrants are unlikely to be converted due to a large price variation, impacting potential capital infusion.

    Analyst acknowledged

  • Geographic Concentration

    low

    Company's primary focus remains on South Central Mumbai and Bandra, which could imply geographic concentration risk, though management views these as stable and high-potential markets.

    Analyst acknowledged

Q&A highlights

6 direct
Net debt to equity for Bandra project Partial
Mr. Ravi, today's net debt of the company stands at INR500 crores, which is less than 0.5x of the total equity base. When we launch Bandra, we will estimate or tell you at that point in time.

Analyst sought forward-looking debt impact for a major project, but management only provided current overall debt and deferred specific project estimates.

Asked by Ravi Shah

GDV for projects to be launched in FY27 Partial
So Ravi ji, we have an exciting pipeline, especially in the commercial with some value addition we are getting on the table. So I think we as soon as we crystallize things a little more, we will inform you by closer to March call, once we're done with the March numbers, I think we'll be in a better position to answer what our pipeline looks like. But it's going to definitely be robust.

Management indicated a robust pipeline but deferred specific GDV numbers for upcoming launches to the next call, leaving investors without immediate clarity.

Asked by Ravi Shah

Revision of FY26 presales guidance of INR 600 crores Direct
Rajendra-ji, we'll still continue to maintain INR600 crores right now. Rather we commit what we can achieve definitely and we try to overperform. So I think right now, still -- guidance still remains the same. We want to achieve it. And then if we do better, everyone will be happy. So I think we still continue to remain at INR600 crores, but we're going to definitely strive for more.

Management confirmed maintaining the existing presales guidance despite strong Q3 performance, suggesting a conservative approach or potential for over-achievement.

Asked by Rajendra

GDV from newly acquired land parcels in Bandra Direct
So actually, these are land parcels which are going to be aggregated. Like I said, we will be having a launch in Bandra, which is going to take a year's time. So we're just aggregating the land parcel. So this is part of the larger strategy of aggregation right now. So we won't develop it as individual projects for now.

Management clarified that new land acquisitions in Bandra are for consolidation into a larger project, indicating a strategic long-term approach rather than immediate individual project launches.

Asked by Rajendra

Impact of Pagdi redevelopment on IRRs and timelines Direct
So current when we're doing the redevelopment, we've already factored in the rental cost today. So the margins which we are discussing or which we are achieving right now is already taking into account the rental costs, which we are paying to the tenants. ... Also to answer to your question, the tenant cost is a very small cost in terms of overall cost of the project. So it will not have meaningful impact on the IRRs.

Management assured that the Pagdi system's tenant costs are already factored into current project margins and will not significantly impact IRRs, addressing a potential concern for investors.

Asked by Diyvansh Singh

Timeline for Bandra project contribution to numbers Direct
It will not reflect from next year. Maybe we are targeting next year for it to maybe launch. So it will reflect in the numbers the following year. ... With regards to Bandra, It will not come in '26, 2027. Maybe following year, we can expect some sales once it is launched.

Management clarified that while the Bandra project might launch in FY27, its sales contribution and financial impact are expected in FY28, providing a longer-term outlook for this significant project.

Asked by Rahil

Commercial strategy: sell-driven or leasing/annuity assets Direct
So ma'am, this will be commercial sale is what our strategy is for now.

Management confirmed a sales-driven strategy for commercial projects, clarifying the revenue model for this segment.

Asked by Resha Rathi

Status of pending INR 50 crores warrants Direct
Right. So we are, of course, in touch. Looking at the current price, I don't think it's going to culminate because I think they have time up to between May and June. So I don't see because of the current price versus what they have committed for, there's a big price variation. So I don't see the balance coming. That's my personal feeling. So we can estimate that, that may not come into the system.

Management indicated that INR 50 crores in warrants are unlikely to convert due to a significant discrepancy between the current market price and the committed price, impacting potential equity infusion.

Asked by Rajender

2 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Performance Driven by Sales Growth

Suraj Estate Developers reported a robust Q3 FY26 with total income growing 6% year-over-year to INR 182 crores. EBITDA increased to INR 55 crores from INR 48 crores in Q3 FY25, and PAT grew to INR 25 crores from INR 20 crores. The operational performance was particularly strong, with sales area increasing by 211% YoY to 51,826 sq ft and sales value rising 137% YoY to INR 253 crores. Collections for the quarter also saw a significant jump of 48% YoY to INR 124 crores.

Suraj One Business Bay: A Successful Commercial Launch

The company's commercial project, Suraj One Business Bay, demonstrated strong market acceptance, with 40,000 sq ft sold within 45 days of its launch. This translated into a sales value of INR 200 crores, contributing significantly to the quarter's performance. The project has a total Gross Development Value (GDV) of INR 1,200 crores and is designed as a premium Grade A commercial development, reinforcing the company's strategic focus on South Central Mumbai's commercial corridor.

Strategic Land Acquisitions and Pipeline Development

Suraj Estate acquired two additional land parcels in Bandra, measuring 1,760 sq meters and 906 sq meters, intended for aggregation into a larger project. The company stated it has approximately 5 years of work on existing and acquired projects and is continuously engaged in business development for new opportunities, particularly in South Central Mumbai. Management expects a robust pipeline, with more clarity on FY27 launches to be provided by the March call.

Focus on Value Luxury, Luxury, and Commercial Segments

The company's residential portfolio spans value luxury (1 & 2 BHKs in the INR 2-3.5 crores range) and luxury segments (INR 5 crores onwards, including duplexes and triplexes). Demand remains strong for 1 & 2 BHK homes and commercial properties. The blended average EBITDA margin is maintained at 35%, with commercial projects (purchased land) yielding 25-28% margins and value luxury projects (33(7) projects, historical land) yielding 38-40% margins.

Pagdi Redevelopment and Regulatory Tailwinds

Management highlighted a new regulatory framework for Pagdi system redevelopment in Maharashtra, which could unlock high-value land parcels in South Central Mumbai. With approximately 19,000 Pagdi buildings and 13,000 stalled redevelopment cases, this policy is seen as a significant long-term opportunity. The company confirmed that potential tenant payouts for such redevelopments are already factored into their current margin calculations and will not materially impact project IRRs.

Palette Project Delay and Warrants Update

The RERA date for the Palette project has been extended by 9 months to September 2026, primarily due to delays in importing lifts. However, management confirmed that the lifts have now arrived, and they anticipate no further delays, expecting to hand over flats for interior works soon. Additionally, INR 50 crores in warrants are unlikely to culminate due to a significant price variation between the current market price and the committed price, indicating a potential non-conversion of these funds.

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