Sunteck Realty Limited Q2 and H1 FY 2027 Earnings Conference Call Transcript

Operational Performance Highlights

Presales Performance:

  • Q2 FY27 presales: INR824 crores
  • H1 FY27 presales: INR1,611 crores
  • Segment mix in Q2: Uber luxury (25%), Premium luxury (51%), Aspirational luxury (25%)

Collections:

  • Q2 FY27 collections: INR371 crores
  • H1 FY27 collections: INR780 crores

Financial Performance:

  • Q2 FY27 revenue: INR3.2 billion (27% YoY growth)
  • Q2 FY27 EBITDA: 13% growth
  • Q2 FY27 PAT: 17% growth
  • H1 FY27 revenue: INR5.1 billion (16% growth)
  • H1 FY27 EBITDA: INR1.6 billion (23% growth)
  • H1 FY27 EBITDA margin: 30% (expanded 160 bps)
  • H1 FY27 PAT: INR1 billion (20% growth)

Cash Flow Metrics:

  • H1 FY27 net operating cash flow surplus: INR3.5 billion (27% YoY growth)
  • Cash flow surplus represents 63% of FY26 full year surplus
  • Surplus represents 45% of collections (up from 40% a year ago)
  • Trailing 12-month surplus: INR6.3 billion

Annuity Income:

  • Annualized annuity income: INR86 crores (vs INR76 crores in FY26)

Business Development and Project Updates

Land Acquisition:

  • Acquired 4.5 acres at Borivali West through outright purchase
  • Total assembled landholding at Borivali West now 11.5 acres (from previous 7 acres)
  • Estimated GDV value: INR80 billion
  • Total company GDV: INR469 billion
  • INR260 billion already launched or to be launched

Project Pipeline:

  • FY27 launch pipeline (excluding Dubai): INR70 billion
  • H2 weighted towards launches
  • Key H2 launches: Sunteck Belvedere Park (Mira Road), Residential project at Andheri Western Express Highway
  • Specific project GDVs: Mira Road project INR1,200-1,400 crores, Andheri project INR1,250-1,500 crores

Nepean Sea Road Project:

  • Approvals at advanced stage
  • Expected launch before end of FY27
  • Demolition of buildings in progress
  • Represents INR3,000 crores GDV

Dubai Project Status:

  • Moved from "to be launched" GDV to "upcoming for launch" GDV
  • No visibility for launch in next 1-2 quarters
  • Project remains launch-ready

ODC Project Updates:

  • Construction started for commercial project (Sunteck Pinnacle)
  • Residential tower (Altavia) construction started
  • H2 launch planned for Altavia Tower 2
  • 5th Avenue construction commenced

Sunteck Sky Park Details:

  • Launched higher floors of Tower 1, Tower 2, and Tower 3 (equivalent to one new tower)
  • Total GDV for recent launch: ~INR750 crores
  • Q2 sales: ~INR200 crores

Sustainability Achievements

GRESB Rating:

  • Retained GRESB Green 5-star rating for second consecutive year
  • Score improved to 98.8 in 2026 from 98.6 in 2025
  • GRESB average declined to 86.2 from 88

4th Avenue Certification:

  • Achieved EDGE Advanced certification from Green Business Certification Inc. (GBCI)
  • Over 50% saving in energy, water and embodied carbon
  • Estimated CO2 saving: 1,100 tons annually

Capital Allocation and Strategy

Business Development Investment:

  • H1 FY27 investment: INR3.9 billion
  • FY26 investment: ~INR800 crores
  • Continued focus on disciplined acquisitions with minimum project level EBITDA margins of 30-35%
  • Acquisition models include capital-light JDA/JV, redevelopment, and outright purchases

Balance Sheet Strength:

  • Net debt: 0.09 (very low leverage)
  • Strong cash flow generation supporting aggressive business development

Forward-looking Guidance

Growth Outlook:

  • Maintaining 25% YoY growth guidance for FY27
  • Confidence based on H1 19% growth without major launches and strong H2 launch pipeline
  • Second half typically strong performance period

Project Completions for FY27 Revenue Recognition:

  • Sunteck One World Naigaon project completion
  • Sunteck ODC City, Avenue 1 higher floors completion
  • 4th Avenue completion
  • ODC commercial project (Sunteck Pinnacle) completion
  • Ready inventories from BKC and other projects