Management Participants

The call was hosted by management including Mr. Rahul Thomas (Whole-Time Director) and Mr. Shreepal Shah (Chief Financial Officer), along with SGA, Investor Relations Advisors.

Market Context and Business Overview

Management provided an overview of the South and Central Mumbai real estate market, describing it as a premium market with limited development opportunities, strong demand for premium residential and commercial space, and significant redevelopment potential. The company's focus is on these micro markets (Worli, Prabhadevi, Lower Parel, Parel, Dadar, Matunga, Mahim) where it has an established presence.

Operational Highlights Q1 FY27

  • Total Sold Area: 5.95 lakh square feet across ongoing projects.
  • Average Realization: Approximately INR 45,922 per square foot.
  • Cumulative Collections: INR 1,672 crores achieved to date.
  • Balance Receivable: Approximately INR 1,060 crores, providing cash flow visibility.
  • Sales Value: INR 141 crores, a 74% year-on-year growth (from INR 81 crores in Q1 FY26).
  • Sales Area: 28,834 square feet, a 74% year-on-year growth (from 16,524 square feet in Q1 FY26).
  • Collections for the Quarter: INR 86 crores (compared to INR 115 crores in Q1 FY26).
  • Suraj One Business Bay (Mahim): The commercial project has seen strong traction with approximately 33% of inventory sold post-launch. The concession plan for an adjoining land parcel (amalgamation) has been approved, which is expected to enhance the project scale.
  • Land Acquisition (Dadar West): Acquired a land parcel for a total cost of approximately INR 18 crores. The parcel has a sale potential of ~18,000 sq. ft. and an estimated Gross Development Value (GDV) of ~INR 100 crores.

Financial Highlights Q1 FY27

  • Total Income: Stood at INR 146 crores, compared to INR 133 crores in Q1 FY26, a 10% year-on-year growth.
  • EBITDA: Increased to INR 55 crores from INR 50 crores in the prior year period, a 9% year-on-year growth.
  • EBITDA Margin: Stood at approximately 37.5%.
  • Profit After Tax (PAT): Stood at INR 23 crores, compared to INR 21 crores in Q1 FY26, a 7% year-on-year growth.
  • Debt Position (as of June 30, 2026): Gross debt was INR 646.94 crores. Cash and cash equivalents were INR 33.03 crores. Net debt stood at INR 613.91 crores (~INR 614 crores). The increase in debt is attributed to capital deployment for business development, strategic acquisitions, and investments in ongoing/upcoming projects.

Project Launch Pipeline for FY27

Management outlined a total launch pipeline for FY27 of INR 1,600 crores, broken down by quarter:

  • Q2 FY27: ~INR 240 crores (Suraj Nova in Mahim ~INR 180 cr; Madonna in Dadar ~INR 60 cr)
  • Q3 FY27: ~INR 800-880 crores (Suraj One Business Bay Phase 2/amalgamated portion ~INR 800 cr; Shivteerth in Shivaji Park ~INR 80 cr)
  • Q4 FY27: ~INR 480 crores (three unspecified projects)

Guidance and Outlook

  • Presales Guidance for FY27: INR 700 crores for the full year (residential and commercial combined).
  • Sales Target for Suraj One Business Bay: An additional 1 lakh square feet for the year.
  • Revenue Growth Outlook: Approximately 10-15% growth for FY27 compared to the previous financial year.
  • EBITDA Margin Outlook: Expected to be in the range of 35% to 37% over the next two years.

Updates on Key Projects

  • Bandra Project: Two balance conveyances are pending and underway. The launch is planned for the next financial year (FY28). The estimated premium outlay for the land parcel is INR 300-350 crores, which will be funded initially through internal accruals. Construction funding will be tied up with an institution closer to the launch.
  • Unsold Inventory: Total unsold inventory from the ongoing portfolio has an estimated GDV of INR 950 crores. This comprises:
  • Residential: 22,000 sq. ft. (INR 109 crores GDV)
  • Commercial: 1.4 lakh sq. ft. (INR 841 crores GDV)

Q&A Session Key Points

  • The decline in residential sales in the quarter was attributed to low inventory availability, not a market slowdown.
  • Debt is expected to increase temporarily in the near term to fund the new launch pipeline before reducing on a sustainable basis as sales generate cash flows.
  • The company is not seeing a significant increase in acquisition costs for redevelopment projects in its core markets.
  • Pricing at Suraj One Business Bay has achieved an average of ~INR 50,000 per sq. ft., with scope for future appreciation as construction progresses.