Market Context and Business Overview

Management provided context on the South and Central Mumbai real estate markets, highlighting:

  • Established premium markets with well-developed social infrastructure and connectivity
  • Limited availability of quality Grade A office spaces in CBD and Worli
  • Lower Parel remains active leasing destination
  • Residential demand across value luxury and luxury segments in established neighborhoods
  • Redevelopment playing increasingly important role in creating new housing supply

Operational Performance Highlights

Q2 FY27 Performance (YoY Comparison):

  • Sales value: ₹206 crore (vs. ₹153 crore in Q2 FY26) - 35% growth
  • Sales area: 41,487 square feet (vs. 34,846 square feet) - 19% growth
  • Collections: ₹104 crore (46% growth)

H1 FY27 Performance (YoY Comparison):

  • Sales value: ₹347 crore (vs. ₹234 crore in H1 FY26) - 48% growth
  • Sales area: 70,321 square feet (vs. 51,372 square feet) - 37% growth
  • Collections: ₹190 crore (vs. ₹186 crore)

Project Portfolio Update

Ongoing Projects (as of September 2026):

  • Cumulative sold area: 6.36 lakh square feet
  • Average realization: ₹46,170 per square foot
  • Collections received: ₹1,770 crore
  • Balance receivable: ₹1,168 crore
  • Unsold area: 1.20 lakh square feet with estimated GDV of ₹708 crore
  • Total estimated receivables (sold + unsold): ₹1,876 crore
  • 13 ongoing sites with development area of 23.54 lakh square feet
  • Saleable RERA carpet: 7.57 lakh square feet
  • Upcoming pipeline: 18 projects with estimated carpet area of 13.46 lakh square feet

Key Project Developments:

Suraj One Business Bay (Commercial, Mahim):

  • Approximately ₹500 crore worth of inventory sold since launch
  • Acquired development rights for adjoining land parcel
  • Combined project estimated saleable area: 3.59 lakh square feet
  • GDV potential increased to ₹2,000 crore (from earlier ₹1,200 crore)
  • Received environmental clearance and concession plans
  • Construction commenced with basement and raft casting completed
  • Expect amalgamation of plots and excavation within next 60 days

New Residential Projects:

  • Suraj Nova (formerly Lobo Villa/Ellis Villa, Mahim West): Received Commencement Certificate
  • Suraj Madonna (Dadar West): Received Commencement Certificate
  • Both value luxury residential projects targeted for launch and RERA registration in Q3 FY27
  • Combined estimated GDV: ₹250 crore

Financial Performance

Q2 FY27 Financials (YoY Comparison):

  • Total income: ₹171 crore (vs. ₹145 crore) - 18% growth
  • EBITDA: ₹56 crore (vs. ₹66 crore)
  • EBITDA margin: 33%
  • Profit after tax: ₹23 crore (vs. ₹33 crore)

H1 FY27 Financials (YoY Comparison):

  • Total income: ₹317 crore (vs. ₹279 crore) - 14% growth
  • EBITDA: ₹111 crore (vs. ₹116 crore)
  • EBITDA margin: 35%
  • Profit after tax: ₹46 crore (vs. ₹54 crore)

Debt Position

As of September 30, 2026:

  • Gross debt: ₹800 crore
  • Net debt: ₹710 crore
  • Cost of debt: 13-13.25%
  • Debt increase primarily driven by:
  • Acquisition of development rights for adjoining land parcel at Suraj One Business Bay (₹85 crore)
  • Capital deployment towards ongoing and upcoming projects
  • Management targeting net debt reduction to approximately ₹600 crore by FY27-end through:
  • 5-6 project handovers expected in FY27 (estimated ₹150 crore debt reduction)
  • Continued collections

Guidance and Outlook

  • Maintains FY27 presales guidance of ₹700 crore
  • FY27 launch pipeline of approximately ₹1,600 crore GDV:
  • ₹800 crore from commercial launch (Suraj One Business Bay Phase 2) - expected by end Q3 FY27
  • ₹250 crore from residential portfolio (Suraj Nova and Suraj Madonna) - targeting Q3 FY27 launch
  • Balance ₹550 crore expected in Q4 FY27
  • Positive long-term outlook for South Central Mumbai real estate market
  • Focus on timely project execution, maintaining sales/collection momentum, and selective pursuit of redevelopment opportunities

Q&A Session Highlights

Sales Guidance Achievement:

  • FY27 guidance of ₹700 crore primarily from ongoing projects and upcoming residential components
  • Strong traction expected from commercial project

Project Timelines:

  • Suraj One Business Bay expansion: Approvals received, construction commenced, excavation expected within 60 days
  • Residential launches (₹250 crore GDV) targeted for Q3 FY27

Debt Management:

  • Net debt increased by ₹96 crore primarily due to land acquisition (₹85 crore)
  • Target net debt of ~₹600 crore by FY27-end
  • Cost of debt at 13-13.25%

Cash Flow Expectations:

  • Balance receivables of ₹1,168 crore spread across various sites
  • Cash flows expected from completed projects and construction milestones
  • Standard construction-linked payment plan (20-30% on booking, 40-45% on plinth)

Bandra Project Update:

  • One land acquisition pending, others mostly closed
  • Charity commissioner and other approvals underway

Growth Strategy:

  • Actively evaluating society redevelopments and build-to-suit commercial transactions in South Central Mumbai
  • Commercial segment expected to become structurally larger contributor to profitability and cash flows
  • Remain focused exclusively on South Central Mumbai market
  • Exploring execution of existing land inventory before expanding to new micro markets

Management Participants

  • Mr. Rahul Thomas – Whole-Time Director
  • Mr. Shreepal Shah – Chief Financial Officer
  • SGA, Investor Relations Advisors