Sunteck Realty Ltd (SUNTECK) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Sunteck Realty Limited Q2 FY27 earnings conference call. Today we have with us, Mr. Kamal Khetan, the Chairman and Managing Director of the company and Mr. Prashant Chaubey, the Chief Financial Officer. Please note that this call will be for 30 minutes, and all participants for this duration will be in the listen-only mode. This conference call is being recorded and the transcript for the same may be put on the company's website. After the management discussion, there will be an opportunity for you to ask questions during the question-and-answer session. We request you to restrict questions to two per participant. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may not be based on the historical information or facts and maybe forward-looking statements, including those related to business statements, plans, and strategies of the company, its future financial condition, and growth prospect. These forward-looking statements are based on the expectations and projections and may involve a number of risks and uncertainties and other factors that could cause actual results, opportunities, and growth potential to differ materially from those suggested by such statements. I now hand the conference over to Mr. Kamal Khetan from Sunteck Realty Limited. Thank you and over to you, sir.
Kamal Khetan (Sunteck Realty Limited): A very good evening to everyone and thank you for joining us for our earnings conference call for second quarter and first half of FY27. I will keep my remarks brief and focused on the key developments of the half. I'm pleased to share that Sunteck has delivered a strong performance reflecting our continued growth momentum of operational excellence and commitment to creating long-term value for our stakeholders. We have delivered a strong first half with growth across pre-sales, collections, cash flows, revenue and profits, sustaining the CAGR of 25% across all major operational and financial parameters over the last five years. On business development, during the quarter, we have acquired a new land parcel of 4.5 acre at Borivali West through an outright purchase. This takes our assembled land holding at Borivali West from 7 acres to 11.5 acres and with an estimated GDV value of 80 billion rupees. This will further enhance the project scale, development potential and set the benchmark for uber luxury living in that micromarket. With this addition, our total GDV stands at 469 billion, of which 260 billion is already launched or to be launched, providing us us a several years of launch visibility. We continue to evaluate further business development opportunities, several of which are at advanced stage. Our approach remains focused, disciplined and capital efficient. Every new acquisition must clear the same filters we have always applied. A high high IRR, a high equity multiple and a minimum project level EBITDA margins of 30 to 35%. We will continue to do our acquisitions across all models such as capital light JD,
Kamal Khetan (Sunteck Realty Limited): JV, redevelopment and outright purchases. Now, on Nepean Sea Road, this is one of our most significant project in our Uber Luxury portfolio. Approvals are at advance stage and once the construction is underway, the project will be a meaningful contributor to both pre-sales and collections. Since now we don't see the visibility, in in terms of Dubai project, now since we don't see the visibility to launch the Dubai project in next 1 or 2 quarters in spite of we being launch-ready for the Dubai project, to to keep the GDV number more realistic, we have moved the Dubai project from to-be-launched GDV to upcoming for launch GDV, and this has been explained properly by us in the slide 10 of Q2 and H1 FY '27 investor presentation. However, our conviction in the project or economics continues to remain very bullish. Our launch pipeline for FY '27, excluding Dubai, stands at 70 billion, and the second half is weighted towards launches. The key launches planned for H2 are Sunteck Bellwether Park at Mira Road on the Western Express Highway, which we are confident will be our second of second successful project at Mira Road after Sunteck Sky Park, and a residential project at Andheri, along the Western Express Highway. Finally, on sustainability, we have retained our GRESB Green Star, green Five Star rating for second consecutive year, with our score improving to 98.8 in 2026 from 98.6 in 2025. Even as GRESB average declined to 86.2 from 88, widening our lead over the benchmark. During the quarter, 4th Avenue at Sunteck City also achieved the EDGE advanced certification from Green Business Certification GBCI, with over 50% savings in energy, water and embodied carbon and estimated CO2 saving of 1,100 tons annually. This recognition reflects our focus on resource efficiency and sustainable construction, and keep us rated among the best in the global real estate. I shall now hand over the call to Prashant Chaubey to take you through the financial performance for Q2 and H1 FY '27 in greater detail.
Prashant Chaubey (Sunteck Realty Limited): Thank you, sir. Good evening, everyone. Our results and investor presentation are available on our website and the stock exchanges. The CMD has covered the developments of the half. I will focus on what is driving the numbers. The key operational and financial highlights are as follows. Pre-sales stood at ₹824 crores in quarter 2 of FY '27 and ₹1,611 crores in H1 of FY '27. The segment mix of our pre-sales remains well balanced in quarter 2. Uber Luxury contributed 25%, Premium Luxury 51% and Aspirational Luxury 25%. This mix carries a high embedded EBITDA margin on both our FY '26 and H1 FY '27 pre-sales, which will flow through to reported profitability as projects reach revenue recognition. Collections stood at ₹371 crores in quarter 2 and ₹780 crores in H1 FY '27. As recent sales are weighted towards early stage projects where milestone linked collections are back-ended. On reported financials, in quarter 2, revenue grew 27% year-on-year to ₹3.2 billion, EBITDA 13% and PAT 17%. In H1, revenue grew 16% to ₹5.1 billion, EBITDA 23% to 1.6 billion with an embedded EBITDA margin expanding 160 bps to 30%, and PAT 20% to ₹1 billion.
Prashant Chaubey (Sunteck Realty Limited): At the half way mark EBITDA and PAT already stand at substantial levels of FY26 numbers. And with the second half typically a strong half, we are well placed for a strong year. Reported margins will continue to converge towards the embedded EBITDA margin of our presales. On cash flows, our net operating cash flow surplus for H1 grew 27% year-on-year to ₹3.5 billion, which is 63% of FY26 record full year surplus and 45% of collections up from 40% a year ago. On a trailing 12-month basis, the surplus stands at ₹6.3 billion. This surplus was delivered investing ₹3.9 billion in business development during the half. Finally, annuity income is running at an annualized ₹86 crores against ₹76 crores in FY26 on FY26. Thank you. With this we open the floor for questions.
Moderator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Harsh Pathak with Motilal Oswal. Please go ahead.
Harsh Pathak (Motilal Oswal): Yeah. Hi, sir. Good evening. My first question is on the launch pipeline for H2, like you highlighted there is 7,000 crores of pipeline coming up in H2 and the two projects you highlighted for Mira Road and Andheri. So, what would be the respective GDV of this projects, and any other phases of existing project that we are planning to launch?
Kamal Khetan (Sunteck Realty Limited): Good evening, Harsh. Yeah, so, I will first tell you take you through the all the launches which we are from the existing project and the new project. So, what we are looking at Sunteck Bellavita park which is in the Mira Road to the next project Mira Road this is one launch. And another one which is on the Andheri Western Express Highway, again a residential redevelopment project. Third is we are looking at a new tower at Sunteck City, Oshiwara, the Altavia project which we launch tower one, now we are looking in H2 the tower two. And Borivali West one phase which which is which we have recently acquired and added to the seven-acre acre existing land parcel. That also we are looking to do it in H2, plus the new tower at Sunteck Beach Residences which is SBR, one more new phase or new couple of towers in Sunteck World, and couple of new towers in Sunteck Crescent Park. So, all this put together makes total of 7,000 crores. And when it comes to the new launch in Mira Road 2 you have specifically asked what is the GDV? We are looking at close to 1,200 to 1,400 crore GDV from there and Andheri West, the new project, once again on the Western Express Highway, there we are looking at a GDV again close to similar 1,250 crores to 1,500 crores.
Harsh Pathak (Motilal Oswal): Understood. Thanks for those details. My next question is on the sales mix. I think this quarter we have seen some improvement in sales on the affordable housing segment. So, how are you seeing you know the traction in the respective segments, luxury, mid-luxury, mid-income and the affordable housing, and how do you expect the overall annual presales to be for this year?
Kamal Khetan (Sunteck Realty Limited): So, we we have seen that obviously in the last quarter also we said we are seeing a uptick in our aspirational luxury segment and that's what we are seeing that percentage of growth we are seeing in at least our both the projects, whether it is Naigaon and plus the Kalyan project. When it comes to uber-luxury segment, we have been doing obviously sales from the whatever we do for at BKC and Nepean
Kamal Khetan (Sunteck Realty Limited): obviously the inventory at BKC is now diminishing, so that's where we will see a much bigger run coming from the uber luxury segment from Napean Sea Road. And in the in the premium luxury segment obviously our sales mix has been 50%. So now when it comes to the mix, I would say uber luxury segment did 27% and premium luxury segment did 50%, and aspirational luxury segment did 23%.
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