Suraj Estate Developers Ltd (SURAJEST) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY27 earnings conference call hosted by Suraj Estate Developers Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I would now hand the conference over to Mr. Rahul Thomas, Whole-time Director from Suraj Estate Developers Limited. Thank you, and over to you, sir.
Rahul Thomas (Suraj Estate Developers Limited): Good afternoon, everyone. I welcome you all to our Q2 and H1 earnings conference call. Along with me, I have our CFO, Mr. Shripal Shah, and SGA, our Investor Relations advisors. I hope all of you have gone through our investor presentation uploaded on the stock exchanges and our company website. Before taking you through our performance, let me briefly touch upon the real estate market in which we operate. South Central Mumbai continue continue to be among the city's most established and premium real estate markets. These locations benefit from well-developed social infrastructure, strong connectivity, proximity to key employment centers, and an established commercial ecosystem. In the commercial segment, locations such as the CBD and Worli continue to see limited availability of quality Grade A office spaces, while Lower Parel remains as an active leasing destination, supported by demand from established corporate occupiers. This, coupled with limited development opportunities in this established locations, supports the premium positioning of the commercial market. On the residential side, South Central Mumbai continues to attract demand across the value luxury and luxury segments. Established neighborhoods such as Worli, Prabhadevi, Lower Parel, Parel, Dadar, and Matunga remain preferred destinations for home buyers. At the same time, redevelopment is playing an increasingly important role in creating new housing supply, particularly given the limited availability of vacant land parcels in these mature locations. These are the markets where Suraj Estate has built its presence and developed strong execution capabilities over the years. Our understanding of these micro-markets, particularly our expertise in redevelopment and tenant settlement, position us to well capitalize on the opportunities emerging across the residential and commercial segment. Overall, we believe that the established nature of these locations, continued demand from homebuyers and commercial occupiers, and the availability of redevelopment opportunities will continue to support the long-term attractiveness of South Central Mumbai. Coming to our business performance, we continue to witness healthy momentum sales momentum during the quarter. During Q2 FY27, we recorded a sales value of 206 crores, compared to 153 crores in the corresponding quarter last year, registering a growth of 35% year-on-year. Sales area increased by 19% to 41,487 sq ft, while collections stood at 104 crores, reflecting a growth of 46% over the previous year. On a half-year basis, sales value stood
Rahul Thomas (Suraj Estate Developers Limited): 147 crores, registering a growth of 48% year-on-year. Sales area increased by 37% to 70,321 square feet, while collection stood at 190 crores compared to 186 crores in H1 of FY26. This performance reflects the continued contribution of our residential and commercial developments and the healthy traction across our project portfolio. One of the key highlights during the quarter was the encouraging response to Suraj One Business Park, our marquee commercial development in Mahim. These This project has witnessed a This project has witnessed strong market traction, with approximately 500 crores worth of inventory sold since its launch. We have also completed the acquisition of development rights for the adjoining land parcel, which will further enhance the scale and development potential of the project. With this expansion, the combined project will have an estimated saleable area of 3.59 lakh square feet, taking its GDV potential to around 2,000 crores compared to the earlier estimate of 1,200 crores. We believe this expansion will further strengthen our commercial portfolio and consolidate our presence in the Mahim micro market. In addition, we have received Commencement Certificate for Lobo Villa and Ellis Villa, which is now named as Suraj Nova, and work on the project has commenced. Located in Mahim West, this value luxury residential project is planned for launch in Q3 FY27, with RERA registration also expected during the same quarter. Similarly, we have received Commencement Certificate for Suraj Madonna, a value luxury residential project in Dadar West, which is also targeted for launch and RERA registration in Q3 FY27. Together, two projects have an estimated combined GDV of 250 crores and are expected to further strengthen our presence in the South Central Mumbai market. Moving to our overall project portfolio, as of September '26, our ongoing projects had achieved a cumulative sold area of 6.36 lakh square feet at an average realization of approximately 46,170 per square foot. Collections received from these projects stood at 1,770 crores with a balance receivable of approximately 1,168 crores. In addition, our unsold area stood at 1.20 lakh square feet with an estimated GDV of around 708 crores. Taking together the balance receivable from sold inventory and estimated value of unsold, the total total estimated receivables from our ongoing projects stand at approximately 1,876 crores, providing healthy visibility of future cash flows. Currently, we have 13 ongoing sites with a development area of 23.54 lakh square feet and a saleable RERA carpet of 7.57 lakh square feet. In addition, our upcoming pipeline comprises of 18 projects with an estimated GDV estimated carpet area of 13.46 lakh square feet. This provides us with a strong pipeline to support our growth in the coming years. Looking ahead, we remain positive about the long-term prospects of South Central Mumbai real estate market. The combination of sustained demand for premium housing, established commercial locations, and redevelopment opportunities continues to create attractive growth opportunities for the company. Our focus will remain on progressing our ongoing projects, bringing upcoming developments to the market, maintaining healthy sales and collection momentum, and selectively pursuing redevelopment opportunities that complement our existing portfolio. With our established presence across South Central Mumbai, strong understanding of the local market, and growth pipeline project pipeline, we remain confident of achieving our FY27 presales guidance of 700 crores. With this, I would like to hand over the call to Mr. Shreepal Shah, who will take you through the financial performance and the key operation highlights in greater detail. Thank you.
Shripal Shah (Suraj Estate Developers Limited): Thank you, Rahul. A very good afternoon, everyone. I will now take you through the financial and operational performance of the company for the Q2 and H1 FY 2027. Starting with our financial performance. Today, the total income for Q2 FY 2027 stood at ₹171 crores compared to ₹145 crores in the corresponding quarter last year, registering a growth of 18% year-on-year. EBITDA for the quarter stood at ₹56 crores compared to ₹66 crores in Q2 FY26 with an EBITDA margin of 33%. Profit after tax stood at ₹23 crores as
Shripal Shah (Suraj Estate Developers Limited): ₹33 crores in the last previous years. For H1 FY '27, the total income stood at ₹317 crores registering a growth of 14% year-on-year compared to ₹279 crores in H1 FY '26. EBITDA for the first half stood at ₹111 crores compared to ₹116 crores in the corresponding pre prior la- last year period with EBITDA margins of approximately 35%. Profit after tax for H1 FY '27 stood at ₹46 crores compared to ₹54 crores in H1 FY '26. Moving to our operational performance, we continue to see healthy sales momentum across our portfolio. During Q2 FY '27, we recorded a sales value of ₹206 crores compared to ₹153 crores in the corresponding last year quarter. Sales area increased to 41,487 sq ft from 34,846 sq ft, while collections during the quarter stood at ₹104 crores.
Moderator: Ladies and gentlemen, management line got disconnected. Stay connected till the- till then we connect with them.
Moderator: We have connected with the management line. Yes sir, go ahead, please.
Shripal Shah (Suraj Estate Developers Limited): For the H1 FY '27, sales value reached ₹347 crores compared to ₹234 crores in the previous year. Sales area also increased to 70,321 sq ft from rupees 50 for 51,372 sq ft, while collections stood at ₹190 crores. This reflects continued traction across our residential and commercial developments. Moving to our debt position, as of September 2 30, 2026, our gross debt stood at ₹800 crores and net debt stood at ₹710 crores. The increase in debt was primarily driven by business development activities and capital deployment towards our ongoing and upcoming projects. Overall, we continue to focus on maintaining healthy sales and collection momentum, while ensuring timely execution of our projects and strengthening our development pipeline. With this, I would like to hand over the call to the moderator for question-and-answer session. Thank you.
Moderator: Thank you so much. We will now begin the question-and-answer session. Anyone who wishes to ask question may press * and 1 on the touchtone telephone. If you wish to remove yourself from question queue, you may press * and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment for the question queue assemble. The first question is from the line of Mohit Mittal from GH Investments. Please go ahead.
Mohit Mittal (GH Investments): Hi sir. Thank you for this opportunity and hopefully I'm audible.
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