Sunteck Realty Limited Q1 FY26 Investor Presentation Analysis
Sunteck Realty Limited has released its Investor Presentation for Q1 FY2026, providing insights into its operational and financial performance for the quarter ended 30th June, 2025. The presentation highlights strong growth in key financial metrics and a robust balance sheet, reaffirming the company’s strategic positioning in the Mumbai Metropolitan Region (MMR) real estate market.
Disclaimer & Important Notes
The investor presentation is based on estimates from Sunteck Realty Limited’s management and is intended solely for informational purposes. It does not constitute an offer or solicitation for the sale or purchase of securities. The information provided is confidential and should not be distributed without prior written consent. While the company believes the sources of information to be reliable, it does not guarantee accuracy or completeness, and the information is subject to change without notice.
The presentation contains forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially. The company is not obligated to update these statements. Financial statements from FY2016 onwards are prepared in accordance with Ind AS, with prior years following Indian GAAP. All data, including project elevations, are for representation purposes only and are based on revenue recognition and operational performance, excluding overheads for completed, ongoing, and future projects.
A note regarding Quasi-Equity and Others: With effect from March 9, 2020, Starlight Systems (I) LLP became a wholly-owned subsidiary. The balance of current and fixed capital of the retired partner, aggregating to approximately Rs 910 million, was converted into a 1% secured Non-Convertible Debentures (NCDs). These NCDs will be redeemed at a premium from the future free cash flow of specified projects over a tenure of 20 years. This effectively converts a previous partner’s capital contribution into long-term debt, impacting the adjusted net debt calculations.
Key Highlights of Q1 FY26
Sunteck Realty demonstrated strong operational and financial performance in Q1 FY26:
- Pre-sales: Grew to approximately Rs 657 crore, marking a significant 31% increase Year-over-Year (YoY).
- Collections: Stood strong at approximately Rs 351 crore.
- EBITDA: Increased to approximately Rs 48 crore, up 52% YoY.
- Net Income: Grew to approximately Rs 33 crore, a 47% increase YoY.
- EBITDA Margin: Improved to 25%, up 1,541 basis points.
- PAT Margin: Grew to 18%, up 1,054 basis points.
- Net Debt to Equity Ratio: Maintained a healthy 0.02x.
- Credit Rating: Fitch (India Ratings) affirmed the Long-term credit rating at ‘IND AA/Stable’.
Business Development: The company was selected as a preferred developer for a residential redevelopment project in Andheri, Mumbai, near Western Express Highway (WEH). This project spans approximately 2.5 acres with a development potential of 275,000 square feet and is poised to generate a Gross Development Value (GDV) of Rs 11 billion.
Strategic Overview
Sunteck Realty leverages its strong foothold in the Mumbai Metropolitan Region (MMR), which is recognized as one of India’s largest and fastest-growing real estate markets. The company boasts a luxury portfolio spanning various segments and micro-markets, from uber luxury to aspirational luxury. Its well-timed capital allocation strategy has led to acquisitions of over 50 million square feet with a GDV of approximately Rs 39,800 crore. Sunteck has successfully delivered 20 projects to date, employing Joint Development Agreements (JDA) and outright models for acquisitions.
The company’s annuity income portfolio is expanding, with over Rs 300 crore in rental income and a capital value creation potential of up to Rs 5,000 crore. Sunteck Icon and Sunteck BKC 51, two of its commercial assets at BKC Junction, have been pre-leased for 29 years, generating an average Return on Invested Capital (ROIC) of approximately 30%. The company projects its total average annual rental income to grow from ~Rs 70 crore in FY2025 to ~Rs 320 crore by FY2028-29E.
Financial Performance
Operational Trend (Consolidated)
The company’s operational performance for Q1 FY26 reflects significant growth compared to Q1 FY25 and strong annual performance for FY25.
Operational Trend (Rs in crore)
| Operational Trend | Q1 FY26 | Q1 FY25 | Q4 FY25 | FY25 |
|---|---|---|---|---|
| Pre-Sales | 657 | 502 | 870 | 2,531 |
| Collections | 351 | 342 | 310 | 1,255 |
Annual Pre-sales (~Rs cr)
| FY | Pre-sales (Rs cr) |
|---|---|
| FY21 | 1,022 |
| FY22 | 1,303 |
| FY23 | 1,602 |
| FY24 | 1,915 |
| FY25 | 2,531 |
Annual Collections (~Rs cr)
| FY | Collections (Rs cr) |
|---|---|
| FY21 | 780 |
| FY22 | 1,053 |
| FY23 | 1,250 |
| FY24 | 1,236 |
| FY25 | 1,255 |
Cash Flow Performance
Net CF Surplus (~Rs cr)
| FY | Net CF Surplus (Rs cr) |
|---|---|
| FY21 | 281 |
| FY22 | 239 |
| FY23 | 428 |
| FY24 | 484 |
| FY25 | 374 |
Cashflow RoCE (%)
| FY | Cashflow RoCE (%) |
|---|---|
| FY21 | 15% |
| FY22 | 12% |
| FY23 | 22% |
| FY24 | 21% |
| FY25 | 16% |
Note: Cashflow RoCE is calculated as Net CF Surplus / Adjusted Networth. Adjusted Networth for FY25 was approximately Rs 2,367 crore, derived from Total Average Equity (~Rs 3,192 crore) minus Capital Reserve (~Rs 825 crore).
Cash Flow Statement (Consolidated)
Particulars (~Rs cr)
| Particulars | Q1 FY26 | Q1 FY25 |
|---|---|---|
| Gross Collections | 351 | 342 |
| Less: Project Expenses | 162 | 158 |
| Less: JDA Revenue Share | 13 | 23 |
| Gross Operating Cash Flow Surplus | 176 | 161 |
| Less: Other Expenses | 68 | 61 |
| Net Operating Cash Flow Surplus | 108 | 100 |
| Amount spent on BD/LO/JDA Cost | 307 | 88 |
Cumulative NOCF Surplus (~Rs cr)
| Period | Cumulative NOCF Surplus (Rs cr) |
|---|---|
| FY21 | 281 |
| FY22 | 520 |
| FY23 | 948 |
| FY24 | 1,432 |
| FY25 | 1,806 |
| Q1FY26 | 1,914 |
Net Debt & Credit Rating
Particulars (~Rs cr)
| Particulars | FY23 | FY24 | FY25 | Q1FY26 |
|---|---|---|---|---|
| Gross Debt | 593 | 295 | 336 | 445 |
| Less: Cash & Cash Eq. | 158 | 106 | 203 | 70 |
| Less: Loans to JDA partners | 155 | 198 | 259 | 302 |
| Net Debt | 280 | -8 | -125 | 73 |
| Net Worth | 2,788 | 3,124 | 3,260 | 3,295 |
| Net Debt / Equity | 0.10x | -0.00x | -0.04x | 0.02x |
| Quasi-Equity and Others* | 93 | 79 | 51 | 44 |
| Adjusted Net Debt | 373 | 72 | -74 | 117 |
| Adj. Net Debt / Equity | 0.13x | 0.02x | -0.02x | 0.04x |
Sunteck Realty maintains a robust financial position with a low Net Debt to Equity ratio, indicating healthy leverage management. The company’s long-term credit rating of ‘AA’ from India Ratings (Fitch) further underscores its financial strength and stability.
P&L Statement (Consolidated)
PROFIT & LOSS STATEMENT (Consolidated) (Rs in crore)
| Particulars | Q1 FY26 | Q1 FY25 | Q4 FY25 | FY25 |
|---|---|---|---|---|
| Operating Revenue | 188 | 316 | 206 | 853 |
| EBITDA | 48 | 31 | 69 | 186 |
| - Margin (%) | 25% | 10% | 33% | 22% |
| PBT | 43 | 29 | 66 | 182 |
| Net Income | 33 | 23 | 50 | 150 |
| - Margin (%) | 18% | 7% | 24% | 18% |
Balance Sheet (Consolidated)
BALANCE SHEET (Consolidated) (Rs in crore)
| Liabilities | March ‘25 | March ‘24 | Assets | March ‘25 | March ‘24 |
|---|---|---|---|---|---|
| Networth | 3,260 | 3,124 | Receivables | 117 | 293 |
| Borrowings | 387 | 375 | Inventories | 6,206 | 5,966 |
| Non-Current Liabilities | 17 | 17 | Loans & Adv. | 347 | 290 |
| Current Liabilities | 1,219 | 1,194 | Cash & Bank | 203 | 106 |
| Others Liabilities | 3,444 | 3,213 | Others Assets | 1,453 | 1,269 |
| Total | 8,327 | 7,924 | Total | 8,327 | 7,924 |
Operational Performance Break-up
Q1 FY26 Pre-sales (~Rs cr) by Segment
| Segment | Pre-sales (~Rs cr) |
|---|---|
| Uber Luxury | 380 |
| Premium Luxury | 226 |
| Aspirational Luxury | 45 |
| Others | 6 |
| Total | 657 |
ESG & Awards
Sunteck Realty achieved an outstanding GRESB (Global Real Estate Sustainability Benchmark) score of 96 for FY2024, earning the prestigious “Sector Leader award” in the 2024 GRESB Real Estate Assessment for the Development Benchmark. This places Sunteck among the top 20% of global real estate performers, highlighting its strong commitment to ESG principles.
The company has also made significant strides in green building initiatives:
- Four projects (4th Avenue, SunteckCity, Maxxworld & Oneworld, and Sunteck Beach Residences) have been awarded EDGE (Excellence in Design for Greater Efficiencies) Pre-certification by IFC-World Bank Group.
- Its corporate headquarters, Sunteck Centre, has received LEED GOLD certification from the US Green Building Council.
- Three of its commercial buildings (BKC51, Icon, and Crest) have also been awarded EDGE - IFC pre-certification.
Sunteck Realty has received numerous awards, including the ‘International Asia Pacific Property Awards’ UK 2024-25 for ‘Sustainable Residential Development’ for its ‘4th Avenue, Sunteck City’ project, further recognizing its excellence in various aspects of real estate development and sustainability.
Summary
Sunteck Realty Limited demonstrated a robust start to FY26, with significant year-over-year growth across key operational and financial metrics.
- Strong Sales Growth: Pre-sales for Q1 FY26 jumped by 31% YoY to Rs 657 crore, driven primarily by the Uber Luxury segment (Rs 380 crore). This indicates strong demand for their premium offerings.
- Profitability Surge: EBITDA witnessed a substantial 54.8% YoY increase to Rs 48 crore, and Net Income grew by 43.5% YoY to Rs 33 crore. This led to notable improvements in margins, with EBITDA margin rising by 15 percentage points to 25% and PAT margin by 11 percentage points to 18%.
- Efficient Cash Flow Management: Gross collections remained strong at Rs 351 crore. While Net Operating Cash Flow Surplus saw a modest increase (from Rs 100 crore in Q1 FY25 to Rs 108 crore in Q1 FY26), the cumulative NOCF surplus continues to grow, reaching Rs 1,914 crore by Q1 FY26. However, the spend on BD/LO/JDA Cost saw a significant increase from Rs 88 crore in Q1 FY25 to Rs 307 crore in Q1 FY26, suggesting increased investment in land acquisition and development activities.
- Healthy Balance Sheet: The company maintained a very low Net Debt to Equity ratio of 0.02x in Q1 FY26, shifting from a net cash position in FY25 (-0.04x). This indicates a slight increase in net debt but remains well within comfortable levels for expansion. Gross debt increased from Rs 336 crore (FY25) to Rs 445 crore (Q1 FY26), while cash and bank balances decreased from Rs 203 crore (FY25) to Rs 70 crore (Q1 FY26). Inventories also saw a slight increase from Rs 5,966 crore (Mar'24) to Rs 6,206 crore (Mar'25), reflecting ongoing project development.
- Strategic Expansion: The company’s new residential redevelopment project in Andheri with a GDV of Rs 11 billion underscores its strategic focus on expanding its luxury portfolio in key MMR micro-markets.
- Commitment to Sustainability: High GRESB scores and various green building certifications (EDGE, LEED Gold) highlight Sunteck’s commitment to ESG, enhancing its brand reputation and appeal to environmentally conscious investors and buyers.
Overall, Sunteck Realty’s Q1 FY26 results reflect a strong operational momentum, improved profitability, and a continued focus on strategic growth and sustainability in the MMR real estate market.
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