Summary
Sunteck Realty Limited - Q3 FY2026 Earnings Call Summary Wednesday, January 28, 2026 4:00 PM
Event Participants
Executives 2 Kamal Khetan (Chairman and MD), Prashant Chaubey (CFO)
Analysts 6 Abhinav Sinha, Abhishek Khanna, Abhishek Lodhia, Anuj Upadhyay, Harsh Pathak, Rishith Shah
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Presales (Q3) | ₹734 crores | +16.0% YoY; best ever 9M performance driven by ultra-luxury and premium segments. |
| Presales (9M) | ₹2,093 crores | +26.0% YoY; on track to meet annual guidance of ₹3,000 crores. |
| Collections (9M) | ₹1,001 crores | Driven by steady progress in existing projects; ₹319 crores collected in Q3. |
| Operating Revenue (Q3) | ₹344 crores | Significant jump due to revenue recognition from Sunteck City 4th Avenue (ODC). |
| EBITDA (Q3) | ₹82 crores | +77.0% YoY (9M basis); Q3 margin at 24% despite higher P&L expenses for new launches. |
| Net Profit (PAT) (Q3) | ₹57 crores | +34.0% YoY; 9M PAT grew 39% to ₹139 crores with 18% net margin. |
| Net Debt to Equity | 0.07x | Negligible leverage maintained despite aggressive ₹680 crores 9M BD investment. |
| Net Operating Cash Flow | ₹349 crores | +12.0% YoY for 9M; robust surplus supporting land acquisitions. |
Geographic & Segment Commentary
- ODC (Goregaon West): Revenue recognition commenced for 4th Avenue; 5th Avenue launched with focus on 3BHK/4BHK luxury units, seeing prices +10-12% higher than previous phases.
- Ultra-Luxury (BKC & Nepean Sea Rd): Signature Island (BKC) continues to sell ~₹100 crores/quarter with ₹655 crores inventory remaining; Nepean Sea Rd project (Emaance brand) involves high-end tenancy sales and invitation-only marketing.
- Aspirational/Affordable (Naigaon & Vasai): Naigaon saw a demand pickup in Q3 with new tower launches of ~₹400-500 crores GDV; management plans 2 more towers in Vasai (SBR) over next 2 quarters.
Company-Specific & Strategic Commentary
- Aggressive Business Development: Invested ₹623 crores in 9M FY26 (vs ₹180 crores in FY25), including a new 1.75-acre Sahar/Andheri land parcel (₹25 billion GDV) and the Nepean Sea Road acquisition (₹200 crores).
- Brand Segmentation: Launched “Emaance” brand specifically for elite, invitation-only ultra-luxury projects like Nepean Sea Road to maintain premium positioning.
- Inventory Strategy: Focused on high-IRR projects in Mumbai Metropolitan Region (MMR); management is avoiding cannibalization by staggering launches in Mira Road and Naigaon.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Presales | ₹3,000 crores for FY26 | Management is “overconfident” in meeting/surpassing this, requiring ~₹900 crores in Q4. |
| Launch Pipeline | Q4 FY26 - Q1 FY27 | Includes continuous spillover of 5th Avenue (ODC), Mira Road 4th tower, and new towers in Naigaon/Vasai. |
| Nepean Sea RERA | Q4 FY26 - Q1 FY27 | Approvals for the large-scale luxury project are in advanced stages; construction to follow. |
Risks & Constraints
| Risk | Context |
|---|---|
| Market Fragility | Management noted the broader market feels “slightly fragile” with some slowdown in luxury, though Sunteck’s own numbers remain stable. |
| Regulatory Approvals | Nepean Sea Road project lacks RERA for new sales (currently tenancy-based); any delay beyond Q1 FY27 could impact fresh booking momentum. |
| Revenue Volatility | High “other expenses” in P&L due to Ind AS norms where marketing/launch costs are expensed before revenue recognition can occur. |
Q&A Highlights
Launch Strategy & Sales Velocity
- Question: How will the company achieve the ₹900 crore Q4 run rate needed for guidance? (Abhishek Lodhia)
- Answer: Momentum will come from the 5th Avenue (ODC) launch, new towers in Naigaon, and consistent ultra-luxury sales at BKC and Nepean Sea Road. (Kamal Khetan)
Land Acquisition & BD Spend
- Question: Can you break down the recent ₹260 crore BD cash outflow? (Harsh Pathak)
- Answer: ₹140 crores went to the Sahar (Andheri) parcel, ₹15 crores for Bima Nagar redevelopment, and approximately ₹100+ crores for other ongoing project interests. (Kamal Khetan)
Nepean Sea Road Specifics
- Question: Is the lack of RERA approval dragging the Nepean Sea project? (Abhishek Khanna)
- Answer: No, the project is unique and involves complex tenancy arrangements (PAAA) which don’t require RERA for existing owners; new sales RERA is expected by Q1 FY27. (Kamal Khetan)
Segment Demand Trends
- Question: Which segments are showing pain points or strength? (Anuj Upadhyay)
- Answer: Mid-segment and affordable (Naigaon) are actually picking up faster than expected lately, while the ultra-luxury segment remains stable for Sunteck. (Kamal Khetan)
Key Takeaway
Sunteck Realty delivered a strong Q3 FY26, marked by a 26% YoY growth in 9-month presales reaching ₹2,093 crores and a 77% jump in EBITDA. The company is aggressively expanding its Mumbai footprint, having invested ₹623 crores in business development during the first nine months, including high-potential acquisitions in Andheri and Nepean Sea Road with a combined GDV of ₹50 billion. Financial resilience remains high with a negligible net debt-to-equity ratio of 0.07x, supported by consistent operating cash flows of ₹349 crores. While management acknowledged a fragile macro environment, they remain confident in achieving the ₹3,000 crore annual presales target, driven by the recent launch of 5th Avenue at ODC and a recovery in the aspirational housing segment. The primary watch point for investors remains the timely RERA approval and construction commencement at the high-margin Nepean Sea Road project.
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