SURAJESTNSENovember 03, 2025

Suraj Estate Developers Limited

4,985words
101turns
14analyst exchanges
3executives
Management on call
Rahul Thomas
WHOLE-TIME DIRECTOR, SURAJ ESTATE DEVELOPERS LIMITED
Shreepal Shah
CFO, SURAJ ESTATE DEVELOPERS LIMITED
Ashish Samal
INTERNAL IR, SURAJ ESTATE DEVELOPERS LIMITED
Key numbers — 40 extracted
Rs. 2.47 crore
, and 3 BHK homes, ranging from 450 sq ft to 800 sq ft RERA carpet area with prices starting from Rs. 2.47 crores. The project with a saleable area of 0.24 lakh square feet with an estimated GDV of Rs. 120 cror
0.24 lakh
t RERA carpet area with prices starting from Rs. 2.47 crores. The project with a saleable area of 0.24 lakh square feet with an estimated GDV of Rs. 120 crores witnessed 39% sales at launch reflecting very
Rs. 120 crore
. 2.47 crores. The project with a saleable area of 0.24 lakh square feet with an estimated GDV of Rs. 120 crores witnessed 39% sales at launch reflecting very strong buyer confidence. Suraj Park Vi
39%
t with a saleable area of 0.24 lakh square feet with an estimated GDV of Rs. 120 crores witnessed 39% sales at launch reflecting very strong buyer confidence. Suraj Park View located in S
0.53 lakh
offering a blend of heritage, charm, sea-facing views, and modern design. With a saleable area of 0.53 lakh square feet and an estimated GDV of Rs. 250 crores, the project achieved 42% sales during launch
Rs. 250 crore
g views, and modern design. With a saleable area of 0.53 lakh square feet and an estimated GDV of Rs. 250 crores, the project achieved 42% sales during launch driven by strong demand and its excellent connecti
42%
leable area of 0.53 lakh square feet and an estimated GDV of Rs. 250 crores, the project achieved 42% sales during launch driven by strong demand and its excellent connectivity to Dadar Metro, BKC, t
13.66 lakh
k. Beyond these launches, Suraj Estate continues to maintain a robust pipeline of approximately 13.66 lakh square feet across 17 projects concentrated in South and Central Mumbai. These include a healthy
4.89 lakh
mmercial at Mahim West. Our ongoing projects continue to perform well with a total sold area of 4.89 lakh square feet and an average realization of 45,409 per square foot. We have achieved cumulative col
1,363 crore
nd an average realization of 45,409 per square foot. We have achieved cumulative collections of 1,363 crores with a balance receivable of 881 crores with an estimated GDV of 285 from our unsold inventory t
881 crore
square foot. We have achieved cumulative collections of 1,363 crores with a balance receivable of 881 crores with an estimated GDV of 285 from our unsold inventory translating into a combined visibility of
1,166 crore
ated GDV of 285 from our unsold inventory translating into a combined visibility of approximately 1,166 crores as on September 2025. This strong visibility of cash flow reflects our solid financial footing a
Guidance — 20 items
Rahul Thomas
opening
“I welcome you all to our Q2 and H1 FY26 Earnings Conference Call.”
Rahul Thomas
opening
“The project with a saleable area of 0.24 lakh square feet with an estimated GDV of Rs.”
Rahul Thomas
opening
“250 crores, the project achieved 42% sales during launch driven by strong demand and its excellent connectivity to Dadar Metro, BKC, the Coastal Road, and Bandra-Worli Sea Link.”
Rahul Thomas
opening
“This parcel will be merged with an adjacent existing project called Ambavat Bhawan and RK Mansion, creating a combined land area of 1,310 square metres with a saleable area of 0.32 lakh square feet with an estimated GDV of Rs 130 crores.”
Rahul Thomas
opening
“The project will be developed under Regulation 33(7) of the DCPR and will comprise of premium 1 and 2 BHK apartments with optimized layouts, wider frontage, and enhanced parking facilities.”
Rahul Thomas
opening
“Strategically located in Lower Parel, the project enjoys excellent connectivity to the Western and Central Railway Lines, Monorail and Coastal Road, as well as proximity to the key commercial, retail and lifestyle hubs.”
Rahul Thomas
opening
“Our marquee Mahim Commercial Project also continues to progress well.”
Rahul Thomas
opening
“Once launched, this project will serve as a key growth driver for Suraj Estate expanding our commercial portfolio and strengthening our presence in the Mahim sub-market.”
Shreepal Shah
opening
“EBITDA stood at Rs 115.9 crores in H1 FY26 versus Rs 122 crores in H1 FY25 (Wrongly said, this should be read as Rs 128.2 crores in H1 FY25).”
Shreepal Shah
opening
“On a quarterly basis, total income grew 32.6% year-on-year to Rs 145.4 crores in H1 FY26 (Wrongly said, this should be read as 145.4 in Q2 FY26) from Rs 109.6 crores in Quarter 2 FY25.”
Risks & concerns — 1 flagged
So, it is difficult to tell you an exact figure right now.
— Rahul Thomas
Q&A — 14 exchanges
Q
First, I would like to ask Mr. Shah, looking ahead, what internal practices or financial levers do you see most important for maintaining discipline across varying project timelines and market sizes.
Shreepal Shah
Primarily, we are going to invest in upcoming portfolio projects, and we ensure financial closure by availing debt and also maintain healthy collections to fuel the growth of the projects to enable us to complete the projects in a timely manner. Also, without saying that, we also would like to maintain a very healthy debt-to-equity ratio while we are expanding our projects. My final question is to Mr. Thomas. With regards to one of your properties, Ocean Star, I believe a lot of other projects which were ongoing in the area have been completed, but this particular project is still under constr
Q
I had three sub-questions on the Bandra projects. In the investor presentation we can see the three projects there. What might be the GDV for the three projects combined? What is the timeline for launch? And financing-wise, do we depend on the cash flows from our commercial project launch to finance that or will we also go for a preferential share issue as there is a motion for that?
Rahul Thomas
If we look at the investor presentation, the total square footage which we have for sales is approximately 2.76 lakh square feet. So, the area, the broad range of pricing in Mount Mary ranges from between 1 lakh to 1.50 lakh. If we take a 1 lakh potential also it comes to about Rs. 2,760 crores. So, roughly you can take a price line of Rs. 3,000 crores as a top line. In terms of the funding requirements, we are ideally wanting to use our internal accruals for now. But there could be a possibility that we will be raising some funds to at least kick-start the initial level of the project.
Q
Since we are planning to launch close to Rs. 2,000 crores of GDV in FY26, what sort of sales targets do we have for the rest half of the year?
Rahul Thomas
We have seen good velocity in our new launches, and we are quite confident that since we are in a commercial bull run as well, we see that we are going to get good traction once we launch our commercial, which is due in November. So, I strongly believe that we will be able to at least reach our pre-sales of Rs. 600 crores for this year. Any sort of guidance could you give for the revenue and margins for the next two years, FY26 and FY27? Margins, if you see, is broadly ranging between 30% to 35%. So, I think you can take that as an average. The launch guidance for FY27, do we have any number o
Q
Can you repeat about the pre-sales guidance for this year? What is the guidance?
Rahul Thomas
The guidance which we expect including the commercial is Rs. 600 crores. Second thing, I would just like to know, what is the expenditure towards the approval cost for this quarter for the commercial project in Mahim? What is the amount you have spent for the approvals? Close to Rs. 20 crores to Rs. 25 crores we have spent in the project. For the Bandra project, did we spend anything on the approval? No, nothing on the approval part.
Q
My question was on you have some 13-14 lakh square feet which you say estimated available for sale. So, while the Commercial you are launching this year, what is the timeline for other projects?
Rahul Thomas
As I said, this marquee project, which is the Commercial, in November is what we are expecting the RERA. That is when we can officially launch it. Having said that, Mount Mary is something which we are again focusing on as approved. Again, we require a lot of capital to be infused to up because the size being what it is, requires a lot of capital upfront. So, we can give you an exact timeline maybe a bit later after one quarter on the Bandra land parcel because we are just tying up some lose ends there. But the Commercial is something which we are very confident that we will be launching in No
Q
A new project is going to launch in November. Is there any expected date for the launch?
Rahul Thomas
Expected date, as I said, the RERA is expected in November. See, we cannot give an exact date because finally we need a RERA certificate and that itself is a process. So, can't give you exact date but you can take it within November month. We are confident that we will get the RERA certificate. Is there any regulatory delay in any kind of projects, your upcoming projects that you see? No, not any regulatory delay. As I said, there will be certain five projects which have to be launched in H2, requires certain IOD and CC. So, that is a work in progress as we speak. And we are confident that we
Q
My first question was that have you seen any kind of change in the buyer behavior, let's say like payment timelines or references this quarter compared to the previous year?
Rahul Thomas
Not that which is very alarming. We see it to be the same as before. Only shift we are seeing is the value luxury which we have launched, we have seen good response. So, I think the ticket size is also very relevant for the masses. I think that is a good spot to be in where we kind of cater to the larger audience. My second question was, are there any significant cost overruns or any kind of project delays in any of the key projects that investors should be aware of? As the earlier gentleman had said that we have hardly any unsold inventory from the ongoing sites. So, the new projects are very
Q
On Commercial, what is the kind of investment that you will need to make? Because even if you do sale model, payment will come linked to construction, right? And it also takes time to sell. So, how much investment would you need and how are you planning to finance that?
Shreepal Shah
With regard to the investment, we will need some approval related further payments this particular quarter, post which once sales are done, so we will be good with the cash flow as soon as. So, generally we collect 20% on our launch and then further as milestone in construction plan we provide. So, sufficient financial closure is also there in terms of we already have sanctioned limit of Rs. 250 crores for the said project. So, I think initial investment may be to the extent of Rs. 15 crores to Rs. 20 crores which will be required and post that we see good collections coming in once sales kick
Q
Mr. Thomas, we have had the discussion after the Q4 results in May, where I asked you, are there any plans to go for any other fundraise basically, and at that point in time, you mentioned that there are no plans as of now. So, my question is what changed in the four months that we are looking to have another fundraise? Are we doing it for business development or is it mainly to reduce our debt and complete our current projects?
Rahul Thomas
The provision which we have made is an enabling provision so that we could get an approval of the shareholders. Having said that, we are not saying that we are not going to raise any funds. We may raise, like if we have launched our Bandra project where it requires a lot of capital upfront, we will require a fundraise right now if we have to bring that project into light immediately in the next six to eight months. So, that investment is required. If we are looking at it strategically, if we do a fundraise, whether we can kickstart Bandra in a faster pace. So, that is why there was a decision
Q
First of all, I would like to understand what is our target mix between the luxury and mid- segment housing going forward? Also, how do you see the demand picking up in the Mumbai micro-markets in which we operate?
Rahul Thomas
We are focusing entirely all our new inventory and our new launches in the value luxury concept because that is what we are seeing traction and I feel that is the way forward, at least as part of our strategy. Having said that, Commercial again, like I mentioned earlier, we will be going for a sale model, not a lease model. And touchwood Commercial is doing well. However, for Bandra, as and when we start Bandra, that will be in the luxury segment because the per square foot rate in Bandra starts with 1 lakh. So, doing value luxury does not make sense there. So, that would be the only project w
Q
After our launch, how long does it take for the project to start contributing to revenue?
Shreepal Shah
Generally, it takes a quarter, A quarter, so maybe if we launch the Mahim project, the Commercial project in November, it should start contributing to the revenue from the March quarter itself. It also depends on the size of the project. If the project is very high, the size is very big, then it may take two quarters also. Whatever launch projects we have now, currently what would their approximate cost to company be for the project that are already launched, ongoing projects? So, it will be close to Rs. 650 odd crores for these ongoing projects. Against which we have sold the consol receivabl
Q
What is the value of the unsold inventory from ready-to-move-in projects?
Shreepal Shah
There is no unsold inventory in ready-to-move-in projects. All is sold out. Can you please highlight what is the funding requirement for the Mahim and Bandra projects before launching it? Which Mahim project you are saying? Mahim Commercial project and Bandra project, the two large projects, what is the funding requirement before launching it? As we speak today, at least we will require Rs. 15 crores to Rs. 20 crores in the approval part because we are in the advanced stages of obtaining CC and post which initial mobilization advance will be required. So, close to Rs. 25 crores to Rs. 30 crore
Q
This is on Bandra project, you mentioned it may launch after one year. So, is it still premature to give the guidance on the margin of that project if potentially you are saying top line of 2,500 crores or 3,000 crores on the three projects?
Rahul Thomas
It is a bit early to get into that discussion. Will the cash flow from the Commercial project help guide your decision on the fundraise for launching Bandra or fundraise is definitely required? I think it depends on the quantum. Of course, fundraise will be required but the quantum we will determine depending on the Commercial sale. Mahim, if I look at comparable, there is not much commercial property up for sale. So, is it a good market for commercial office space? I mean, the people who are living in that area or close by. We have seen the connectivity through that area is going through a se
Q
We thank you everyone for participating in our conference call and we are happy to answer any questions. You can reach out to our Investor Relation Advisors for any further details. Thank you very much.
Management
Speaking time
Rahul Thomas
27
Shreepal Shah
17
Moderator
16
Tushar Sarda
9
Anant Mundra
5
Ishita Lodha
5
Raghavendra Singh
4
Maitri Shah
4
Bhavin Modi
3
Rajendra Pasi
3
Opening remarks
Rahul Thomas
Thank you. Good afternoon, everyone. I welcome you all to our Q2 and H1 FY26 Earnings Conference Call. Along with me, I have our CFO – Mr. Shreepal Shah, Mr. Ashish Samal – our Internal IR, and SGA, our Investor Relations Advisors. I hope all of you have gone through our investor presentation uploaded on the stock exchange on our Company Website. The Mumbai Real Estate market continues to present significant growth opportunities particularly in the redevelopment sector. Within this, South and Central Mumbai remain the most attractive micro-markets, characterized by strong end-user demands, premium pricing, and limited supply. Despite the inherent challenges of fragmented ownership and legacy tenancies, these markets continue to see steady traction as demand for high-quality residential products remains robust. This environment creates a favorable backdrop for well-located luxury and value luxury projects, where established developers with a credible brand and strong execution track rec
Shreepal Shah
Thank you, Rahul. I will run you through the financial highlights for the quarter and half year ended September 2025. For H1 FY2026, total income grew 14% year-on-year to Rs 278.6 crores compared to Rs 244.3 crores in H1 FY2025. EBITDA stood at Rs 115.9 crores in H1 FY26 versus Rs 122 crores in H1 FY25 (Wrongly said, this should be read as Rs 128.2 crores in H1 FY25). And PAT stood at Rs 54.4 crores for the half year ended September 2026. On a quarterly basis, total income grew 32.6% year-on-year to Rs 145.4 crores in H1 FY26 (Wrongly said, this should be read as 145.4 in Q2 FY26) from Rs 109.6 crores in Quarter 2 FY25. EBITDA increased to Rs 65.6 crores versus Rs 64 crores in Q2 FY25. And PAT increased Rs 33.1 crores in Q2 FY26 from Rs 31.8 crores in Q2 FY25 supported by operating leverage during the Quarter. Operationally, pre-sales grew by 88.8% quarter-on-quarter and 42.4% year-on-year to Rs 152.9 crores in Q2 FY26. H1 FY26 pre-sales stood at Rs 233.9 crores with realizations at Rs
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