Shriram Properti Q1 FY27 Earnings Call — Analysis (NSE: SHRIRAMPPS)
Shriram Properties delivers its highest-ever Q1 presales of ₹484 Cr, enters premium Chennai residential and plotted development in Kolkata, and reaffirms confident FY27-28 growth targets underpinned by a strong launch and handover pipeline.
Result quality: poor — Revenue declined. Management sentiment: cautious.
The take
Q1FY27 Revenue ₹271 Cr ( +4% YoY ) . New guidance — FY27 fy27 presales ₹3,300-3,500 Cr .
Results
Q1 FY27 revenue ₹271 Cr (+4% YoY), EBITDA ₹42 Cr, PAT ₹11 Cr; presales ₹484 Cr (+10% YoY), collections ₹365 Cr (+8% YoY), 690 units handed over; margins suppressed by low-margin legacy Kolkata handovers but set to improve in H2.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Presales value | ₹484 Cr | +10% | yoy · Q1FY27 |
| Presales volume | 0.85 msf | +4% | yoy · Q1FY27 |
| Collections | ₹365 Cr | +8% | yoy · Q1FY27 |
| Revenue | ₹271 Cr | +4% | yoy · Q1FY27 |
| EBITDA | ₹42 Cr | +na | none · Q1FY27 · as reported |
| PAT | ₹11 Cr | +na | none · Q1FY27 |
| Handovers | 690 units | +na | none · Q1FY27 · as reported |
| Free cash flow before new project investments | ₹135 Cr | +na | none · Q1FY27 |
| Net free cash flow | ₹47 Cr | +na | none · Q1FY27 |
| Cash and equivalents | ₹219 Cr | +na | point_in_time · Q1FY27 · as of Jun-26 |
| Gross external debt | ₹651 Cr | +na | point_in_time · Q1FY27 · as of Jun-26 |
| Net debt | ₹432 Cr | +na | point_in_time · Q1FY27 · as of Jun-26 |
| Net debt to equity | 0.29x | +na | point_in_time · Q1FY27 · as of Jun-26 |
Guidance
FY27 presales guidance maintained at ₹3,300-3,500 Cr with collections ₹2,100-2,200 Cr; FY28 mission reiterated: sales ₹5,000 Cr, revenue ₹2,500 Cr, PBT ₹250 Cr, EBITDA margin 22-24%.
What management committed to
- Shriram Properties targets FY27 full-year presales of ₹3,300-3,500 crores. — ₹3,300-3,500 crores, FY27
- Shriram Properties targets FY27 collections of ₹2,100-2,200 crores. — ₹2,100-2,200 crores, FY27
- FY27 revenue will grow at least 20% year-on-year. — at least 20%, FY27
- FY27 PAT will grow 20-25% year-on-year. — 20-25%, FY27
- FY27 PBT margin expected at 8-9%. — 8-9%, FY27
- FY28 mission: presales of ₹5,000 crores. — ₹5,000 crores, FY28
- FY28 mission: revenue of ₹2,500 crores. — ₹2,500 crores, FY28
- FY28 mission: PBT of ₹250 crores (~10% PBT margin). — ₹250 crores, FY28
- EBITDA margin to reach 22-24% by FY28. — 22-24%, FY28
- Advanced-stage projects of over 7.3 million square feet with GDV potential of more than ₹6,000 crores are likely to be added to the pipeline over the next 3 to 6 months. — over 7.3 million sq ft, GDV >₹6,000 Cr, next 3-6 months
- The Pune Manjari project (2.3 million sq ft) will launch in Q3 FY27. — Q3FY27
- The Bannerghatta Road villament project (internal name T-John) will launch in Q3 FY27. — Q3FY27
Key themes
Premiumization, portfolio diversification, and execution momentum
Operational commentary
- Highest ever Q1 presales of ₹484 Cr (0.85 msf), driven by three launches including entry into premium Chennai residential (Shriram Stellar, ~20% sold on launch weekend) and plotted development in Kolkata (Shriram Southbrook, ~55% sold in 30 days).
- Kolkata land resolution translating into monetization; villa and plot pilot projects delivering ₹6-7.5 Cr net contribution per acre, informing strategy to self-develop rather than bulk-sell land.
- Strong handover pipeline: 2,900+ units with ₹1,560 Cr revenue potential scheduled for H2 FY27, providing visibility for sharp revenue and earnings acceleration.
- Project pipeline robust at 33.7 msf with GDV ~₹13,530 Cr; additional 7.3 msf likely to be added within 3-6 months, and 20+ msf under evaluation.
- Launches well distributed across Bengaluru, Chennai, Pune, Kolkata; 7 msf planned for FY27, reducing city-specific regulatory risk that impacted FY26.
- Business development added 0.7 msf (GDV ₹650 Cr) in Q1; FY27 capex discipline evident with ₹88 Cr invested, while free cash flow before project investments was ₹135 Cr.
- Balance sheet remains strong with net debt/equity 0.29x, cash ₹219 Cr, CRISIL A- rating; management sees sufficient capacity to fund growth without excessive leverage.
Analyst Q&A
Q. How will PBT margin improve from ~5% in FY26 to 10% by FY28, and what role does Kolkata land sale play?
Gopalakrishnan explained the target is bottom-up from project completions, not land sales. Legacy low-margin Kolkata projects (Grand One, Sunshine One) are winding down; newer projects with higher selling prices will lift margins. EBITDA margin expected to return to 22-24% by FY28.
Q. Why is collection growth (26-30%) much lower than presales growth (40-50%) for FY27?
Collections follow project progress; initial collection on new sales is only 10-20%. Since launches are back-ended in Q3/Q4, the bulk of collections from those presales will flow into next financial year.
Q. What is the break-up of FY27 presales between sustenance sales and new launches, and the launch GDV?
Sustenance sales expected around ₹1,400-1,500 Cr; balance from new launches. Total launch GDV for FY27 is ~₹6,000 Cr, with new sales contribution from these launches completing the ₹3,300-3,500 Cr target.
Q. How is the margin improvement being driven given the low margins this quarter?
Margin volatility is quarter-on-quarter due to product mix; legacy low-margin projects from Kolkata (sold at ₹4,500-5,000 per sq ft) are nearing handover completion. Post-COVID projects with selling prices averaging ₹7,600-7,700 per sq ft will drive margin recovery to mid-20s EBITDA and ~10% PBT as they reach handover in H2 FY27 and FY28.
Research and educational content only. Not investment advice.