Suraj Estate Q1 FY27 Earnings Call — Analysis (NSE: SURAJEST)
Suraj Estate posted 74% YoY growth in Q1 FY27 sales value to ₹141 Cr driven by commercial traction, guiding for ₹700 Cr pre-sales and a ₹1,600 Cr launch pipeline in FY27.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q1FY27 Total Income ₹146 Cr ( +10% YoY ) . New guidance — FY27 fy27 presales value ₹700 Cr . New story: South Central Mumbai Market Leadership .
Results
Revenue ₹146 Cr (+10% YoY), EBITDA ₹55 Cr (+9% YoY) with 37.5% margin, PAT ₹23 Cr (+7% YoY), and pre-sales value ₹141 Cr (+74% YoY).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Total Income | ₹146 Cr | +10% | yoy · Q1FY27 |
| EBITDA | ₹55 Cr | +9% | yoy · Q1FY27 |
| EBITDA Margin | 37.5% | none · Q1FY27 | |
| PAT | ₹23 Cr | +7% | yoy · Q1FY27 |
| Sales Value | ₹141 Cr | +74% | yoy · Q1FY27 |
| Sales Area | 28,834 sq ft | +74% | yoy · Q1FY27 |
| Collections | ₹86 Cr | -25.2% | yoy · Q1FY27 |
| Net Debt | ₹614 Cr | point_in_time · Q1FY27 · Jun-26 | |
| Gross Debt | ₹646.94 Cr | point_in_time · Q1FY27 · Jun-26 | |
| Cash & Cash Equivalents | ₹33.03 Cr | point_in_time · Q1FY27 · Jun-26 | |
| Balance Receivables | ₹1,060 Cr | point_in_time · Q1FY27 · Jun-26 | |
| Unsold Inventory GDV | ₹950 Cr | point_in_time · Q1FY27 · Jun-26 |
Guidance
Guided FY27 presales of ~₹700 Cr supported by a ₹1,600 Cr launch pipeline, with revenue growth targeted at 10-15% and EBITDA margins at 35-37%.
What management committed to
- Overall, we're going to be targeting a presales of about INR700 crores, both put together [residential and commercial for FY27]. — INR700 crores, FY27
- The launch pipeline in total for this financial year [FY27] is about INR1,600 crores. — INR1,600 crores, FY27
- Close to 10%- 15% growth we will achieve [in accounting revenue] as compared to the last financial year. — 10%- 15%, FY27
- It [EBITDA margin] will be in the range of 35% to 37% [for the next 2 years]. — 35% to 37%, FY28
- Our target is to at least minimum sell a further 1 lakh square feet in One Business Bay [during FY27]. — 1 lakh square feet, FY27
- In terms of a launch pipeline in terms of the Bandra project, it will be in the next financial year [FY28]. — FY28
Key themes
Launch pipeline acceleration and commercial monetization
How the narrative shifted
- South Central Mumbai Market Leadership: Management emphasizes scarcity of land and robust commercial/luxury demand in South Central Mumbai micro-markets (Mahim, Dadar, Prabhadevi) as structural growth drivers.
- Commercial Real Estate Expansion: Suraj One Business Bay is serving as the primary near-term monetization driver, with Phase 2 adding ₹800 Cr GDV via amalgamation.
- Launch Pipeline Execution: FY27 pre-sales growth is heavily back-ended via ₹1,600 Cr of launches across Q2, Q3, and Q4.
- Debt and Capital Deployment: Net debt has increased to ₹614 Cr to fund BD and approvals, framed as a temporary rise before cash flows from launches monetize.
Operational commentary
- Suraj One Business Bay (Mahim marquee commercial project) achieved ~33% inventory sales post-launch; concession plan approved for adjoining amalgamated parcel.
- Acquired land parcel in Dadar West for ~₹18 Cr with sale potential of ~18,000 sq ft and estimated GDV of ~₹100 Cr.
- Bandra project has two conveyances pending with launch targeted for next financial year (FY28); estimated approval premiums of ₹300-350 Cr to be funded via internal accruals initially.
- Unsold ongoing inventory stands at 22,000 sq ft residential (GDV ~₹109 Cr) and 1.4 lakh sq ft commercial (GDV ~₹841 Cr), totaling ₹950 Cr.
- Launch phasing planned for FY27: ~₹240 Cr in Q2 (Suraj Nova ~₹180 Cr, Madonna ~₹60 Cr), ~₹880 Cr in Q3 (Suraj One Business Bay Phase 2 ~₹800 Cr, Shivteerth ~₹80 Cr), and ~₹480 Cr across 3 projects in Q4.
Analyst Q&A
Q. Target for operating cash flow generation and collections for FY27
Declined to provide guidance on call, stating it could be discussed offline.
Q. Status and timeline for amalgamation of the third plot in Bandra project
Explained that conveyance/tie-up of ownership must be completed first before setting BMC amalgamation timelines, targeting ownership tie-up within FY27.
Q. Funding plan and required capital for the Bandra project launch
Initial capital of ~₹300-350 Cr for premiums will be funded through internal accruals as no debt is on land; institutional tie-up (CF/NBFC) will follow closer to launch.
Q. Trajectory of net debt given ₹614 Cr level and upcoming capital deployment
Debt will rise temporarily to support the ₹1,600 Cr launch pipeline and business development before declining sustainably as commercial and value luxury sales monetize.
Research and educational content only. Not investment advice.