Ladies and gentlemen, good day and welcome to Sunteck Realty Limited Q1 and FY 2027 Earnings Conference Call. We have with us today Mr. Kamal Khetan, the Chairman and Managing Director of the company, Mr. Prashant Chaubey, the Chief Financial Officer. Please note that this call will be for 30 minutes, and for the duration of the conference call, all participant lines will be in the listen-only mode. This conference call is being recorded and the transcript for the same may be put on the company's website. After the management discussion, there will be an opportunity for you to ask questions. There will be a Q&A session and we request you to restrict your question to two questions only per participant. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone.
Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or fact and may be forward-looking statements, including those related to business statements, plans, and strategies of the company, its future financial condition, and growth prospect. These forward-looking statements are based on expectation and projection and may involve a number of risks and uncertainties and other factors that could cause actual results, opportunities, and growth potential to differ materially from those suggested by such statement.
I now hand the conference over to Mr. Kamal Khetan from Sunteck Realty Limited. Thank you and over to you, sir.
A very good evening to everyone and thank you for joining us today for our company's earnings conference call for the first quarter of FY 2027. I will keep my remarks brief and focused on the key developments of the quarter. We have made a good start to FY 2027. Pre-sales for the quarter grew 20% year-on-year. Collections grew 17% year-on-year. And with the strong pre-sales of the last few quarters, we expect collections to accelerate further through the year. The segment mix of our pre-sales remains well-balanced. Uber luxury contributed 29%, premium luxury contributed 50%, and aspirational luxury contributed 21% of the quarter's pre-sales. This mix carries a high embedded EBITDA margin. The embedded EBITDA margin on both our FY 2026 and Q1 of FY 2027 pre-sales stands in the range of 35%-40%, which will flow through to the reported profitability as the project reach revenue recognition.
On reported financials, EBITDA grew 40% year-on-year, with the EBITDA margin expanding by 9.5 percentage points to 35%, and the PAT grew 26% year-on-year, with the PAT margin expanding by 4.2 percentage points to 22%. On the cash flow front, our net cash flow surplus grew 79% year-on-year. In spite continuing to invest in business development, our net debt to equity remains negligible at 0.07x, and our ratings, a double A long-term rating from India Ratings, a Fitch Group, remains among the strongest in Indian real estate. We have consistently maintained that we run the business on cash flow, not accounting revenue. We have been sharing our total GDV numbers in our investor communication.
This year, we have broken down our total GDV into three components, launched and to be launched, and the third is upcoming for launch GDV, in order to help investor understand our business better. Launch GDV indicates the projects that have received the relevant approval and that's already launched. To be launched GDV indicates projects that are under the approval process. The upcoming for launch GDV indicates projects that are in the planning and designing stage. Our existing GDV gives us several years of launch visibility without considering any new acquisitions. At the outset, we would also like to take this opportunity to update you on our Dubai project.
As we have shared earlier, we have all the required regulatory approval in place and the project is launch-ready. Only the timing of the launch has been recalibrated due to the ongoing situation. Finally, on sustainability, our GRESB score of 99 out of 100 with a green five-star rating and our S&P Global DJSI ESG score of 78 out of 100 keeps us rated among the best in global real estate, well ahead of the benchmark average of 68 and 30 respectively.
I shall now hand over the call to Prashant Chaubey to take you through the financial performance of Q1 FY 2027. Over to Prashant.
Thank you, sir. Good evening, everyone. I trust you have had the opportunity to go through our latest results and the investor presentation, which are published on our company website and the stock exchanges. I would like to take this opportunity to share a brief update on the financial and operational performance of the first quarter of FY 2027. The key details of operational and financial highlights are as follows. We sold INR 787 crores worth of area in quarter one of FY 2027, which is a 20% growth over quarter one of FY 2026 pre-sales of INR 657 crores. The segment mix remained well-balanced. Collections for quarter one of FY 2027 stood at INR 409 crores, a growth of 17% over INR 351 crores in quarter one of FY 2026.
On the profit and loss front, operating revenue stood at INR 191 crores for quarter one of FY 2027, as against INR 188 crores in the same period last financial year. EBITDA stood strong at INR 67 crores in quarter one of FY 2027, 40% growth over quarter one of FY 2026. EBITDA margin stood at 35%. Net profit of INR 42 crores, which is 26% growth over quarter one FY 2026, and net profit margin stood at 22%. We generated a net cash flow surplus of INR 193 crores during the quarter, a growth of 79% over quarter one FY 2026, after deploying INR 170 crores towards business development and land-related capital expenditure.
Thank you. With this, we open the floor for questions.
Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Harsh Pathak with Motilal Oswal. Please go ahead.
Yeah. Hi. Thanks for the opportunity. Kamal, just one question on the Dubai launch. While you highlighted that the timeline remains uncertain, is there a possibility this project will get launched in this financial or in FY 2028?
Yeah. Good evening, Harsh. Harsh, we are very clear that as we shared earlier also, all the required regulatory approvals are in place. The project today remains launch-ready. Only the timing of the launch has to be obviously recalibrated due to, we all know that's the ongoing situation. We don't want to launch in such a situation. Just to recap, our land parcel is one of the most in the prime location next to Dubai Mall in Burj Khalifa community, Downtown Dubai. That is one very big advantage. We are almost launch-ready. Whenever the market is there, we will immediately launch, when the market is right, I mean to say. Our land cost to GDV is very healthy. There is no debt on the project.
We maintain that our communication once again, that project continues to remain highly profitable irrespective of the situation what we are. Just to bring it to your knowledge, our investment in Dubai as on today on the project is close to not more than INR 200 crore , INR 225 crore. From that kind of investment, we are looking at such a large surplus cash flow, which will be coming out. We are definitely looking at this cash flow whenever it comes to bring it to India for, again, growth of the company overall.
Understood, sir. That's clear. Coming to your launch pipeline, you highlighted that you have broken down the GDV in three parts. Your to-be-launched GDV is close to INR 16,000 crore. Can you please break down what quantum can be launched in FY 2027 and FY 2028, and which would be the key projects here?
To-be-launched GDV, if you go, that includes obviously INR 9,000 crore coming from Dubai projects. If you remove that INR 9,000 crore, to-be-launched GDV is close to INR 8,370 crore or INR 7,100 crore, sorry. INR 7,100 crore, close to. Which is like ODC, the additional tower in ODC. Our Andheri redevelopment project near Western Express Highway. What we are looking at Sunteck Park, Mira Road Two. Mira Road One is already ongoing, we will be looking to launch the new project which we have acquired last year. The Vasai, there will be one tower. We recently launched two towers, and we are targeting to launch one more tower this year.
Naigaon, we are looking to launch again one or two towers. Again, we launched last year, again, we are planning to launch this year again. Looking at all these things, if you see, this is all put together is close to INR 7,100 crore.
Sure. I believe this entire inventory will come into launch in this financial year.
Yeah.
Yeah. Anything additionally that will be added to this launch pipeline, and what can we look for the next year?
Uncertainties are definitely only related to we can talk about Dubai, because we don't know how long the situation will be there. Otherwise, all the other projects pipeline, what we are looking to launch this year is close to INR 7,000 crore, what we are looking to launch.
Understood. One last question. What is the growth guidance for the pre-sales for this financial year and maybe even for FY 2028 also, if you can just throw some light?
Looking at the project pipeline, Harsh, we are very confident that we'll maintain. Although this quarter we have done 20% growth in pre-sales, but we are confident overall in the full year, we will match what we are given the guidance of 25%-30% growth in our pre-sales. Considering the full year of 2027, we'll be at least 25%-30% higher than the last year.
Understood.
Which is from pipeline, we are really very confident about it.
Sure. Any new business development?
I'm sorry to interrupt you, Mr. Pathak, but you may please rejoin the queue for more questions. Thank you.
Sure. Thanks.
Thank you. Thank you. Our next question comes from the line of Rishith Shah with Axis Capital. Please go ahead.
Yes. Thank you for the opportunity, and good evening, sir. Couple of questions. First, on the sales mix. This quarter, we have seen a good increase in the sales coming from affordable segment, as well as on the premium side, like ODC, SBR, et cetera. On the aspirational luxury specifically, what led to this growth? And similarly, some views on the premium luxury segment as well.
Aspirationally luxury, in fact, obviously, we are seeing the market getting improved because of the reason I feel is aspirational luxury, slightly we feel is picking up because of the lower interest rate. Also some sign of recovery somehow we are seeing. Mainly it came, basically we see that coming from Naigaon and Kalyan, both. Both are now giving, and we are very bullish on now Kalyan picking up more strongly. Obviously we have a large GDV there, so we want to monetize as early as possible. That two projects, obviously both are in aspirational luxury, only those two. It has come from both the projects.
When it comes to premium luxury, obviously Sunteck City in Goregaon and Sunteck Sky Park in Mira Road, and the Sunteck Beach Residences, SBR. All three contributed for this INR 391 crores. With coming quarter, we are again very confident because we will be launching in this segment Sunteck Sky Park 2, which is the next acquisition what we have done. Also the Tower 2 in Sunteck City, which will be coming. Due to this, we see the growth picking up. That's why we are confident that we will be able to achieve 25%-30% growth in our pre-sales for the FY 2027.
Sure. Just a follow-up. Launch that we had this quarter was just the SBR, and nothing in the aspirational segment, right?
Yeah. This quarter, we didn't do any launch. In spite of this, we could do good aspirational luxury sales.
Perfect. Secondly, regarding the collections, how are we looking at the collections overall for this full year? Can you give any guidance? Related to that, anything on the RERA approval for the Nepean Sea project?
Proportionately, obviously, the collection has to grow, that I made the same remark in my opening speech. Obviously the bigger collection will start happening once we start the construction of Nepean Sea Road. That will definitely give us a big collection. If you see trailing if you see, our collections are close to INR 1,500 crore, which is again stronger than the past 12 months. This will continue to become stronger and stronger, looking at the last few quarters what we have been doing the pre-sales.
Sure. Would you like to attach some number to it for this year?
You will see a similar growth. I would say 25%-30% growth in the pre-sales also.
Perfect. Thank you so much.
Thank you. Thank you, Rishith.
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participant, we kindly request you to limit your question to two question only per participant. If you have a follow-up question, please rejoin the queue. Thank you. Our next question comes from the line of Vasudev from Nuvama Wealth Management. Please go ahead.
Yeah. Thank you for the opportunity, sir, and congratulations on a good set of numbers. My first question is, how is our business development pipeline looking like? In Q1, we had a BD spend of about INR 170 crore. For the full year, what is the amount estimated?
Prashant, would you like to share?
Yeah. Hi, Vasudev. The INR 170 crore that we spent in quarter one is mainly for Nepean Sea, Mira Road 2 and certain redevelopment projects. That is where we have spent the INR 170 crore.
With this spend, obviously some has gone into redevelopment and some we have initially given as a token money. You will see some good acquisition BD announcements for sure. If you see last year also, it was like our highest spend on BD what we did more than INR 800 crore in FY 2026. We are looking to, in fact, surpass this number, looking at our strong balance sheet and the markets, and what we are already under negotiation or in the advanced stage. We are looking to spend definitely this year also much more than the last year for getting into doing more BD.
Okay. Sure, sir. Secondly, what projects are we looking to deliver in FY 2027? How is the delivery pipeline looking like?
This year we are confident, one, we will be delivering our project, Sunteck OneWorld, maybe some more new floors in 4th Avenue. There are some more new floors which will be done on the 1st Avenue. Plus some additional floors even in Pinnacle. All this will be constructed and delivered within this year, and this will give us additional sales as well from this project. This will be a strong cash flow because once we launch, the project will be like these are the additional floors, this will be completed in three-six months. We are looking to monetize all this inventory in this current year itself. This will be substantial, very large delivery.
Sure. That's it from my side. I will join back the queue.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question, press star and one. Our next question comes from the line of Jainam Shah with Equirus Securities. Please go ahead.
Yeah. Hi. Thanks for the opportunity. The first question is on the resolution that board has approved about the fundraising of around, let's say, INR 2,000+ crore to debt and equity. Is it just enabling resolution or[crosstalk]
[audio distortion]One second. It will be bigger.
Hello?
Sorry.
Yeah. Is it just enabling resolution or are we planning for some fundraising in the near term?
This is obviously enabling resolution. If you see every year, we take this enabling resolution. As on today, if you ask me, there is absolutely no planning of any fundraising.
Got it, sir. Just for the clarification, one part on the Dubai project, you said that it's ready for launch. There is no approval or anything which is pending, right?
Yes.
Sir, just wanted to check on the presentation part. In the presentation, the table that we have given, in which it has been included in the to-be-launched GDV, which is of around INR 16,100 crore. When we read the thing below the same to-be-launched GDV, it indicates projects which are under approval process. Has there been any, you can say, change in the presentation part or there is some approval which is pending? Both things are actually incorrect.
No, I appreciate. I think this is slightly we'll have to edit that. I agree. I appreciate your comment. You're totally right. We should add like it indicates project which are in the approval process or approved, which are to be launched. You're correct. I think we'll have to edit that.
Got it. On the commercial revenue part, we are seeing this FY 2029 going up to INR 450 crore in the presentation part. What's the status of the construction for the 5th Avenue ODC as of now and by when it is expected to get delivered?
5th Avenue construction has already started, residential. Residential has already started. We are looking to deliver that in three years from now. You are asking about?
Commercial.
Commercial. Commercial, we are looking to start very soon. Once we start there, we are targeting because it will be a partial commercial. We're looking to do complete that in 24 months, 24-30 months.
Got it, sir. Yeah, that's it from me, sir. Thank you so much.
Thank you.
Thank you. Ladies and gentlemen, due to the time constraint, that was the last question for today. I now hand the conference over to the management for the closing remarks. Thank you and over to you, team.
Thank you all for taking the time out of your busy schedule to join us today for the call. In case any of your queries have been left unanswered, please feel free to reach out to us. We truly value your continued support and look forward to strengthening this relationship. Thank you.
Thank you so much, sir. On behalf of Sunteck Realty Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.