Ladies and gentlemen, good day and welcome to the Sunteck Realty Limited Q2 FY 2027 earnings conference call. Today, we have with us Mr. Kamal Khetan, the Chairman and Managing Director of the company, and Mr. Prashant Chaubey, the Chief Financial Officer. Please note that this call will be for 30 minutes, and all participants for this duration 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 during the question and answer session. We request you to restrict questions to two per participant. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone 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 the historical information or facts 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 the expectations and projections 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 statements. 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 for our earnings conference call for second quarter and first half of FY 2027. I will keep my remarks brief and focused on the key developments of the half. I am pleased to share that Sunteck has delivered a strong performance reflecting our continued growth momentum of operational excellence and commitment to creating long-term value for our stakeholders.
We have delivered a strong first half with growth across pre-sales, collections, cash flows, revenue, and profits, sustaining the CAGR of 25% across all major operational and financial parameters over the last five years. On business development, during the quarter, we have acquired a new land parcel of 4.5 acres at Borivali West through an outright purchase. This takes our assembled landholding at Borivali West from 7 acres to 11.5 acres, and with an estimated GDV value of INR 80 billion.
This will further enhance the project scale, development potential, and set the benchmark for uber luxury living in that micro market. With this addition, our total GDV stands at INR 469 billion, of which INR 260 billion is already launched or to be launched, providing us several years of launch visibility. We continue to evaluate further business development opportunities, several of which are at advanced stage. Our approach remains focused, disciplined, and capital efficient. Every new acquisition must clear the same filters we have always applied. A high IRR, a high equity multiple, and a minimum project-level EBITDA margins of 30%-35%. We will continue to do our acquisition across all models, such as capital light JDA, JV, redevelopment, and outright purchases. On Nepeansea Road, this is one of our most significant project in our uber luxury portfolio.
Approvals are at advanced stage, and once the construction is underway, the project will be a meaningful contributor to both pre-sales and collections. Since now we do not see the visibility in terms of Dubai project. Now, since we do not see the visibility to launch the Dubai project in next one or two quarters, in spite of we being launch-ready for the Dubai project, to keep the GDV number more realistic, we have moved the Dubai project from to-be-launched GDV to upcoming for launch GDV. This has been explained properly by us in slide 10 of Q2 and H1 FY 2027 investor presentation. However, our conviction in the project or its economics continues to remain very bullish. Our launch pipeline for FY 2027, excluding Dubai, stands at INR 70 billion, and the second half is weighted towards launches.
The key launches planned for H2 are Sunteck Belvedere Park at Mira Road on the Western Express Highway, which we are confident will be our second successful project at Mira Road after Sunteck Sky Park, and our residential project at Andheri along the Western Express Highway. Finally, on sustainability, we have retained our GRESB green five-star rating for second consecutive year, with our score improving to 98.8 in 2026 from 98.6 in 2025. Even as GRESB average declined to 86.2 from 88, widening our lead over the benchmark. During the quarter, Fourth Avenue at Sunteck City also achieved the EDGE Advanced certification from Green Business Certification, GBCI, with over 50% saving in energy, water and embodied carbon, an estimated CO2 saving of 1,100 tons annually. This recognition reflects our focus on resource efficiency and sustainable construction and keep us rated among the best in the global real estate.
I shall now hand over the call to Prashant Chaubey to take you through the financial performance for Q2 and H1 FY 2027 in greater detail.
Thank you, sir. Good evening, everyone. Our results and investor presentation are available on our website and the stock exchanges. The CMD has covered the developments of the half. I will focus on what is driving the numbers. The key operational and financial highlights are as follows. Pre-sales stood at INR 824 crore in quarter two of FY 2027 and INR 1,611 crore in H1 of FY 2027. The segment mix of our pre-sale remains well-balanced in quarter two.
Uber luxury contributed 25%, premium luxury 51%, and aspirational luxury 25%. This mix carries a high embedded EBITDA margin on both our FY 2026 and H1 FY 2027 pre-sales, which will flow through to reported profitability as projects reach revenue recognition. Collections stood at INR 371 crore in quarter two and INR 780 crore in H1 FY 2027. As recent sales are weighted towards early-stage projects where milestones link collections are backended.
On reported financials, in quarter two, revenue grew 27% year-on-year to INR 3.2 billion, EBITDA 13% and PAT 17%. In H1, revenue grew 16% to INR 5.1 billion, EBITDA 23% to INR 1.6 billion, with an embedded EBITDA margin expanding 160 basis points to 30% and PAT 20% to INR 1 billion. At the halfway mark, EBITDA and PAT already stand at substantial levels of FY 2026 numbers. With the second half typically our strong half, we are well placed for a strong year. Reported margins will continue to converge towards the embedded EBITDA margin of our pre-sales. On cash flows, our net operating cash flow surplus for H1 grew 27% year-on-year to INR 3.5 billion, which is 63% of FY 2026 record full year surplus and 45% of collections up from 40% a year ago. On a trailing 12-month basis, the surplus stands at INR 6.3 billion.
This surplus was delivered investing INR 3.9 billion in business development during the half. Finally, annuity income is running at an annualized INR 86 crore against INR 76 crore in FY 2026 on FY 2026. Thank you. With this, we open the floor for questions.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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. The first question comes from the line of Harsh Pathak with Motilal Oswal. Please go ahead.
Yeah. Hi, sir, good evening. My first question is on the launch pipeline for H2. Like you highlighted, there is INR 7,000 crore of pipeline coming up in H2, and the two projects you have highlighted for Mira Road and Andheri. So what will be the respective GDV of these projects and any other phases of existing projects that we are planning to launch?
Good evening, Harsh. Yes. I will first take you through all the launches which we are from the existing project and the new projects. What we are looking at Sunteck Belvedere Park, which is in the Mira Road, the next project Mira Road. This is one launch. Another one which is on the Andheri Western Express Highway, again, a residential redevelopment project. Third is, we are looking at a new tower at Sunteck City, ODC. The Altavia project which we launched tower one, now we are looking in H2 the tower two. Borivali West, one phase which we have recently acquired and added to the 7 acres existing land parcel. That also we are looking to do it in H2.
Plus the new tower at Sunteck Beach Residences, which is our SBR, one more new phase or new couple of towers in Sunteck World, and couple of new towers in Sunteck Crescent Park. All these put together makes total of INR 7,000 crore. When it comes to the new launch in Mira Road too, you specifically asked what is the GDV, we are looking at close to INR 1,200 crore-INR 1,400 crore GDV from there. And Andheri West, the new project, once again, on the Western Express Highway, there we are looking at a GDV again close to similar INR 1,250 crore-INR 1,500 crore.
Understood. Thanks for those details. My next question is on the sales mix. I think this quarter we have seen some improvement in sales on the affordable housing segment. How are you seeing the traction in the respective segments, luxury, mid-income, and the affordable housing? How do you expect the overall annual pre-sales to be for this year?
We have seen that, obviously, in the last quarter also we said we are seeing an uptick in our aspirational luxury segment. That's what we are seeing that percentage of growth we are seeing in at least our both the projects where it is Naigaon and plus the Kalyan project. When it comes to uber luxury segment, we have been doing obviously sales from whatever we do at BKC and Nepeansea Road. obviously, the inventory at BKC is now diminishing, so that's where we will see the much bigger run coming from the uber luxury segment Nepeansea Road. in the premium luxury segment, obviously, our sales mix has been 50%. Now when it comes to the mix, I would say uber luxury segment did 27%, premium luxury segment did 50%, and aspirational luxury segment did 23%.
Understood, sir. How should we look at the--
Sorry?
Yeah, I was just trying to know what is the pre-sales we should be expecting for the entire year, and also if you can give some color on the collections part also.
We are very clear. We have been always maintaining that we are looking at a growth of 25%, which we are again very confident because H1 there was no major launches and still we could achieve a 19% year-on-year growth in H1. And we have a new launch pipeline, as I mentioned earlier, INR 7,000 crore, due to which we are very confident that our guidance or our expectation of 25% year-on-year growth in the full year of FY 2027, we will be able to maintain easily.
Okay, sir. Thank you for taking my questions.
Thank you. Thank you, Harsh.
A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Pritesh Sheth with Axis Capital. Please go ahead.
Yeah. Thanks for the opportunity. Congrats on a steady growth performance. First question is on the Borivali, this new land that you acquired. Is it within the same location where we had earlier land as well? And in terms of launch pipeline, where you mentioned that the new one will get launched this year, any update you want to provide on the older land parcel which we anyways had? Yeah.
No. So what we said is we have added 4.5 acres. That does not mean that new one will be launched first. It will be together, consolidated. I mentioned in the speech that this will only make us, in fact, this will increase the size of the project and obviously it will give us a more strength. It will be one of the largest project in that micro market because 11.5 acres land parcel. That will only give us more better project designing and better product in that micro market. We are not saying that. It will be consolidated land parcel, so it is touching the boundary of this 7 acres. So it will be total one project of 11.5 acres.
Got it. Great to see some progress there. Second on the commercial project, Odyssey. Any update you want to provide in terms of construction, where we are on design? When can we see some progress on construction, and what would be the delivery timelines there?
In Odyssey, Fifth Avenue is a part of our residential project, Altavia, and the commercial project. We have already started the execution because it is a one contiguous park land parcel. The commercial building is coming separately. The construction has started, and the residential building is coming separately. The one tower of residential has already started. In Q3 and H2, we are looking to launch another tower of residential, which is Altavia two, whatever we call it. That also will be launched, and the construction for that also we are looking to start in H2 itself. The construction for commercial also has started. We have started all the entire Fifth Avenue construction, you can say, have started.
Interesting. Got it. Okay. Just one last. I think since we now have a very sizable pipeline, pretty diverse as well across different micro markets within MMR. What should we consider as a focus from here on? Would we keep looking at such business development opportunities while we are launching the projects which we have already signed? Or for now, at least for next couple of years, the focus would be to bring these projects online and not too much on the business development side.
No, no, we are very clear. If you see, in fact, looking at our strong cash flows and our strong balance sheet, our net debt is only 0.09x. You must have seen in last two years, last year we spent almost close to INR 800 crore in business development. In H1, we have almost spent close to INR 400 crore. Because our balance sheet is so strong and has so strong cash flows, net cash flow surplus, we will continue to aggressively keep looking at more business development opportunities. To mention, we are already on advanced stage of one or two business development deals, and you will continue to see this momentum in the similar manner without compromising on our filters, not to compromise our EBITDA margin of less than 30%-35%. All those filters will continue to remain, and discipline. That's all.
Interesting. Thanks. Thanks for the clarity, and all the best.
Thank you, Pritesh. Thank you.
The next question comes from the line of Abhinav Sinha with Jefferies Group. Please go ahead.
Hi. Sir, couple of questions. Firstly, on Nepeansea Road project, can you tell us where we exactly are in terms of approval process, and can we expect a launch with RERA by March 2027?
Abhinav, we are very confident. We know that is a very important project of us. Although it represents till now only INR 3,000 crore of GDV, but for us that is like a crown in our portfolio. We are looking to launch with RERA, definitely before end of FY 2027. On-ground work has commenced, so when we said last quarter that we have already demolished one complete building. The demolition of the second building has also started, and I think it will be finished within next 10-15 days. We are looking to start, because there are a couple of buildings, as you know, so we will very soon even start in next few days, the demolition of the third or fourth building also. That's how. We are very clear. With the RERA, we want to launch properly, before the end of FY 2027.
Okay. And sir, secondly, again, going back to the Borivali project. So now you have two projects or three projects, because there used to be one in some no development zone. Can you please help me here?
Already, just to make you know it already has a resort running there and a club running there. So it is not exactly NDZ zone or something. So, we are very clear. We are confident that we will be able to launch that project. Hence, we have accumulated another 4.5 acres of land parcel, and that we have purchased to make it bigger and better project. Hence, that's why, we have taken that. We are looking to launch very soon even that project.
Okay, so this 4.5 acres acquired this quarter, this sort of is adjoining to the previous-
Yeah.
One.
Previous land parcel.
Okay.
Which will make the land parcel bigger and better.
Great. The one which we had announced in the last quarter, that is a separate location altogether?
Last quarter, we didn't announce any Borivali project.
The quarter before.
Last quarter, we announced maybe the Mira Road project. We have moved it in GDV. It was not in the GDV because last quarter itself we started getting feeler that we will be able to get the approvals. We are near to the approvals, hence we must have moved that. That is the same project, old project, which we were not showing in GDV till now.
Okay. Okay, sir. Thank you.
Thank you.
The next question comes from the line of Vasudev with Nuvama Wealth Management. Please go ahead.
Thank you for the opportunity, sir, and congratulations on a great set of numbers. Sir, if I am not wrong, we have done a new phase launch in the Sky Park project, so possible to give details like what is the area in GDV that we have launched here and sold in the same quarter?
Hi, Vasudev. Prashant on this side. So till now in Sunteck Sky Park, we have launched three towers, of which tower three was launched just a few months back, and it has done pretty well for us. Our total GDV for that tower is close to around INR 750 crore, and we are also going to get some extra area also in that project going forward. So yes, out of that, we have been doing sales in quarter one and quarter two, both. And in quarter two, we have done a sales of almost INR 200 crore.
Good. Just to correct, Vasudev. It is not exactly tower three. It is the higher floors of tower one, tower two, and tower three, which we launched. And that launch is equivalent to one new tower. This is the extra FSI, obviously, due to the new policy which we have got. So we have increased the number of floors on all the towers. So there are total four towers which are supposed to be there, out of which already three towers were launched. And now what we launched, the higher floors of tower one, tower two, and tower three, and which total, if you put it together, is equivalent to one new tower. That is one. Okay, Vasudev.
Okay. Sure, sir. That was helpful. Secondly, sir, if you can give us the list of projects that we are expecting to complete in FY 2027, which would contribute to our P&L revenues.
Vasudev. We will be doing more recognition, obviously, from our Sunteck One World Naigaon project completion. More revenues coming from there. Then Sunteck ODC City. Avenue one, we have got higher floors, which we are constructing, we will complete. Then Fourth Avenue, we have got very large number of floors. We were waiting for that height. We have started construction there also. That also we will complete in FY 2027 itself. Then ODC, we have this commercial project, Sunteck Pinnacle, which will get completed now recently. Then all the ready inventories, what we are looking from our BKC and other projects. That will all give us a good revenue, and we are very confident that will give us our H2 good momentum and results numbers from there.
Sure, sir. Got it. That is it from my side. Thank you.
Thank you.
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Kamal Khetan for the closing remarks.
Thank you, all, for taking the time out of your busy schedule to join us today. If any of your queries have been left unanswered, please feel free to reach out to us. We truly value your continued support and looking forward to strengthening this relationship. Thank you once again.
Thank you, sir. Ladies and gentlemen, on behalf of Sunteck Realty Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.