Suraj Estate Developers Limited (SURAJEST) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Q4 and FY26 earnings conference call of Suraj Estate Developers Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Thomas, whole-time director from Suraj Estate Developers Limited. Thank you, and over to you, sir.

Good morning, everyone. I welcome you all to our Q4 and F526 earnings conference call. Along with me, we are Vatiya Phum Sushripal Shah and SGA Investor Relation Advisors. I hope all of you have gone through our investor presentation uploaded on the stock exchanges and our company website. The Mumbai real estate market continues to demonstrate strong momentum during the year, supported by healthy economic activity, stable consumer sentiment, and sustained demand across both residential and commercial segments. Premium and redevelopment-driven micromarkets across South Central Mumbai witness healthy traction, driven by infrastructure upgrades, strong connectivity, and limited land availability, and increasing preference for quality development in the centrally located areas such as Worli, Prabadevi, Tadar, and Lower Parel. At the same time, redevelopment activity across Mumbai continues to gain momentum, creating attractive opportunities for organized developers with strong execution capabilities and deep local market expertise. The commercial real estate market also remained healthy during the year, with sustained office leasing activity across key business corridors, including Lower Perel and Wurley, supported by occupier demand for high-quality grade-A office spaces and premium mixed-use developments. Overall, we believe South Central Mumbai remains strategically well positioned to benefit from these long-term growth trends, backed by strong infrastructure, established commercial hubs, and evolving urban development. Amidst this positive market environment, we continue to strengthen our position through disciplined execution, focused expansion, and strategic business development initiatives across our core micro-markets. FY 26 was a strong operational year for the company, with pre-sales increasing by 23% year-on-year to 615 crores, surpassing our guidance of 600 crores. Sales area during the year grew by 42% year-on-year to 1.31 lakhs square feet, while collection increased by 9% year-on-year to 421 crores, reflecting sustained customer demand and healthy traction across our portfolio. We have balanced receivables of 2,105 crores from sold and unsold. Thank you. Thank you. With an amalgamation with the existing development, the project is expected to generate additional saleable carpet area of 1.5 lakh square feet, with incremental GDV potential of approximately 800 crores, taking the combined GDV potential of Suraj 1 to over 2,000 crores. We believe this acquisition will significantly strengthen our commercial footprint and further consolidate our presence within the South Central Mumbai market. Additionally, during the quarter, we have successfully completed the acquisition of 100% shareholding in Hali Pacific Private Limited, which owns a strategically located land at Sayani Road, Kavadevi, Mumbai. The acquisition completed for a consideration of approximately 30.40 CR. Strengthens our development pipeline. The Pramadeva micromarket continues to benefit from strong connectivity, established infrastructure, and proximity to e-commerce cars, such as Lower Perel and Wurley, making it highly attractive for residential and commercial development. This acquisition aligns with our strategy of this. Thank you. and long-term value.

Starting with the quarterly financial performance, total income for Q4 FY2026 stood at 101 crore. EBITDA increased significantly to 52 crores compared to 30.8 crores in quarter for FY2025, registering a strong year-on-year growth of 69%, while PAD for the quarter stood at 11 crores. Moving to the full-year financial performance, FY26 total income grew at 561 crores as compared to 553 crores in FY25. EBITDA for the year increased to 223 crores from 207 crores in FY25, while EBITDA margins improved to 39.7% from 37.4% in FY25. PACT for FY26 stood at 90 crores. The decline in PACT during the year was primarily attributed to the higher finance costs arising from strategic acquisitions. Thank you. Average realization of 45,648 per square feet. Collection during the quarter stood at 112 crores. Thank you. 46,895 per square feet, duration remained relatively moderate during the year due to a higher contribution from the value luxury. Thank you. With this, I would like to open the door for questions.

Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Participants, to ask a question, you may press star and 1.

First question is from the line of Harshit from Robo Capital. Please go ahead.

Thank you for the opportunity. Am I audible? Yes, Harshit. Yes, please go ahead. Yes, sir. Thank you. I just wanted to understand what is our total current GDV as of right now, the total GDV.

Just to clarify a degree of ongoing projects.

Ongoing project and also a pipeline as well, sir. The total GDP that we have.

So on the online, ongoing portfolio unsold inventory, we are estimated to consider the current market value is close to 1100 crores. For the unsold, for the upcoming portfolio project, 12,000 square feet is the total carpet area. Thank you, sir. Translates to close to, you know, 7600 cores.

Right, sir. Understood. So 7,500 crores of GDP, right?

Yeah. Considering the weighted average price per square feet we have estimated. Because out of that 2.76 lakhs from Bandra, which is the current market rate going on with that, micro market is 1 lakh to 1 lakh 50,000.

Right, right. I understood. What is going to be our accounting revenue and EBITDA for FI27?

We are planning to do the guidance by the next call.

All right. Okay. Thank you. All right.

Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star and fire. Next question is from the line of Chalindeev Singh from A1 Investments. Please go ahead.

Hi. Good morning. Thanks for the opportunity. I have two questions. My first question is how do you explain this reduction in average realization for residential, because what we see is that even on the full year, this is FY26 is much lower than FY25, so FY25 we were selling at 54,586, this year we have sold at around 46,000, so let me comment on that.

So, in FY26, we have launched value luxury projects, you know, and the major sales have come from value luxury and commercial, wherein FY25 had contributions from luxury projects like Pallet and Ocean Star, where the market prices for Pallet is in range of 65 to 70 and Ocean Star is 85 to 90 thousand. So, that is the product mix change because of which the relations have gone down.

Okay, okay, cool. And just to clarify on number, to the previous caller, you said that your GDV is 7,000 crore, right?

Close to 7,700, 7,700.

Okay. So, my next question is regarding the bit on your industry, that as we see that going forward, we see this thing that there would be inflationary environment. And with the headwinds which may come on high interest rate, and also with this IT headwinds due to AI thing, which is coming. What do you see that, what kind of threat it will pose to your business?

So I'll take that. ProductMix is coming to what we have in our ongoing portfolio. If you can see, We see strong momentum in commercial. Like we said, we earlier had a 1,200 crore GDV, which we have added now another 800 crores. So 2,000 crores itself, which is in the launch pipeline for this year, is entirely commercial. So we see a very inerrant good demand. And two BHKs.

Regarding this upcoming projects on your GDV, do you feel that you will be able to maintain this growth margin of 30% or it will be lower as the product mix is changing?

So EBITDA margins would be in the range of 35 to 40%. Close to 35 to 40%.

Cool. Thank you. That's it.

Thank you. Participants, if you wish to join the question queue, you may press star and one. Next question is from the line of Amit Sagar. From UNI, please go ahead.

Hi, I'm Odevil. Yes.

Yes, please go ahead.

Hey, how are you doing? So, yeah, my question is regarding the, I thought there was a pre-sales of 200 CR, like that never got realized in this quarter. Is there a ratio that, you know, when the commercial projects gets, the sales get realized in the quarter numbers?

That's like the first question. Can somebody please answer that?

Welcome to the Commercial One Business Bay, Q3 numbers were 200, and Q4 were...

There was a pre-sale of 200 CR, right? So, I don't think it never got realized in this quarter top line, right? So, that's the top line. Top line is really drawn.

No, it's realized in this top line.

See, under POCM, we realize a percentage of it. So, not everything will be realized on day one since it's under-consumption. Only part is realized. Part is realized in the revenue.

Okay, so that's already realized in these numbers. Are we seeing that the commercial project in the Mahim, the 200 crore CA, is saying it's somewhat possible? Some part of it. Okay, and what are the current margins like you are projecting for this project? Because earlier I thought you said in the last quarter was like commercial is going to be 20 plus percentage to become margins, and then the others, like residentials, were kind of like 40% margins or so.

Yeah, we will maintain 25 to 30% margins.

Okay, for the commercial? Overall.

So, like, overall, okay, so residential plus commercial is 20 to 25 percent. The commercial budget is a vacant land,

where typically we have to pay upfront land cost, the margins are close to 25 to 30 percent, and against historically acquired land, where we have acquired land historically, the margins are relatively better.

Okay. Okay, that sounds good.

5-30% as an average.

As an average? Okay. I mean, all things, like, I think, like, as investors, we are concerned about the rising debt level, right? So, compared to the market cap, it basically deteriorates the ratings and increases interest costs. How are you thinking of handling that, you know, rising debt?

So, Amit, basically, this is the debt. We have to understand what the reason the debt has taken for. Since the land is vacant, and we already are seeing strong. In the commercial, that's why we've taken that strategic call to add that debt into the balance sheet. And you will see this year that with the traction coming from the commercial, the debt level will be back to normal very soon in terms of how it was earlier. It's just a phenomenon.

I mean, I understand that, Rahul. So I just hope that, you know, the debt levels are because the rating agencies would just look at debt, right? And then look at the market cap of the company and then procuring some more debt at some point would be really difficult. So it's like a, I don't know how to say it, but looks like it can get into a difficult situation like the other member was also saying about rising raw material pricing and, you know, inflation coming up. So that could also be a double whammy. I trust you.

I mean, all I can say is from the cash flow perspective rather than the market cap. What is the potential of the project vis-a-vis the tech and what is the sole receivable? So, sole and unsold put together and the cash flow visibility.

I think that's more critical.

Concerns that I don't know, I mean, you won't be able to like directly say that, but you know, because it's a market, it's a speculative thing. But like the way you start painted a picture in the very beginning, you know, in the whole one year, how the company has progressed, how the Mumbai real estate has been progressing. I mean, looking at the stock price of Suraj, it's basically like 50% down from just in one year. Thank you. All I'm saying is I understand when you are painting a picture of Hanti Dowry, a picture of Mumbai real estate and how suitable, and I actually believe in all this because you're launching projects, there is a GDB value. But do you even look at this thing? Why is this happening? Because there is something which is a gap between what we say and what we actually deliver. So probably that, or if you want to say, no, that is not the case.

From what I can tell you is what we have committed in terms of guidance, we have already achieved it. So I think that is the proof of the pudding. We had guided for 600, we achieved 615. So I think what we can control is our operational performance. Beyond that, there are too many factors beyond our control. I don't think that I would like to comment on any other factor, except for the fact that we will make sure that whatever we have committed in terms of operational numbers, we will achieve that.

Sounds good to me. So you basically are going to come in the next call and give a guidance of like how you're going to do for the next year, for the rest of the year, right? Is that what you just said too? All right. I look forward to that. All right. Thank you.

Thank you. Next question is from the line of Nishita Shankilisha from Sapphire Capital. Please go ahead.

Yes, Phanu, so you mentioned that our JDB, current JDB's upcoming project is 7500, and if that gets, if we take the realization of 60,000 rupees per square foot, right? I just wanted to understand that currently our average realization is 46,000. So, like, can we expect the realization to go up in FY27?

So, this is, yeah, we can hear you. So, I think the average realization is going up not on account of

You also mentioned that our debt levels will go back to normal in this year. So can we quantify that? What will be the debt at the end of the year, if you can quantify that?

There will be increase in debt, but the old projects which we are going to complete... Good morning, Mike.

I'm sorry, your voice was not audible. Overall, the edit will be off. The voice is not audible, actually. Yeah, yeah, if you can just reiterate the number.

Thank you. Next question is from the line of Rajendra Pasi from NP Analyst. Please go ahead. Hello.

Am I able?

Yes, I can hear you. Yeah, yeah.

Thanks for providing the opportunity. So my first question is like from September 2025, our death has increased by almost 80 to 90 CR while The interest that we have paid for the last quarter has risen by almost 50-55%. So what is the current interest rate that we are paying on incremental debt?

Interest rate is close to 13%.

So it has increased from the last year, I guess. Last time it was around 10 or 11%.

No, it was 12.5% it was there. Now it's slightly increased because of the new acquisitions we have done, which is funded by land-related acquisitions are little costly.

Okay, and the MOU that you are talking about right now, Have you paid the 75 CLIA for that, and is this a binding MOU or a non-binding MOU?

It's a binding MOU, and we have also played some advance.

Okay, but not the complete 75C here as of now, right?

No. Yeah.

Okay. My second question would be on our residential sales. So, it used to be almost around 120 to 150 years earlier when the commercial wasn't launched, you know. If you remember the last year, quarter one as well, when we had very limited inventory of, I guess, maybe 150 or 155 years, we were still able to do 80, 70 to 80 old pre-sales during that. But after the launch of commercial, what I am seeing right now is our residential sales are continuously coming down. Like last quarter, it was around 50 to 55 CR. And now it has come around just 28 CR. So where should we see our residential sales in the FY27? Because what I see is, though I understand that we have a bigger inventory on the commercial side, but still seeing residential coming down to such drastic levels is not under my expectation. So, where should we look at from the residential sales in the going in FY27?

So just to correct, we have achieved in quarter for 120 acres of resales, out of which the commercial project is contributed close to 54.6 crore in the GDB. So what remains is 74.6 crore coming from residential segment.

So, but you mentioned that we have already sold one third of our commercial project and its GDB was... 1,200 CR, we did 200 CR in Q3, then it should have come around to 1,000 CR, and now we are saying that we have already sold 25% of it, so my understanding is that we have sold 100 CR in commercial, and the rest 28 CR on the residential side.

Let me reconfirm that. 200 rows of commercial was sold in Q3. 55 rows worth of repairs have happened in Q4. Our number for Q4 was 128 CR. If you deduct the commercial from that, we did almost about 74 pros of residential sales for this quarter.

Then, how come we have already sold 25% of commercial? Because if I bring 25% of 1200 CR, it should come around to 300 CR, right?

So, just to answer that, in real estate, we gradually increase the price of products as we go near completion. So, not entire inventory we sold at the relation at which we are doing today. Even if you see our luxury projects, in the initial stage of launches, we had relations in the range of 45 to 50. Our same project is getting sold at 65 to 70. So stage-wise, the project market value increases is one thing. Plus, in this commercial project, we are also having close to 8,000 square feet of detail, which the market prices is more than 1 lakh to 1 lakh 50,000.

Okay. So, going forward, what should be our residential to commercial sales mix for FY27? Where should we look at it? Is it going to be 50-50?

We see a good portion of sales coming from the commercial segment.

Okay, but I guess in the March conference that we had, you mentioned that 600 to 900 crore worth of residential projects are still going to be launched within FY27. So, do you still stand on that, that we are going to launch it?

Absolutely. We can run you through the launch pipeline for this year. We have a couple of hours.

So, this year we are going to launch close to 500 to 600 quarts worth of residential projects, but these launches will be in the over the period of even next three to six months or nine months. So, the full year effect will not be seen as far as the contribution coming from the residential to commercial. Commercial, we have already launched the entire project. So, there we see higher contribution as compared to residential. Because this has fuller effect of the launch.

Yeah, I don't that part. But initially, if you remember, for the last year, our guidance was to launch a GDP of 2000. So we fell short on that by 400 CR. And then we added it to this year. And I guess initially, we guided that we are going to launch somewhere in between 600 to 900 CR, if I remember it correctly, but I think we are reducing it now to 500 to 600. So the rest will be filled by this. The new acquired land from the commercial side of 800 CR, or that is going to be a total GDB launch for this year, the 500 to 600?

So the residential side still remains at 600 like we committed earlier. The shortfall which was done earlier of 800 CR was the commercial, which we have now acquired, and we see that launch also happening. So if you add both, it's between 1,400 CR is what we see at launch pipeline.

Okay, we did that by 20,000, right? Okay. And how are we seeing the traction for effort? Like, two months have already passed. So how we are seeing the traction both from the commercial and residential side, if you can see, like, you already know the macroeconomic situations right now and the political headwinds that are going on in the world. Okay, and last year, our residential sales were around 150 CRS, like the pre-sales, and it has reduced now to 74 CRS. So, is it only due to the limited inventory that we have, or is there, you know, a buyer slowdown?

It's majorly attributed to the...

Okay, so as and when we launch new residential projects in FY27, we should see it going up, right?

Correct.

Okay, and my last question would be, initially we mentioned that we are going to provide the pre-sales guidance in... In Q3, we said that we are going to provide the pre-sale guidance in Q4, and now in Q4, we are saying that we are going to give it in maybe next quarterly call. So, why is there a delay on that part? Are we not sure, like, where we will land towards the end of this year, or why is there a delay? Basically, I want to understand the reasons for that.

The project has, like we said, the commercial has, we just signed the MOU by the time we get into RERA. We already have a time for it to be coming to a RERA stage. So by then, we understand the commitments we have for the amalgamated land as well. So giving a guidance before the amalgamation is done and the amended RERA coming in. So we are taking that time so that we know that. So that we have a very...

But that is only from the commercial side, right? If that is the case, then we should be able to tell at least from the residential side where we should be looking at for the pre-sales of FF27.

Yes, so even the residential side, like I said, with the limited inventory, we need also new launches to be shipped up. very hard on the new launches and the launch pipeline. So I think having a guidance for both put together would be the right approach rather than having it as a piecemeal for residential commercial because in the end, our project and our portfolio for this year is queued more towards commercial. So I feel it's better when we have a guidance together in some matter of three months. I don't think it's a big problem.

And our residential inventory is already limited right now. Like, I guess it stands at 150 PR right now, right? Yeah. So, given the limited inventory, I think there will not be a lot of pre-sales from that, and we are still at the same inventory levels that we were there in Q1 FY26. So, when can we expand, when can we at least expect to, you know? Our residential inventory to increase and we can have a slew of launches from the residential side, because last year as well, we had only two launches in, I guess, one was in July and August, and after that, it's been almost nine months and we have not launched anything from the residential side. So given that we have already sold whatever we launched back then, so when can we expect to have a healthier residential inventory?

So we have... But we have already tied up with a couple of societies, which announcements we will make very soon. So you will see the JDV numbers coming up for this. So that we can make those announcements. We don't want to make those announcements before those matters are done. But we have been appointed as the developer and a couple of our society redevelopments. And I think those announcements will be made shortly.

Okay, I hope we launch that soon. All the best.

Thank you.

Thank you. Next question is from the line of Charanjeev Singh from A1 Investment. Please go ahead.

Yeah, thanks. Well, I have two questions more. First is regarding the rating agency. Which rating agency covers you? Because I couldn't find any report on your website.

I think right now there's no rating done by an agency as well now. It's more of the bank's internal ratings.

Okay, so do you have any plans to get rated by one of the central agencies?

We're still discussing that internally. Yes, I think we will be having some plans, but we haven't decided when.

Okay. My second question is regarding your market share and redevelopment, because that's where your mode is on redevelopment. What are the macro, so basically not this quarter or that quarter, this year or that year, and actually as an organization, what are your plans or the vision to gain more market share? What are you doing for that?

So we, like I said earlier, we have already... So that we could add maximum value to

Next question is from the line of Rajat G from Fortune. Please go ahead.

I just wanted to confirm because there was some disturbance. Is our average per square feet realization for 2027 expected to be 60,000 per square feet? And blended margin to be maintained at 35% for FI27? I just needed to confirm.

Just to clarify the question was regarding the upcoming projects, what is the sales value you are expecting. So, the overall upcoming project pipeline, the realization is 60,000, not for FY27. So, FY27, we are going to have, say, in the range of 45 to 50 only. In the range of? Sorry? What do you want to see?

Okay, fine, fine.

And the blended margin of upcoming is higher because the relation in Bandra project is pretty high. Because of which the overall average is going up in the upcoming portfolio.

So, yeah, sir. I mean, because last time you had put a ballpark of some 35% for FY27. So, are we maintaining that?

We are maintaining that 35% margin.

Oh, okay, great, great. That's all from me. Thank you, sir.

Thank you. Next question is from the line of Rajendra Pasi from NP analyst. Please go ahead. Hello. Am I able? Yes, please go ahead.

Yeah. Thank you for providing the opportunity again. My I wanted to understand like where we are on the Bhandra project. I know that we have already emulgated two of the land parcels and third one is still pending. So What is the estimated timeline for that, for the amalgamation of the third land parcel, and when can we expect, like, to be launch ready on the venture project?

Like you correctly mentioned, have already been conveyed, so we're working strongly in terms of timelines. The two LAN passes, our internal timeline is to complete all the acquisitions.

Okay, so in App Flight 28, maybe next year, Q1, we should be launched ready, right? Yes. Okay, that's a goal.

Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for the closing comments.

If there's any more queries that we can answer, we request you to get in touch with SGA, our Investor Relations Advisors, and take matters forward.

Thank you, sir. On behalf of Suraj State Developers Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.