• Full year FY2026 presales reached INR 3,157 crores, representing 25% YoY growth, meeting management's guidance
• Sales mix heavily weighted toward high-margin segments: 50% from uber-luxury/commercial, 40-45% from premium luxury, and only 10-15% from aspirational luxury
• Added three new projects in FY2026 with combined GDV of ~INR 5,000 crores: 2.5 acres in Andheri, 3.5 acres JD in Mira Road, and 1.75 acre outright acquisition near International Airport
• Total company GDV stands at INR 44,100 crores (gross of presales) as of FY2026 end
• Unsold under-construction inventory reduced to less than 12 months, among the lowest in the market
• Generated strong net cash flow surplus of INR 5,520 crores in FY2026, up 48% YoY, enabling aggressive business development while maintaining net debt-to-equity ratio of only 0.06x
• Achieved exceptional ESG scores: 78/100 in Dow Jones Sustainability Index (top 3 Indian developers) and 99/100 in Global Real Estate Sustainability Benchmark with 5-star rating
• Dubai project remains launch-ready but on hold due to geopolitical situation; project has zero debt and extremely low land cost basis (70 million dirhams invested now valued at 800 million dirhams, representing 20x returns including currency appreciation)

Sunteck Realty delivered strong FY2026 results with 32% revenue growth, 64% EBITDA growth, and 25% presales growth to INR 3,157 crores, driven primarily by uber-luxury and premium luxury segments. Management expressed high confidence in maintaining similar 25% growth momentum in FY2027 despite market uncertainties, supported by robust cash flows (INR 5,520 crores net cash surplus), aggressive business development (INR 810 crores invested), and a strong pipeline of launches worth ~INR 7,000 crores GDV.

Sunteck Realty demonstrated robust financial performance in FY2026. Full year operating revenue reached INR 1,124 crores with 32% YoY growth. EBITDA stood at INR 305 crores with a 27% margin, representing 64% YoY growth. Net profit reached INR 202 crores (18% margin) with 34% YoY growth. Over the three-year period since FY2024, the company doubled revenue, grew EBITDA 2.6x, and nearly tripled PAT. Q4 FY2026 specifically delivered operating revenue of INR 339 crores, EBITDA of INR 97 crores (29% margin), and net profit of INR 63 crores (19% margin). Collections for the full year totaled INR 1,433 crores (14% YoY growth), while Q4 collections reached INR 432 crores (39% YoY growth). The company invested INR 810 crores in business development during FY2026 versus INR 180 crores in FY2025, while maintaining a negligible net debt-to-equity ratio of 0.06x with net cash surplus of INR 5,520 crores.

Management exhibited strong confidence throughout the call, maintaining an optimistic outlook despite market uncertainties. Chairman Kamal Ketan repeatedly emphasized bullishness on uber-luxury and premium luxury segments, stating 'at the cost of reputation' multiple times to underscore conviction in maintaining 25% growth momentum in FY2027. Management stressed their disciplined approach to business development with a 'high IRR and high equity multiple philosophy,' targeting minimum 35% EBITDA margins on all new projects. They downplayed concerns about the recent geopolitical situation, noting only a 10% drop in footfalls in one month with stable conversion rates, characterizing this as non-worrisome. On Dubai, management emphasized the project's strong fundamentals (zero debt, 20x return on land investment) while acknowledging launch timing depends on geopolitical stability. Strategic priorities include expanding rental portfolio (particularly at Napier-in-Sea Road), aggressive launches (INR 7,000 crores GDV planned for FY2027), and continued business development investment leveraging strong cash flows. CFO Prashant Chobe provided detailed financial breakdowns demonstrating margin expansion trajectory.

The primary risk factor is the delayed Dubai project launch due to ongoing geopolitical conflicts, though management emphasized zero debt exposure and strong profitability fundamentals even with potential 10-20% market corrections. Short-term operational challenges include a 10% decline in footfalls observed in the most recent month due to war-related uncertainties, though conversion rates remain stable. Supply chain disruptions are affecting certain finished goods (particularly imported tiles and finishing materials), causing temporary material shortages and 2-3% cost inflation, though management views this as temporary and immaterial given high ASPs of INR 25,000-30,000 per sq ft. Labor shortages were noted due to West Bengal elections, expected to normalize post-April. The aspirational luxury segment, while showing recovery, remains weaker than premium/uber-luxury segments. Collections growth of 14% lagged presales growth of 25%, indicating potential working capital timing issues, though management expects improvement in FY2027-28. Market pricing environment appears to have limited room for further appreciation, with management suggesting stable prices rather than significant increases. The company faces execution risk on its ambitious INR 7,000 crores launch pipeline for FY2027.

Revenue Outlook: Management guides for sustaining similar 25% YoY presales growth momentum in FY2027, independent of Dubai launch timing

Margin Outlook: Blended EBITDA margins expected at 35-40% with new projects targeting minimum 35% margins; margins expected to improve from current levels due to higher realization mix

Key Targets:

• Launch pipeline of ~INR 7,000 crores GDV in FY2027 (including NPNC, BKC, and new inventory)
• Napier-in-Sea Road construction to commence in Q1 or Q2 FY2027 with decision on residential vs. commercial mix within 15 days
• Multiple project launches planned: Altavia Fifth Avenue (already launched), Andheri redevelopment, new tower at Skypark Mira Road, two towers at Beach Residences Vasai, new phase at World Niigaon
• Continued aggressive business development investment leveraging strong cash flows while maintaining 35%+ EBITDA margins and high IRR discipline

The Q&A session revealed analysts were primarily focused on three areas: (1) Dubai project timing and risk exposure given geopolitical uncertainties, (2) sustainability of growth momentum and FY2027 guidance, and (3) margin trajectory and business development strategy. Management responded with consistent confidence, repeatedly emphasizing their bullishness on premium/uber-luxury segments 'at the cost of reputation.' On Dubai, they successfully reassured analysts by detailing the exceptional embedded value (20x return on land, zero debt) while acknowledging timing uncertainty. Analysts probed for specific FY2027 presales guidance, to which management committed to 'similar growth' of ~25% independent of Dubai, backed by detailed INR 7,000 crores launch pipeline. Questions about potential demand slowdown were met with dismissive responses, with management characterizing one-month footfall decline as non-worrisome and emphasizing no discounting required. Margin sustainability questions elicited strong commitments to 35%+ EBITDA minimums on all new projects. The tone from analysts shifted from initial skepticism about growth sustainability to greater acceptance as management provided granular project-level details and financial discipline commitments. Late questions focused on operational details (material costs, labor availability, project-specific sales breakdowns) suggesting analyst comfort with strategic narrative. Overall, management successfully conveyed confidence in executing growth despite macro uncertainties, though Dubai timing and collections lag remain unresolved concerns.