Shraddha Prime shifts to 2BHK–4BHK as Thane realisations rise 54%

Shraddha Prime Projects Ltd. is moving from compact 1RK and 1BHK redevelopment housing towards 2BHK, 3BHK and 4BHK premium projects, with Thane realisations rising 54% from Rs 14,000 per sq. ft. in FY21 to Rs 21,500 in FY25. The stated shift combines larger configurations with expansion beyond its Central Suburbs base.

How is Shraddha Prime changing its housing mix?

Shraddha Prime is changing its typical product from affordable compact homes to larger premium configurations. Its early Central Suburbs focus in Bhandup, Mulund, Kanjurmarg and Vikhroli consisted of 1RK, or one-room kitchen, and 1BHK, or one-bedroom hall kitchen, homes in compact redevelopment projects. Its current journey is described as a premium housing focus in Central Mumbai and Thane, with 2BHK, 3BHK and 4BHK configurations.

The move passed through an intermediate mid-segment stage rather than directly replacing 1RK homes with only large units. In Borivali, Kandivali, Goregaon and Jogeshwari, Shraddha Prime identifies 1BHK and 2BHK as the typical mix. The presentation therefore shows a progression in both geography and unit configuration, from affordable redevelopment in the Central Suburbs to larger redevelopment projects in Central Mumbai and Thane.

Shraddha Prime does not describe the strategy as an exit from affordable housing or redevelopment. Management said in its first-half, or H1, FY27 commentary that affordable housing and redevelopment remain important, while the company enters premium residential housing. Its premiumisation plan is to pursue larger 2BHK, 3BHK and 4BHK developments in high-demand micro-markets to enhance realisations and profitability.

Where is Shraddha Prime expanding across Mumbai?

Shraddha Prime is expanding from the Central Suburbs into the Western Suburbs, Thane and South Mumbai while retaining its established redevelopment clusters. Its growth strategy names those three areas for expansion, and its redevelopment plan continues to prioritise Bhandup, Vikhroli, Mulund and Kanjurmarg. The company also reports a presence across more than 10 micro-markets.

Managing Director Sudhir Mehta said Shraddha Prime began with expertise in Central Suburbs redevelopment and later expanded into the Western Suburbs. In H1 FY27, he said the company was extending into established locations including Dadar and Matunga. He identified Avyukta Imperial in Matunga East as a project through which Shraddha Prime is entering the premium residential segment.

The geographic move remains tied to the redevelopment model. Shraddha Prime says it will selectively enter new redevelopment micro-markets in Western and Southern Mumbai and seek larger housing-society redevelopment opportunities. Its presentation lists Borivali, Kandivali, Malad and Mulund among locations associated with its Western Suburbs positioning, alongside Central Mumbai and Thane in its current premium-housing journey.

What pricing evidence supports Shraddha Prime’s premiumisation plan?

Shraddha Prime cites realisation growth in five suburban micro-markets between FY21 and FY25 as evidence of supportive pricing conditions. Thane recorded the largest stated increase at 54%, reaching Rs 21,500 per sq. ft. from Rs 14,000 per sq. ft. Borivali and Bhandup each rose 35%, while Kandivali increased 34% and Mulund 32%.

The presentation attributes the rises to metro connectivity, redevelopment activity and limited land availability in Mumbai’s suburban residential markets. It also cites premiumisation and end-user demand as drivers of higher redevelopment-project realisations. These are market conditions cited by Shraddha Prime, not a forecast of prices that any of its individual projects will achieve.

The company also points to higher-priced launches in the broader market. Homes priced above Rs 1.5 crore accounted for about 53% of launches across top cities in Q1 CY26, according to the presentation. Separately, ultra-luxury homes above Rs 2.5 crore accounted for 22% of launches in Q1 CY25, a figure Shraddha Prime uses to describe the wider premiumisation trend rather than Mumbai-only demand.

How does redevelopment support Shraddha Prime’s larger-home strategy?

Shraddha Prime is using redevelopment as the operating model for its larger-home strategy, rather than disclosing a transition to land-led development. The company reports that 100% of its nine ongoing projects and 100% of its eight upcoming projects are redevelopment projects. It describes the asset-light approach as providing lower upfront land-acquisition costs and access to established residential catchments.

The model covers society redevelopment as well as Slum Rehabilitation Authority, or SRA, and Maharashtra Housing and Area Development Authority, or MHADA, opportunities. Shraddha Prime says timely approvals, efficient execution and disciplined capital allocation are intended to improve cash flows and return on capital. It also identifies rehabilitation expertise, regulatory approvals and long-term housing-society relationships as relevant factors in redevelopment execution.

The scale of the planned portfolio is therefore important to the change in housing mix. Shraddha Prime says it will use its execution record to secure larger society redevelopment opportunities while broadening into Western and Southern Mumbai. It reports more than 11 million sq. ft. of construction delivered, alongside nine ongoing and eight upcoming redevelopment projects.

What did H1 FY27 results show during the expansion?

Shraddha Prime reported H1 FY27 operational revenue of Rs 265.60 crore, up 37.59% from Rs 193.03 crore in H1 FY26. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 136.57% to Rs 53.39 crore, while profit after tax, or PAT, increased 155.84% to Rs 44.31 crore.

Reported margins also increased in the same period. EBITDA margin reached 20.10% in H1 FY27 from 11.69% in H1 FY26, an increase of 841 basis points. PAT margin rose 771 basis points to 16.68% from 8.97%. The presentation does not allocate these changes to specific projects, locations or premium configurations.

Management said Shraddha Prime added six projects during H1 FY27. Its stated next operational priorities are progressing ongoing projects, building the pipeline and maintaining project feasibility, quality and timely delivery as it expands into new markets and higher-value housing. Those priorities link the reported financial period with the company’s redevelopment-led product shift.

Conclusion

Shraddha Prime’s strategy is a portfolio repositioning within redevelopment: compact 1RK and 1BHK housing formed its early Central Suburbs base, the Western Suburbs introduced a 1BHK and 2BHK mix, and the current focus is 2BHK to 4BHK premium housing in Central Mumbai and Thane. The 54% FY21-to-FY25 increase in Thane realisations is the largest of the five micro-markets cited.

The next disclosed items to watch are execution of the six projects added in H1 FY27, the progress of Avyukta Imperial in Matunga East, and Shraddha Prime’s selective redevelopment entries in Western and Southern Mumbai. Management says it will continue focusing on pipeline building, disciplined execution, feasibility, quality and timely delivery while pursuing higher-value housing.