Sunteck removes Dubai project from near-term launch GDV

Sunteck Realty Limited has moved its launch-ready Dubai project from its to-be-launched gross development value, or GDV, to its upcoming-for-launch category after losing visibility for a launch in the next one or two quarters. Sunteck’s FY27 launch pipeline excluding Dubai is Rs 7,000 crore, with launches weighted towards H2 FY27.

Why did Sunteck remove the Dubai project from near-term GDV?

Sunteck moved the Dubai project because management no longer sees visibility for a launch within the next one or two quarters. Chief Financial Officer Prashant Chaubey said the project was launch-ready, but the company changed its GDV classification to keep the reported number more realistic. The transcript does not disclose a revised Dubai launch date, Dubai-specific GDV or the reason visibility has slipped.

The classification change does not amount to a disclosed cancellation or change in project economics. Management said its conviction in the Dubai project and its economics remained bullish, while separating that view from the project’s immediate launch timing. The company directed listeners to Slide 10 of its Q2 and H1 FY27 investor presentation for the reclassification.

What launch pipeline remains after the Dubai GDV change?

Sunteck’s FY27 launch pipeline excluding Dubai stands at Rs 7,000 crore, and management said H2 FY27 is weighted towards launches. This is the company’s stated near-term launch base following the Dubai project’s move to the upcoming-for-launch category. It comprises planned Indian launches and additional phases rather than the Dubai development.

Sunteck reported total GDV of Rs 46,900 crore after acquiring a 4.5-acre Borivali West parcel in Q2 FY27. The purchase took its assembled Borivali West holding from 7 acres to 11.5 acres, with estimated GDV of Rs 8,000 crore. Of the total portfolio GDV, Rs 26,000 crore was already launched or classified as to be launched, although the Dubai revision shows that classification can change when launch timing becomes less visible.

Which projects are planned for Sunteck’s H2 FY27 launches?

Sunteck identified Belvedere Park at Mira Road and a residential redevelopment project at Andheri, both on the Western Express Highway, as key H2 FY27 launches. Management also listed Tower 2 of Altavia at Sunteck City’s ODC, or Oshiwara District Centre, as well as new towers or phases at Sunteck World and Sunteck Crescent Park. These projects collectively support the Rs 7,000 crore FY27 pipeline excluding Dubai.

Management indicated GDV of about Rs 1,200 crore to Rs 1,400 crore for the new Mira Road project. It put the Andheri Western Express Highway redevelopment at about Rs 1,200 crore to Rs 1,500 crore of GDV. The stated range means these two projects alone could account for Rs 2,400 crore to Rs 2,900 crore of the FY27 pipeline, with the balance coming from ODC and further phases of existing developments.

The company linked the planned H2 launches to its FY27 presales expectation. Management said it expected 25% year-on-year presales growth for FY27 after reporting 19% growth in H1 FY27 despite no major launches during that half. This is management’s expectation, rather than a reported full-year result, and depends on the planned H2 FY27 launches proceeding.

How does the revised pipeline compare with Sunteck’s current performance?

Sunteck reported presales of Rs 824 crore in Q2 FY27 and Rs 1,611 crore in H1 FY27, while collections were Rs 371 crore in Q2 and Rs 780 crore in H1. In Q2, premium luxury accounted for 51% of presales, compared with 25% each for uber luxury and aspirational luxury. Management said collections were affected by recent sales being weighted towards early-stage projects, where milestone-linked payments are back-ended.

H1 FY27 revenue rose 16% year on year to Rs 510 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 23% to Rs 160 crore. Profit after tax increased 20% to Rs 100 crore. Management said embedded EBITDA margin expanded by 160 basis points to 30%, and that this margin would flow through reported profitability as projects reach revenue recognition.

Net operating cash-flow surplus in H1 FY27 rose 27% year on year to Rs 350 crore, equivalent to 45% of collections versus 40% a year earlier. Sunteck invested Rs 390 crore in business development during the same half, while trailing-12-month operating cash-flow surplus stood at Rs 630 crore. The Dubai reclassification therefore came alongside higher reported operating cash generation rather than a disclosed reduction in business-development activity.

What role will Nepean Sea Road play in Sunteck’s plans?

Sunteck expects its Nepean Sea Road project to become a meaningful contributor to presales and collections once construction is under way. Management said approvals were at an advanced stage, while ground work had started and demolition of one building had been completed. During the call, management also said demolition of a second building had progressed.

Management said it was confident of launching Nepean Sea Road with Real Estate Regulatory Authority, or RERA, registration before the end of FY27. The project represents Rs 3,000 crore of GDV so far, according to management. It also said diminishing inventory at BKC could result in a larger contribution from Nepean Sea Road to uber-luxury sales once that project launches.

The H2 FY27 schedule therefore contains both new projects and incremental towers at existing developments. At ODC, management said construction had started for the wider Fifth Avenue site, including the commercial building, while one residential tower had started and Altavia Tower 2 was planned for launch in H2 FY27. That construction update provides a separate execution marker from the launch timing reset for Dubai.

Conclusion

Sunteck has narrowed its reported near-term launch pipeline by transferring Dubai from to-be-launched GDV to upcoming-for-launch GDV, while retaining management’s positive view of the project’s economics. The revised FY27 launch base is Rs 7,000 crore excluding Dubai, compared with total portfolio GDV of Rs 46,900 crore and H1 FY27 presales of Rs 1,611 crore.

The next points to watch are the planned H2 FY27 launches at Mira Road, Andheri, ODC and existing project phases, which management links to its 25% FY27 presales-growth expectation. Management has also targeted a Nepean Sea Road launch before FY27 ends, while Dubai has no newly disclosed launch window after visibility slipped beyond the next one or two quarters.