Sunteck targets 25% FY27 presales growth on H2 launches

Sunteck Realty Limited is targeting 25% year-on-year presales growth in FY27, relying on a Rs 7,000 crore gross development value, or GDV, launch pipeline in the second half. Sunteck reported Rs 1,611 crore of H1 FY27 presales, up 19% year on year despite no major launches, and named Mira Road, Andheri and additional project phases as planned sales drivers.

How will Sunteck achieve its FY27 presales target?

Sunteck plans to meet its 25% FY27 presales-growth target through launches concentrated in the second half, management said on October 27, 2026. The Rs 7,000 crore H2 pipeline excludes Dubai and follows H1 presales growth of 19% without major launches, according to Chairman and Managing Director Kamal Khetan. This is management guidance, not a reported full-year result.

Sunteck reported Rs 824 crore of presales in Q2 FY27 and Rs 1,611 crore in H1 FY27. Collections were Rs 371 crore in the quarter and Rs 780 crore in the half. Management attributed the lower collections relative to bookings to sales in early-stage projects, where construction-linked payment milestones are weighted towards later periods.

Sunteck’s Q2 mix was 25% uber luxury, 51% premium luxury and 25% aspirational luxury, based on the financial presentation discussed on the call. In a later response, Khetan described the mix as 27% uber luxury, 50% premium luxury and 23% aspirational luxury. The two disclosures, both affected by rounding, indicate that premium luxury accounted for about half of quarterly sales.

Management said aspirational luxury showed an uptick at the Naigaon and Kalyan projects. It also said sales at Bandra Kurla Complex, or BKC, would be affected by diminishing inventory, while Nepean Sea Road is intended to become a larger future source of uber-luxury presales. The timing of that shift depends on the project’s approvals and launch process before FY27 ends.

Which projects are in Sunteck’s second-half FY27 pipeline?

Sunteck’s Rs 7,000 crore H2 FY27 pipeline includes Sunteck Belvedere Park at Mira Road, a residential redevelopment project on Andheri’s Western Express Highway, and further phases at existing developments. Management also identified Tower 2 of Altavia at Sunteck City ODC, additions at Sunteck World and Sunteck Crescent Park, a further phase at Sunteck Beach Residences, and activity at Borivali West.

Management put Mira Road’s estimated GDV at Rs 1,250 crore to Rs 1,400 crore. The Andheri project is expected to have GDV of Rs 1,200 crore to Rs 1,500 crore. These two projects alone represent Rs 2,450 crore to Rs 2,900 crore of the Rs 7,000 crore pipeline, with the balance expected from launches at the existing developments and the Borivali West parcel.

Mira Road follows the recent inventory addition at Sunteck Sky Park, where Sunteck has launched three towers. Management said higher floors across Towers 1, 2 and 3, enabled by a new policy, were equivalent to one additional tower with about Rs 750 crore of GDV. These floors generated almost Rs 200 crore of sales in Q2 FY27, illustrating the role of added inventory within existing projects.

The company also expanded its Borivali West landholding by 4.5 acres through an outright purchase, taking the combined site from 7 acres to 11.5 acres. Management estimated GDV of Rs 8,000 crore for the consolidated project and said the acquired parcel adjoins the existing land. It did not provide a firm launch date, though it said it was looking to launch the project soon.

What do Sunteck’s H1 FY27 financial results show?

Sunteck reported Rs 510 crore of H1 FY27 revenue, up 16% year on year, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 23% to Rs 160 crore. Profit after tax, or PAT, increased 20% to Rs 100 crore. EBITDA margin expanded by 160 basis points to 30%, management said.

In Q2 FY27, revenue rose 27% year on year to Rs 320 crore, while EBITDA increased 13% and PAT increased 17%. Thus, H1 EBITDA grew faster than revenue, whereas quarterly revenue growth exceeded the stated EBITDA and PAT growth rates. Management said reported profitability should converge towards the embedded EBITDA margin of presales as projects reach revenue recognition.

Net operating cash-flow surplus increased 27% year on year to Rs 350 crore in H1 FY27, equal to 45% of collections compared with 40% a year earlier. On a trailing 12-month basis, the surplus was Rs 630 crore. Sunteck said this was achieved while it invested Rs 390 crore in business development during the half.

Annuity income was running at an annualised Rs 86 crore, compared with Rs 76 crore in FY26. Management said it had spent close to Rs 800 crore on business development in the previous year and close to Rs 400 crore in H1 FY27. It also said one or two additional business-development transactions were at an advanced stage, subject to its stated project-level EBITDA-margin filter of 30% to 35%.

What could change Sunteck’s launch and sales outlook?

Sunteck’s Nepean Sea Road launch remains a material timing factor because management aims to launch the project with Real Estate Regulatory Authority, or RERA, registration before the end of FY27. The project had Rs 3,000 crore of GDV at the time of the call. Management said demolition of one building was complete and demolition of a second building had started.

Management said it expected the second building’s demolition to finish within 10 to 15 days of the October 27 call and intended to begin demolition work on further buildings shortly. It described approvals as being at an advanced stage. Until RERA registration and the launch occur, management’s anticipated contribution from Nepean Sea Road remains a plan rather than recorded presales.

Dubai is not included in the Rs 7,000 crore FY27 launch pipeline. Management said it did not have visibility to launch the Dubai project in the next one or two quarters, despite being launch-ready. It therefore moved Dubai from GDV to be launched to upcoming-for-launch GDV, while maintaining its stated confidence in the project’s economics.

Sunteck also has Rs 26,000 crore of GDV already launched or to be launched within total GDV of Rs 46,900 crore, according to management. That figure includes the enlarged Borivali West development but excludes the Dubai project from the FY27 launch plan. The H2 outcome will depend on the timing of named launches and their conversion into bookings and construction-linked collections.

Conclusion

Sunteck’s 25% FY27 presales target depends on a transition from H1 growth achieved without major launches to an H2 programme carrying Rs 7,000 crore of GDV. H1 presales of Rs 1,611 crore, up 19%, were accompanied by Rs 780 crore of collections, while Mira Road and Andheri account for an identified Rs 2,450 crore to Rs 2,900 crore of prospective GDV.

The next measures to watch are launches at Mira Road, Andheri and the identified existing projects, plus their conversion into presales and collections. Management is also targeting a RERA-registered Nepean Sea Road launch before FY27 ends, while Dubai remains outside the next one or two quarters of expected launch activity.