Sunteck Realty Limited targets Nepean launch by FY27-end

Sunteck Realty Limited aims to launch its Rs 3,000 crore gross development value (GDV) Nepean Sea Road project with Real Estate Regulatory Authority (RERA) registration before FY27 ends. On October 27, 2026, management said one building had been demolished, demolition of a second had begun, and approvals were at an advanced stage.

When will Sunteck launch the Nepean Sea Road project?

Sunteck plans to launch Nepean Sea Road with RERA registration before the end of FY27. Asked whether the project could launch by March 2027, Chairman Kamal Khetan said Sunteck was “very confident” it would launch properly before the fiscal year-end. Management did not give a specific month, RERA approval date, unit count or pricing plan.

The Rs 3,000 crore GDV project is one of Sunteck’s significant uber-luxury developments, according to management. GDV is the expected total sales value of a project, rather than reported revenue or customer collections. Management described Nepean Sea Road as a crown in its portfolio but said it currently represented Rs 3,000 crore of GDV.

Sunteck said Nepean Sea Road should become a meaningful contributor to presales and collections once construction is under way. That wording distinguishes the planned commercial contribution from the current demolition phase. The October 27 call did not disclose a construction-completion date, project-level capital expenditure or a timeline for revenue recognition.

What work has Sunteck completed at Nepean Sea Road?

Sunteck had completed demolition of one Nepean Sea Road building and started demolition of a second by October 27, 2026. Management expected the second demolition to finish within the following 10 to 15 days. It also said demolition of the third or fourth building would begin within the next few days.

The staged work reflects the presence of several buildings at the site. Sunteck did not state whether every demolition stage must be completed before RERA registration, or whether site clearance is a condition of the targeted FY27-end launch. Its disclosed position was that approvals were at an advanced stage while on-ground work had commenced.

The company has not said that construction of the replacement development has begun. In contrast, it specifically confirmed that construction had started at the 5th Avenue development at Sunteck City’s ODC, covering the commercial building and a residential tower. The differing disclosures indicate that Nepean Sea Road remains in demolition and approval activity rather than disclosed new-building construction.

Why does Nepean Sea Road matter to Sunteck’s sales mix?

Nepean Sea Road is expected to supply a larger share of Sunteck’s future uber-luxury sales as inventory at Bandra Kurla Complex (BKC) diminishes. Management said Sunteck was still recording sales from BKC and Nepean Sea Road, but expected a much bigger run from Nepean Sea Road as BKC availability falls.

Uber luxury accounted for 25% of Sunteck’s Rs 824 crore Q2 FY27 presales in the prepared remarks, compared with 51% for premium luxury and 25% for aspirational luxury. In the subsequent discussion, management described the mix as 27% uber luxury, 50% premium luxury and 23% aspirational luxury. Both disclosures place premium luxury as the largest quarterly sales segment, while Nepean Sea Road is positioned to add future uber-luxury inventory.

Sunteck recorded Rs 1,611 crore of presales and Rs 780 crore of collections in H1 FY27. Management attributed the gap to recent sales being weighted toward early-stage projects, where milestone-linked collections are back-ended. This mechanism means any sales from a FY27-end Nepean Sea Road launch would not necessarily translate into collections at the same pace as initial bookings.

How does Nepean Sea Road compare with other planned launches?

Nepean Sea Road’s Rs 3,000 crore GDV is larger than the individually quantified Mira Road and Andheri projects discussed for H2 FY27. Management indicated GDV of about Rs 1,400 crore for Sunteck Belvedere Park at Mira Road and about Rs 1,500 crore for the Andheri Western Express Highway residential redevelopment.

The Rs 7,000 crore FY27 launch pipeline excludes Dubai because Sunteck no longer saw visibility for a Dubai launch in the next one or two quarters, despite saying it was launch-ready. Management moved Dubai from its to-be-launched GDV category to upcoming-for-launch GDV. The H2 programme includes Mira Road, Andheri, Altavia Tower 2 at ODC, additional phases at Sunteck World and towers at Sunteck Crescent Park.

What financial position did Sunteck report alongside its launch plans?

Sunteck reported H1 FY27 revenue of Rs 510 crore, up 16% year on year, earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 160 crore, up 23%, and profit after tax of Rs 100 crore, up 20%. Its embedded EBITDA margin increased 160 basis points to 30%, and management said reported margins would converge toward the embedded margin as projects reach revenue recognition.

Net operating cash flow surplus rose 27% year on year to Rs 350 crore in H1 FY27, equivalent to 45% of collections versus 40% a year earlier. Sunteck said it invested Rs 390 crore in business development during the half, after spending close to Rs 800 crore in the prior year. Management cited net debt of 0.09 and said it would continue to pursue business-development opportunities subject to its stated margin filters.

Management reiterated an expectation of 25% year-on-year presales growth in FY27, after reporting 19% growth in H1 despite no major launches. That is management guidance rather than a reported outcome. It depends on execution of the H2 launch programme and progress toward the stated RERA launch target for Nepean Sea Road.

Conclusion

Sunteck has set a before-FY27-end RERA launch objective for the Rs 3,000 crore Nepean Sea Road project while advancing demolition across multiple site buildings. The project is intended to support uber-luxury sales as BKC inventory declines, alongside H1 FY27 presales of Rs 1,611 crore and a Rs 7,000 crore launch pipeline excluding Dubai.

The next disclosed milestones are completion of the second demolition within the stated 10 to 15 days, further demolition activity, and RERA registration before FY27 ends. Management’s expectation of 25% FY27 presales growth also rests on planned H2 launches at Mira Road, Andheri and existing developments.