Suraj Estate profit falls 30% as September revenue rises 18%

Suraj Estate Developers Limited reported consolidated profit of Rs 23.07 crore for the quarter ended September 30, 2026, down 30% from Rs 33.01 crore a year earlier. Suraj Estate’s revenue from operations rose 18% year on year to Rs 170.04 crore, but total expenses increased 38% to Rs 140.13 crore, including higher project costs and finance costs.

Why did Suraj Estate’s September-quarter profit fall?

Suraj Estate’s profit fell because expenses increased faster than income in the quarter ended September 30, 2026. Total income rose to Rs 171.08 crore from Rs 145.42 crore in the September 2025 quarter, while total expenses increased by Rs 38.79 crore to Rs 140.13 crore. Profit before tax consequently declined to Rs 30.96 crore from Rs 44.09 crore.

Operating and project expenses increased 11% to Rs 77.30 crore from Rs 69.55 crore. The construction work-in-progress inventory line moved to an expense of Rs 20.01 crore, compared with a reduction of Rs 3.56 crore in the corresponding quarter a year earlier. Suraj Estate said the nature of accounting in its real-estate business means quarterly, half-yearly and annual results may not be strictly comparable with earlier periods.

How did Suraj Estate’s costs change in the quarter?

Suraj Estate’s finance costs rose 19% year on year to Rs 24.39 crore in the September 2026 quarter from Rs 20.47 crore. Employee-benefit expense increased to Rs 6.45 crore from Rs 5.78 crore, other expenses rose to Rs 10.88 crore from Rs 8.04 crore, and depreciation and amortisation was Rs 1.10 crore against Rs 1.04 crore.

The cost pattern also changed from the preceding June 2026 quarter. Operating and project expenses declined from Rs 92.86 crore in June to Rs 77.30 crore in September, but the inventory-change line shifted from a Rs 10.03 crore reduction to a Rs 20.01 crore expense. Finance costs rose from Rs 22.39 crore, while total expenses increased from Rs 114.92 crore to Rs 140.13 crore.

Tax expense declined to Rs 7.89 crore from Rs 11.00 crore in the September 2025 quarter, including a deferred-tax credit of Rs 1.94 crore in the latest quarter. The lower tax charge did not offset the Rs 13.13 crore fall in profit before tax. Basic and diluted earnings per share, not annualised except at year-end, were Rs 4.98 each, compared with Rs 7.15 basic and Rs 7.05 diluted a year earlier.

What do Suraj Estate’s half-year results show?

Suraj Estate’s consolidated profit for the half year ended September 30, 2026 was Rs 45.92 crore, down 16% from Rs 54.38 crore in the corresponding 2025 period. Revenue from operations rose 14% to Rs 314.76 crore from Rs 277.03 crore, while total income increased to Rs 317.31 crore from Rs 278.56 crore.

Half-year total expenses rose 24% to Rs 255.04 crore from Rs 205.99 crore. Operating and project expenses were Rs 170.16 crore, compared with Rs 143.29 crore a year earlier, and finance costs increased to Rs 46.78 crore from Rs 41.12 crore. Profit before tax was Rs 62.27 crore, below Rs 72.57 crore, while total tax expense fell to Rs 16.35 crore from Rs 18.19 crore.

Basic half-year earnings per share were Rs 9.92, compared with Rs 11.75 in the prior-year period. Total comprehensive income was Rs 45.92 crore, versus Rs 54.40 crore a year earlier, after an other comprehensive loss of Rs 3 lakh in the latest half year. Suraj Estate reported one operating segment, real estate and allied activities, under Indian Accounting Standard 108, with no operations outside India.

What changed in Suraj Estate’s balance sheet and cash flow?

Suraj Estate’s total assets rose to Rs 2,282.77 crore at September 30, 2026 from Rs 1,961.30 crore at March 31, 2026. Current assets increased to Rs 2,198.50 crore from Rs 1,874.96 crore, including other current assets of Rs 965.67 crore versus Rs 692.45 crore. Inventories were Rs 935.31 crore, slightly below Rs 945.28 crore at the March 2026 year-end.

Long-term borrowings increased to Rs 696.87 crore at September 30 from Rs 531.96 crore at March 31, while current borrowings declined to Rs 102.66 crore from Rs 109.98 crore. Total equity increased to Rs 1,038.98 crore from Rs 993.06 crore, and non-current liabilities rose to Rs 701.18 crore from Rs 547.09 crore.

Net cash used in operating activities for the half year was Rs 8.94 crore, compared with Rs 42.98 crore used in the corresponding 2025 period. Operating profit before working-capital changes was Rs 108.84 crore, below Rs 115.77 crore, while increases in loans, trade receivables and other assets absorbed Rs 303.42 crore. Cash and cash equivalents after bank overdrafts were Rs 1.75 crore at September 30, 2026, compared with Rs 5.98 crore a year earlier.

Were Suraj Estate’s results reviewed by auditors?

Suraj Estate’s unaudited consolidated results for the quarter and half year ended September 30, 2026 were reviewed by its audit committee and approved by the board on October 31, 2026. SKLR & CO LLP issued a limited-review report under Regulation 33 of the Securities and Exchange Board of India listing regulations; this was a review rather than an audit opinion.

The review covered Suraj Estate, its subsidiaries and partnership firms. The auditor said nothing had come to its attention, based on its review and other auditors’ reports, to indicate that the consolidated statement did not provide required disclosures or contained a material misstatement. Five subsidiaries and three partnership firms reviewed by other auditors accounted for Rs 110.89 crore of revenue and Rs 5.62 crore of profit after tax in the September 2026 quarter.

Conclusion

Suraj Estate generated September-quarter revenue of Rs 170.04 crore, but profit declined to Rs 23.07 crore as total expenses rose faster than income. Higher operating and project expenses, the movement in construction work-in-progress inventory and increased finance costs coincided with lower profit in both the quarterly and half-year comparisons.

The next results will show whether finance costs, which were Rs 24.39 crore in the September quarter, and long-term borrowings, which stood at Rs 696.87 crore on September 30, change further. Suraj Estate has also cautioned that the accounting nature of its real-estate business can limit comparability between individual reporting periods.