Shriram Properties Ltd (NSE: SHRIRAMPPS) Q3 2026 Earnings Call dated Feb. 14, 2026
Corporate Participants:
Murali Malayappan — Chairman & Managing Director
Gopalakrishnan J. — Executive Director & Group Chief Executive Officer
Ravindra Kumar Pandey — Chief Financial Officer
Analysts:
Unidentified Participant
Karan Mehra — Analyst
Sunil Jatakia — Analyst
Rajesh Agarwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q3 and 9 months FY26 earnings conference call hosted by Sriram Properties Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Murli, Chairman and Managing Director from Sriram Properties Limited. Thank you. And over to you, sir.
Murali Malayappan — Chairman & Managing Director
Thank you. Good evening everyone and thank you for joining us today. We are pleased to share a significant breakthrough achieved during this quarter. The long pending commercial matter relating to our Kolkata land parcel has been amicably resolved through the conveyance of 42.37 acres of land to the government of West Bengal. With this settlement, the associated liabilities stand fully discharged. We’ll walk you through the details of the development during the course of the call. Importantly, amidst the external challenges related to approvals and E CASA our core business operations have remained healthy and stable. Customer demand continues to be encouraging.
Execution across ongoing projects is progressing as planned. And our sustenance portfolio continues generate steady traction. Backed by a robust response to our FY26 launches and a healthy sales trend in sustained projects. We delivered resilient performance for the nine months ended FY26 with a sales of 2.9 million square feet and a value of 1691 crores. Looking ahead, with the multiple launches lined up under key regulatory matters now largely behind us we are confident of strong rebound in Q4 supported by Project completion and revenue recognition. Our focus remains firmly on accelerating execution, strengthening cash flow generation and unlocking value across growing portfolio.
With that I now hand it over to Mr. Gopalakrishnan CEO and Mr. Ravindra Kumar Pandey, CFO to take you through the financial and operation details in greater depth. Thank you.
Gopalakrishnan J. — Executive Director & Group Chief Executive Officer
Thank you and good evening everyone. My Name is Gopal Krishnan. I am part of Sriram Properties as a CEO of. CEO of the company. Let me start with the presentation which is already on the website. I hope you all of you have got access to it. I’m going to use the presentation to deliver our messages during this call today. Let me start with the most important activity that has happened.
Most important development that has happened during this quarter. I’m referring to Slide 4. During the quarter we have successfully completed and resolved all the outstanding issues that had with the state and with regard to parcel during the quarter. These issues have been resolved amicably. The disputed royalty payment obligation which was provided in our. The details we provided to all of you in the past is there in our balance sheet as well. An aggregate liability to the extent of our 259crores has been settled with no cash outflow. Prolonged and persistent efforts with government of West Bengal has eventually yielded positive results.
There will be no cash outflow from the company and we have conveyed 42.37 acres of land to from the land parcel aggregating to 314 acres that we currently own in Bengal. Government orders have been received. In fact was received in November and the administrative processes took some time. And we have completed the execution and registration of the conveyance deed in 2-20-2026. As part of order, we were also requested that the litigation initiated by Sriram Properties against the state needs to be withdrawn. And we have already initiated the process. With this, our obligations with regard to the non compete fee or royalty whatever way you all have understood in the past now stands fully discharged and its impact will become zero going forward.
More important than the development and associated cash flow conservation, it also accelerate development and monetization. Accelerate not only the development of our project but also monetization of the surplus land. As you are aware, out of 314 acres of land parcel we have ongoing projects aggregating to 5 million square feet spanning across 48 acres. These launch projects, nearly 80% of them have been sold. Our strategic intent for this land parcel remains unchanged. As we have always said, we will develop close to 10 billion square feet on our own and monetize the remaining land. We already launched 5 million square feet and 80% of it is sold already.
Therefore, we will now focus on launching new projects involving 5 to 6 million square feet of development potential and with a GDV of almost 3000 crores to be sold over the next 5 years. Simultaneous with this focus, we will also focus on monetizing the remaining land and in the foreseeable future, thus unlocking significant value for the company. We believe the Kolkata site has the potential to unlock cash flows in excess of 1500 crores in the next 5 years. Shifting a focus to operational matters on page 5 during the quarter benefited from improving operating environment but the strong recovery is still underway.
We have got enhanced external visibility now. All the outstanding pending ocs have been resolved and have been received. System is still stabilizing around the E Kata and registration portal related issues in Bangalore. However we see no such external operational challenges or operational hurdles in other markets like Chennai, Pune and Kolkata, so overall excellent environment remains conducive. Markets have remained strong. Lot of conversation, lot of likely industries slowdown. We believe the slowdown peers seem unfounded. New launches are receiving good traction. Sustainance sales is strong which clearly shows us or demonstrates to us that the customer purchasing is continuing with a good momentum and therefore we see the market remaining positive for some time.
Regional industry suffered predominantly on the administrative issues that all the residential real estate players have suffered in Bangalore, but all other markets remain very stable. Even in Bangalore the situation around handover and registration which is eventually resulting in revenue recognition things have improved substantially from where we were in September October to Jan Feb. Has been substantial improvement that gives us a better stability and better visibility on remainder of Q4 and therefore we see overall operating momentum to strengthen in quarter four and the past quarter or two would we believe be a transitionary in nature. Our core operations have remained strong and the operating platform is efficient and well oiled machine now and therefore we are confident of delivering our Q4 as well as a full year as well as the next couple of years towards our medium term mission that we have set for ourselves.
With this backdrop let me move to a few operational few more highlights of various contours of our KPIs. From a sales perspective. Early signs of stabilization was seen in October got impacted a little bit, the recovery momentum was slow and therefore launches happened outside Bangalore. But Bangalore launches are still taking time. System has stabilized now only recently and we believe the industry will see more launches coming up in the next couple of weeks. At Srira Properties the situation is almost similar. We are targeting for multiple launches during the remainder of this quarter and I’ll explain them in subsequent slides.
Meanwhile we focus heavily on the sustenance. Sales and markets have remained supportive both on volumes and pricing. Our recent launches have done very well and that gives us the confidence that the positive market environment and increasing launch supplies should help us clock a very robust Q4 like in the previous years as all of you are aware, Q4 is usually the peak quarter for most real estate residential players and for us as well. We have lined up minimum of two launches. A maximum of four launches that is likely to happen in Kolkata, Chennai and also in Bangalore.
I will explain them in subsequent slides. We therefore see a very strong Q4 coming back with all the OC issues resolved. Four OCs received out of which two of them received in Q3. The third one was received towards the end of Q2. So all of them had some good impact on our revenue recognition. But given the E Cata unstable Ikata and registration system portal in Bangalore in Karnataka we believe things are things have now shown a good traction and therefore we will continue to work towards next 67 weeks to achieve our handover volumes in excess of last year.
I’ll explain each of the metric in detail as we go through. Just to slide 6 primarily captures the impact of the handovers and kata issues that I talked about. It’s continuing for the second quarter. If I’m not mistaken we’ve had some initial turbulence in Q2 improved a little bit in Q3. Towards the end of Q3 Q4 has become more stable. We have about 380 plus units to be handed over from four projects that received OC during Q3 adding up to about 350 crores of revenue recognition potential. We have two milestones coming up of which part of the OCs have received in Kolkata two tower OCs are pending balance OOCs have been received which gives us handover worthy units of about 1,490 units, 1,500 units approximately against this 1,900 plus units we should be able to recognize about 800 crores of revenue in Q4 to a large extent should have been handed over before end of this financial year.
These are as I highlighted these are just a temporary Q4 Q3 carryover issues. Overall if you look at over the nine months, if you look at slide seven, the operating cash flows that reflect the strength of our core operation have remained positive. Overall operating inflows which is a collection mechanism that we have has shown these are net collection to us. Net of JDA, net of Diem, net of landowner shares, 787 crores of operating inflows reflecting 27% year on year growth. Our cash flow from operations have remained robust at 193 crores reflecting a 23% growth year on year on a nine month basis.
Our overall project investments have also remained very strong. We have more than doubled our commitment towards new projects at 246 crores during this year so far. One of the highest levels of capital commitment that we made for building our pipeline in recent times is as you can see from the trend line chart below, on a combined basis if I Look at from FY23 to 9 months of FY26, we have generated an operating inflows of 303,000 crores. Cash flow from operations have been in excess of 840 crores and we have made capital commitments in excess of 600 crores during the last 45 months.
Shifting focus to the next slide which is slide number eight reflecting the high investment that we have, high capital commitment that we have made towards investment towards building pipeline, We’ve added about 2.8 million square feet during the nine month period. Another 3 to 4 billion square feet is likely before we end the year FY26. So what has already been added, they aggregate to about 2,900 crores of GDV. That’s 2.8 million square feet equals to 2,900 crores of GDv during the nine month period. As I said, we unlocked significant capital from operation. As a result of this, even with the large investments in pipeline, our debt Equity remains conservative.
One of the lowest in sector at 0.3. Given Q4’s historical strength, we are confident. On a robust and comprehensive note, I must say here, we believe we are on track for delivering revenues in excess of 1,300 thousand 500 crore range and earnings in the 90 to 100 crore range for the full year. So Q3 or 9 month earnings is one part of our story. Based on the visibility we have for Q4 now that we are almost at the half of Q4 is over. Based on the registrations we have done and based on the registrations we have lined up for income recognition, we believe we should be ending the year with a full year.
Revenues in excess in the range of 1300-1500 crores and earnings in the range of 90 to 100 crores for the full year we have at least 80 to 90% confidence on reaching this number. Depending on how reliable the Bangalore registration system behaves which we believe has improved now remarkably and therefore we should be able to with a great confidence we should be able to reach this number almost entirely. Now let me shift focus on some of the specifics of Q3 and 9 months. Slide number 10 talks about 9 month performance value growing by 5% year on year at 1691 crores.
Volumes are slightly lower at 2.86 million square feet we believe we should be able to with the two to four launches that we have lined up for ourselves over the next six weeks, we believe we should be able to grow higher than last year’s sales volume, maybe a slightly lower than our earlier indicated annual number of about 5 million square feet target place but we would be reaching we are fairly confident about coming drastically reaching higher than last year. Numbers on collections we are about 12% higher at 1150. On handovers we are 20% higher. At 2017 we believe we are on track to deliver 33003200 to 3300 homes for the full year as originally envisaged.
Q3 numbers show us a bit of a mixed trend. Sales values at 565 crores, sales volume at about 0.9 million square feet, collection for 24 crores and quarterly handover at about 613 crores, all of which compare reasonable compared to our performance last year same time as well as the previous quarter. Shifting focus on financial metrics page number 11 talks about a nine month revenue of 694 crores, 27% higher, 27% growth on a year. On year basis, gross profits at about 184 crores, EBITDA at 83 crores and PAT of 22 crores. As I said, we have lined up a robust handover projects and the pipeline of handovers is very full and we believe based on what we have done over the last 1545 days and we believe we will be able to do over the next 45 days based on the registrations lined up, we believe we should be able to deliver a robust, very robust Q4 for our stakeholders.
Slide 12 talks about some of the same factors that I mentioned over the last few minutes. So I’ll Shift attention to slide 13 where we have talked about our pipeline additions during the nine month period. As I said earlier, we have added 2.8 million square feet. Accelerated pipeline efforts are paying off. Six projects with 2.8 billion square feet and a GDP of 2,900 crore has been added so far in FY26, the details of which is visible on slide 13. Five projects with over 6 billion square feet potential are advanced. Stage of closure 3 plus million square feet is at their and you should be hearing these acquisition completions in the coming weeks in the public announcements.
Several projects are at an advanced stage of diligence and documentation. In all we have close to 20 million square feet under evaluation at different stages. Our focus remains on Bangalore, Pune and Chennai in terms of pipeline Addition and aggressive development focus on Kolkata with the resolution of the impediments recently we remain focused on our satellite acquisitions but a right balance is being made between acetyllite as well as outright purchases for immediate growth. Slide 14 talks about the same pipeline at a different composition in terms of our own projects, jda, JV and Diem as well as ongoing and future.
All I wanted to highlight was a table there on the right hand side top 18 million square feet of potential pipeline which is not launched as yet carry a GDP of 11,670 crore. So close to 12,000 crores of GDP is sitting in our pipeline. Our focus is on unlocking this at a faster pace across all markets so that we can bring these projects to market and start realizing the same value potential. At this stage of talking about the pipeline growth, I must also say our launches have also done well which is equally important like pipeline addition, pipeline monetization or pipeline liquidation is happening successfully.
We did six launches during the year, four new product launches, two new phase launches during the quarter we did Sky Bloom Villa which has far exceeded our own expectations to the micro market that we are in Uttarpara in West Bengal and the product has taken off well has received tremendous response and we are very encouraged by the fact that this model can this product can therefore be extended to much larger land base. Given that now we have completely hurdle free development potential in Kolkata which over 314 acre parcels less what we have developed and less what we have conveyed back to the government.
We also monetizing the small commercial space that we have in Kolkata. Simultaneously we did launch an apartment new apartment wing called Sriram Springfield as well as we’ve done new plot launch during the quarter Chennai called Sriram Subam. The second phase of the project was launched. Overall it has been a quarter from a reasonable nine month from a launch perspective. But what I wanted to highlight is. Page number 16 summarizes the launch ready pipeline that we have. Barring a couple of projects which are still awaiting regulatory approvals meaning RERA and plan sanction in one case and RERA approval in another case.
Rest of the projects are under our control. In terms of timing of the launches, we believe at least between two to four projects out of the six will get taken off from the ground to a launch mode before end of this financial year. We will also be soon adding two more projects to this business phase where we are at an advanced stage of both acquiring an approved project as well as we are at an advanced stage of submission of plan for another project. So we have a very busy very tight and busy launch pipeline for Q1 and Q2 as well.
So we are very excited about what’s in store for us not only in remainder of the Q4 but but also for Q1 and Q2. By then we believe the subsequent part of the pipeline will become launch ready pipeline. So busy year ahead in FY27 from a launch perspective. Slide 17 talks about the overall potential we have for handovers based on where we have received OCS and where we are either received KATA as well or waiting for KATA in Bangalore. In case of other cities there is no concept the relevant approvals have been received so the candor will come in fairly soon.
So in all as you can see from this column there pending handover 2490 units will be available for handover with us or it is getting ready for handover over the next couple of weeks. Slide 18 talks about some of the honors and accolades that we have received including reimbursement of our certification as a great place to work with much better and higher ranking that we have got this year which is well above mid cap, Mid cap and a small cap sector average has been far exceeded from a ranking perspective which is an encouraging point. To note that we are becoming much better organization from an employee perspective.
With this I would pause here. I would request my colleague Mr. Ravindra Pandey, CFO to walk us through the presentation on the financial performance and where do we see as an outlook. Over to you Mr. Pan.
Ravindra Kumar Pandey — Chief Financial Officer
Thank you sir for setting the context so clearly. Good evening everyone. I will take few minutes to walk you through our financial performance, cash flows and balance sheet position and also our outlook for the Q4 and the full year. Let me begin with the Q3 performance. As we are aware the quarter was impacted by continued procedural delays receipt of an intermittent issue with the Cauvery online registration portal.
Despite our best efforts operationally, these external factors led to deferment of revenue recognition which in turn impacted reported numbers. That said, there are few important positives for Q3. Revenue stood at 203 crores reflecting a healthy 13% year on year growth. Gas profit came to 41 crores up by 19% year on year. Margins were impacted slightly due to commencement of revenue recognition in Project Sunshine in Calcutta which is a relatively low margin project but overall project level profitability remains stable. EBITDA for the quarter was 13.1 crore. The year on year decline is largely attributable to the lower revenue base and higher operating expenses related to our loss of rupees 7cr for the quarter compared to profits in the previous years.
However, I want to emphasize that that this is a timing issue not a structural issue. On a 9 underlying strength of the business is clearly visible. 9 month revenues from operation grew 51% to 200627 crore and total revenue grew 27% to 690 crores. Gross profit for 9 months stood at 184 crores up 40% year on year with gross margin stable at around 29% which clearly reflects the strength and stability of our project portfolio. EBITDA for nine months was 82.9 crores versus 113.7 crores last year. This is entirely due to deferred revenue recognition from completed projects, not due to margin Horizons.
Importantly, by 16% area year on year reflecting disciplined capital management, PAC for nine months stood at 22.4 crore. Had the E. Karpa process moved in line with the expectation, both for nine months would have been meaningfully higher. Since this is only deferment, we remain confident our full year earning operational engine remains strong, margins are stable and resilience of the business is evident even in a disrupted quarter. Referring to the next slide, this is just spoke about it. We’ll move on to the next slide. Consolidated Cash Flow Let me now move to the cash flows which in my view is where the real strength of the quarter is visible.
We have maintained strong financial discipline throughout the year. In Q3 alone we collected 302 crores reflecting our sharp focus on milestone led collections and execution intensity. We generated 117 crores of operating cash flow during the quarter, a significant jump. Sequentially during the quarter we repaid 67 crores of scheduled debt and invested over 100 crores into new business development opportunities on a nine month basis. Operating inflow stood at 787 crores and we generated 193 crores of operating cash flow. At the same time, we have invested nearly 250 crore into new projects over nine months, building a strong and visible pipeline for the coming years.
Importantly, while we continue to invest for growth, we are working to fast track approvals and mitigate the challenges we have faced. Our closing cash Balance stands at 217 crores, giving us simple liquidity to support construction, launches and new opportunities. Overall, cash flows are healthy, well managed and positioned to accelerate meaningfully in Q4 as registrations normalize. Moving to Next slide Debt Profile Coming to the Balance Sheet Our balance sheet remains robust and conservative. Net Debt stands at 418 crores with a net debt to equity ratio of just 0.3x well within our comfort zone and providing significant headroom for growth.
Our 11.1% reflecting improved credit profile and discipline management. We continue to enjoy a positive outlook rating from Fishing which reaffirms our credit strength and governance standard. In summary, we have a strong balance sheet, ample funding capacity and the ability to confidently support our growth pipeline. Moving to the next slide outlook for Q4 and FY26. Prolonged approval delays and slippage in launch timelines did impact our earlier CS guideline. However, we are confident that our full year sales will outperform FY26 25 supported by a strong Q4 launch pipeline and improved regulatory momentum. Encouragingly, all our KPIs are broadly in line with the guidance given earlier.
We expect to end the year with upwards of 4.5 million square feet of sales and revenue of around 2,600 crores. Collections are expected to cross 1700 crores, reflecting healthy growth despite some moderation in large net collections. While deliveries commencing in Calcutta and Istan Q4 handovers, we expect to deliver close to 4 million spas during this year. On the business development front, with the Pune deal closer and additional pipeline additions under documentation, we are confident 500 to 5000 crores of GDV in India, strengthening our forward visibility. To conclude, while Q3 numbers reflect temporary external disruptions, the fundamentals of the business remain intact and strong.
Our cash flows are robust, our balance sheet is conservative, our pipeline is expanding and Q4 momentum is clearly building. On behalf of the management team, I would like to assure you that we are fully committed to bouncing back strongly in Q4, delivering a comprehensive performance for FY26 and carrying this momentum into FY27. Thank you once again for your continued support.
Now I’ll hand over the call to the operator and myself along with our CEO and CMD will be glad to answer all your queries.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press Star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Somil Shah from Paris Investments. Please go ahead.
Unidentified Participant
Hi sir, good evening. My audible.
Gopalakrishnan J.
Yes sir, good evening.
Unidentified Participant
Yeah, okay, so I mean in last quarter presentation we had mentioned about 420 crores of revenues were deferred due to Non recept of OC and IADA And I think there were total of five projects which got delayed. And now in this quarter also out of that four projects still we are seeing it as delayed. So why is there so much of delays? Can you please help us understand?
Gopalakrishnan J.
Yeah. So in Bangalore they have migrated. It’s not a Sriram problem. You would have seen this in all the company presentations. I don’t know how much disclosure they have made. So in Bangalore and Karnataka they have migrated to the concept of Ikatha last year and they have their own reason of why it is not stabilizing for so long. It seems to stabilize and then again goes out of control. And same is with their Cauvery 2.0 which is a registration portal like we all have in Maharashtra. It’s going through turbulent times in terms of registration. So registration can get set up and then get cancelled. So customers come and go. So that has been continuing till recently. Even now interruptions are there but very few interruptions on a daily basis.
But in the past till recently it was a nightmare for most registration departments and most customers. So OC issues got solved. So we got all the OCs. Now projects have been lined up. And so this 380. 350 crore or 380 homes and 350 crores is not only from the past, it is previous ones got liquidated as well as we got added the new projects as well. So it’s the net outstanding as of date. So we have achieved some good progress in terms of registration. Otherwise we would not have handed over 600 odd units. So it is happening but it is happening at a slower pace in government of Karnataka beyond any industry bodies or any any of our peer groups ability to resort fix this.
So industry body is taking over the government and they have assured stabilization fairly soon. Yes. We expect the current stable trend to continue at least for the remainder of the quarter.
Unidentified Participant
So this quarter, I mean almost.
Gopalakrishnan J.
Other residential. If you have seen the press release of other residential players, a lot of numbers are floating around on 2000 home spending. There are players in south in Bangalore have more than 2,000 homes listed play. I think so. It’s a. It’s an industry wide Bangalore wide, Bangalore wide or industry wide problem in Bangalore players story.
Unidentified Participant
Okay. Okay. And how is this photo shaping out? So we are almost halfway mark. So is it stabilizing or still there is an issue?
Murali Malayappan
I think it is. But it is far superior than Q2 and Q3 that we have seen in terms of registration process where that’s why we are saying and in our context out of the,400 homes or 60% of our handovers during this quarter coming from other cities. Kolkata and Chennai account for I think about 60 odd percent of our registration or revenue recognition. Bangalore still accounts for balance 40%. But the situation is far more better than what we saw worst was I think Q2 and then Q3 was better. Q4 is far far better.
Unidentified Participant
Okay, so in this quarter presentation if we are seeing you have mentioned that some seven projects with 800 crores of revenue recognition in Q4. So I mean are we on track for that or we could see delays in that as well.
Murali Malayappan
That that is that based on the confidence only I said we will end the year with 1300-1500 crores of revenue. Which means large part of this 800 crore will get recognized.
Unidentified Participant
Because for the last few quarters we are seeing. I mean there is every quarter in our presentation we are mentioning there is a decline delay of revenue recognition. And the delay is in. I mean it would be shifted to the next half or next quarter. I do understand our industry is such that there are possibilities for delays. But why don’t instead why don’t we do be on a safer side and commit for six months later only and then maybe we do it early and surprise the investor community. So why, why don’t we do the other round?
Gopalakrishnan J.
No investor community is one part of the stakeholder. Yes, we can underplay that. Maybe we’ll consider that as a suggestion. It is unpredictable situation from an external perspective. So we can play that, we can underplay that. There’s no big issue around it. But that’s just one stakeholder. Capital market is one part of the stakeholder. There are other people watching this as well. Customers will feel why there are multiple, multiple angles to it. And there is a rare angle to it. And the handover timeline, irrespective of what happens the governmental systems or registration systems there are still remains governing right. Customers will seek other other remedies under various other context.
Unidentified Participant
Okay. Okay. And so on the Kolkata land we have mentioned that we will be developing 10 million square feet and balance we will monetize. So that will be. I mean how much million square feet and the amount we could realize with this sale and by when we can expect.
Murali Malayappan
Overall the site has a potential of about thousand five hundred crores of cash flow Both from our own development as well as the monetization. Very difficult for me because we have gone through this long battle or long persistent effort to get to this situation. Difficult for Me to put a timeline on.
Like you few minutes ago said we shouldn’t be committing without degree of confidence. I wouldn’t be able to put that kind of number now on how soon we can monetize and all that because like it will get questioned next quarter saying oh you said this and what happened to the progress? It’s very difficult to comment but I can say three to five years is the development timeline. So monetization can happen faster as you know. So maybe a three year window for monetization and a five to six year window for completing and handing over. You said 10 million.
That’s the total development we might do out of it. 5 million is already in progress. Several of them are being handed over. So we should complete the construction and handover in about five to six years. Three years for surplus land. Monetization could be a good target. Maybe we’ll try before the next analyst meet or by the year end of call. We’ll see whether we can give you a granular visibility on approximate timeline for monetizing and launching new projects. So you are able to do an NPV of the cash flows.
Unidentified Participant
It would help us because monetization how much value we can create. So that would be helpful.
Murali Malayappan
Yes sir.
Unidentified Participant
Yeah. And so my final question of a guidance on this 5.2 to 5.5 million square feet. No, we have revised it to 4.5 million. So are we seeing any slowdowns or any particular reason?
Murali Malayappan
We are not seeing a slowdown in the market. Whatever we are launching, we are getting sold. I’ll give you two instances. We launched one project in Bangalore called Sriram Dharwan, codename it’s called Songs of the Air in Anekal. Within now about three months, three and four months. Three and a half to four months. We have almost 75 plus percent is sold and these are like a high ticket size.
It’s not a 40, 50 lakh 60 lakh kind of product. So the very and similarly West Bengal when we launched we tried a new product format in West Bengal. That’s the COVID page of this presentation that you see is the recently launched Sriram Our villas, they have taken off. This is a product which has not been tested in the micro market that we operate in Uttarpara in West Bengal. We tried and I think it has been a big success. That large, all the large villas, these are all like 1.8 crore ticket size. From the apartment that we are selling are in the 40, 50, 60 lakh ticket size.
So a big transformation from the micro market perspective. The big Transformation in ticket size. But they all sold. Nearly all of our four and five bedroom inventories are sold within now about three, four weeks of launch. So that’s the kind of market is willing to absorb. It is the in Bangalore, Kolkata, Chennai and Pune. All four markets. We have seen a good traction even in Pune. We made meaningful progress during the quarter. In terms of overall volumes sold, I think we are about 40% sold now. So I think markets are doing well. It is the ability to supply and as I mentioned and as you rightly pointed out, there is a challenge for all of us to supply ready products or supply to the market, especially in Bangalore.
So now things are improved after a bit of a long struggle between the industry and the regulators. Hopefully the supplies will pick up. Now we are not banking on Bangalore launch right now. As I said, two to four launches for the remainder of this quarter. Remainder of this quarter and we are banking on Kolkata, one more product to launch. We have plotted development, we have launches coming up in Chennai and if all goes well, we would have another launch in Pune as well in the near future. So I think markets are doing well. Is our ability to supply industry, our company’s ability to supply.
And that’s constrained by some external factors. And that’s what is showing lower numbers than market slowdown. I think market has misunderstood the trend because I saw for the last four weeks there’s a lot of talk about demand slowdown. I don’t think that is. We are not seeing that on the ground. Our partners in home loan businesses are also not seeing that kind of slowdown in home loan demand. So I assume on ground trends remain positive.
Unidentified Participant
Okay. Okay. Thanks for your detailed answers. That’s it from my side. Thank you and all the best.
Murali Malayappan
Thank you so much.
operator
Thank you, sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Rohit Kumar from ADM Business Advisory Limit llp. Please go ahead.
Unidentified Participant
Hi sir. Thank you for taking my question. You mentioned that there is a 56 MFs development potentials. So may I know what is the expected IRR from these projects.
Murali Malayappan
In Kolkata, Armenia?
Unidentified Participant
Yes.
Murali Malayappan
Difficult to predict at this point of time because it depends on the timing of launch and the product and the pricing. We have certain assumptions in mind in terms of what product can be launched at what sequence. The timing will depend because a 5 year period, 3 to 5 year for launch of this 4 to 5, 5 to 6 millions package. So it Would be very difficult to project.
But we will not do projects if it is less than 25% IRR in general in Kolkata because it’s our existing land. You would imagine IRR will be significantly higher at current price points. But overall, what is that site can generate between the surplus land that we have and the project that we are going to launch should generate about 1,500 crores of cash flow in five years time.
Unidentified Participant
Okay, got it. And so my second question is, to achieve 3x of revenue and 4x of profit, what is the company expecting? The peak debt levels, what should we expect?
Murali Malayappan
I will approach this question in another way. We are currently at 0.3. Our most comforting zone is about 0.5. Not more than that. But towards reaching peak pipeline addition and towards reaching the revenue, we might intermittently or in a short term basis we might go close to 0.7. But we would be very uncomfortable to go beyond that kind of number on a console basis.
Unidentified Participant
Okay sir, that’s it from my side.
operator
Thank you. The next question is from the line of Karan Mehra from Mehta Investment. Please go ahead.
Karan Mehra
Hello sir. Thanks for the opportunity, sir. So, following the Kolkata settlement, what is the quantum of surplus land now available for monetization? And based on current market transactions in Uttarpara, what would be the indicative price per acre?
Gopalakrishnan J.
It will be difficult to comment on what the land price would be. Let me approach the question on the volume perspective. First, out of the 314 acres we have utilized 48 acres for our ongoing project. We have handed over about 42 acres to the government now. So roughly about 201 odd acres would be available for development. Out of which there will be always an area which will be utilized for roads, drains and water bodies.
And therefore we believe we should have beyond the project that we have in mind, we should still have between 90 to 100 acres of land available in our hand. What would they fetch will depend on what the market can at that point of time deliver. But it’s always going to be constant battle between evaluating what is the per acre net realization of sales versus our own development. For example, the villa development that we have pursued now we have launched about a month ago and it has done very well. Contribution to us at the pre tax level should be in excess of 7 crore per acre.
Whereas if you go on whether we can monetize 7 crore per acre on entire surplus land, not possible. So it will last a combination of a profitable high margin owned development as well as a sale in the market. If you go to Uttarpara, or the sub registrar data, publicly available land record data. You can see anywhere between 4 crore per acre to 5, 6 crore per acre as well. So I think it will be combination. This is a portfolio, right? 300 acres cannot be an individual project. It’s a portfolio. So forward realization can be a lot more attractive than what the current prices were.
So we currently see in the markets between 3 and 5 crore per acre transactions happening on own development. We can old historical development would have delivered less margin. I must candidly admit because that market was not developed at that time. And we have sold. We have sold apartments in the 24 to 40 lakh ticket size three and a half thousand to 4,000 rupees per square foot pricing. But today we are selling at 5,500 rupees per square. So it evolves over a period of time. But overall cash flow wise I remain unchanged on the expectation that of 1500 crores from this surplus from the entire land bank that we have in Kolkata.
Karan Mehra
Sure. Thanks for clarity over there. And sir, despite Ikata and portal related issues in Bangalore, are you seeing sequential improvement in price realizations in both Bangalore and Pune? And has pricing power remained intact or are incentives being used to sustain the velocity there?
Gopalakrishnan J.
So there are two questions here. I think pricing and the ECA issues are not really related to the current market condition such as the customer handover and income recognition for the residential players. I don’t think it would have an impact on pricing capability. But market trends are conducive. If you are saying will the pricing be going up like post Covid 15, 20% a year? I don’t think so.
Will the price be moving reasonably? I would imagine yes. For the next couple of years you can see anywhere between 5, 6% max 8% kind of annual increase in prices that we are seeing on the ground. We have seen same product, our own projects. We are able to move quarter after quarter. We are able to increase the prices by 1, 1.5% 2% depending on the micro market. So there is a price sequential growth in pricing happening for the existing projects. New launches are being tested and priced at a very nice sweet spots. Combination of both market conditions as well as the product quality.
The product that we launched last in Bangalore was in Q2 end was called Sriram Dhar 1 code name. Prices are what we have achieved. I think we have achieved about 7,350 rupees. 7,400 rupees per square feet average. That is in excess of what we initially thought of. Significantly higher than what we underwrote the project. So prices are doing well, but it is not likely to be 15, 20% or 15% kind of annual growth rate that we saw in the post Covid spike.
Karan Mehra
Understood sir, that answers my questions. Thanks for that and thank you and all the very best.
Gopalakrishnan J.
Thank you.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Sunil Jatakia from B Fly India Opportunity Fund. Please go ahead.
Sunil Jatakia
Thank you for the opportunity and congratulations to the management on amicable settlement in the Kolkata land issue. So my question related to the Kolkata land. Out of 314 acre of land, 43 acre goes to government, 48 for the ongoing project. Another 50 acre towards the new project. So we left with around 170, 175 acre of land. So in that how much goes towards the intra development like road and water reservoir and what you need to develop. So how much goes for that? And balance you said is going to be around 90100 acre, right? So is it 70 to 80 acre goes for the intra development.
Is that the right understanding?
Gopalakrishnan J.
The infra and existing water bodies all should take roughly about anywhere between 50 to 75 acres of area. So therefore 90 to 100 acres we are developable area Post all of this that we have rightfully pointed, rightly pointed out our own development already going minus government, minus new projects.
Sunil Jatakia
So. So this 90 to 100 acre you want to monetize, right? There is no plan of development in that you’re already developing another 50 acre project worth 5 to 6 million square square foot, Right? So this monetization is going to happen within three years time.
Is that the right understanding? Is you coded somewhere earlier?
Gopalakrishnan J.
Yes, I think we think the monetization happen in a three year period. As you know, in such a large project, very difficult to put a freeze the numbers up front. Yes, currently the 900 is the surplus beyond what we have thought about as a development. It’s basically two apartment complex, one plotted development. If I do all of this utilized. So Therefore we think 190 to 100 acre will be a surplus. I think we have to be circumspect or opportunistic in terms of if the paraker realization of quicker turnaround like a plots or a villa can generate a paraker more than FSS sale per se, then we should be open enough.
We should talk ourselves into saying oh I have committed 90 acre sale, I have to sell 90 acre because if you look at a warehousing or a data center kind of business model. They will not be paying you more than four crore rupees per acre. They can absorb large volumes. But like you have done in Villa, it can be 6,7 crores per acre contribution. So we have to really balance this in terms of timing of cash flow versus actual per acre cash flow that can come right. It’s all about NPV at the end of it.
So you have to give us some time to through all of this. But primarily what we are seeing is we will complete this 6 million square of our own plots and apartments. Maybe we can come think about a new product versus money land monetization as in an opportunity arise. But you can, you can take this our commitment that for a three year period surplus land should be monetized. Over a five to six year period this development will be complete. So we will be completing the entire site in about six years. Hopefully.
Sunil Jatakia
You as you quoted 3 to 4 crore for data center guys and maybe 6, 7, 8 crore acre for the land development. Villa development you said. So maybe you can take a figure of say 4,5 crore acre and can. Easy. Is it the right assumption to assume like 500 or 600 crore of value can be realized out of this surplus land by 600 crore? I’m just saying a ballpark.
Murali Malayappan
It can be much more. We are also evaluating now the Villa project which we launched to see tremendous response. In fact ticket size from 50 lakhs in that location. We, I mean discovered it’s about 1.5 to 1.8 tours. So realign ourselves for doing Villa so easily. Whatever the numbers you talked about it we’ll be able to reelect.
Sunil Jatakia
Okay. Okay. Okay. So another question on. On. On the numbers. Basically in terms of our numbers we have gone nowhere. In terms of the sales volume we were at the same level what we were in FY25 sales value again same collection, same handover, same in FY26. There is no growth as such going by this parameter. So where do you stand on your FY28 mission? What you had conveyed sales value of 5000, revenue of 25 to 3000 crores and earning of around 250 crore or so. So where do you stand on that now? Two years is left for that.
Murali Malayappan
So one year is gone. We see the other way. It’s always half last full. So we have one year of journey. And I would probably reserve this question, reserve my answer for this question till our Q4 results. Then you would see with more credibility and confidence as to is there a growth or not? I I wouldn’t like to comment on. We don’t think the metrics are stable or staying stagnant. Yes. I’ve not been up to what we talk about. There are factors which is within our control. There are factors that are outside our control. It is like a capital market or a Sensex.
There’s an expectation to have and reality comes and hits you in a different way. And does it mean that we all pull out of equity immediately? I don’t think so. Do we expect the equity markets to go up over a three year period? I would imagine so. Like that’s exactly something similar quarter to quarter we can’t really keep. It’s not a manufacturing firm where everything happens on a 97% capacity utilization stable quarter of quarter. So I think this, this volatility will continue will be there this year will be there in future also are we moving year to year are we moving ahead from a negative earnings in 22 we have come all the way to 77 crore last year and we believe I told you that we are looking at anywhere between 90 to 100 plus crores in terms of revenue.
We have said we will hopefully be the 1300, 1500 crores which would mean almost like 50, 50 growth year on year in income recognition. So I would. I would. I would have a more I would. I would remember and I would request you to join and we will have an offline conversation otherwise to talk about how we will reach there at that point of time next next quarter. It’s only 45, 60 days away. Let let’s reconnect this topic and you will have a much.
Sunil Jatakia
So my. I was talking from Kolkata land issue context because it’s been resolved now so I thought it’s maybe achievable with the help of modernizing this excess land in two years time. I thought ultimately revenue and earning. Yeah.
Murali Malayappan
Go ahead.
Sunil Jatakia
So basically with the. We still have a two years time for that and with moderators over land I think revenue and earning numbers can be reached in this what they have targeted for 28. So I was, I was. My question was in the. In keeping that context in life.
Murali Malayappan
No, no I appreciate, I appreciate and I think there’s a positivity to the approach that you’re having. What I’m saying is from a core operation wise if you look at the number of projects that we have added or adding look at the pipeline and look at the pricing we used to sell average of about 5,500 6,000 crores until recently today we are all our new projects are getting to the 6,000, 7,000 plus kind of ticket size.
Therefore the revenue faster than the volumes. That is point number one. Second is as the pricing goes up, the costs have been under control. So your margin profile will also change. Is changing. And the real estate, please don’t look at it. On a quarter to quarter margin profile you see whether annually that is growing. From a margin perspective you would see. From our perspective we are confident that we’ll reach there. So I think monetization is one part of the game which I don’t know. All of them will have a kick in. In FY28 which is our end target for the medium term mission that we have taken for ourselves without full contribution from the monetization.
Also if you look at the pipeline, the kind of capital that we’re committing on pipelines. Right. Should translate into new launches, new volumes. And so that’s where we get our confidence from. We remain fully confident, not just committed. We remain confident of reaching our milestone. Yeah. There may be some variations will be there but it is unlikely to be anything significant or material at that point of time.
Sunil Jatakia
Okay. Okay. Thank you sir. And wish you all the best, sir. Thank you.
Murali Malayappan
Thank you.
operator
Thank you, sir. The next question is from the line of Rajesh Agarwal from Manior. Please go ahead.
Rajesh Agarwal
Hello. So my question was on Calcutta land. I think more or less it is answered what I have understood. We can monetize 100 acre of land which can fetch us 4, 4 to 5 crore rupees per acre without development. This is before tax now.
Murali Malayappan
Yes, sir.
Rajesh Agarwal
Okay. And balance land will develop which will have a GV of value of around 3000 crore.
Murali Malayappan
Yeah.
Rajesh Agarwal
Okay. And. And in government how we have settled in the lieu of that we have given them some 42 acres of land.
Murali Malayappan
Correct.
Rajesh Agarwal
So they’ve settled at a very less price than 42 acres. Maybe 3,4 crores per acre which is around 140. 50 acre. 142 crores.
Murali Malayappan
No, sir, if you have seen in the balance sheet of last year this liability was estimated around 249 crores.
Rajesh Agarwal
Okay. Okay. So I think they’ve agreed to settle for a lesson. That is what I understand.
Murali Malayappan
Per acre is almost 6 crore. No.
Rajesh Agarwal
Okay. That’s 6 crores you’re taking. Taking no problem. And sir.
Ravindra Kumar Pandey
Sir, If I can supplement, I don’t know what they would have thought about. Either they have taken a liability reduction or they have taken a per acre valuation. But doesn’t matter to us. For us it is set off at 42 acres and therefore liability is discharged. What assumption they had, I don’t know.
Rajesh Agarwal
Okay, so sir, three years. Can we save the land? No. In next two, three.
Ravindra Kumar Pandey
We are targeting monetization. If it is monetization. Three years is defined as Mr. Molly pointed to the earlier caller earlier question. It’s a dynamic situation, right? If the opportunity exists or like when I say 5, 6 million square feet. We are thinking of one plotted development and two apartment complex. Like we have done in the past, right? Grand one grand sunshine like that.
There are five or six names that I can roll out. Really given us a new dimension to the whole story on a per acre contribution perspective. But it may not give you that kind of volume, right? Villa cannot absorb. You cannot sell entire 100 acre into villa. So it is a weighted average mix that we’re talking about. What should be the weightage is what he pointed out that we are still working through and thinking through. But there is a large capital available, large unblocked value available which I think get reflected in our company value.
Rajesh Agarwal
So suppose just a hypothetical question. The values land. If we don’t monetize and we join with a local developer or a developer of repute. So the land monetization may. May be much more the value of the land monetization.
Ravindra Kumar Pandey
T hat is also monetization. When we say monetization does not mean we have to sell it only to warehousing development. Where we are not in the operation and there somebody else is giving us the revenue.
Rajesh Agarwal
Okay. And so the last question. Are we facing the same issue of. In Chennai also in Bangalore also? What for that regulatory approval of E. Qatar or whatever.
Ravindra Kumar Pandey
Chennai, Pune and Kolkata have no such instances in our. In our knowledge. We all our projects are put from an approval perspective or a. There is no E. Katha there. There is a Pata. This is just different name for us. That system stabilized long ago. So everybody goes through this system, right? Income tax department went through software problems like that. So they don’t have this issue now. Bangalore is just going through the learning curve now. That’s all. There’s no big.
Rajesh Agarwal
It’s a local Bangalore issue, whatever Karnataka issue.
Ravindra Kumar Pandey
In Kolkata, Pune and Chennai.
Rajesh Agarwal
Okay, understood. Thank you, sir.
Ravindra Kumar Pandey
Thank you.
operator
Thank you, sir. The next question is from the line of Somil Shah from Paris Investments. Please go ahead.
Unidentified Participant
Hi. Thanks for allowing me a follow up. So just one bookkeeping question. This 250crores of liability which will be, you know, knocked off from our balance sheet. So will this increase our reserves and increase our book value or there will be no impact. And if is there just an accounting entry?
Murali Malayappan
No, it it may have some impact on the reserves eventually, but it’s a gross liability and gross assets getting knocked off. But there will be some depending on basically working with our statutory auditors GT the grand carton on the actual treatment of this and if there are any surpluses it might get eventually flow into reserves and surplus is a knockoff against both sides of the balance sheet, but there may be some small difference in value which make it added to reserves. Interplay .
Unidentified Participant
okay. Okay, that’s it from my side. Thank you.
operator
Thank you sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. As there are no further questions from the participants. I now hand the conference over to management for closing comments.
Murali Malayappan
Thank you everyone for joining us on this call on a Saturday afternoon, Valentine’s Day. I appreciate your interest in learning and listening to our perspective on the performance and outlook. We would like to give you comfort and assurance that we believe the temporary disruptions are over and we will end the financial year with a fairly robust financial performance and look forward to explaining our full year performance and the outlook at that point of time for FY27 in the next. In the interim, if you need any data, any information, please feel free to reach us directly or through SGA or our IR partner and look forward to connecting with you all again in another conference call fairly soon. Thank you.
operator
Thank you sir. On behalf of Shriram Properties Limited that concludes this conference call. Thank you for joining us and you may now disconnect your lines. Thank you.