Suraj Estate Developers Ltd (NSE: SURAJEST) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Rahul Rajan Jesu Thomas — Whole-time Director
Shreepal Shah — Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q3 and 9 months FY26 earnings conference call hosted by Suraj Estate Developers Limited. As a reminder, all participants line will be in listen only mode. And there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch tone phone.
I now hand over the conference to Mr. Rahul Thomas, full time director from Suraj Estate Developers Limited. Thank you. And over to you sir.
Rahul Rajan Jesu Thomas — Whole-time Director
Good afternoon everyone. I welcome you all to our Q3 and 9 months FY26 earning conference call. Along with me I have our CFO Mr. Sri Palshah and SGI Investor Relations Advisors. I hope all of you have gone through our investor presentation uploaded on the stock exchange and our company website. As we begin, I would like to briefly highlight a recent regulatory development in Maharashtra that we believe could gradually reshape redevelopment activity in south central Mumbai. A market where we have built strong execution capabilities over the years. The state government has indicated its intent to introduce a new framework for redevelopment of buildings under the PAGDI system.
A legacy rent control structure that has historically constrained redevelopment due to legal, consent related and financial complexities. With approximately 19,000 Pagri buildings across Mumbai. Including over 13,000 stalled redevelopment cases largely located in central regions and many over 60 to 80 years old. The proposed framework aims to improve safety while enhancing the redevelopment feasibility. While the policy is still evolving, we believe such clarity could progressively unlock high value land parcels in a land scarce micro market of south central Mumbai. Creating a meaningful long term opportunity aligned with our strategic focus in terms of business. In parallel during the quarter, the Mumbai office market continued to demonstrate healthy demand momentum.
Led largely by domestic occupiers with strong leasing and absorption across three submarkets. New supply was well absorbed, supported by free commitments resulting in lower vacancy levels and improved occupancy across prime assets. Rental growth remained steady in established business districts while capital values continued to outpace rents. Reinforcing a balanced market environment and sustained investor interest supported by stable income visibility and long term capital appreciation. Building on these market trends, we are pleased to inform that Suraj One Business Bay has witnessed a strong start with 40,000 square feet sold within 45 days of launch. Translating into a sales value of Rupees 200 crores out of a total GDV of 1200 crores in this particular project designed by Azure Premium Grade A Commercial Development.
The project comprises of two level basements, a double height grand entrance lobby, eight levels of podium parking, a double height edeck level approximately 28ft and 14 office floors with a floor floor height of 14ft. It features multiple destination control, high speed elevators, intelligent systems and each office accommodates roughly between 11 to 15 business units catering to a diverse mix of corporates. Together these features deliver well balanced combination of operational efficiency, design sophistication and functional flexibility aligned with expectations of modern office occupiers. This momentum validates our strategic focus on South Central Mumbai as a high potential commercial corridor and we are actively evaluating similar high quality commercial opportunities in the SCM market to further scale the segment in a disciplined manner.
Recently we have also acquired two additional land parcels, one at measuring 1,760 square meters and the other 906 square meters in Bandra. Alongside these developments we are pleased to share that the company has been awarded the Euromoney Real Estate Award for India’s Best Residential Developer. This global recognition places us among internationally benchmarked real estate leaders and underscores our four decade journey of developing and transforming some of Mumbai’s most established neighborhoods, reinforcing the strength of our brand, execution, track record and long term commitment to quality.
With this I would like to hand over our call to our CFO Mr. Sripal Shah who will run you through the financial highlights. Thank you.
Shreepal Shah — Chief Financial Officer
Thank you Rahul. I will now run you through the financial highlights for the quarter and nine months ended FY2025 26. For nine months FY26 the total income grew 11% year on year to 460 crores compared to rupees 416 crore in nine months FY25 EBITDA stood at around 171 crores in nine months FY26 versus rupees 176 crores in nine months FY25 and PAT stood at 80 crores for the nine months ended FY2526. On the quarterly basis a total income grew 6% year over year to rupees 182 crores in a quarter three FY26. From rupees 172 crores in quarter three FY25 EBITDA increased to rupees 55 crore in Q3 FY26 versus rupees 48 crore in Q3 FY25 and PAD grew to 25 crores in quarter three FY26 from rupees 20 crore in Q3 FY25 supported by operating leverage during the quarter.
Operational performance during Q3 and nine months FY26 reflected steady sales activity and improvement in commercial transactions. Sales area increased to 51,826 square feet in quarter three FY26 testing a 211% year over year increase. While nine month FY26 sales stood at 1.03 lakh square feet up 56% year over year. In terms of volume primarily driven by higher contribution from the commercial segment.
Sales value rose to 253 crores in quarter three FY26, a 137% year over year increase and to rupees 487 crores in nine months FY26 reflecting 38% year over year growth supported by the residential commercial product mix. Collections amounted to rupees 124 crores in quarter three FY26 up 48% year over year and rupees 310 crores in a nine month FY26 indicating stable collection during the period.
With this I would like to open the floor for questions. Thank you.
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 press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may Press Star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question please press Star and one on their touchstone telephone.
The first question is from the line of Ravisha from VRs Capital. Please go ahead.
Unidentified Participant
Hi sir. Am I audible?
operator
Yes, sir. You’re audible.
Unidentified Participant
Yeah. Yeah. So. Hi sir. So I have two questions. So what will be your net debt to equity once Bandra enters its peak construction phase? Number one. And second is what is the GDV of the projects likely to be launched in FY27 and how does it compare to FY26?
Rahul Rajan Jesu Thomas
Can you just repeat that? Sorry, we missed you somewhere.
Unidentified Participant
The second question. The first one. So what would be your net debt to equity once Bandra enters its peak construction phase?
Shreepal Shah
Mr. Ravi, today’s net debt of the company stand at 500 crores. Which is not less than 0.5 of the total liquidity base. When we launch Bandra, we will estimate or tell you that point in time.
Unidentified Participant
Okay, sir. And so what about the GDE for the projects to be launched in FY27? How does it compare to the FY26?
Rahul Rajan Jesu Thomas
So Raviji, we have exciting pipeline especially in the commercial. Some, some value addition we are getting on the table. So I think we’ll. As soon as we crystallize things a little more. We will inform you by. By closer to March call. Once we’re done with the March numbers. I think we’ll be in a better position to answer what our pipeline looks like. But it’s going to definitely be robust.
Unidentified Participant
Understood sir. Thank you so much sir and all the best.
Rahul Rajan Jesu Thomas
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on your touchstone telephone. The next question is from the line of Rajendra from na. Please go ahead.
Unidentified Participant
Hello. Am I audible? So sir, first of all congratulations on a great set of numbers.
Rahul Rajan Jesu Thomas
Thank you.
Unidentified Participant
So my first. Yeah, my first question would be we had basically in the last quarter we had said that we are going to launch few more projects in the H2. So are we still going to do. I guess there were four or five residential projects which we were planning. So are we going to basically do that in H2 itself or are we planning in like in Q1FY27.
Rahul Rajan Jesu Thomas
So Rajenderji, there could be a slight spillover to Q1 because of regulatory approvals. We’ve changed certain plans on those launches. So everything is on track. We will try for trying to get it within this financial year. But there could be a spillover of Q1. But there are a few more announcements which we will make for the new launches for the next year. So certain value additions like I said earlier. So I think we’ll have a clear picture of the launches and the GDV closer to the March. March call.
Unidentified Participant
Okay. And given that we had like my second, my second question would be like given that we had a stellar quarter like the Q3. So do you plan to revise your pre sale guidance of 600 crore for this year or.
Rahul Rajan Jesu Thomas
Rajendraji, we’ll still continue to maintain 600 right now. You know, rather we commit what we can achieve definitely and we’ll try to over perform. So I think right now guidance still remains the same. We want to achieve it and then if we do better, you know everyone will be happy. So I think we still continue to remain at 600 but we’ve got to definitely strive for more.
Unidentified Participant
Okay. And the last question would be around the new land parcel that we have acquired in. In Bandra in Q3. So what would be the GDV from these two which we have added.
Rahul Rajan Jesu Thomas
So actually these are land parcels which are going to be aggregated. Like I said, we will be having a launch in Bandra which is going to take a year’s time. So we just. Aggregating the land parcel. So this is part of the larger strategy of. Of aggregation right now. We won’t develop it as individual projects for now.
Unidentified Participant
Got it. So basically we are going to consolidate it first and then launch all the land parcels that we have in Bandra at once, right?
Rahul Rajan Jesu Thomas
Absolutely. Absolutely.
Unidentified Participant
Okay. All the best. That’s all.
Rahul Rajan Jesu Thomas
Thank you. Thank you.
operator
Thank you. Ladies and gentlemen, please press Star and one to ask a question. Thank you. The next question is from the line of Divyan Singh from DS Broking. Please go ahead.
Unidentified Participant
Hi. So I have two questions. The first is regarding will the Pagdi redevelopment require higher tenant payouts or legal structuring and how could that impact IRRs and timelines?
Rahul Rajan Jesu Thomas
Sorry, Divyansh, could you repeat that please? Again? Sorry.
Unidentified Participant
Okay. So will the Pagdi redevelopment require higher tenant payouts or legal structuring and how could that impact project IRRs and timelines?
Rahul Rajan Jesu Thomas
So current, current, when we’re doing the redevelopment, we’ve already factored in the rental cost today. So the margins which we are discussing or which we are achieving right now, already taking into account the rental cost which you are paying to the tenants.
Shreepal Shah
Also, to answer to your question, the tenant cost is a very small cost in. In terms of overall cost of the project. So it will not have meaningful impact on the irs.
Unidentified Participant
Okay. And second question was regarding the. What is your target commercial share of GDV over the next three to four years?
Rahul Rajan Jesu Thomas
So right now, Devansh, we’ve already. 1200 crores is a GDV. This is one of the largest projects in our current portfolio. As I said closer to the March call, we will have a better clarity on the actual numbers and contribution on the overall gdp. But definitely commercial will have a majority in terms of. In terms of contribution. I can just tell you that much.
Unidentified Participant
Okay, fair enough. Thank you so much, sir.
operator
Thank you. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. The next question is from the line of Rahel from Sapphire Capital. Please go ahead.
Unidentified Participant
Good afternoon. Am I audible?
Rahul Rajan Jesu Thomas
Yes, I’ll. Please go ahead.
Unidentified Participant
Yes. Hi, sir. So firstly, in which regions you know, is our strong foothold for Surreal Estate? And will our focus continue to penetrate deeper in these areas? Are we expanding geographically?
Rahul Rajan Jesu Thomas
So our focus is actually in South Central Mumbai predominantly one is of course because we already have the land pass through which have already been acquired here historically. And also we have a very strong brand name in this market. We see this market as a very stable market in terms of, in residential and the commercial piece, both are doing well. So in terms of strategy, we will continue to remain here and look for opportunities in south central Mumbai. Having said that, of course, since we have a land parcel in Bandra, that would be the next market we would be tapping into. But our largest strategy would be limiting ourselves to the area which we are used to.
Unidentified Participant
So, so these parcels you have, you know, accumulated over the years in south central Mumbai and now Bandra, how, how long you know these will last for you? Like how many years are these are sufficient for you to keep growing at a good rate before you move on to, you know, newer areas or even like states altogether like different cities.
Rahul Rajan Jesu Thomas
We have work up to almost about five years of work from the existing projects which we already have and acquired in terms of. And we also continue doing bd. So as we speak there’s also a lot of BD work going on the site which I told, which will be announced, you know, closer to the March call. So continuously there’s a churning of obviously existing sites and obviously opportunistically we look at good land parcels in South Central. So that pipeline is also being created as you know, as we speak.
Unidentified Participant
Okay, so the land parcels you have are more than enough to keep you occupied for the next five years, they’re saying.
Rahul Rajan Jesu Thomas
Correct.
Unidentified Participant
And so in the residentials, what category is your forte in? Is it like. I believe it’s.
Rahul Rajan Jesu Thomas
We’re doing in three categories. Mainly we do 1 and 2 BHKs, which is termed as value luxury, which Is between the two and a 3.5 crore range. We have projects in the luxury category which again goes from 5 crores onwards all the way to, you know, duplex and triplexes and entire flows. So those are the luxury category. So we are operating the luxury and the value luxury segment in the residential piece. And we also do commercial build to shoot offices, retail offices. That’s what we’re doing in terms of one business. So that is pretty much what expertise apply.
Unidentified Participant
And currently the demand is, you know, strong across all these categories given residential and commercial.
Rahul Rajan Jesu Thomas
So we don’t have much to sell in the luxury category. We almost sold out our luxury projects, Ocean Star and Pallet. We hardly have any inventory there. So we have the 1 and 2 BHK homes which are doing very well, evident in our New launches which we’ve done for Parkview one and a project called Suraj or Ever in Kaba Devi. So we got good traction there. And also we see a good traction in the commercial segment which is evident for this quarter. So I think these are the two segments we are concentrating on. And as and when we launch Bandra it will be again back into the luxury category.
Unidentified Participant
And will that be higher margin of Bandra compared to the current portfolio have of value and versus the commercial?
Shreepal Shah
Yes, of course. Bandra market commands premium. The cost in city of Bombay remains the same. The relations are in the range of 11 lakh to 1 lakh 50,000 per square feet. So obviously the margins are going to be higher.
Unidentified Participant
Okay. Can you give a resale guidance for next year what sort of growth you are targeting?
Shreepal Shah
We will give at the end of Q4 since annual results we will give.
Unidentified Participant
Okay. Along with your GDV pipeline as well.
Shreepal Shah
Yeah.
Unidentified Participant
Okay. All right. Sorry. Just one more quickly. This Bandra will reflect in a like start, you know, contributing to our numbers from which quarter of next year it won’t.
Rahul Rajan Jesu Thomas
It will not reflect from next year. Maybe we are targeting next year for it to maybe launch. So it’ll reflect in the. In the numbers the following year.
Unidentified Participant
Okay. 528 then. Okay, thank you.
Shreepal Shah
Luxury project. The sales pickup takes some time. No, the kind of customers who are we are targeting want to see sample flat and other amenities before they put in their money. So we might come up with a launch but the sales we expect some delays.
Unidentified Participant
Right. Okay. So FY28 will also see not just the revenue growth and sales growth but also margin expansion.
Shreepal Shah
It will not come in 26, 2027. Maybe following year we can expect some sales once it is launched.
Unidentified Participant
So then for FY27 what will be your, you know go to strategy to expand margins. The GB pipeline which you are expecting will be, you know, releasing by end of March call. Will that already have higher margin products.
Rahul Rajan Jesu Thomas
So the strategy for the coming year would be going. I said focus a little more on the commercial because that’s the traction we’re seeing and work on that. Continue with our 1 and 2 BHK homes because that has been selling well. And prepare for a launch of the Bantra project. But that would take some time. So next year would be heavily on commercial and the 1 and 2 BHK homes as a strategy.
Unidentified Participant
Okay, so given that then what sort of margin one can you know pencil in steady state?
Rahul Rajan Jesu Thomas
35 to 40% is the margin which we are. We’re Enjoying right now, I think you can take that as a
Shreepal Shah
blended average. You can consider 35%.
Unidentified Participant
Thank you. And all the best.
Rahul Rajan Jesu Thomas
Thank you.
operator
Thank you. Ladies and gentlemen. Please press star and one to ask a question. Thank you. The next question is from the line of Resharati from NM securities. Please go ahead.
Unidentified Participant
Hello.
Rahul Rajan Jesu Thomas
Yes.
Unidentified Participant
Hi, sir. So I have two questions. So my first question is that is the commercial strategy ownership sell driven or could we see leasing or annuity assets?
Rahul Rajan Jesu Thomas
So ma’, am, this will be commercial sale is what our strategy is for now.
Unidentified Participant
Okay. And my second question is that. So what is the total estimate project cost for the Bandra west cluster? Including land acquisition, tenant settlement, construction approvals and financing cost. And what is the peak funding requirement for Bandra over FY26 to FY28?
Rahul Rajan Jesu Thomas
Ma’, am, right now it’s a bit too premature to tell you the exact details. I think as soon as we get closer to the launch because it is a big cluster, we will tell you. But right now it is a bit early to tell you the exact figures right now.
Unidentified Participant
Okay. Thank you, sir.
Rahul Rajan Jesu Thomas
Definitely it’s a high margin project. I think that’s what we should be concerned with right now. Since we already have the square footage mentioned in our presentation. It’s a high margin project. So I think that will give you a rough idea on what the construction cost, whether it’s in the city or in Bandar remains the same. It is just approval cost and land is already almost paid for. So I think you can take your estimates on that.
Unidentified Participant
Okay. Okay. Thank you, sir.
operator
Thank you. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. The next question is from the line of Rajat from Fortune. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Good set of results. I just had a question regarding the margins. So yeah, you mentioned you’ll have a 35% blended margin. I just wanted to know that for commerce, like compared to residential, commercial compared to the luxury value, how much will be the difference in the margins? That’s all.
Rahul Rajan Jesu Thomas
So Rajat, in the commercial, since we have purchased the land, we acquired it outright. The margins would be in the range of 25 to 28% in terms of margins. In the commercial, in terms of value, luxury. Since these are 33, seven projects, we get benefited in terms of approval costs. Also these lands, many of the lands are acquired historically. So there the margins are little higher within the 38 to 40% mark. That’s why Sripal has mentioned about an blended average.
Unidentified Participant
Okay, great. That’s all from me.
Rahul Rajan Jesu Thomas
Thank You.
operator
Thank you. Participants who wish to ask a question may press star and one on their touchstone telephone. The next question is from the line of Rajendra, an individual investor. Please go ahead.
Unidentified Participant
Thanks for providing me the opportunity again. So sir, the first question would be as. As of now we have an estimated unsold GDB of 1225 cr. So out of this I believe thousand crore is from the commercial and 225 is our residential unsold area. Right. Is that the correct understanding?
Rahul Rajan Jesu Thomas
Yes.
Unidentified Participant
Okay sir. And the second question would be when we raised funds last time I remember like out of 100 crore warrants 50 crore were still pending to come into the company account and we had, I guess we had only got 293 cr out of 500 cr. So have we got any, any communication with from the investor whether they are going to put that 5050 cr or not? Because I guess the warrants are going to expire sometime in March or April.
Rahul Rajan Jesu Thomas
Right. So we are of course in touch. I looking at the current price, I don’t think it is. It’s going to culminate because I think they have time up to between May and June. So I don’t see because of the current price versus what they have committed for there’s a big price variation. So I don’t see the balance coming. That’s my personal feeling. So we can estimate that that may not, may not come into the system.
Unidentified Participant
Okay. But isn’t the expiry time was like one and a half years from August or September. So it may, may come to like March or April or
Rahul Rajan Jesu Thomas
could be March, April. I can come back to you on the exact date. I don’t have it offhand but it could be around that date.
Unidentified Participant
Okay. Okay, that was all.
Rahul Rajan Jesu Thomas
Thank you.
operator
Thank you. Ladies and gentlemen, please press star and one to ask a question. The next question is from the line of Jia Shah from Wealth Investments. Please go ahead.
Unidentified Participant
My question is that the pilot project was originally expected to progress faster but it seems that the timeline has moved a little bit. So what are the key reasons for this delay?
Rahul Rajan Jesu Thomas
Can you repeat that question? And you’re. You’re not clear.
Unidentified Participant
Okay. So my question is are the pilot project was originally expected to progress faster but the timelines have worn out. What are the key reasons for this delay?
Rahul Rajan Jesu Thomas
So the pallet project was originally rara date was 31st December 26th. That’s. That is as good as last month now since so and that has been extended to September. So the new date is 26 just for everyone’s information and the reason for the extension of the nine months. Which. Is taken by all the customers and the consent from all the customers is due to the lifts being imported and the lift being on track. Right now there are four high speed elevators which we have imported and that there was a delay in the shipment reached our site so we don’t see any more delay.
In fact we’ve also started handing over the flats for the customers to do the interior works so that they save the time because most of them have taken bare shelf flats. So that timeline between six to seven months would be a normal timeline for anyone to kind of get the interiors done. And we estimate the OC to happen well before time.
Unidentified Participant
Okay, that was helpful. And my second question is that the beyond one business B, what are the commercial opportunities are currently under evaluation and are these largely concentrated in the SCM corridor?
Rahul Rajan Jesu Thomas
So it’s a bit initial to tell you exactly the thing, but I can only tell you that we have two, three good opportunities which we are considering and we will make those announcements closer to March where you will understand. But yes, it’s all in South Central Mumbai.
Unidentified Participant
Okay, this was helpful. Thank you so much.
Rahul Rajan Jesu Thomas
Thank you.
operator
Thank you. Anyone who wishes to ask a question may press star and one on their touchstone telephone. Ladies and gentlemen, as there are no further questions from the participant, I now hand over the conference to management for closing comments.
Rahul Rajan Jesu Thomas
To conclude our performance in Q3 and 9 months, FY26 reflects steady execution across both residential and commercial segments supported by favorable market conditions in our core micro market. We remain focused on timely project execution and maintaining a balanced portfolio mix while selectively pursuing opportunities aligned with our long term strategy in South Central Mumbai. We thank you everyone for joining this call and we take your leave. Thank you.
operator
Thank you on behalf of Suraj Estate Developers Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.