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Shriram Properties Limited — Call Transcript 2026
May 30, 2026
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Call Transcript
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Shriram Properties
Homes that live in you
May 30, 2026
| National Stock Exchange of India Limited
The Listing Department
Exchange Plaza, 5th Floor Plot C 1 – G Block
Bandra-Kurla Complex, Bandra (E)
Mumbai 400 051
Scrip Code: SHRIRAMPPS | BSE Limited
Dept of Corporate Services
Phiroze Jeejeebhoy Towers
Dalal Street, Fort
Mumbai 400 001
Scrip Code: 543419 |
| --- | --- |
Dear Sir/Madam,
Sub: Transcript of Earnings Call on the Company's Financial & Operational Performance for Q4 and FY26 held on May 25, 2026
In continuation of our intimation dated May 25, 2026, please find enclosed herewith the transcript of the Investor Conference Call held to discuss the financial and operational performance of the Company for the fourth quarter and financial year ended March 31, 2026.
We request you to take the above information on record.
Thanking you
Regards
For Shriram Properties Limited
K Rama Swamy
Digitally signed
by K Rama Swamy
Date: 2026.05.30
17:37:31 +05'30'
K. Ramaswamy
Company Secretary & Compliance Officer
ACS 28580
Shriram Properties Limited
‘Shriram House’, No. 31, T Chowdaiah Road,
Sadashivanagar, Bengaluru - 560 080
Registered office:
Lakshmi Neela Rite Choice Centre, 1 Floor,
9, Bazulla Road, T. Nagar, Chennai – 600 017
P: +91-80-40229999 | F: +91-80-41236222 | W: www.shriramproperties.com
CIN No.: L72200TN2000PLC044560 Email: [email protected]
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Shriram Properties
Homes that live in you
"Shriram Properties Limited
Q4 and FY '26 Earnings Conference Call"
May 25, 2026
E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recording uploaded on the stock exchange on 25th May 2026 will prevail.
Shriram Properties
Homes that live in you
CHOROSCALL
MANAGEMENT:
MR. MURALI MALAYAPPAN – CHAIRMAN AND MANAGING DIRECTOR
MR. GOPALAKRISHNAN – CHIEF EXECUTIVE OFFICER
MR. RAVINDRA KUMAR PANDEY – CHIEF FINANCIAL OFFICER
STRATEGIC GROWTH ADVISORS – INVESTOR RELATIONS ADVISORS
Shriram Properties Homes that live in you
Shriram Properties Limited
May 25, 2026
Moderator:
Ladies and gentlemen, good day, and welcome to the Q4 and FY '26 Earnings Conference Call hosted by Shriram 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 a conference call, please signal an operator by pressing star and then zero on your touchtone phone.
I now hand the conference over to Mr. Murali, Chairman and Managing Director for Shriram Properties Limited. Thank you, and over to you.
M. Murali:
Thank you. Good evening, everyone, and thank you for joining us today for the earnings call to discuss our Q4 and FY '26 performance. On behalf of Shriram Properties Limited, I welcome all our investors, analysts and all the stakeholders. FY '26 was a defining year for us, marked by very strong operational resilience, disciplined execution and an encouraging recovery in momentum towards the end of the fiscal year.
Despite certain external challenges during the year, our teams demonstrated exceptional execution agility, enabling healthy customer handover and sustained delivery momentum across projects.
I'm pleased to share that Q4 witnessed a remarkable all-round performance, strong handover momentum during the quarter led to a substantial recovery in revenues and earnings, helping us close the year on a very strong note. Record handovers during FY '26 drove all-time high revenues for the company, reflecting the strength of our execution capabilities.
As we move into FY '27, we remain optimistic about the opportunities ahead with a stronger launch pipeline, improving visibility across projects and continued emphasis on execution and customer centricity. We believe we are well positioned to sustain growth momentum and create long-term value for all stakeholders.
With that, I'll now hand it over to Mr. Gopalakrishnan, CEO; and Mr. Ravindra Kumar Pandey, CFO, to take you through the financial and operational details in greater depth. Thank you.
Ravindra Kumar Pandey:
Thank you, sir. Good evening, everyone. My name is Ravindra Pandey. I'm the CFO of Shriram Properties Limited. Thank you for taking time to join us today. We are delighted to present the financial and operational performance of the company for the fourth quarter and full year ended 31st March 2026.
FY '26 was a year of resilience and recovery. While the company faced external challenges during the first 9 months, including delays in approval, in e-Khata, OCs and moderation in launches, mostly in Bangalore, we demonstrated a strong bounce back in Q4 and ended the year with a robust performance.
I will take you through the key operational, financial and strategic developments during the year and our outlook for FY '27. During our conversation, I will keep referring to the presentation uploaded today on the website and the stock exchanges. Hope you all have access to it.
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May 25, 2026
I'm referring to the Slide number 4. FY '26 was a year of resilient execution and progressive recovery despite a challenging external environment. We entered the Pune market, sustained strong operational momentum across business metrics and delivered a robust finish to the year.
One of the key achievement during the year was the amicable resolution of long-pending land matter in Kolkata. The settlement and conveying process have significantly enhanced the monetization potential of our land bank and are expected to unlock value in an accelerated manner.
Operationally, the company demonstrated the strong execution capabilities, particularly in the fourth quarter, delivering record customer handovers and effectively managing temporary disruptions related to e-Khata and Kaveri portal processes through close coordination and focused execution.
This strong handover momentum translated into record revenue recognition and earnings, enabling us to achieve our highest ever revenue and profitability performance. Improved visibility on regulatory performance, further strengthens our outlook for FY27. Overall, FY '26 ended on a strong thing, reinforcing the strength of our operating platform and positioning the company well for this next phase of growth.
Referring to the Slide number 6 coming to the operational performance. For FY '26, sales value for the year stood at INR2,354 crores, registering a marginal increase over the previous year despite delays in certain project launches. Sales volume of 4.15 million square feet. Collection reached all-time high of INR1,661 crores, growing 12% year-on-year. Customer handover reached 3,465 units, up 10% over the previous year.
The fourth quarter witnessed a strong rebound, sales value of INR663 crores, collections INR511 crores, handover of 1,348 units. These numbers demonstrate the strength of our execution platform and our ability to recover quickly once operational challenges subside.
Referring to Slide number 7. The operational momentum translated into a record financial performance for FY '26. Revenue increased by 39% to INR1,357 crores. Gross profit increased by 47% to INR365 crores. EBITDA stood at INR177 crores.
Net profit increased by 30% to INR101 crores, crossing the INR100 crores mark for the first time. This reflects the strength of our operating performance, disciplined execution and continued focus on profitability.
For Q4 alone, revenue was INR663 crores, up 55% year-on-year. EBITDA reached INR109 crores, up 59% year-on-year. Net profit stood at INR79 crores, up 65% year-on-year. The strong performance was driven primarily by higher handovers and revenue recognition in Bangalore, Chennai and Kolkata projects.
Referring to Slide number 8. The company continued to generate healthy operating cash flows. For FY '26, operating inflow reached to INR1,049 crores. Cash flow from operations stood at INR271 crores. Free cash flow before new project investment was INR224 crores.
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May 25, 2026
We invested INR372 crores in new business development opportunities to strengthen our future growth. This is one of the highest annual investment made by the company on new project pipeline acquisition in any single year. Over the last 4 years, we have generated cumulative operating cash flows of over INR900 crores and around 80% of this cash has been reinvested into new projects, reflecting both the quality of our cash generation and our commitment to the sustainable growth.
The recent settlement with Government of West Bengal has significantly improved the monetization visibility and will accelerate value realization from our Kolkata land holdings. The next slide summarizes our discussion. I'm referring to the Slide number 10.
On project pipeline, our project pipeline remains robust and provides a strong visibility for future growth. We currently have 16.7 million square feet under ongoing projects, of which 85% has already been sold. Along with 2.6 million square feet of unsold area of ongoing projects and an additional 18.6 million square feet of the upcoming pipeline, total unsold development potential is over 21 million square feet, representing GDV of nearly INR13,950 crores.
The approval process has already commenced for all 7 projects acquired during the year, and we expect over 7 million square feet to be added to the launch pipeline over the next 3 to 6 months. Going forward, our objective is to double the upcoming project pipeline over the next 18 to 24 months, while continuing to maintain capital discipline and our asset-light growth strategy.
Referring to Slide number 11. Although launches were limited during FY '26 due to approval delays, the project launch witnessed exceptional market acceptance. This includes Spectrum, Pune, over 300 units sold during launch year; Songs of the Earth, Bangalore over 85% sold in launch year; Skybloom Villas, Kolkata over 50% sold, Signature Square in Kolkata, approximately 40% sold at launch.
All launch projects have witnessed encouraging sales traction with 30% to 85% of the inventory sold at launch are within the launch year. These outcomes validate our product positioning, price strategy and demand for nominators across our key markets.
Referring to Slide number 12. SPL successfully forayed into the promising growth market for Western India with its maiden launch at Undri, Pune. SPL has sold over 300 units in less than a year of launch, a remarkable achievement considering that the micro market as a whole has absorbed only around 850 units annually in the last 3 years. The market acceptance of the Shriram brand and our team's ability to penetrate into new markets provides encouraged confidence in accelerating growth strategies for the region.
Referring to Slide number 13. Execution remained one of our strongest differentiators. During FY '26, we completed and delivered 8 projects. Collectively, these projects represented ~4 million square feet, enabling record handover and reinforcing our commitment to timely project delivery well ahead of RERA time lines.
Referring to Slide number 16. FY '26 delivered a strong financial performance. Q4 was particularly strong with total revenue increasing 55% year-on-year to INR663 crores, driven by robust revenue recognition from completed projects and record customer handovers. Net profit
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Shriram Properties Limited May 25, 2026
for the year grew 65% to INR79 crores, reflecting improved operating leverage and execution momentum. For the full year, total revenue reached a record of INR1,357 crores, representing 39% growth over FY '25.
Gross profit also reached a INR365 crores, while gross margin remained stable at 29%. Higher marketing investment towards accelerating sales number and certain legacy project provisions led to flat EBITDA during the year. Finance costs reduced by 18% year-on-year. Lower finance costs and improved operational efficiency supported a 25% growth in PBT before Shriram JV income.
Net profit increased by 30% to INR101 crores, crossing the INR100 crores milestone for the first time in the company's history. With revenue recognition commencing in recently completed projects and a healthy launch pipeline, we expect revenue and profitability momentum to remain strong going forward.
Referring to Slide number 18. This slide represents the company's balance sheet position as of March 2026. Our balance sheet continues to remain strong, supported by a healthy equity base of INR1,460 crores and one of the lowest gearing levels in the sector. Current borrowings reduced from INR593 crores to INR448 crores. Our debt-to-equity ratio at 0.3x remains one of the lowest among listed real estate players.
We have maintained a healthy liquidity position with cash and cash equivalents of INR172 crores. Overall, the balance sheet remains robust, providing us with the financial flexibility to pursue growth opportunities while maintaining a disciplined approach to capital allocation and leverage.
Referring to Slide number 19. This slide summarizes our cash flow performance for the year. The business continued to generate healthy operating cash flows, supported by strong collections and improved handovers. SPL share of operating inflows crossed INR1,000 crores during FY '26, reflecting the quality of our revenue conversions and customer collections. Cash generated from operations were largely deployed into construction activities to support project execution and future revenue recognition.
In addition, we invested INR372 crores in new business development opportunities during the year, consistent with our growth strategy. Overall, our cash flow remains healthy and the investment made during FY '26 position us well for a stronger milestone collection and operating cash generation in the coming years.
Referring to Slide number 20. Our balance sheet continues to reflect a prudent and disciplined approach to leverage. As of March 2026, net debt stood at INR438 crores, while the net debt-to-equity ratio remained comfortable at 0.3x, among the lowest in the sector. The debt is largely deployed towards project construction. Importantly, our cost of debt remained competitive at 11.2%, benefiting from a favorable interest rate environment and strong lender relationships.
The company's strong equity base of nearly INR1,460 crores, healthy liquidity position and the CRISIL A-/Positive rating provide ample funding capacity to support future growth. With cash
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balances of INR172 crores and undrawn funding lines of INR358 crores, the company has over INR520 crores of readily available liquidity.
This provides significant financial flexibility to accelerate project construction, support new business development and capitalize on growth opportunities while maintaining a prudent leverage profile.
Referring to Slide number 22. While the global environment continues to face uncertainties arising from geopolitical development, interest rate movements and inflationary pressures, the Indian residential real estate sector has demonstrated remarkable resilience. Demand in the mid-market and mid-premium segment remains strong, supported by rising incomes, urbanization and sustained end user demand.
Importantly, our core markets, Bangalore, Pune, Chennai and Kolkata continue to exhibit healthy economic activity and favorable housing demand fundamentals. Against this backdrop, Shriram Properties remains well positioned for sustainable growth.
Our diversified presence across high-growth markets, disciplined execution, calibrated pricing strategy and asset-light development model provide both scalability and capital efficiency. The market continues to witness increasing preferences for branded and organized developers, creating a favorable environment for established players like us.
Coupled with healthy inventory levels and a strong upcoming pipeline, we are well placed to capitalize on emerging opportunities. Therefore, while we remain cautious in the near term in terms of our guidance to the market on FY '27 KPIs, we are fully geared to seize the opportunities in the market and sustain our growth momentum in FY '27 and beyond.
Referring to Slide number 23. Based on current visibility, management expects FY '27 performance to be stronger than FY '26. Our guidance includes sales volume of 5-5.5 million square feet during FY '27, sales value of INR3,300 -3,500 crores, collections of INR2,100 - 2,200 crores, handovers of 3,750 - 3,800 units, pipeline addition of 7-8 million square feet, GDV addition of INR5,000-6,000 crores. The risk profile for FY '27 is lower owing to greater geographical diversification and a better launch pipeline.
Referring to the Slide 24. As we look ahead to FY '27, we remain mindful of the evolving macroeconomic environment and the potential risk that could impact the sector. At the sector level, factors such as IT sector employment trends, affordability pressure arising from the interest rates and extended sales cycles warrant close monitoring.
We also remain focused on execution-related risk, particularly timely approval, receipt of occupancy certificates, and conversion of our BD pipeline into launches. To mitigate these risks, we continue to maintain an overall position in the resilient mid- and upper mid-housing segment, where demand remains relatively stable and credit risks are lower.
Our growth strategy is centered on Bengaluru and Pune, while selectively expanding in Chennai and Kolkata with a disciplined risk-adjusted approach. We have also instituted active monitoring
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of IT sector employment trends in our key markets and continue to focus on calibrated pricing, execution excellence and prudent capital allocation.
Overall, while external uncertainties remain, we believe our diversified portfolio, strong balance sheet and disciplined operating model position us well to navigate risk and capitalize on growth opportunities in FY '27.
Referring to Slide number 25. This slide outlines our key sales objective for FY '27 and reflect a balanced growth strategy across markets. The FY '27 sales plan is well diversified across Bangalore, Chennai, Kolkata and Pune, reducing dependency on any single market.
This balanced portfolio reduces dependence on any single project or approval milestone, thereby mitigating the impact of potential approval delays. Our project portfolio are well diversified across market, not only from a sales and launch perspective, but also in terms of project completions and customer handovers.
Referring to the Slide number 26. This slide provides visibility on our FY '27 launch pipeline. We have identified over 7 million square feet of projects, with nearly 6 million square feet planned for launch during the year across Bangalore, Chennai, Pune and Kolkata.
Almost all target launch projects are already secured and progressing through the approval process, significantly reducing execution risk. Several projects are already at advanced stage of approvals with some launches scheduled to come in, in the first quarter itself.
With approved activities already underway for most projects and a well-distributed launch calendar across the year, we are well-positioned to drive sales growth and maintain a strong business momentum in FY '27.
Referring to Slide number 27. This slide highlights the key projects expected to drive revenue recognition in FY '27. We expect approximately 3.8 million square feet of project completions during the year, creating a revenue recognition potential of nearly INR1,740 crores and handovers of over 3,500 units.
Project execution remains on track with a majority of deliveries expected ahead of RERA time lines. This gives us confidence in achieving our FY '27 revenue and profitability objectives while continuing to enhance customer satisfaction through timely delivery. The planned completions and handovers are also expected to translate into a strong collection momentum, further strengthening operating cash flows.
Referring to Slide number 28. This slide recaps our Mission 1-2-3-4 for FY '28 and the path to achieving it. We had discussed this earlier in our earlier quarter earnings calls. This is to reassure that based on the current performance and organizational outlook, we believe we are on track for achieving our aspiration of INR5,000 crores sales, revenues of INR2,500 crores and PBT of INR250 crores by FY '28. Projects already under implementation and projects that are secured by SPL already carry a revenue recognition potential of over INR15,000 crores in about 5 to 7 years.
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Overall, FY '26 has marked a year of recovery execution and strategic progress. We delivered record revenues, collections, handovers and profitability while strengthening our project pipeline entering a new market and resolving a long-standing strategic matter in Kolkata.
With a robust balance sheet, strong launch visibility and significantly embedded cash flow potential, we enter FY '27 with confidence and a clear pathway towards achieving our mission FY '28 objectives. Thank you all for your continued trust and support.
I now hand over the call back to the operator. Myself, along with our CEO and CMD will be glad to answer all your queries. Thank you.
Moderator:
Thank you. Ladies and gentlemen, we will now begin the question and answer session. The first question from the line of Nitin Jain from Fair Value Advisors.
Nitin Jain:
My question is on Slide number 8. So your operating cash flows, while they have increased year-on-year, the CFO has declined, whereas your new project investments have increased significantly. So my question is, will this lead to some kind of a cash crunch in the near term? And would we be required to take on more debt?
Ravindra Kumar Pandey:
So that's not the case. Yes, it has declined slightly, but the focus was on mainly to execute the project and the faster completion. We have completed around 4 million square feet during the year. And as you know that soon we reach on the finishing stage of the construction, there is a good amount of money that has to be infused to complete the construction.
And that is why the free cash flow from the operation has come down slightly, which is mainly because of the additional spending on the construction activity. So, there's no additional debt required for the purpose of accelerating the construction. There's enough liquidity available for that.
Nitin Jain:
Right. And with the recent increase in raw material prices, what kind of margins do we anticipate going forward in FY '27?
Ravindra Kumar Pandey:
See, we are into a very strong footing as of now. We have recently completed close to 4 million square feet and the project where we are completing, there is not too much of dependency. In this current trend, as of now, if you look at the basic material prices like cement and steel and RMC, the prices are, I can say, it is not going up significantly and we can say a stable pricing.
The prices which are impacted, it is mainly on account of the plastic-related things like, we have tiles are getting impacted a little bit and mostly paints and PVC windows. Those are having a little bit of pricing stress on that and people are demanding close to maybe 5% to 10% of the initial pricing on that. But it is not going to impact the project profitability significantly.
And any of our projects, whenever that we launch any of our project, we are always having some cushion in terms of any contingency. We are keeping a cushion for that and which is not going to impact the profitability of any of our project as of now.
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Nitin Jain:
Right. Just a follow-up to that question. Do we anticipate to take any price hikes in the near to midterm to battle the raw material inflation?
Ravindra Kumar Pandey:
I don't think so, the prices in most of the real estate market has already stabilized now, and there is not too much of headroom available for any developer to increase the prices. However, if the inflationary trend continues and there is a price pressure on that, then it has to be decided and maybe some price increase will happen going forward in the new launches.
Gopalakrishnan:
So, this is Gopal, CEO of Shriram Properties. And I just want to supplement what Mr. Pandey has said. So the markets are looking at not more than 5% - 6% annual upside in the existing projects or the market pricing increase is not more than 5%- 6%. That will cover an inflationary pressure of what 8% to 10% in the construction cost side.
So I think margin expansion may not happen due to price hikes. Margin protection is real. Margin enhancement happens only through new project -- new micro portfolio upgrades where you enter better micro markets or launch projects in new micro market, which have a higher pricing potential.
We see that potential across multiple locations that we are targeting to launch, especially within Bangalore, it is like North Bangalore seems to present a much stronger upside potential. We will be opportunistic about what the launch price should be. But generic increase, organic growth in pricing may not be beyond 5%- 6%.
Moderator:
We have the next question from the line of Harshit Khadka from RoboCapital.
Harshit Khadka:
Sir, I just wanted to understand that last year, our other expenses were INR126 crores, and this year, it is INR172 crores. So what is the reason of a jump in other expenses? And how do you see it in FY '27?
Ravindra Kumar Pandey:
So overall, the increase has happened because of 2 reasons. One is that there is an accelerated revenue recognition, which has happened. Last year, we have recognized revenue of close to around INR800 crores. This year, we have recognized close to INR1,200 crores of revenue recognition. You may be aware that whenever we do the spending on account of marketing, the brokerage cost that is getting capitalized (recognised as prepaid expense) and it gets charged off only when we recognize the revenue.
So this year, because of the accelerated revenue recognition, there is a good amount of close to INR25 crores of the additional brokerage cost that has got booked because of the additional revenue recognition. And certain provisions have been made.
We have already communicated earlier in the Q2 quarter when we have done the Landowner settlement of our Bengal land, we have taken close to INR7 crores of the impairment. And during this quarter also close to around INR10 crores of the additional expenses we have provided.
It is not the booking of expenses it is basically provisioning what we have made. There is some recoverable from the landowner and it is getting delayed and hence, we have a provision the INR10 crores. So that is why the other expenses are looking a little close to around INR50 crores
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(FY25 vs FY26). However, this INR10 crores what we are talking about, this is recoverable as per our view, but prudently it has been provided in the business.
Harshit Khadka: So you are saying the other expense wouldn't jump in FY '27, right?
Ravindra Kumar Pandey: Yes.
Harshit Khadka: Okay. And sir, I'm referring to Slide number 28. So is it fair to assume that the PBT, the profit before tax would be in the range of 10% and the PAT would be in the range of 7% to 7.5% going forward?
Gopalakrishnan: So we have consistently maintained that, yes, we are looking at PBT margins of about 10% to 11% as we go in future. So therefore, that benchmark applied on this future revenue recognition potential would be reasonable.
Harshit Khadka: And PAT margin in the range of 7% to 7.5%, right?
Gopalakrishnan: Slightly more than that. We always had a much lower tax because, as you know, in the early years of a project, we provide for those expenses, losses, income recognition doesn't happen. And towards the end when we recognize income, therefore, there's a carry forward losses.
So therefore, overall, year-to-year, if you look at it, the effective tax rate may not be 25%. That's a limited point I'm making. Therefore, applying 25% might not be the right way. So 8% to 9% PAT margin would be a fair expectation on a longer-term basis. Fluctuations will always be there on a year-to-year, quarter-to-quarter basis. On a normalized basis, over a period of 3 years, I would imagine 8% plus would be a safe number, and it can be between 8% to 9%
Moderator: We have the next question from the line of Ronald Siyoni from ICICI Securities.
Ronald Siyoni: Congratulations on good results, sir. Sir, firstly, on the sales number, like presales, we missed marginally with respect to our guidance of INR2,600 crores. So any particular reason, any projects which got deferred to the for FY '27? Any launches which got deferred?
Gopalakrishnan: So yes, I think Q4, we were thinking of a couple of projects will take off for a variety of reasons. They are getting launched now this week, one project and in about a week's time, another project in Chennai. So they are getting moved to Q1. Despite that, we have still maintained a very stable sales value and the volumes.
And going forward, yes, this will get positively impacted in FY '27. As Mr. Pandey pointed out, we may have a higher potential, but given the macro uncertainties that are there in terms of geopolitical, AI impact on earnings capacity, consumer confidence, consumer decision-making, we thought it appropriate to put a number as a guidance, which are more conservative, more prudent.
And then as the market picks up, as the market stabilizes, try and optimize the number, than trying to put a big number and then scale back. That's why we have maintained our expectation in the 5-5.5 million square feet range for the market potential.
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Ronald Siyoni:
Okay. And I only see one project launch in Kolkata, which is a plotted one. So any particular reason that you're not going ahead with more project launches in Kolkata region? And in that line also that with the change in government, what kind of positives or say, a little bit headwinds in terms of approvals or something of that sort you would be experiencing? Or any color on post election results, what kind of environment you look in the Kolkata region, especially?
Murali Malayappan:
As you know, Kolkata is I mean, the new government has come in place. It's going to throw lots of positivity to us. And as you know, that we have got a good land parcel available there. We expect Kolkata to do phenomenally well not come like Bangalore or Pune in short term. But long term, yes, there is a very high probability. So we are extremely bullish on Kolkata market now.
Gopalakrishnan:
Just to supplement Mr. Murali's comment, with regard to your specific query on the launches, as you know, we launched the Villa project late last year, last fiscal. And that was, again, a new product. Villa was never launched in this micro market.
We don't have any villa projects in the micro market that we operate. Therefore, we started well, did very well. Similarly, plotted development, branded plotted development is not a common thing in the micro market that we are operating. Therefore, we wanted to start with plots. We already have an approval.
So the question about whether we are concerned about the new government and late approval delays, no. We already have an approval for 2.3 million square feet of apartment launches. We have just not sequenced it right now because we want to first test the plots and then see what do you want to do with the land bank monetization. As Mr. Pandey pointed out, post settlement of this Kolkata land issues with the government, we are evolving a new strategy for accelerating monetization of our remaining land.
As you know, out of all the settlement we have done out of the 314 acres after this surrender of 42 acres and the development that we have done already, even after taking the 2.4 million square feet of approved area, we still have 100+ acres of land, which is available. Therefore, we want to evolve a new strategy based on how well the plots do in this micro market.
So that depending on how plots will be doing in the next couple of weeks, we will know. Plus we know how strong the villas have done. Then we have to recalibrate the whole thing, my colleagues pointed out that the commercial also went very successfully last month, we launched a small commercial project within our site.
So between all of these tested new products, we need to recalibrate how do you accelerate monetization of 100-odd acres which are available. Therefore, we have not really introduced them as part of the launches. But the scope exists and there is approval already for 2.3 million square foot of apartment, and we can get plot approval in less than 6 months' time, which we are very confident of.
So we may have more supplies coming in from a launch perspective beyond the numbers that you see on Slide number 26. But I think the point is 26 itself feeds us with 7 million square feet of supply. So next year, it is well diversified between geographies, all the 4 geographies.
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And therefore, unlike the past year, where the dependence on a particular city was there, those things are not there. Therefore, we are more confident of achieving our presales number, point number one. Point number two, 7 million itself supply itself should support this growth aspiration.
Point number three, beyond this, there is some more scope for supplies, especially in Kolkata and maybe some plotted development in Bangalore markets. These are outside this slide right now.
Ronald Siyoni:
Okay, sir. And lastly I haven't seen the construction cost increase the quarterly run rate. It's still in the band of INR90 crores to INR95 crores between the quarterly run rate. Unlike previous quarters, it used to be more than INR100 crores construction spend. So when do you expect this construction spends to ramp up? Or you would be weighing new project investments versus construction spends?
Gopalakrishnan:
No, I think these are 2 different buckets. We don't mix this capital between construction and new projects. The thumb rule is that a percentage of collection has to go and will continue to go. Maybe you will see a spike up in the coming quarters for the FY '27, including GST cost charges, we should be anywhere between INR900 crores to INR1,000 crores of capital spend on project completion activities. So you would see INR1,000 crores spending.
Therefore, quarterly number should be more robust in the coming quarters. Projects have been lined up accordingly because as you know, we had 3-4 launches early last year or late FY '24. So those are all making progress now, and they will start consuming larger capital run rate in the coming quarters.
Ronald Siyoni:
Okay, sir. Okay, sir. And one last question on any particular figure you have in mind for FY '27 in terms of new project investment. Likely, it was around INR372-odd crores in FY '26. So you will also be going for new business development. So any particular number you have in mind that this much cash flow would go for new project investments in FY '27?
Gopalakrishnan:
So it would be difficult to quantify the in INR crores number. All we said was we are looking at 8 million, at least we have disclosed publicly that 8 million square feet we want to add, maybe slightly more as well as possible based on the market. And so that 8 million addition would mean anywhere between INR350 crores- INR400 crores of capital commitment.
But be assured that is not going to go from collections from the existing projects because that's a project level cash flows that will be used only in the project and their own debt repayment, if any.
Therefore, the capital will -- based on the completed projects, Shriram's share of cash flows, profits or cash flows from the completed projects will be used. As well as if required, we might embark on an intermittent debt to support any bridge that is required between the profit generation or the cash flow, our share of cash flow being realized versus capital commitment being made on the land part.
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Shriram Properties Homes that live in you
Shriram Properties Limited
May 25, 2026
So we are fairly confident that the capital can be generated, INR350 crores- INR400 crores of capital, which might be required, will be generated from our completed project cash flows accruing to Shriram share. We don't see any diversion of collections moving from the ongoing projects to land.
Moderator:
We have the next question from the line of Diwakar Rana from Prudent Equity. we can't hear you very well. Could you please get off speaker phone?
Diwakar Rana:
Congrats on the great set of revenue. Sir, in the press release and in the past con calls, you have mentioned that the revenue recognition potential is around INR4,000 crores in next 3 years. So isn't this a bit conservative, sir? Because considering the land unlocking in Kolkata and some other projects that we are doing in southern state, can we not do more than INR4,000 crores?
Gopalakrishnan:
Potential exists, but I would say let's take one step at a time. INR1300 crores of revenue. And I think we need first to cross this milestone of INR4,400 crores, which is existing ongoing projects alone can give us that INR4,400 crores. Based on the project completion schedule, we have obviously worked out FY '27 plan. We believe it can be unlocked in 2 years' time, maximum 3 years is what we have been highlighting.
During the period, as I rightly pointed out, this new bucket that has been introduced in the Slide 28, where we try to give some visibility on potential value of 18.6 million square foot pipeline. Some part of that also will come in, especially the plotted development revenues can be unlocked or recognized in 12 to 18 months' time from the time of launch. Apartments might take a little longer.
So as you know, we are building up the pipeline now. They might take anywhere between 2 to 4 years, depending on the size to reach the completion stage. And therefore, acceleration only to some extent possible. We would obviously endeavor, aspire to accelerate this INR4,400 crores as soon as possible. And then, of course, Bengal acceleration is still on the way.
So there is an upside that exists on this revenue number, revenue recognition number. But for now, I think it will be better to be conservative than saying something which is very big and then pulling back.
Diwakar Rana:
Okay. Sir, in last financial year, we did around INR823 crores of revenue. This year, we did around INR1,200 crores. So this growth will continue in FY '27 and FY '28?
Gopalakrishnan:
That's our expectation as well. Earlier this year, the Board has approved the FY '27 plan, and there also aspires for 25% plus upwards of growth in across various financial metrics. So that is our aspiration as well to sustain the growth momentum, whether it will be the same number, difficult for me to comment. But yes, growth momentum will be sustained even in FY '27.
Moderator:
We have the next question from the line of Darshil Jhaveri from Crown Capital.
Darshil Jhaveri:
Firstly, congratulations on a really great set of numbers, sir. Sir, most of my questions have been answered. Just one small question. So I think in the PPT, we were mentioning that we have the
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Shriram Properties Homes that live in you
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May 25, 2026
potential to do revenue recognition of INR1,700 crores, right? So, that's for FY '27, right? We are planning with the base of our execution and handovers, sir, right?
Darshil Jhaveri:
So that's correct, right? We can do around roughly INR1,700 crores of revenue.
Ravindra Kumar Pandey:
Yes, so what we are talking about is, for the projects which are getting completed during this year alone. So what we said that if you look at the PPT Slide no. 27, we are saying that 3.8 million square feet will get completed during this year. It has a potential to recognize revenue of INR1,740 crores. These are from FY27 completion project alone.
There will be a good amount of revenue which has not been recognized for the project which has been completed during FY '26. So those revenues will also having a potential to come during this year.
Darshil Jhaveri:
Okay. Okay. That helps a lot, sir. And I just wanted to understand, we follow project completion method in revenue recognition or percentage completion, sir?
Ravindra Kumar Pandey:
So we follow the project completion method for the projects which we are doing mostly in Bangalore, Chennai and Kolkata.
Darshil Jhaveri:
Where, sir?
Ravindra Kumar Pandey:
Bangalore, Chennai and Kolkata, we are following the project completion method. Only for the Pune projects, we are following the POCMs. As per Maharashtra practice, we are following that. Otherwise, all other regions, we are recognizing the revenue as per the project completion.
Darshil Jhaveri:
Okay. Okay. Fair enough. Fair enough, sir. Sir, just any comment on EBITDA, like what would we quantify operating profit like we could have a double-digit EBITDA in FY '27 onwards, sir?
Gopalakrishnan:
Sorry, I couldn't follow. You mean double digit, what?
Darshil Jhaveri:
Operating profits, like what you call on the basis of like reported numbers, how should we look at it or should we just look at PBT, sir? I just wanted to get your thoughts?
Gopalakrishnan:
You can look at PBT, I'll clarify this. I've done this in the earnings calls in the past. You should see our total operating revenue as a whole. Other income is only other income, which is interest income and mutual fund gains and all that, is the other income.
The other operating revenues are core to our operations, which this could be a gain on sale of development rights here or LO share-related unit sale profits, things like that, right? These are all core to our real estate operation. They are not other income.
So if you are talking about gross margin or EBITDA,, I was just inquiring why you say double-digit EBITDA. The current EBITDA is still around INR179 crores - INR178 crores.
So that EBITDA, only other income of INR30 crores will go away from it. Rest is all our profit from core operations. If you look at the gross margin, the gross margin is about 30%. So 30% of income from operation has to be our gross.
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Shriram Properties Homes that live in you
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May 25, 2026
Darshil Jhaveri:
Okay. Okay. That helps a lot, sir. And sir, just last question from my end. Sir, going forward, you said we might have some intermittent interest cost. So what kind of a run rate can we see for our finance cost going forward in the next few years? Because a lot of launches are happening and there might be some time mismatch in cash flow like incoming and outgoing. So any comment on like our finance cost or net debt levels that we are looking at, sir?
Gopalakrishnan:
Yes. If I look at the finance cost, I think the launch-related cash flows have a limited impact on the interest cost. These are all construction finance taken on existing projects. And therefore, these are the loans which we take for construction of the ongoing projects and then repay from those cash flows through a sweep, percentage of collection will be taken by the lender.
Therefore, some projects may be repaying debt, some project may be still taking a fresh debt. The gross debt of the INR600-odd crores that we have will continue, and therefore, I would imagine the finance cost may have a small downside from here, but not substantially lower number.
Moderator:
As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Gopalakrishnan:
Yes. Thank you, everyone, for being with us and giving us a patient hearing to understand our perspective on the results. We believe we have delivered quality financial performance and operational performance for the fiscal '26. We have a very strong plan ahead.
The guidance is in front of you. We believe we should be able to comfortably meet and if the market conditions are better than what it is today in terms of geopolitical uncertainties and the uncertainty on a particular certain sectors. If things improve from where it is today, we have an upside to the guidance that we have given.
So we look forward to another strong year ahead for Shriram Properties, and we look forward to creating long-term value for all our stakeholders. Many of them are on this call. And therefore, we would like to assure the stakeholders here on the call, analysts, investors and observers of Shriram Properties that we are fully committed and working over time to ensure that we deliver we create a strong operating platform, leverage the pipeline to deliver a strong outcome in terms of KPIs and also revenue recognized and deliver strong financial earnings in FY '27 as well.
With that, I look forward to interacting with you again on the first quarter results when we announce in the next couple of months with another set of good numbers in front of you. Thank you for your time, and thank you for joining us again today. Thank you.
Moderator:
Thank you. On behalf of Shriram Properties Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines
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