Suraj Estate Developers Limited reported a 10% year-on-year decline in consolidated profit after tax (PAT) to ₹90 crore for the financial year ended March 31, 2026. The decline in PAT was primarily attributable to higher finance costs, which rose due to recent acquisitions and ongoing business development activities. Total income for the year increased by 1% to ₹561 crore, while EBITDA grew by 8% to ₹223 crore. The EBITDA margin improved to 39.7% from 37.4% in FY25.

The company achieved a sales value of ₹615 crore during FY26, surpassing its guidance of ₹600 crore — a 23% increase compared to the previous year. Sales area grew by 42% year-on-year to 1,31,167 sq. ft., while collections increased by 9% to ₹421 crore. The operational performance was driven by healthy launch momentum and disciplined execution across the South Central Mumbai market.

Operational Highlights

The following table summarises the key operational metrics for FY26 compared to the previous year:

Consolidated Financial Performance

On a consolidated basis, the company reported a PAT margin of 16.2% for FY26, down from 18.2% in FY25. The table below details the financial highlights:

*Includes other income

Business Updates

During the year, the company successfully launched Suraj One Business Bay, Suraj Parkview 1, and Suraj Aureva, with a cumulative Gross Development Value (GDV) of approximately ₹1,600 crore. It acquired a strategically located land parcel at Sayani Road, Prabhadevi, with an estimated GDV potential of ~₹200 crore. Additionally, the company signed an MOU for the acquisition of development rights for a land parcel contiguous to Suraj One Business Bay, adding an incremental GDV potential of ~₹800 crore and taking the project's combined GDV potential to over ₹2,000 crore.

Commenting on the performance, Mr. Rahul Thomas, Whole-time Director, stated that the company successfully achieved its pre-sales guidance supported by strong customer demand and healthy collections. He highlighted that commercial developments emerged as an important growth driver, aided by increasing demand for premium office assets.

FY27 Guidance — Concall Highlights

Management shared key forward-looking guidance during the concall. While detailed accounting revenue and EBITDA guidance for FY27 will be provided in the next call, management expects the company to perform "much better" than FY26. The following table summarises the key guidance parameters shared:

Management noted that net debt for FY27 is estimated to be between ₹600 crore and ₹650 crore, despite potential temporary increases arising from new project launches. Blended EBITDA margins for upcoming projects are expected to be maintained in the range of 35% to 40%.

Board and Audit Approvals

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026. M/s SKLR & Co. LLP, Chartered Accountants, issued an audit report with an unmodified opinion on the standalone and consolidated financial results. The Board also approved the re-appointment of M/s Ankit Kishor Chande, Cost Accountant, as Cost Auditors and M/s. Motilal & Associates LLP as Internal Auditors for the financial year 2026-27, subject to shareholder approval where applicable.

Suraj Estate Developers Limited announced on May 31, 2026, that its wholly owned subsidiary, Iconic Property Developers Private Limited, has acquired development rights for a prime land parcel in Mahim (West) for a total consideration of ₹75.00 crores. The acquisition is expected to generate an estimated Gross Development Value (GDV) of ₹800 crores, strengthening the company's project pipeline in the South Central Mumbai micro-market. The subsidiary signed a Memorandum of Understanding (MOU) for the plot, which admeasures approximately 2,941 square meters and is contiguous to the ongoing commercial project Suraj One Business Bay.

The strategic acquisition is anticipated to add about 1.50 lakh square feet of saleable carpet area upon amalgamation with the existing commercial development. Rahul Thomas, Whole-time Director of Suraj Estate Developers , stated that the combined GDV of Suraj One Business Bay will exceed ₹2,000 crores following this expansion. He highlighted the project's vantage position and connectivity, anticipating strong interest from institutional and end-user segments driven by design excellence and a sustainability-led approach.

Project Details

The development rights acquisition targets a plot in Mahim, an established micro-market characterized by strong demand fundamentals and proximity to key commercial districts such as Lower Parel, Worli, and Bandra Kurla Complex. The following table outlines the key financial and operational metrics associated with the transaction:

Company Background

Suraj Estate Developers has been operational in the real estate sector since 1986, focusing on residential and commercial developments across South Central Mumbai. The company's portfolio includes markets in Mahim, Dadar, Prabhadevi, and Parel, with a core competence in the redevelopment of tenanted properties. Since incorporation, the developer has completed over 45 projects, encompassing a developed area exceeding 16.09 lakh square feet. Currently, the company has 13 ongoing projects with a developable area of 23.54 lakh square feet and 18 upcoming projects with an estimated saleable carpet area of 12.12 lakh square feet.