Suraj Estate Developers Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations. The report, prepared by CARE Ratings Limited as the appointed monitoring agency, provides insights into the utilization of proceeds from the company's preferential issue.

Issue Background and Fund Utilization

The company had originally planned to raise Rs. 500.00 crore through its preferential issue but due to undersubscription, the actual amount raised was Rs. 343.39 crore. The issue comprised 34,12,277 equity shares and convertible warrants, with the issue period running from October 05, 2024, to October 18, 2024.

Quarter Performance and Fund Status

During Q3FY26, the company reported no utilization of issue proceeds toward any of the stated objects. The monitoring agency confirmed that Rs. 293.51 crore has been called and fully utilized as of the quarter end, with no unutilized funds remaining.

Stock Price Concerns and Warrant Viability

The monitoring agency raised significant concerns about the company's stock performance and its impact on warrant conversion. Key observations include:

• Share price declined by over 50% from the offer price
• Stock declined by approximately 59% from its 52-week high
• Closing price of Rs. 264.00 as on December 31, 2025
• Warrant exercise price remains at Rs. 750.00 with balance call value of Rs. 375.00 per share

The monitoring agency noted that the current stock price being significantly lower than the warrant exercise price might affect the viability of the stated objects and could materially impact investor decision-making.

Regulatory Compliance and Timeline

The report confirms that the company has adhered to the prescribed timeline for fund utilization, with all received proceeds deployed within the stipulated 12-18 months period. The company had passed a board resolution dated June 27, 2025, for revision in the cost of objects due to the undersubscription in the preferential issue.

Future Outlook

While no deviations from the disclosed objects were reported during the quarter, the monitoring agency highlighted that the undersubscription and significant stock price decline pose challenges to the overall viability of the stated objectives. The company continues to operate under the revised cost structure approved by the board of directors.

Suraj Estate Developers Limited announced its consolidated financial results for Q3FY26, showing mixed performance with revenue growth offset by declining profitability. The real estate developer reported results for the quarter and nine months ended December 31, 2025, which were approved by the Board of Directors on January 28, 2026.

Q3FY26 Financial Performance

The company's consolidated financial performance for Q3FY26 demonstrated revenue growth alongside margin pressures. Key metrics reflected the challenging operating environment in the real estate sector.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Suraj Estate Developers maintained robust operational performance despite market headwinds. The company's consolidated results showed steady revenue growth with controlled expense management.

Expense Structure and Operational Metrics

The company's expense profile for Q3FY26 reflected increased operational costs, impacting overall margins. Operating and project expenses rose significantly to ₹1,072.73 crores from ₹2,167.19 crores in Q3FY24, while finance costs remained relatively stable at ₹195.72 crores compared to ₹204.85 crores in the previous year.

Employee benefits expenses increased to ₹59.47 crores from ₹57.31 crores year-on-year. The company reported changes in inventories of construction work in progress of ₹46.28 crores compared to negative ₹1,060.98 crores in Q3FY24, indicating different project completion phases.

Standalone Financial Performance

On a standalone basis, Suraj Estate Developers reported revenue from operations of ₹870.36 crores for Q3FY26, compared to ₹1,472.58 crores in Q3FY24. Standalone net profit was ₹87.17 crores versus ₹281.26 crores in the corresponding quarter last year. The standalone basic earnings per share stood at ₹1.82 compared to ₹4.69 in Q3FY24.

Corporate Structure and Compliance

The consolidated results include performance from multiple subsidiaries and partnership firms. The group structure comprises Skyline Realty Private Limited, Accord Estates Private Limited, Iconic Property Developers Private Limited, Uditi Premises Private Limited, and partnership firms including New Siddhartha Enterprises, S R Enterprises, and Mulani & Bhagat Associates.

The company operates exclusively in real estate and allied activities, constituting a single operating segment under Indian Accounting Standards. The results were prepared in accordance with Ind AS 34 and reviewed by statutory auditors SKLR & Co LLP. The paid-up equity share capital remained unchanged at ₹231.37 crores with a face value of ₹5 per share.

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