Shriram Properties Limited , a prominent player in the Indian real estate sector, has announced its quarterly results for Q2FY26, showcasing strong operational performance but subdued financial results due to regulatory challenges.

Operational Highlights

The company achieved impressive sales volumes of 1.1 million square feet, representing a 39% quarter-on-quarter (QoQ) growth. These sales were valued at Rs. 685.00 crores, marking a substantial 55% QoQ growth. For the half-year, cumulative sales reached 2.0 million square feet, valued at Rs. 1,126.00 crores.

Financial Performance

Despite the strong operational performance, Shriram Properties' financial results were impacted by temporary deferment of revenue recognition. This was primarily due to delays in receiving Occupancy Certificates (OCs) and eKhata processes following the Greater Bengaluru Authority's regulatory transition.

Total revenues for Q2FY26 stood at Rs. 229.00 crores, showing a 48% year-on-year (YoY) growth. However, the company reported a net loss of Rs. 8.67 crores for the quarter.

Project Expansion

During FY26, Shriram Properties added 5 new projects with a development potential of 2.3 million square feet and a Gross Development Value (GDV) of Rs. 2,350.00 crores.

Regulatory Matters

The company's auditors included an emphasis of matter in their report regarding an Enforcement Directorate search operation conducted at the company's premises in October 2023. As of now, no formal communication has been received regarding the findings of this operation. Shriram Properties maintains that there is nothing to implicate the organization or its directors in connection with the allegations.

Outlook

Management expects robust performance in the second half of the fiscal year as regulatory issues normalize. Most delayed OCs have now been received, and eKhata processes have begun. The company maintains its FY26 guidance and remains confident about achieving its 3-year strategic objectives.

Despite the quarterly loss, the significant increase in revenue suggests that Shriram Properties is experiencing growth in its operations. As the company navigates through these financial and regulatory challenges, stakeholders will likely closely watch how it addresses the factors contributing to the loss while building on the positive aspects of its operational performance.

Shriram Properties Limited (SPL), a prominent player in the mid-market and mid-premium residential real estate sector, has announced a significant expansion of its portfolio in South Bengaluru. The company has entered into a Joint Development Agreement (JDA) for a 5-acre land parcel in the Bannerghatta area, with plans to develop a premium 'villament' project.

Project Highlights

• Location: Bannerghatta Road, South Bengaluru
• Land Area: Approximately 5 acres
• Project Type: Premium villament community
• Estimated Gross Development Value (GDV): Exceeding ₹350.00 crores
• Expected Launch: FY26

Strategic Significance

This new project aligns with Shriram Properties' asset-light growth strategy and its focus on value-accretive partnerships in high-demand locations. The development is set to strengthen the company's expanding mid-premium housing portfolio in Bengaluru, one of India's most dynamic real estate markets.

Project Features

The upcoming villament project aims to offer a refined living experience with:

• Elegant architecture
• Expansive green landscapes
• Thoughtfully curated modern amenities
• Designs prioritizing natural light and ventilation
• Strong connection to the surrounding landscape

Location Advantages

Bannerghatta Road, the chosen location for this project, offers several benefits:

• Exceptional connectivity
• Thriving social infrastructure
• Balance of urban convenience and natural tranquility

Management Perspective

Akshay Murali, Vice President - Business Development at Shriram Properties, commented on the development: "Our upcoming villaments project in Bannerghatta Road, one of Bengaluru's most dynamic and desirable residential corridors, embodies this philosophy. With its excellent connectivity, vibrant social ecosystem, and serene green surroundings, Bannerghatta Road is the ideal setting for discerning homebuyers seeking both exclusivity and convenience. We are confident this development will set a new benchmark for premium living in South Bengaluru."

Company Overview

Shriram Properties Ltd (SPL) has established itself as a leading residential real estate developer in India, focusing on mid-market and mid-premium segments. The company has a strong presence in key markets including Bangalore, Chennai, Pune, and Kolkata.

This new project in Bannerghatta further solidifies Shriram Properties' commitment to creating sustainable, community-centric, and environmentally conscious living spaces that cater to evolving urban lifestyles.