Sunteck Realty has reported strong financial performance for the second quarter of fiscal year 2026, marking significant growth across key metrics and introducing a new luxury real estate brand.

Strong Pre-Sales Growth

The company achieved pre-sales of Rs. 7.00 billion in Q2 FY26, representing a 34% year-on-year growth. For the first half of FY26, pre-sales reached Rs. 14.00 billion, showing a 32% increase compared to the same period last year. This growth was primarily driven by projects in both the uber-luxury and premium luxury segments.

Financial Highlights

Sunteck Realty's Q2 FY26 financial results showcase substantial improvements:

Cash Flow and Debt Management

The company generated a net operating cash flow surplus of Rs. 2.60 billion in the first half of FY26, a 35% year-on-year increase. This strong cash generation has allowed Sunteck Realty to maintain a low net debt-to-equity ratio of 0.04x, despite significant investments in business development.

Business Development and Expansion

Sunteck Realty invested Rs. 4.30 billion in business development during the first half of FY26, adding two new projects in the western suburbs of Mumbai:

1. A redevelopment project in Andheri near Western Express Highway, with a Gross Development Value (GDV) of Rs. 11.00 billion.
2. A joint development project at Mira Road on Western Express Highway, valued at Rs. 12.00 billion GDV.

Launch of Luxury Brand 'Emaance'

The company introduced 'Emaance', a new by-invite-only real estate lifestyle brand. The inaugural portfolio under Emaance includes a marquee project on Nepeansea Road, which is positioned to be one of the most exclusive residential developments in the country.

Sustainability Recognition

Sunteck Realty received a five-star rating from the Global Real Estate Sustainability Benchmark (GRESB) with a score of 99 out of 100 in 2025, improving by three points from the previous year. This recognition highlights the company's strong focus on environmental, social, and governance excellence.

Management Commentary

Kamal Khetan, Chairman & Managing Director of Sunteck Realty, expressed confidence in achieving similar growth for the full year of FY26. He emphasized the company's commitment to expanding its development portfolio and taking luxury living to the next level with the Emaance brand.

Future Outlook

The company has a pipeline of launches planned across various segments, including ODC, 5th Avenue residential, and new redevelopment projects. Sunteck Realty aims to maintain a balanced portfolio across uber-luxury, premium luxury, and aspirational luxury segments, targeting continued growth in pre-sales and GDV of 30-35% annually.

With a strong balance sheet and strategic investments in business development, Sunteck Realty appears well-positioned to capitalize on opportunities in the Mumbai real estate market, particularly in the luxury segment.

Sunteck Realty , a prominent player in the Indian real estate sector, has reported a robust growth in pre-sales for the second quarter of fiscal year 2026 (Q2 FY26), while collections fell short of market expectations.

Strong Pre-Sales Performance

Sunteck Realty demonstrated impressive pre-sales figures for Q2 FY26:

The company's pre-sales performance exceeded market estimates by a significant margin, indicating strong demand for its properties.

First Half FY26 Results

For the first half of FY26, Sunteck Realty continued its growth trajectory:

This sustained growth over the first half of the fiscal year underscores the company's strong market position and ability to attract buyers in a competitive real estate landscape.

Collections Performance

Despite the strong pre-sales figures, collections for Q2 FY26 fell short of expectations:

For the first half of FY26, collections showed moderate growth:

The discrepancy between pre-sales growth and collections performance may warrant attention from investors and analysts.

Analyst Outlook

Motilal Oswal, a prominent financial services company, maintains a 'Buy' rating on Sunteck Realty stock. The firm cites strong financials as the basis for its positive outlook, despite the shortfall in collections.

The divergence between pre-sales growth and collections performance presents an interesting dynamic for Sunteck Realty. While the company has demonstrated its ability to attract buyers and generate strong pre-sales figures, the lower-than-expected collections could indicate potential challenges in closing deals or in the timing of payments from customers.

Investors and market watchers may want to keep a close eye on how this trend develops in the coming quarters, as it could have implications for the company's cash flow and overall financial health. The continued strong pre-sales figures, however, suggest that Sunteck Realty remains well-positioned in the market, with products that continue to attract buyer interest despite potential economic headwinds.