Sunteck Realty Q1 FY27 Earnings Review: Strong Margin Expansion and Robust Pre-Sales

$SUNTECK Executive Summary Sunteck Realty Ltd. delivered a resilient operational and financial performance in the first quarter of FY27. The company reported a significant 26.4% year-on-year growth in net profit, underpinned by robust pre-sales, healthy collections, and substantial margin expansion. Alongside its earnings, the Board approved an enabling resolution for a strategic fundraise to support future growth initiatives and pipeline development. Financial Performance Highlights Bottom-Line Growth: Net profit (PAT) increased by 26.4% YoY to ₹42.3 crore, compared to ₹33.4 crore in Q1 FY26. Revenue Stability: Total revenue saw a modest increase of 1.7% YoY, reaching ₹191.6 crore against ₹181.3 crore in the corresponding quarter last year. Margin Expansion: Operating profitability improved substantially. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by 38.7% YoY to ₹66.8 crore. Consequently, the EBITDA margin expanded significantly by 930 basis points to 34.9%, up from 25.6% a year ago, reflecting a favorable product mix and premium realizations. The PAT margin also strengthened, rising to 22% from 18%. Operational Metrics The company continued to demonstrate strong execution and consistent market demand: Pre-sales: Rose by 20% YoY to approximately ₹787 crore. Collections: Stood at roughly ₹409 crore, registering a solid 17% YoY growth and reflecting robust cash flow generation from ongoing projects. Strategic Capital Raise To fuel its next phase of expansion and maintain financial flexibility, the Board approved an enabling resolution to raise up to ₹2,250 crore. This proposed capitalization includes: Up to ₹1,500 crore via non-convertible debt (NCDs) through private placement in one or more tranches. Up to ₹750 crore through equity or equity-linked convertible securities, subject to shareholder approval. sition it well for sustained value creation in the premium residential segment.