Shriram Properties Posts Strong Sales Momentum in Q2FY26
Real Estate

Shriram Properties Posts Strong Sales Momentum in Q2FY26

Shriram Properties Limited (“SPL”) has released its financial and operational results for the quarter ended 30 September 2025 (Q2FY26) and the first half of the year (H1FY26), reporting strong sales traction despite temporary regulatory disruptions in Bengaluru.

Strong Operational Performance

SPL achieved quarterly sales of 1.1 million sq ft, up 39 per cent quarter-on-quarter, valued at Rs 6.85 billion, a 55 per cent rise. For H1FY26, cumulative sales reached around 2.0 million sq ft (+13 per cent year-on-year), valued at Rs 11.26 billion (+19 per cent). The company’s three new launches this year received strong market responses, reinforcing SPL’s brand strength in the mid-market and mid-premium segments. With around 40 per cent of its annual targets already met and the second half historically stronger, SPL expects an acceleration in pre-sales driven by multiple upcoming launches.

Gross collections stood at Rs 3.88 billion in Q2 (+15 per cent QoQ) and Rs 7.25 billion in H1 (+6 per cent YoY). SPL handed over more than 760 units in Q2 and over 1,500 units in H1, despite transitional delays stemming from regulatory changes in Bengaluru.

Revenue recognition and Q2 financials were temporarily affected due to delays in obtaining occupancy certificates (OC), completion certificates (CC) and eKhata. All delayed OCs, except one, have now been received and the eKhata process is underway, positioning the company for a strong recovery in H2FY26.

Expanding Development Pipeline

FY26 has been an active year for business development. SPL has added five new projects totalling 2.3 million sq ft with a gross development value (GDV) of Rs 23.5 billion. A further five to six projects, with over 6 million sq ft of potential, are at advanced finalisation stages, while more than 20 million sq ft of opportunities are under active evaluation.

Q2 & H1 FY26 Financial Highlights

Q2FY26 Revenue from Operations: Rs 2.05 billion (+46 per cent YoY)

Q2FY26 Total Income: Rs 2.29 billion (+48 per cent YoY)

Gross Margins: Above 30 per cent in Q2

H1FY26 Total Income: Rs 4.90 billion (+34 per cent YoY)

H1FY26 EBITDA: Around Rs 700 million (stable YoY)

H1FY26 Pre-Tax Earnings: Rs 208 million (+87 per cent YoY)

H1FY26 Reported Profit: Rs 292 million (+75 per cent YoY)

Operating cash flow more than doubled sequentially to Rs 520 million in Q2, totalling Rs 760 million for H1. SPL invested Rs 1.43 billion into new projects and ended the period with cash and cash equivalents of Rs 2.86 billion, signalling strong liquidity.

Net debt stood at Rs 4.07 billion, with a low net-debt-to-equity ratio of 0.29x, one of the lowest in the sector, providing ample headroom for growth. CRISIL reaffirmed the company’s A(–)/Positive credit rating, recognising sound governance and prudent financial management.

Outlook

With regulatory bottlenecks easing, SPL expects deferred revenues and handovers to flow into H2FY26, driving a strong financial rebound. With over 80 per cent of ongoing inventory already sold, timely execution and handovers will be key to revenue realisation. A robust launch pipeline and continued business-development momentum provide high visibility for the medium term.

Executive Director and CEO Gopalakrishnan J said Q2 was operationally strong, with both sequential and year-on-year growth. He added that with transition issues subsiding, SPL is confident of delivering a stronger second half and meeting full-year targets. He highlighted ongoing efforts to expand the project pipeline, accelerate execution and unlock cash flows for sustained value creation.

“With a resilient model and favourable sector fundamentals, we are on track to achieve our three-year mission objectives and deliver substantial long-term value for stakeholders,” he said.

Shriram Properties Limited (“SPL”) has released its financial and operational results for the quarter ended 30 September 2025 (Q2FY26) and the first half of the year (H1FY26), reporting strong sales traction despite temporary regulatory disruptions in Bengaluru. Strong Operational Performance SPL achieved quarterly sales of 1.1 million sq ft, up 39 per cent quarter-on-quarter, valued at Rs 6.85 billion, a 55 per cent rise. For H1FY26, cumulative sales reached around 2.0 million sq ft (+13 per cent year-on-year), valued at Rs 11.26 billion (+19 per cent). The company’s three new launches this year received strong market responses, reinforcing SPL’s brand strength in the mid-market and mid-premium segments. With around 40 per cent of its annual targets already met and the second half historically stronger, SPL expects an acceleration in pre-sales driven by multiple upcoming launches. Gross collections stood at Rs 3.88 billion in Q2 (+15 per cent QoQ) and Rs 7.25 billion in H1 (+6 per cent YoY). SPL handed over more than 760 units in Q2 and over 1,500 units in H1, despite transitional delays stemming from regulatory changes in Bengaluru. Revenue recognition and Q2 financials were temporarily affected due to delays in obtaining occupancy certificates (OC), completion certificates (CC) and eKhata. All delayed OCs, except one, have now been received and the eKhata process is underway, positioning the company for a strong recovery in H2FY26. Expanding Development Pipeline FY26 has been an active year for business development. SPL has added five new projects totalling 2.3 million sq ft with a gross development value (GDV) of Rs 23.5 billion. A further five to six projects, with over 6 million sq ft of potential, are at advanced finalisation stages, while more than 20 million sq ft of opportunities are under active evaluation. Q2 & H1 FY26 Financial Highlights Q2FY26 Revenue from Operations: Rs 2.05 billion (+46 per cent YoY) Q2FY26 Total Income: Rs 2.29 billion (+48 per cent YoY) Gross Margins: Above 30 per cent in Q2 H1FY26 Total Income: Rs 4.90 billion (+34 per cent YoY) H1FY26 EBITDA: Around Rs 700 million (stable YoY) H1FY26 Pre-Tax Earnings: Rs 208 million (+87 per cent YoY) H1FY26 Reported Profit: Rs 292 million (+75 per cent YoY) Operating cash flow more than doubled sequentially to Rs 520 million in Q2, totalling Rs 760 million for H1. SPL invested Rs 1.43 billion into new projects and ended the period with cash and cash equivalents of Rs 2.86 billion, signalling strong liquidity. Net debt stood at Rs 4.07 billion, with a low net-debt-to-equity ratio of 0.29x, one of the lowest in the sector, providing ample headroom for growth. CRISIL reaffirmed the company’s A(–)/Positive credit rating, recognising sound governance and prudent financial management. Outlook With regulatory bottlenecks easing, SPL expects deferred revenues and handovers to flow into H2FY26, driving a strong financial rebound. With over 80 per cent of ongoing inventory already sold, timely execution and handovers will be key to revenue realisation. A robust launch pipeline and continued business-development momentum provide high visibility for the medium term. Executive Director and CEO Gopalakrishnan J said Q2 was operationally strong, with both sequential and year-on-year growth. He added that with transition issues subsiding, SPL is confident of delivering a stronger second half and meeting full-year targets. He highlighted ongoing efforts to expand the project pipeline, accelerate execution and unlock cash flows for sustained value creation. “With a resilient model and favourable sector fundamentals, we are on track to achieve our three-year mission objectives and deliver substantial long-term value for stakeholders,” he said.

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