Sunteck Realty's Q2 pre-sales rise 17%; brokerage trims target to ₹450

Mumbai-based Sunteck Realty Ltd reported a 17% rise in net profit to ₹57.11 crore for the quarter ended 30 September 2026, according to its results. Pre-sales in the quarter rose 17% year on year to ₹824 crore, even though the company did not launch any new project in the period. The brokerage Prabhudas Lilladher, in a result update dated 28 October 2026, kept its BUY rating and reduced its target price to ₹450 per share from ₹520.

Quarter's numbers

• Revenue: ₹321 crore, up 27% year on year.
• Net profit: ₹57.11 crore, up 17%.
• EBITDA: up 13% year on year.
• Pre-sales: ₹824 crore in Q2, up 17%; ₹1,611 crore in the first half, up 19%.
• Collections: ₹371 crore in Q2, up 12%; ₹780 crore in the first half.
• Collection conversion ratio: 45% in the first half, against 40% a year earlier.
• Embedded EBITDA margin: 30% in the first half, up 160 basis points.
• Net debt-to-equity: 0.09 times.

The company said collections are back-ended because recent sales are tied to early-stage projects with milestone-linked payments. This means cash received lags behind booked sales. The company's Q1 FY27 figures showed pre-sales up 20% and collections up 17%.

Valuation and the brokerage's view

Prabhudas Lilladher values the company on a one-year-forward net asset value basis. Its FY27 estimates put gross NAV at ₹8,631.9 crore, made up of ₹6,889.6 crore for residential projects, ₹1,243.1 crore for commercial projects for sale and ₹499.2 crore for commercial projects for lease. After adding cash and deducting gross debt, the net NAV is ₹7,759.2 crore. The target of ₹450 applies a 15% discount to that forward NAV. The brokerage expects pre-sales to grow at a compound annual rate of more than 20% between FY26 and FY28, provided project execution stays on schedule.

The brokerage's estimates depend on launches that have not yet happened. Its valuation also counts the planned Dubai joint venture, which is expected to launch in FY28.

Pipeline, approvals and risks

The company's balance gross development value, net of sales already made, stood at ₹46,880 crore on 30 September 2026. Of the total pipeline, ₹7,676 crore had been launched by the end of H1 FY27. Another ₹13,900 crore was classified as to be launched, which means it is under approvals, and ₹25,304 crore was in planning and design. Its recent Mumbai land purchases include a 4.5-acre site in Borivali West disclosed on 5 October 2026 and a 1.75-acre site in Andheri East bought in January 2026.

The company said it aims to secure a RERA launch for its Nepean Sea Road project before the end of FY27. Demolition work there is already under way. An earlier target had pointed to the end of Q4 FY26 or Q1 FY27, so the timing has moved. On Dubai, the company said all required approvals are in place and the project is launch-ready, but the timing has been recalibrated because of the ongoing market situation. India Ratings has reaffirmed the company's IND AA/Stable rating.

The company also said it is confident of 25% to 30% pre-sales growth for FY27, supported by its project pipeline. Most of its sales are concentrated in the Mumbai Metropolitan Region, so a slowdown there would affect its sales directly.

What to watch

Investors will watch whether the company can convert its large under-construction pipeline into sales and cash collections at the pace it has guided, and whether the Nepean Sea Road and Borivali West approvals arrive in FY27. The Dubai launch timing and its effect on revenue will also be closely tracked.