Suraj Estate Developers' September quarter profit falls to ₹23 crore on higher revenue

Suraj Estate Developers Limited, a Mumbai-based developer listed on the NSE as SURAJEST, reported on 31 October 2026 that its consolidated revenue rose in the quarter ended 30 September 2026 while its profit fell. The company said in a stock exchange filing that its board approved the unaudited standalone and consolidated results on the same day, after review by the audit committee.

Consolidated revenue for the quarter was ₹170.04 crore. The year-earlier base is about ₹144 crore, though some reports of the same quarter's total income put the comparable figure slightly higher at ₹145.4 crore, so the growth rate depends on which measure is used. Consolidated net profit was about ₹23 crore, against ₹33.1 crore in the same quarter last year.

Operating profit margins were the main drag. The EBITDA margin, which measures earnings before interest, tax, depreciation and amortisation as a share of revenue, was 32.59% for the quarter, against 44.79% a year earlier. EBITDA for the quarter was ₹55.4 crore. The company did not give a reason for the change in its filing.

Half-year numbers

For the half-year ended 30 September 2026, consolidated revenue rose to ₹314.76 crore from ₹277.03 crore. Net profit for the same period fell to ₹45.92 crore from ₹54.38 crore.

Cash flow and the balance sheet show a different picture from the income statement:

• Net cash used in operations was ₹8.94 crore in the half-year, against ₹42.98 crore a year earlier.
• Total borrowings, both current and non-current, were ₹799.53 crore at 30 September 2026.
• Non-current borrowings rose by ₹164.91 crore over the six months.
• Cash and cash equivalents were ₹14.46 crore, and net cash fell by ₹35.34 crore in the half-year.

The statutory auditors, M/s SKLR & Co, carried out a limited review of the results. The company's filing did not report any qualification on the figures.

What investors will watch

The board also approved an enabling resolution to raise up to ₹500 crore through equity-linked instruments. The company said the money could be raised in one or more tranches through private placement, preferential issue, rights issue or a qualified institutional placement, subject to shareholder and regulatory approvals. Any issue would dilute existing holders and would need to be tracked against the debt level.

The board has also approved the re-appointment of Rajan Meenathakonil Thomas as Managing Director for five years from 1 October 2026, and of Rahul Rajan Jesu Thomas as Whole Time Director for five years from 1 November 2026. Both appointments are subject to shareholder approval.

Next, the company has scheduled an investor and analyst discussion for 2 November 2026 at 2:00 pm IST to take questions on the quarter and the half-year. For investors, the key items are whether the EBITDA margin recovers from 32.59% in later quarters, how the company brings borrowings down from ₹799.53 crore, and the timing of any fundraise under the ₹500 crore resolution.