Suraj Estate's Q2 sales value rises 35% to ₹206 crore; profit falls 30%

Suraj Estate Developers Limited reported a 35% rise in sales value for the quarter ended 30 September 2026, even as its profit fell. In an unaudited results release issued after its board meeting on 31 October 2026, the Mumbai-based developer said second-quarter sales value for FY27 was ₹206 crore, against ₹153 crore a year earlier. The company works mainly on redevelopment and commercial projects in South Central Mumbai.

Sales and collections

Collections rose to ₹104 crore in the quarter from ₹71 crore in the same quarter of FY26. Sales area went up to 41,487 sq ft from 34,875 sq ft. For the first half of FY27, sales value reached ₹347 crore, compared with ₹234 crore in the first half of FY26.

Commercial projects accounted for ₹160 crore of the quarter's sales value, and residential projects for ₹47 crore. Average residential realisation rose to ₹49,065 per sq ft from ₹43,885 per sq ft a year earlier. Sales in the June quarter had already risen 74% to ₹141 crore, though collections fell 25% to ₹86 crore in that period.

Management reiterated its FY27 pre-sales guidance of ₹700 crore. Whole-Time Director Rahul Thomas said, "This performance reflects the contribution of our residential and commercial developments and the continued traction across our project portfolio."

Profit and margins

Profit after tax fell 30% year on year to ₹23 crore. Total income rose 18% to ₹171.1 crore. EBITDA fell 14% to ₹56.5 crore, and the EBITDA margin declined to 33.0% from 45.1%. Finance costs rose to ₹24.4 crore from ₹20.5 crore. For the half year, EBITDA was ₹111 crore against ₹116 crore, and profit after tax was ₹46 crore against ₹54 crore.

The release attributed the profit decline to margin pressure during the quarter. Independent commentary has pointed to higher project costs, a change in project mix or higher operating expenses as possible causes, and has said the company did not convert higher revenue into proportionate profit growth. The company has not given a breakdown of these causes in the figures it has released so far.

One Business Bay and the Mahim market

The company's lead commercial project is One Business Bay on Senapati Bapat Marg in Mahim. The company said the project had sold about ₹500 crore of inventory since launch, on an expanded gross development value of about ₹2,000 crore, up from ₹1,200 crore for the original project. The combined development is planned to have about 3.59 lakh sq ft of saleable area.

The project is registered with MahaRERA under number PC1170002501460, dated 13 November 2025. The latest MahaRERA progress report shows foundation work at 3% and structure work at 0%. The MahaRERA-based record gives a proposed possession date of April 2032. Some listing websites show a different date, 31 December 2031, so buyers should rely on the RERA record.

Mahim is a crowded micro-market. Metro Line 3, the Aqua Line, has a station planned at Sitladevi Temple in Mahim, and its first phase opened on 5 October 2024. Data from 67 recent resale listings put the median asking rate in Mahim at ₹47,500 per sq ft. MahaRERA records show 28 registered projects in Mahim due for possession between 2026 and 2030, which means new supply is coming to the same buyers and tenants.

What comes next

The company has called an investor and analyst discussion for 2 November 2026 at 2:00 pm IST to discuss the second-quarter and half-year numbers. It has guided to an FY27 launch pipeline of about ₹1,600 crore, with about ₹240 crore of launches planned in the second quarter, ₹800 crore to ₹880 crore in the third, and about ₹480 crore in the fourth. It also expects FY27 accounting revenue to grow 10% to 15%. The release mentions expected approvals for Suraj Innova CC and some RERA-related processes, but gave no dates.

For investors, the next test is whether margins recover. The company has not yet explained how it expects EBITDA and profit margins to move from the current quarter, and the launch timetable will show whether the sales target is on track. Buyers in One Business Bay should watch the MahaRERA progress filings, since they are the most detailed independent record of how far construction has moved.