Shriram Properties Ltd Q2 FY26 Earnings Analysis

- **Handover Guidance:** Targeting 3,300 to 3,600 units handover in FY26, with approximately 25% of handovers expected in Q4. - **Revenue Growth:** Expect top line growth slightly higher than 14% in FY26, with projected revenue upwards of INR 1,250 - 1,300 crores. - **Sales Momentum:** Strong first quarter sales of INR 441 crores (17% YoY growth), supported by high demand in core markets and new market entries (Pune, Bangalore). - **Collections:** Highest-ever Q1 collections at INR 338 crores, expected to strengthen with scheduled handovers and new launches. - **New Launches:** Robust responses to projects like "The One" in Bangalore and maiden Pune launch, indicating solid demand and price momentum. - **Pipeline Growth:** Active addition of new projects with over 20 million sq.ft. development potential, aiming to double the upcoming pipeline. - **Market Outlook:** Underlying demand remains strong in core markets; stable pricing with moderate increases expected, focusing on volume-driven growth.

- FY26 outlook remains confident with guidance maintained as previously shared. - Revenue for FY26 is expected to be upwards of INR 1,250 - 1,300 crores, supported by strong handovers (about 3,300-3,600 units) and milestone achievements. - EBITDA margins are targeted around 30-34%, with consistent project-level profitability. - PAT recorded strong growth of 18% year-on-year in Q1 FY26, with expectations to continue growing alongside revenue. - Management aims for improved ROE and ROCE, targeting double-digit or mid-teen ROCE within 24 months. - Strategic focus on disciplined project execution, accelerating construction for faster collections, and scaling new market launches (e.g., Pune and Bangalore). - Royalty savings due to stopping use of Shriram Group tagline expected to save approximately INR 4 crores annually from current year onwards. - No immediate plans for promoter shareholding increase; focus remains on operational performance and shareholder value creation.

- INR 75 crores invested into new project execution in Q1 FY26 to seed future growth. - Added INR 200 crores GDV project in Bangalore, currently in approval progress, targeting launch in H2 FY26. - Six projects (~3 million sq. ft.) at an advanced stage of diligence and documentation, likely to close in Q2/Q3 FY26. - Five more projects with 3+ million sq. ft. potential at final commercial closure stage, expected to close during H2 FY26. - Further projects with 20+ million sq. ft. at various evaluation stages across core markets, providing multi-year pipeline. - Working on additional capital raises and investment platforms with ASK and other investors for INR 135-140 crores deployment soon, with future similar platforms planned. - Focus on calibrated investments for future growth while maintaining cash discipline and debt reduction.

- No significant jump in debt is planned; current gross debt is INR 567 crores with net debt INR 380 crores. - The company will continue borrowing for construction finance needs for new projects but will also repay ongoing project debts. - Cost of debt is around 11.3%, with potential to reduce slightly; new borrowings are at lower rates (~9.75%-10%). - No mention of immediate equity fundraising or promoter shareholding increase; inter-promoter transfers approved by SEBI are underway, with no further shareholding increase planned for now. - Working on new capital deployment with investors like ASK for additional investment platforms to raise funds, targeting INR 135-140 crores from existing platforms soon. - New project launches will involve calibrated investments, but no explicit large fundraising plan disclosed at this time.

- The current presales value is INR 441 crores as per the latest update (Page 16). - Shriram Properties has ongoing commitments with ASK, with at least INR 135-140 crores of investment scope remaining in the existing platform (Page 17). - Additional similar platforms and capital raising efforts are underway for future investments with ASK and others (Page 17). - The business development pipeline includes over 20 million square feet of development potential, with significant new project additions expected in Q2 and Q3 (Page 4). - The company is focusing on doubling the upcoming project pipeline to fuel growth (Page 4). - New project launches are planned or underway in Bangalore, Pune, and Kolkata, with approvals received for new projects in Kolkata (Pages 4, 8).