Shriram Properties LtdQ1 FY27
Shriram Properties Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹76.7P/E: 14.6Market Cap: ₹1.3K CrSector: Realty
Management growth scorecard
Revenue
Category 2
Margin
Category 1
Fundraise
Yes
Order
Yes
Capex
Yes
4 of 5 growth signals are positive — a strong management growth story.
Full analysisRevenue guidance
Category 2- →FY27 outlook: Management is confident of delivering a back-ended growth in sales and revenue recognition with stronger quarters expected later in the year.
- →Sales value growth for FY27 is guided at around INR3,300-3,500 crores, representing a 40-50% increase.
- →Revenue recognition expected to reach approximately INR2,500 crores in FY27.
- →PAT growth in FY27 is expected between 20%-25%.
- →For FY28, sales value is targeted around INR5,000 crores with revenue recognition around INR2,500 crores, and PBT expected to stabilize around 10% margins.
- →The company is targeting significant growth from ongoing projects plus new launches.
- →There is potential for acceleration in sales via faster-selling products and project launches, but no material surprises are currently factored in.
- →Management plans more launches and completions in H2 FY27, offering strong visibility of growth.
Margin guidance
Category 1- →FY27 Outlook: Confident of delivering strong growth with a back-ended increase in sales and revenue recognition; expecting about 20% growth in both revenue and PAT.
- →FY28 Mission: Targeting sales value of ~INR 5,000 crores and revenue recognition of ~INR 2,500 crores with PBT stabilizing around 10%.
- →EBITDA Margins: Expected improvement to 22%-24% by FY28, up from ~13.5% in FY26.
- →PBT Margins: Anticipated to stabilize around 10% by FY28, compared to 5.3% in FY26.
- →EPS Growth: Likely to follow the PAT growth trajectory, supported by increased revenue and stable margins.
- →Operating Cash Flows: Strong cash generation expected to continue, aiding sustainable growth.
- →No significant earnings surprises expected on downside; potential upside from accelerated launches and better product mix.
- →Market confidence is expected to improve as delivery and execution consolidate.
Fundraise plans
Yes- →The company expects gearing to rise temporarily in FY27 due to aggressive growth plans and locking more project pipelines, which requires additional equity or debt.
- →The comfort zone for long-term gearing is between 0.5 to 1, and any increase in gearing is expected to remain within manageable levels.
- →Balance sheet is currently strong with net debt to equity at 0.29x, gross debt at INR651 crores, and cash equivalents at INR219 crores.
- →The company has ample funding capacity supported by healthy liquidity, a strong equity base (INR1,471 crores), and a CRISIL A- (positive) credit rating.
- →These factors provide sufficient balance sheet capacity to support future growth without taking leverage to uncomfortable levels.
- →No specific mention of any imminent new fundraising through debt or equity, but the company is open to such actions as needed for growth.
Order book
Yes- →Shriram Properties has a current project pipeline of approximately 33.7 million square feet (ongoing and upcoming projects combined) with a revenue potential of around INR 13,530 crores.
- →Ongoing projects include 16 million square feet with 2.9 million square feet unsold (unsold GDV of ~INR 1,970 crores).
- →Upcoming projects constitute 17.7 million square feet with a GDV potential of approximately INR 11,560 crores.
- →An additional 7.3 million square feet of projects with GDV potential over INR 6,000 crores are at an advanced stage and likely to be added within 3 to 6 months.
- →The company is evaluating more than 20 million square feet of opportunities to accelerate pipeline additions.
- →Management aims to nearly double the upcoming project pipeline over the next 18 to 24 months.
Capex plans
Yes- →The company invested INR88 crores in new projects during the period, supporting ongoing executions and planning investments.
- →With a strong equity base, healthy liquidity, and low gearing (net debt to equity of 0.29x), Shriram Properties has ample balance sheet capacity to support future growth without taking uncomfortable leverage.
- →The management is focused on accelerating product launches and expanding the project pipeline, targeting 7 million square feet of potential launches in FY27 across key markets (Bengaluru, Chennai, Pune, Kolkata).
- →Over 7.3 million square feet of projects with GDV potential of over INR6,000 crores are at an advanced stage and likely to be added to the pipeline within 3-6 months.
- →The company continues to evaluate over 20 million square feet of opportunities to accelerate pipeline addition over the next 18-24 months.
- →Focus on premiumization, product diversification, and faster value realization (e.g., branded land concept in Kolkata) support strategic capital deployment.
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Margin guidance
Category 1- →FY27 Outlook: Confident of delivering strong growth with a back-ended increase in sales and revenue recognition; expecting about 20% growth in both revenue and PAT.
- →FY28 Mission: Targeting sales value of ~INR 5,000 crores and revenue recognition of ~INR 2,500 crores with PBT stabilizing around 10%.
- →EBITDA Margins: Expected improvement to 22%-24% by FY28, up from ~13.5% in FY26.
- →PBT Margins: Anticipated to stabilize around 10% by FY28, compared to 5.3% in FY26.
- →EPS Growth: Likely to follow the PAT growth trajectory, supported by increased revenue and stable margins.
- →Operating Cash Flows: Strong cash generation expected to continue, aiding sustainable growth.
- →No significant earnings surprises expected on downside; potential upside from accelerated launches and better product mix.
- →Market confidence is expected to improve as delivery and execution consolidate.
Order book
Yes- →Shriram Properties has a current project pipeline of approximately 33.7 million square feet (ongoing and upcoming projects combined) with a revenue potential of around INR 13,530 crores.
- →Ongoing projects include 16 million square feet with 2.9 million square feet unsold (unsold GDV of ~INR 1,970 crores).
- →Upcoming projects constitute 17.7 million square feet with a GDV potential of approximately INR 11,560 crores.
- →An additional 7.3 million square feet of projects with GDV potential over INR 6,000 crores are at an advanced stage and likely to be added within 3 to 6 months.
- →The company is evaluating more than 20 million square feet of opportunities to accelerate pipeline additions.
- →Management aims to nearly double the upcoming project pipeline over the next 18 to 24 months.
How does Shriram Properties Ltd rank vs peers in Realty?
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