IGI Logo

Realty (Developers, Flexible Office Space) & Construction

Developers

Q2FY26 Review: Companies under our coverage recorded strong pre-sales of INR 111.6Bn (+64.8% YoY and +16.1% QoQ) and collections of INR 66.8Bn (+14.4% YoY and +12.0% QoQ)

Guidance: We expect FY26E pre-sales growth of INR 51.9Bn (13.5% YoY) and collections growth of INR 60.2Bn (24.0% YoY).

Stance: We maintain a positive stance on the sector but, within that, growth trends could be different across companies. We maintain our BUY rating on 3/3 stocks. SOBHA is our top investment idea.

Flexible Office Space

Q2FY26 Review: Companies under our coverage (2) reported seat addition of 54,743 (34.1% YoY and 5.9% QoQ). Revenue growth for Rental/Design & Build(D&B) segments came in at 38.7/2.1% YoY and 7.0/13.5% QoQ. Revenue/EBITDA/PAT growth came in at 35.4/35.4/(3.2)%YoY and 12.1/6,3/143.3% QoQ.

Guidance: We expect FY26E seat addition of 40,951 (21.1% YoY) and Revenue/EBITDA/PAT growth of 32.2/44.0/90.9% YoY.

Stance: We maintain a positive stance on the sector with BUY rating on 2/2 stocks.

Construction

Q2FY26 Review: PSP Projects reported Revenue/EBITDA growth of 35.8/10.9% QoQ and19.9/(12.7)% YoY. EBITDA margin came in at 7.1% (+232 bps QoQ, 69 bps YoY). In H1FY26, inflow came in at INR 41.2Bn, with the current orderbook at INR 98.8Bn. Guidance: We forecast FY26E Revenue/EBITDA growth of 15.0/33.6% YoY, EBITDA margin 8.3% (+120 bps YoY) and year-end closing orderbook of INR 83.8Bn. Stance: We have a positive stance on the order inflow from Adani Group.

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimer

SEBI Registration no.: INZ 000160131