Company Update : Sunteck Realty by Motilal Oswal Financial Services Ltd
Robust pre-sales outperformance offset by subdued collections
Collection efficiency stood at 53%.
Operational performance
* SRIN reported pre-sales of INR6.57b in 1QFY26, up 31% YoY (16% above estimates). 92% of total pre-sales came in from the Uber Luxury and Premium Luxury segments.
* Collections were up 3% YoY to INR3.51b for 1QFY26 (21% below estimates).
* Net operating cash flow surplus stood at INR1.08b, up 8% YoY.
* The net debt-to-equity ratio stood at 0.02x.
* The company added a redevelopment project in Andheri with a development potential of 0.28msf and GDV of INR11b.
* Fitch (India Ratings) has affirmed the long-term credit rating at 'IND AA/Stable'.
P&L highlights
* In 1QFY26, revenue declined 40%/9% YoY/QoQ to INR1.8b, while it was 20% below our estimate.
* The company reported EBITDA of INR477m, up 52% YoY (15% above estimates). EBITDA margin was up 1,543bp YoY and came in at 25.4% (up 765bp vs our estimates).
* For 1QFY26, Adj. PAT stood at INR334m, up 47% YoY and in line with estimates. PAT margin stood at 17.8%.
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