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Q3FY26: Coverage Universe Performance

Realty (Developers & Flexible Workspace) and Infrastructure

Developers

Q3FY26 Review: Companies under our coverage (3 companies) recorded strong YoY and flat QoQ growth in pre-sales and collections, reaching INR 111.1 Bn (up 54.9% YoY) and INR 66.5 Bn (up 35.4% YoY), respectively.

Guidance: We expect pre-sales and collections to expand at 12.7% and 19.1% CAGR, respectively, over FY26E–28E.

Stance: We maintain a positive outlook on the sector. We expect the Premium and Luxury segments to outperform the average sector performance, supported by stronger demand dynamics and superior pricing power. We maintain our BUY rating on all the 3 stocks, of which SOBHA is our top investment idea.

Flexible Workspace

Q3FY26 Review: Companies under our coverage (3) reported total seats of 4,59,000 (up 3.0% QoQ and 26.7% YoY). Rental segment grew by 34.1%/7.4% YoY/QoQ, respectively. While Rental/Design & Build (D&B) segment reported 15.1% YoY growth (but declined 1.7% QoQ). Consolidated revenue/EBITDA/PAT grew by 32.7%/33.1%/495.2% YoY and 7.4%/8.4%/22.7% QoQ, respectively.

Guidance: We expect seat addition of 66,451 (+17.6% YoY) in FY26E and 1,23,505 (+27.8% YoY) in FY27E. Revenue/EBITDA/PAT is anticipated to expand at 22.5%/25.1%/47.1% CAGR, respectively, over FY26E–28E

Stance: We maintain a positive stance on the sector, supported by a sustainable demand from GCCs and start-ups, alongside an expected improvement in profitability, going forward. We maintain our BUY rating on all the 3 stocks, of which SMARTWOR is our top investment idea.

Infrastructure

Q3FY26 Review: PSP Projects reported Revenue/EBITDA growth of 15.6/9.2% QoQ and 29.0/53.5% YoY, respectively. EBITDA margin came in at 6.7% (-39 bps QoQ, +107 bps YoY). RPAT margin came in at 2.2% vs 2.3% in Q2FY26 and 0.8% in Q3FY25. In 9M FY26, order inflow came in at INR 49.94 Bn, with the current order book at INR 91.8 Bn. Guidance: Revenue/EBITDA/PAT to expand at 15.0%/19.1%/27.9% CAGR, respectively, over FY26E–28E. Stance: We maintain our Reduce rating on PSPPL. We would consider reviewing our outlook on PSPPL with a more constructive lens if there is a credible evidence that the company receives higher volumes of better-margin business.

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