SBGLP - Suratwwala Busi.

📊 NSE: SBGLP 🏢 Construction 📅 Last Updated: 12/14/2025 13:57

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue for H1 FY26 (period ending September 30, 2025) reached INR 33.15 Cr, representing a growth of approximately 200% compared to INR 11.04 Cr in H1 FY25. Consolidated revenue for the same period was INR 10.38 Cr, primarily driven by the real estate segment which remains the dominant contributor.

Geographic Revenue Split

100% of revenue is generated from the Pune region, Maharashtra, where the company maintains a concentrated land bank of 200 acres and focuses on residential and commercial developments.

Profitability Margins

Standalone Net Profit Margin for H1 FY26 was 36.6% (INR 12.13 Cr profit on INR 33.15 Cr revenue). For the quarter ended September 30, 2025, standalone net profit was INR 6.81 Cr compared to INR 4.31 Cr in the previous year's corresponding quarter, a 58% increase.

EBITDA Margin

Standalone operating profit for Q2 FY26 was INR 9.17 Cr, reflecting strong core profitability from project deliveries. The company has maintained a 5-year profit CAGR of 79.2%.

Capital Expenditure

The company increased its non-current assets by 259.91% to INR 46.75 Cr as of March 31, 2025, up from INR 12.99 Cr, indicating significant investment in project land and solar infrastructure.

Credit Rating & Borrowing

Long-term borrowings surged by 937.99% to INR 52.18 Cr as of March 31, 2025, compared to INR 5.03 Cr in FY24. Despite the debt increase, interest costs for FY25 decreased by 88.54% to INR 0.13 Cr from INR 1.13 Cr due to strategic debt management and capitalization.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, cement, bricks, and solar panels. While specific percentage splits are not disclosed, these constitute the bulk of project costs for residential and commercial developments.

Import Sources

Sourced primarily from local vendors within Maharashtra and India to support projects in the Pune region.

Key Suppliers

Not specifically named, but the company utilizes a network of vendors and enters into long-term or project-based contracts to mitigate price volatility.

Capacity Expansion

Current land bank stands at 200 acres in the Pune region. The company is expanding its order book, which recently crossed INR 48 Cr since the launch of its latest commercial project.

Raw Material Costs

Raw material costs are managed through a strong procurement team and long-term contracts to hedge against price rises in steel and cement, which can otherwise reduce sales by increasing per-square-foot costs.

Manufacturing Efficiency

Efficiency is driven by an integrated approach covering the entire value chain from land identification and design to marketing and post-sales engagement.

Logistics & Distribution

Not disclosed as a specific percentage; logistics are primarily localized within the Pune regional market.

📈 Strategic Growth

Expected Growth Rate

79.20%

Growth Strategy

Growth will be achieved by leveraging the 200-acre land bank for mid-income and mass housing projects, expanding the commercial real estate portfolio (current order book INR 48 Cr), and scaling the newly established solar power division. The company also focuses on redevelopment projects in the Pune region.

Products & Services

Residential apartments, commercial office spaces, showrooms, IT Park spaces, and solar power generation solutions.

Brand Portfolio

SBGL (Suratwwala Business Group Limited).

New Products/Services

Expansion into solar power solutions and high-end commercial showrooms; the solar division recently transitioned from an LLP to a Private Limited entity to facilitate growth.

Market Expansion

Continued deep-rooting in the Pune region with a focus on integrated real estate development and renewable energy.

Market Share & Ranking

Positioned as a growing regional developer in the Pune real estate market; specific market share percentage not disclosed.

Strategic Alliances

Conversion of Suratwwala Natural Energy Resource LLP into a Private Limited Company (effective December 19, 2024) to streamline solar business operations.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward luxury housing driven by a growing number of HNIs and UHNIs in India. SBGL is positioning itself by integrating ESG goals and sustainable practices into its development core.

Competitive Landscape

Competes with other regional Pune developers in the residential and commercial sectors; market dynamics are currently favorable due to service sector growth.

Competitive Moat

Moat is built on a 200-acre regional land bank, deep local demographic understanding, and an integrated value chain model. This is sustainable due to the high entry barriers of land acquisition and regulatory approvals in the Pune region.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and salary growth in the high-paying services sector, which drives demand for luxury and mid-income housing.

Consumer Behavior

Increasing preference for quality work and 'ambiance for growth' in workplace solutions, which SBGL addresses through state-of-the-art IT park facilities.

Geopolitical Risks

Limited direct impact due to regional focus, though global supply chain disruptions could affect raw material prices like steel.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RERA (Real Estate Regulatory Authority) and local municipal building norms in Pune. The company also complies with SEBI (LODR) Regulations for financial disclosures.

Environmental Compliance

The company has committed to ESG goals and sustainable practices to reduce environmental impact, though specific compliance costs in INR are not disclosed.

Taxation Policy Impact

Current tax for H1 FY26 was INR 4.05 Cr on a standalone basis, reflecting a standard corporate tax application on profitable real estate exits.

Legal Contingencies

The company states that no fraudulent or illegal transactions were entered into during the year; specific pending court case values are not disclosed in the provided documents.