SHRIRAMPPS - Shriram Properti

📊 NSE: SHRIRAMPPS 🏢 Construction 📅 Last Updated: 12/14/2025 13:19

💰 Financial Performance

Revenue Growth by Segment

H1 FY26 Total Revenue reached INR 490.5 Cr, growing 34% YoY. Operating Revenue grew 33% YoY to INR 475.2 Cr. Revenue from sale of properties in FY25 was INR 808.90 Cr, while Development Management (DM) fees and administrative income contributed INR 9.12 Cr.

Geographic Revenue Split

90% of property sale revenue is concentrated in three key regions: Bengaluru (Shriram Liberty Square, Pristine Estates, Chirping Woods), Chennai (Park 63, Shankari), and Kolkata (Grand One).

Profitability Margins

Gross margins remained healthy at 30% in FY25 and improved to 32% in H1 FY26. PAT margin for FY25 stood at 8% on a consolidated basis.

EBITDA Margin

EBITDA margin (including share of JV income) was 21% in FY25, amounting to INR 202.83 Cr. H1 FY26 EBITDA with share of JV profit was INR 69.8 Cr, showing a slight 1% YoY decline due to deferred revenue recognition.

Capital Expenditure

Cost of revenues, representing construction outlays and direct project expenses, amounted to INR 574.94 Cr in FY25. The company is investing INR 5 Cr in brand and launch expenses for its entry into the Pune market.

Credit Rating & Borrowing

CRISIL reaffirmed its 'CRISIL A-/Positive' rating. Finance costs declined 11% YoY to INR 104.58 Cr in FY25, driven by lower interest expenses on term loans and NCDs.

⚙️ Operational Drivers

Raw Materials

Construction costs (including steel, cement, and labor) represent the primary cost of revenue, which totaled INR 574.94 Cr in FY25, approximately 59% of total revenue.

Capacity Expansion

Sales volume reached 4.3 million square feet (msf) in FY25 and is targeted to expand to ~5 msf in FY26, representing a 16% volume growth target.

Raw Material Costs

Cost of revenues stood at INR 574.94 Cr (59% of revenue) in FY25. Procurement strategies focus on direct construction outlays linked to project handovers and occupancy certificates.

Manufacturing Efficiency

Handed over 764 units in Q2 FY26, a 30% increase YoY. Nearly 56% of these handovers were in JV projects, strengthening execution momentum.

Logistics & Distribution

Other operating expenses, including distribution and marketing, totaled INR 126.65 Cr in FY25.

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

The company plans to achieve its INR 1,000 Cr+ revenue target by clearing the regulatory backlog of INR 420-450 Cr in deferred revenue, launching 5 new projects with 2.3 msf potential, and expanding into the Pune market.

Products & Services

Residential apartments, plotted developments (e.g., Shriram Pristine Estates), and Development Management (DM) services for third-party landowners.

Brand Portfolio

Shriram Properties, Shriram Grand One, Shriram Chirping Woods, Shriram Liberty Square, Shriram Pristine Estates, Shriram Park 63, Shriram Shankari, Shriram Esquire.

New Products/Services

Added 5 new projects in FY26 with a Gross Development Value (GDV) potential of 2.3 msf. New launches include Shriram Esquire and Shriram 107 South East.

Market Expansion

Entry into the Pune market with an initial brand campaign and launch expense of approximately INR 5 Cr in Q2 FY26.

Market Share & Ranking

The company's RoCE of 9% places it in the first quartile of returns within its peer group.

Strategic Alliances

Joint Ventures with ASK (exit from Pristine Estates) and a one-time settlement of INR 6 Cr for the closure of a JDA in Kolkata with Ashiana.

🌍 External Factors

Industry Trends

The industry is shifting toward organized players with strong execution records. Shriram is positioning itself as a partner of choice for landowners through asset-light JV and DM models to improve financial flexibility.

Competitive Landscape

Competes with regional and national developers in the affordable and middle-income segments in Bengaluru, Chennai, and Kolkata.

Competitive Moat

Sustainable moat derived from an established brand name and a strong execution record in South India, supported by a 9% RoCE which is in the top quartile of peers.

Macro Economic Sensitivity

Highly sensitive to regulatory changes in the Bengaluru region (GBA transition) and state elections (Maharashtra), which can delay project approvals and launches.

Consumer Behavior

Steady demand for affordable and middle-income housing projects ensures healthy collections, which reached INR 1,484 Cr in FY25.

Geopolitical Risks

Primarily domestic risks related to regional regulatory transitions and state-level policy changes.

⚖️ Regulatory & Governance

Industry Regulations

Impacted by the GBA (Greater Bangalore Area) transition and the new eKhata digital system in Bengaluru, which caused transient delays in revenue recognition.

Taxation Policy Impact

Consolidated tax expense for FY25 was INR 10.6 Cr.

Legal Contingencies

Pending contingent liability (provision) of INR 259 Cr related to Kolkata projects, with INR 1.7 Cr provided in Q2 FY26. One-time settlement of INR 6 Cr for Kolkata land closure.

⚠️ Risk Analysis

Key Uncertainties

Exposure to refinancing risk and the inherent cyclicality of the real estate sector, which can cause muted operating performance during market headwinds.