SURAJEST - Suraj Estate

📊 NSE: SURAJEST 🏢 Construction 📅 Last Updated: 12/14/2025 13:56

💰 Financial Performance

Revenue Growth by Segment

Consolidated total revenue grew 33.01% YoY to INR 553.17 Cr in FY25 from INR 415.70 Cr in FY24. In H1 FY26, total income grew 14% YoY to INR 278.6 Cr, with Q2 FY26 revenue rising 33% YoY to INR 145.4 Cr.

Geographic Revenue Split

100% of revenue is derived from the South-Central Mumbai (SCM) micro-market, specifically Dadar, Prabhadevi, and Mahim, where the company has developed over 1.6 million sq. ft.

Profitability Margins

PAT margin improved to 18.2% in FY25 from 16.4% in FY24. Q2 FY26 PAT margin stood at 23%, up from 16% in Q1 FY26, driven by operating leverage and a better project mix.

EBITDA Margin

EBITDA margin was 37.7% in FY25, down from 57.4% in FY24 due to a one-time INR 45 Cr litigation settlement. Excluding this, margins remain robust; Q2 FY26 EBITDA margin reached 45.1%.

Capital Expenditure

The company is investing heavily in its project pipeline, with inventory increasing to INR 904.1 Cr in FY25 from INR 739.2 Cr. Debt was drawn for approval-related payments for the Mahim commercial project and construction of Park View 1 and Suraj Aureva.

Credit Rating & Borrowing

Gross debt stood at INR 545.8 Cr as of September 2025, up from INR 456.3 Cr in March 2025. The company maintains a Net Debt to Equity ratio of 0.51 as of March 2025, improved from 0.82 YoY due to equity infusion.

⚙️ Operational Drivers

Raw Materials

Construction materials including steel, cement, and finishing materials represent the primary costs; trade payable turnover ratio increased 65.94% in FY25 due to higher construction costs incurred.

Import Sources

Primarily sourced from domestic suppliers within Maharashtra to support projects in South-Central Mumbai.

Key Suppliers

Not specifically named in the documents, but the company manages a diverse base of contractors and material providers for its 12 ongoing projects.

Capacity Expansion

Current portfolio includes 12 ongoing projects and 17 upcoming projects in the SCM region. The company plans to launch INR 2,000 Cr of GDV in FY26, including 1.06 lakh sq. ft. of commercial space.

Raw Material Costs

Operating and project expenses stood at INR 143.3 Cr for H1 FY26. Construction costs are managed through disciplined cost control to protect margins ranging between 30% to 35%.

Manufacturing Efficiency

Execution efficiency is reflected in the 85.91% increase in the Inventory Turnover Ratio in FY25 and the successful sale of 40% of inventory in the launch phase of new projects.

Logistics & Distribution

Not applicable as a real estate developer; however, project marketing and digital engagement drive the sales strategy.

📈 Strategic Growth

Expected Growth Rate

14%

Growth Strategy

Growth is driven by a massive launch pipeline of INR 2,000 Cr GDV in FY26, comprising INR 1,200 Cr from commercial assets and INR 800 Cr from residential. The strategy focuses on the high-margin South-Central Mumbai micro-market and leveraging DCR 33(7) redevelopment expertise.

Products & Services

Value-luxury residential apartments, luxury housing, and commercial office spaces.

Brand Portfolio

Suraj, Suraj Aureva, Suraj Parkview 1, Ocean Star, Ambavat Bhavan, RK Mansion.

New Products/Services

Entry into the commercial segment with a flagship project in Mahim (Plot 426-A & B) expected to contribute INR 475 Cr and INR 725 Cr in GDV respectively.

Market Expansion

Deepening footprint in South-Central Mumbai, specifically Lower Parel and Mahim, through strategic land acquisitions and redevelopment rights.

Market Share & Ranking

Leading developer in the Dadar-Prabhadevi-Mahim micro-market with 39+ years of experience.

Strategic Alliances

Utilizes Joint Development Agreements (JDA); recently settled a litigation with a JDA partner for INR 45 Cr to clear project hurdles.

🌍 External Factors

Industry Trends

The industry is seeing a 'commercial bull run' and a shift toward branded developers with a track record of on-time delivery. Suraj is positioning itself to capture this by diversifying into commercial assets.

Competitive Landscape

Competes with large and mid-sized Mumbai developers; differentiates through redevelopment proficiency and prime SCM locations.

Competitive Moat

Moat is built on deep expertise in tenant settlements under DCR 33(7) and a strong brand in specific micro-markets, which are difficult for outsiders to penetrate due to complex local regulations.

Macro Economic Sensitivity

Highly sensitive to interest rates which affect both construction finance costs and homebuyer affordability (mortgage rates).

Consumer Behavior

Strong demand for 'value-luxury' housing which offers premium amenities at accessible price points for the South-Central Mumbai demographic.

Geopolitical Risks

Low direct impact, but global economic slowdowns can affect the disposable income of luxury home buyers.

⚖️ Regulatory & Governance

Industry Regulations

Governed by RERA, Maharashtra Stamp Act, and Development Control Regulations (DCR). Revisions to these can stall approvals or heighten compliance burdens.

Environmental Compliance

Adheres to environmental norms for high-rise constructions; costs are integrated into project feasibility assessments.

Taxation Policy Impact

Effective tax rate resulted in tax expenses of INR 35.9 Cr on PBT of INR 136.1 Cr in FY25 (approx. 26.4%).

Legal Contingencies

Settled a major litigation with a JDA partner for INR 45 Cr in FY25. No other significant pending orders from regulators or courts that impact the going concern status.

⚠️ Risk Analysis

Key Uncertainties

Approval timelines for upcoming projects (INR 2,000 Cr GDV) are critical; any delay in the November 2025 commercial launch could impact FY26 pre-sales targets by over 50%.

Geographic Concentration Risk

100% of projects are located in South-Central Mumbai, making the company highly vulnerable to local regulatory changes or micro-market economic downturns.