Shriram Properties Q2 FY26 Financial Results

Shriram Properties Limited (“SPL”) has announced its financial results for the quarter (“Q2FY26”) and half year ended September 30, 2025 (“H1FY26”).

Operational Highlights

The Company has achieved sales volumes of 1.1 msf (+39 percent QoQ), valued at Rs. 685 crs (+55 percent QoQ) during the quarter. Cumulative sales stood at ~2.0 msf (+13 percent YoY), valued at Rs. 1,126 crs (+19 percent YoY) in H1FY26. This strong momentum was driven by healthy traction in new launches.

The Company has launched 3 new projects so far and all of them have received encouraging responses, reaffirming our brand strength, mid-market / mid-premium housing segments and the positive sector outlook. The Company has achieved ~40 percent of its annual target and second half of the year is seasonally strong in the region. With multiple launches lined up for the remainder of the year, the Company expects further acceleration in pre-sales momentum in the coming quarters.

Gross collections stood at Rs. 388 crs (+15 percent QoQ) in Q2 and Rs. 725 crs in H1 (+6 percent YoY). The Company handed over 760+ units in Q2 and 1,500+ units in H1, notwithstanding transient impact of the regulatory transition in Bangalore.

Quarterly financial performance moderated due to temporary deferral of customer handovers and revenue recognition, on delayed receipt of OC/CC and eKhata, driven by regulatory transition issues. All delayed OCs (except one) is now received, and eKhata process has begun already. The Company thus expects to deliver robust performance during H2 FY26.

Also Read: Shriram Properties to Develop Rs. 600 Cr Project in Yelahanka

On the business development front, FY26 has been an active year. The Company has added 5 new projects to its portfolio, with 2.3 msf aggregate development and GDV of Rs. 2,350 crs so far in FY26. The Company is at an advanced stage of finalizing another 5 - 6 projects with over 6.0 msf development potential during H2FY26. Projects with over 20+ msf potential are under active evaluation already.

Significant highlights of Q2 | H1 FY26 results are as follows:

• Revenue from Operations at Rs.205 crs (+46 percent YoY) and Total Revenues at Rs.229 crs (+48 percent YoY) in Q2FY25, driven by continued handover momentum in earlier completed projects. This is despite the deferment of handovers and income recognition from Q2 to H2, due to delays in receipt of Occupancy Certificates (OC) and eKhata in recently completed projects.
•  Project profitability trends remained healthy, as reflected in 30+ percent gross margin levels in Q2.
• On a half yearly basis, overall financial performance is satisfactory. Total Revenues grew 34 percent YoY to Rs.490 crs in H1FY26. EBITDA has remained stable at ~Rs.70 crs and pre-tax earnings have grown strong to Rs.20.8 crs (+87 percent YoY) in H1. Reported earnings stood higher at Rs.29.2 crs, up 75 percent YoY in H1FY26.
• Cash flows from operations more than doubled sequentially to Rs. 52 crs in Q2 and stood at Rs.76 crs for H1. The Company deployed Rs.143 crs in new projects and ended the period with cash & cash equivalents of Rs. 286 crs, reflecting strong liquidity.
• Net debt stood at Rs. 407 crs, reflecting a Net Debt-to-Equity of 0.29x, amongst lowest in the sector. This offers significant headroom for funding growth needs, as necessary.
• CRISIL reaffirmed the Company’s credit rating at A (-)/Positive, a recognition of the Company’s sound governance, prudent financial management, and stable outlook.

Outlook

The Company has reported satisfactory performance for the quarter and the first half. With the regulatory environment normalizing and project approvals/OC’s gaining momentum, the Company expects to recoup deferred ground and deliver robust handover and revenue recognition during H2FY26. This is expected to lead to a strong rebound in financial performance in the coming quarters.

A robust pipeline of upcoming launches and continued additions to the business development portfolio provide solid visibility for growth. With over 80% of ongoing projects already sold, the Company’s focus remains on swift execution and timely handovers, which will drive accelerated revenue recognition in the medium term as well.

The Company remains focused on its stated mission and is making steady progress toward its 3-year strategic objectives, supported by a favorable industry cycle, strong operating fundamentals, and disciplined execution. The Company remains confident of delivering mission objectives, in turn generating sustainable growth and value for stakeholders.

Commenting on the performance, Gopalakrishnan J, Executive Director & CEO of Shriram Properties said: “Q2 has been an encouraging quarter operationally, with strong sequential and year-on-year growth. Financial performance was muted a bit, but with transitionary issues easing, we expect a healthy rebound in H2. Supported by a strong launch pipeline and execution focus, we are confident of delivering stronger H2 and meeting full year targets. Our focus remains on expanding the project pipeline and accelerating execution to unlock cash flows and enhance value creation. We are on the right path towards delivering on our 3-year mission objectives. With a resilient business model and positive sector fundamentals, we are confident of delivering substantial value creation for our stakeholders”.