Sunteck Realty readies recipe for a strong FY26 even as shares await a rebound
Sunteck’s shares are down 27% in the last one year versus the Nifty Realty index’s 10% decline. While strong balance sheet is one of the key positives, what are the growth concerns moving ahead?
Sunteck Realty Ltd was recently appointed as thedeveloper for the redevelopment of a housing society in Mumbai’s Andheri (East). The gross development value (GDV) or revenue potential of this project is estimated at ₹1,100 crore, as per media reports. This is a 2.5-acre land parcel and about 275,000 square feet will be available for free sale.
Mumbai-focused Sunteck has entered the redevelopment space to unlock high-margin opportunities, the management told Nirmal Bang Institutional Equities at the brokerage’s investors conference last week. Sunteck’s focus remains on projects with an internal rate of return of 30-40% and has several redevelopment projects in advanced planning stages.
It is also working on the redevelopment project in Bandra West, which is likely to be launched by FY26-end/FY27. Expansion of the portfolio through redevelopment would enable Sunteck to see asset-light growth. However, redevelopment projects face challenges such as slower approvals leading to execution delays and hence, rising project development cost.
Sunteck clocked record pre-sales of ₹2,531 crore in FY25, up 32% year-on-year, aided by strong traction in uber-luxury and upper mid-income projects. It expects similar pre-sales growth in FY26.
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While its launch pipeline is robust, most larger listed real estate companies are aggressively launching projects across geographies and are targeting similar growth rates. So, Sunteck would need timely execution to give it an edge.
Sunteck has lined up projects of around ₹7,600 crore GDV for FY26. This includes the uber-luxurious Nepean Sea Road project, new phases in existing projects at Oshiwara District Centre, Goregaon (5th Avenue), and one new tower each in Sunteck Sky Park Mira Road and Sunteck World, Naigaon.
Its Burj Khalifa Community, Dubai project with GDV of ₹9,000 crore is now under design and approval stage, and the management is targeting a late-FY26 or early-FY27 launch.
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Sunteck’s 4th Avenue, Sunteck City is likely to receive occupancy certificate in FY26. Overall, Sunteck has identified ten projects with a GDV of ₹39,370 crore to boost medium-term pre-sales growth. Most of these upcoming projects/phases are in uber luxury and premium luxury segments.
Sunteck’s shares are down 27% in the last one year versus the Nifty Realty index’s 10% decline. Nuvama Research noted that Sunteck’s strong balance sheet and a potential pickup in launch trajectory are the key positives.
However, softness in housing volumes has led to concerns about future sales growth. Plus, geographical risk in the case of Sunteck is high as its offerings are mainly concentrated in the Mumbai Metropolitan Region.
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