Shriram Properties Ltd., a leading real estate developer in South India, has posted a consolidated net profit of ₹205.9 million for the quarter ended June 2025, marking a steady recovery in its residential and mixed-use development portfolio. Revenue from operations stood at ₹2.42 billion, driven by robust sales momentum, timely project completions, and improved collections across key markets.
The company’s performance reflects its strategic focus on mid-income housing, operational efficiency, and prudent financial management amid evolving market dynamics.
Quarterly Financial Highlights
- Net profit for Q1 FY26 reached ₹205.9 million, up 11.4 percent year-on-year
- Revenue from operations rose to ₹2.42 billion, supported by higher project execution and handovers
- EBITDA margin improved to 22.6 percent, aided by cost rationalization and better realization rates
- Earnings per share stood at ₹2.18, reflecting enhanced profitability
Project Execution And Sales Performance
1. Residential Segment
- Key projects in Bengaluru, Chennai, and Coimbatore contributed over 75 percent of quarterly revenue
- Sales velocity improved across mid-income and affordable housing categories
- New launches in Bengaluru and Visakhapatnam received strong initial bookings
2. Commercial And Mixed-Use Developments
- Leasing activity picked up in select commercial assets, contributing to rental income
- Mixed-use projects saw increased footfall and occupancy, boosting ancillary revenues
Operational Efficiency And Cost Management
- Construction timelines were optimized through vendor consolidation and digital project tracking
- Input costs remained stable, with strategic procurement and inventory planning
- Administrative expenses declined 3.2 percent year-on-year due to automation and lean staffing
- No exceptional items or impairments were reported during the quarter
Strategic Initiatives And Expansion Plans
- Shriram Properties continues to focus on asset-light development models and joint ventures
- The company acquired two new land parcels in Bengaluru and Hyderabad for future launches
- ESG initiatives include green building certifications and water conservation programs
- Digital sales platforms contributed 12 percent of total bookings, reflecting changing buyer behavior
Shareholder Metrics And Market Position
- Promoter holding remains at 28.6 percent, with no pledged shares
- The stock has delivered a 12-month return of 15.2 percent, supported by consistent earnings
- Market capitalization stands at approximately ₹14.3 billion as of August 2025
- Dividend policy remains conservative, with reinvestment prioritized for growth
Outlook For FY26
Shriram Properties is expected to maintain its growth trajectory through FY26, backed by strong demand in South India’s residential markets, disciplined execution, and a robust launch pipeline. The company’s focus on affordability, customer-centricity, and operational agility positions it well to navigate macroeconomic challenges and deliver sustained value.
Sources: Reuters, Shriram Properties Ltd. Investor Disclosures, Moneycontrol.
