Corporate Development     

Published: May 31, 2026
Updated: May 31, 2026

Shriram Properties

Revenue target Rs. 14,000 cr. over 5 years

Based in Bangalore with its corporate origins in Chennai, Shriram Properties (SPL) is a major residential real estate developer in South India, focusing on the mid-market and mid-premium segments. Its key markets include Bangalore, Chennai, Pune and West Bengal. The company has a track record of having delivered 50+ projects with over 30.3 million square feet (msf) of development. Its strong development pipeline comprises 41 projects with an aggregate development potential of 35.3 msf, including 16.7 msf of ongoing projects as of March 31, 2026.

In 2007, the company purchased a 314-acre land parcel from Hindustan Motors Ltd in the Uttarpara area of Kolkata. Of this, 48 acres have been developed as a township and almost 80% of the inventory has been sold. It had a long-drawn dispute with the state government with regard to this particular land parcel — the latter had demanded 4% of sales revenue generated from the township project as royalty.

Finally, in February this year, the matter was amicably resolved with zero cash outflow, wherein SPL officially and irrevocably handed over exactly 42.37 acres of the Uttarpara land back to the state government and was permanently relieved of legal-monetary obligations of Rs. 240+ crore. At present, the company, through wholly-owned subsidiary Bengal Shriram Hitech City Pvt Ltd (BSHCPL), owns a net unutilised land parcel of 223.63 acres. Under the settlement terms, the state government has also allowed the company to retain its rights to monetise the remaining land area and Floor Space Index (FSI) by selling blocks to third-party developers (warehousing/logistics) so as to maximise long-term returns.

LAND VALUE

Currently, the prevailing price of similar land in Uttarpara is quoted anywhere between Rs 3 crore and Rs 5 crore per acre. Therefore, going by the lower figure, the land bank is today valued at around Rs 671 crore. Moreover, Uttarpara is an important location and the new BJP government has just come to power. A boost to the state's economic growth, under the new regime with the full support of the Centre, could benefit the company vis-a-vis this land parcel of 223.63 acres.

In its exchange filing, the company has confirmed that it maintains the strategic intent of utilising a part of the remaining land for its own development while monetising the rest. It plans to pursue new projects involving 5-6 msf of development with a potential gross development value (GDV) of Rs 3,000 crore over the next 5 years. In addition, it will monetise the remaining land area/FSI in the foreseeable future, unlocking significant incremental value for the company.

On a consolidated basis during FY26, on total revenue of Rs 1,357 crore (PY Rs 973 crore), the company achieved EBITDA of Rs 177 crore (PY Rs 179 crore), profit before tax of Rs 80.6 crore (PY Rs 64.4 crore) and net profit of Rs 101 crore (PY Rs 77 crore), translating into an EPS of Rs 5.91 (PY Rs 4.53). It's worth mentioning that the EPS for Q4 alone stands at Rs 4.60. On equity capital of Rs 170.65 crore, the book value per every Rs 10 face value share comes to Rs 85.55. Surprisingly, the promoter group's holding is low at 28%, while 81,076 public shareholders hold the remaining 72%. At year-end, its long- and short-term borrowing stands at Rs 162 crore and Rs 448 crore respectively, vis-à-vis Rs 58 crore and Rs 593 crore in the previous year.

BOOMING SALES

During FY26, the company reported sales bookings of Rs 2,354 crore and customer collections of Rs 1,661 crore. It also added seven new projects with 3.5 msf development potential and a GDV of Rs 3,500 crore. It is also at an advanced stage of concluding several projects with over 7 msf and Rs 6,000 crore GDV potential, which is likely during H1 of the current financial year. The management is confident of realising a revenue recognition potential of Rs 4,000+ crore from the ongoing project portfolio over the next three years.

Commenting on FY26 and the outlook for the current year, Murali M, CMD, said, “The strong momentum witnessed in Q4 has continued to strengthen our confidence and outlook for the coming year. Despite ongoing global uncertainties, the Indian residential real estate sector remains resilient and structurally strong. Backed by our strong balance sheet (debt-equity ratio 0.30) and disciplined execution, we remain excited about the opportunities ahead.” The company has indicated that it aims to generate Rs 14,000 crore in revenue over a period of 5-7 years. As a strategy, it will continue to target the Rs 80 lakh-Rs 1.50 crore bracket of residential units across the four cities of Bangalore, Chennai, Kolkata and Pune.

The company came out with a Rs 600-crore IPO in December 2021 (including a fresh issue of Rs 250 crore) at Rs 118 per share. Currently, the stock is being traded at Rs 89 (with a yearly high-low of Rs106/61) valuing the company at Rs 1,521 crore. A new and favourable development vis-a-vis its Uttarpara land parcel could be a game-changer. As such, the company operates primarily on an asset-light business model, prioritising joint development agreements, joint ventures and development management contracts over outright land ownership.

SHARE CAUTION

On the flip side, even four and a half years after its IPO, the stock is trading at nearly a 25% discount to its issue price of Rs 118 (CMP Rs 89). In fact, the company has not declared any dividend since it got listed. However, it has created a good brand over the last few decades and has been maintaining gross and net profit margins of around 29% and 12% respectively. Investors are advised to watch the stock for a while and enter with a limited exposure, keeping a 12-15 month horizon.