Q2 FY26 results: ₹229 crore revenue, regulatory challenges impact net loss
Operational Momentum Masks Regulatory Headwinds in Q2
Shriram Properties reported consolidated total income of ₹229.01 crores in Q2 FY26, a 47.7% year-on-year increase from ₹155.10 crores in the same quarter last year. However, the company reported profit after tax of ₹8.57 crores for Q2FY26, indicating that revenue growth has not translated proportionally into profit.
Despite the financial moderation, the quarter revealed strong underlying sales momentum. Shriram Properties achieved sales volumes of 1.1 million square feet, a 39% quarter-on-quarter increase, with sales value reaching ₹685 crores, up 55% QoQ.
Revenue Recognition Delays Drive Financial Volatility
Financial results were impacted by temporary deferment of revenue recognition due to regulatory transitions in Bangalore, including the restructuring of the Bruhat Bengaluru Mahanagara Palike (BBMP) into five municipal corporations and persistent issues with eKhata issuance, which temporarily stalled approvals, completion certificates, and the crucial eKhata process mandatory for unit registration and subsequent income recognition.
As a result, revenue recognition for over 650 units across five projects, with an aggregate revenue potential of ₹420+ crores, was deferred from Q2 to H2 FY26. Despite these deferrals, project profitability remained healthy, with gross margins consistently above 30% in both Q2 and H1 FY26.
Handovers and Portfolio Expansion Remain on Track
The company handed over 760+ units in Q2 and 1,500+ units in H1. On the development front, the company added five new projects to its portfolio, boasting an aggregate development potential of 2.3 million square feet and a Gross Development Value (GDV) of ₹2,350 crores. Three of these projects were concluded in October 2025.
The company is at an advanced stage of finalizing another 5–6 projects with over 6.0 million square feet development potential during H2FY26.
Geographic and Segment Presence
With its headquarters in Bangalore, Shriram Properties operates across multiple cities in Southern India, including Chennai, Coimbatore, and Visakhapatnam. The company has also incurred certain one-off costs, including higher brand and project launch expenses for its Pune entry (approximately ₹5 crores in Q2) and one-time settlement costs related to the Ashiana land in Kolkata (approximately ₹6 crores).
Management Outlook for H2
With the regulatory environment normalizing and project approvals and OCs gaining momentum, the company expects to recoup deferred ground and deliver robust handover and revenue recognition during H2FY26. All delayed OCs (except one) have now been received, and eKhata process has begun.
The company's net debt stood at ₹407 crore, resulting in a net debt-to-equity ratio of 0.29x.