Realtor Shriram Properties Ltd (SPL) is on an high pedestal after amicably resolving a long-pending commercial dispute relating to its 314-acre land parcel in Kolkata, clearing a major overhang and paving the way for accelerated development and monetisation of the project.
“The dispute has been settled through the conveyance of 42.37 acres of land to the West Bengal government. With this settlement, the associated liability stands fully discharged,” said Executive Director and CEO J. Gopalakrishnan during an earnings call.
Asserting that the resolution also settles a disputed royalty payment obligation of around ₹259 crore without any cash outflow, he said the settlement significantly strengthens the balance sheet and removes uncertainty around the asset.
Kolkata to anchor next growth phase
According to him, SPL’s strategic intent for the Kolkata land parcel remains unchanged. SPL plans to develop close to 10 million square feet on its own while monetising the remaining land to unlock value.
So far, the company has launched about 5 million square feet across 48 acres at the site, with nearly 80% already sold. It now plans to launch fresh projects involving 5–6 million square feet of development potential, with a gross development value (GDV) of nearly ₹3,000 crore, to be sold over the next five years.
Simultaneously, SPL will focus on monetising the balance land parcel in the foreseeable future. The Kolkata project alone is expected to unlock cash flows exceeding ₹1,500 crore over the next five years, he said.
FY26 outlook robust
The company expressed confidence of closing FY26 on a strong note, projecting revenues in the ₹1,300–1,500 crore range and earnings between ₹90 crore and ₹100 crore for the full year.
With two to four launches lined up over the next six weeks, SPL expects sales volumes to surpass last year’s levels, even if they come in slightly below its earlier annual guidance of 5 million square feet. SPL is confident of achieving higher year-on-year sales.
Strong pipeline across key cities
SPL currently has around 20 million square feet under evaluation at various stages of diligence and documentation. Its focus markets for pipeline additions remain Bengaluru, Pune and Chennai, while development efforts in Kolkata are set to intensify following the resolution of regulatory impediments.
The company continues to pursue asset-light acquisitions but is maintaining a calibrated balance between asset-light models and outright land purchases to drive immediate growth.
Notably, about 18.5 million square feet of unlaunched projects carry a GDV of ₹11,670-12,000 crore, representing significant embedded value.
“Our focus is on unlocking this at a faster pace across all markets and bringing these projects to market to realise their sales potential,” Gopalakrishnan said.
During the year, SPL undertook six launches — four new projects and two new phases. At least two to four of these are expected to move into launch mode before the end of the current financial year.
The company is also at an advanced stage of acquiring an approved project and submitting plans for another, adding to what it described as a busy and tight launch pipeline for Q1 and Q2.
Chairman and Managing Director M. Murali said the company remains firmly focused on accelerating execution, strengthening cash-flow generation and unlocking value across its expanding portfolio, setting the stage for an active FY27 from a launch perspective.