Sunteck's Q2FY27 operating margin clears sector median by 15.20 points
Interest of Rs 21.20 cr weighed on profit, while Rs 13.12 cr of other income supplemented the pre-tax result.
Filed 26 Oct 2026, 21:51 IST · after market close · Sunteck Realty Ltd (SUNTECK)
Key takeaways
- Sunteck's consolidated operating margin was 27.62%, 15.4 percentage points above the 12.22% median for 65 reported Consumer Discretionary peers.
- Q2 FY27 pre-sales rose 17% year on year to Rs 824 cr, providing the clearest operating momentum signal in the quarter.
- The stock opened 4.07% higher but ended the observed session up 0.60%, with volume at 2.75 times its usual level.
Price around the results
Operating margin stood well above the sector median
Sunteck reported a consolidated operating margin of 27.62%, 15.4 percentage points above the 12.22% median among 65 Consumer Discretionary companies that had reported the same quarter. That places the quarter's operating performance materially above the peer midpoint, although the available results do not provide a year-on-year or sequential bridge for the change.
Profit included other income and financing costs
Profit before tax included Rs 13.12 cr of other income, so reported earnings were not generated entirely by operations. Interest expense was Rs 21.2 cr, while the 25.48% tax rate also shaped the conversion from pre-tax profit to net profit. The absence of a comparison period limits the read on whether these items improved or weakened profit quality versus earlier quarters.
Pre-sales growth gives the quarter its clearest momentum signal
Management said Q2 FY27 pre-sales rose 17% year on year to Rs 824 cr. The company also said pre-sales from the last two years should support faster collections ahead, which links booking momentum to cash-flow execution rather than revenue alone. Management said additional land acquired in Borivali has been included in the to-be-launched gross development value.
Early market response was positive but eased from the open
In the observed session after the results, the stock opened 4.07% higher and was up 0.60% at the recorded point, indicating that the initial reaction moderated during the session. Trading volume was 2.75 times the usual level. There is no past-results reaction history here to establish whether that move was typical for Sunteck.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹321 cr |
| Other income | ₹13 cr |
| Expenses | ₹232 cr |
| Operating profit | ₹89 cr |
| Operating margin (%) | 27.62% |
| Interest | ₹21 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹77 cr |
| Tax | ₹20 cr |
| Net profit | ₹57 cr |
| EPS (₹) | ₹3.96 |
Operating margin of 27.62% compares with a Consumer Discretionary sector median of 12.22% across 65 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.60% | +0.62% |
Volume on the results session was 2.75× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2 FY27 pre-sales were Rs 824 crore, up 17% year over year.
Guidance & outlook
- The annuity book is expected to reach approximately Rs 450 crore by FY29E.
- The company expects strong pre-sales from the last two years to accelerate collections ahead.
Expansion
- The company acquired additional land in Borivali for development, included in to-be-launched GDV.
What to watch
- Whether consolidated operating margin holds above 27.62%.
- Whether collections begin to reflect the Rs 824 cr of Q2 FY27 pre-sales.
- Progress against management's expectation of an approximately Rs 450 cr annuity book by FY29E.