Suratwwala (SBGLP) Q2 FY27 Profit Growth Lags a 136% Revenue Surge
The Pune real estate developer's Q2 sales more than doubled year-on-year, but a sharp rise in expenses compressed its net profit margin to 17%.
Suratwwala Business Group's revenue jumped 135.5% YoY to ₹61.2 crore in Q2 FY27. However, profit grew at a slower 27.2% as total expenses surged over 200%, driving the net profit margin down to 17% from 31.4% a year ago.
For Suratwwala Business Group, the September quarter was a story of top-line triumph shadowed by a profitability squeeze. The Pune-based developer's revenue more than doubled, but the money it kept from each rupee of sales fell sharply.
The numbers show the split clearly. Revenue surged 135.5% year-on-year to ₹61.2 crore and rose 45.2% from the June quarter. Profit grew a more modest 27.2% YoY to ₹10.4 crore, with the net profit margin falling to 17% from 31.4% a year ago and 22.2% last quarter.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 61.17YoY +135% | 42.12 | 25.98 |
| Profit (₹ Cr) | 10.38YoY +27% | 9.34 | 8.16 |
| Net Profit Margin | 17.0%YoY -46% | 22.2% | 31.4% |
The cost surge behind the sales jump
The revenue leap was powered by its dual business model. According to Equifiz, the real estate segment grew 179% while the solar unit surged 425.4%. This mix shift contributed to the margin pressure.
Total expenses ballooned 208.6% YoY, far outpacing sales growth. A key driver was a staggering 101x increase in interest cost to ₹0.92 crore, as reported in the financials. This suggests the company is funding its growth with more debt.
A market cooling as supply rises
The broader Pune market offers a challenging backdrop. PropertyWala reported home sales in the city fell 6% year-on-year in the July-September period. While Suratwwala's projects are selling, the environment is becoming more competitive.
NoBroker's Q3 2026 report noted Pune's housing demand declined 1% YoY even as new project launches jumped 643%. This increase in supply, amid flat demand, is likely to keep pricing power in check for developers.
The path ahead in execution
Management's focus is on converting its pipeline. The company holds a strategic land bank of about 180 acres in Pune, as noted by ScanX. Its solar subsidiary also entered FY27 with an executable order book of approximately ₹93 crore.
A recent ₹69 crore solar EPC order win, reported by ScanX, adds to this visibility. The key will be executing these projects profitably while managing the higher interest burden that now weighs on the income statement.
Key Points
- Revenue growth exceeded 135% year-on-year, driven by strong performance in both real estate and solar EPC segments.
- Net profit margin contracted sharply to 17% due to a more than 200% surge in total expenses, including a massive rise in interest costs.
- The company's future revenue is underpinned by a significant land bank and a solar order book, but profitability hinges on cost control.
- The Pune residential market is seeing increased supply and softening demand, which may pressure realizations going forward.
Hexa Perspective
Suratwwala is demonstrating impressive revenue momentum by leveraging its two verticals. However, the quarter reveals the cost of that growth, with margins under severe pressure from rising interest expenses and a shift toward the potentially lower-margin solar business.
The valuation, at a P/E of 8.7 against an industry average of 31.5, appears to discount these margin concerns heavily. Investors are weighing the robust top-line growth and project pipeline against the sustainability of profitability, especially if market conditions in Pune remain soft. The next few quarters will test management's ability to translate its strong order book into improved earnings quality.
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