Kolkata, Sep 23 Realty developer Shriram Properties Ltd is targeting doubling its net profit and sales bookings by FY29, as it ramps up project completions and expands its development pipeline, CMD Murali M said on Wednesday.
The company, which reported a consolidated net profit of Rs 100.81 crore on sales bookings of Rs 2,354 crore in FY26, is targeting doubling realisable income of around Rs 3,000 crore by FY29, up from about Rs 1,400 crore in FY26, Murali said.
The higher profit target is expected to be supported by a substantial increase in revenue recognition as projects currently under construction move towards completion, he said.
Shriram Properties has a construction pipeline of around 50 million sq ft through FY29, with about 20 million sq ft planned for development over the next 18 months, Murali said.
The company currently has a major presence in Chennai, Bengaluru and Pune and has started exploring the Mumbai market. It is also evaluating additional projects in the Kolkata region, where the company sees improving real estate conditions, he said.
Shriram Properties has already invested around Rs 2,000 crore in its Kolkata operations.
Its Bengal business is anchored by the Shriram Grand City township at Uttarpara in Hooghly district. The company had acquired the land parcel from Hindustan Motors for around Rs 290 crore nearly two decades ago.
Following a legal settlement with the West Bengal government involving transfer of 42 acres, the company has about 272 acres in the parcel, of which around 65 acres have so far been utilised across five projects, Murali said.
These include two mass residential projects comprising around 5,700 units, 198 villas and about 300 plots, he said.
The company has around 140 acres available for incremental mixed-use commercial development, with potential development of 10-11 million sq ft and an estimated investment of around Rs 6,000 crore, Murali said.
In a potential shift from its traditional business model of developing and selling properties, Shriram Properties is also considering developing and owning a premium shopping mall at Uttarpara, which could create a rental-income stream for the company.
“If pursued, this could be the company’s first rental-income property,” Murali said, adding that the Bengal special purpose vehicle (SPV) has now reached break-even.
The proposed commercial development would add to the existing township ecosystem, which includes residential apartments, villas, row houses, plots and planned office and retail space, besides social infrastructure, according to company inputs.
The company said Uttarpara is emerging as a growth corridor because of improving connectivity, metro expansion and its proximity to three railway stations and the airport.
Shriram Properties’ FY26 performance had marked a milestone, with consolidated net profit rising 30.41 per cent to Rs 100.81 crore and total income increasing 39.40 per cent to Rs 1,356.93 crore. It delivered 3,465 homes and plots during the year, while customer collections rose 12 per cent to Rs 1,661 crore.
The company had also added seven new projects with a combined development potential of 3.5 million sq ft and a gross development value of Rs 3,500 crore during FY26.
(PTI News)
