In a move to strengthen its presence in North Bengaluru’s real estate corridor, Shriram Properties (SPL) has acquired a 5-acre land parcel in Yelahanka, a micro-market that’s gaining attention for its infrastructure development and educational institutions.
The acquisition was announced on 23 April 2025 and will see Shriram Properties launch a premium project of row houses and villas with a GDV of INR 200-250 crore. The company plans to start development in H2-FY26.
“This is a strategic investment to strengthen the Shriram brand in North Bengaluru,” said Mr. Gopalakrishnan J, Executive Director & CEO of SPL. “We are building a strong pipeline of projects to accelerate growth. This is a milestone in that journey.”
Soft Quarter, Yelahanka Expansion
Shriram Properties’ Yelahanka project announcement comes on the back of SPL Q3 FY25 results, which saw 29.82% decline in net profit to INR 12.97 crore from INR 18.48 crore YoY. Revenue was down 25.23% to INR 179.87 crore from INR 240.57 crore in Q3 FY24. The company attributes the decline to short-term challenges but has a positive long-term outlook with steady project launches and volume growth.
Notably, Shriram Properties sold 1.26 million sq. ft. and INR 670 crore in Q3 FY25, a 14% growth in both. Total sales for 9 months of FY25 is 3 million sq. ft. and expects strong momentum in Q4 with new launches in Pune and Bengaluru.
Shriram Properties also divested investments in its subsidiary SPL Shelters, realising capital gains and interest income of over INR 41 crore – a liquidity boosting move in a revenue stressed quarter.
North Bengaluru Focus
Yelahanka, a military cantonment suburb, has become a real estate destination with its proximity to Kempegowda International Airport, upcoming metro corridors and a cluster of international schools and colleges. These growth drivers are creating demand for premium residential formats.
SPL’s row-house/villa project is catering to this growing demand for community living with modern infrastructure for discerning buyers looking for quality housing in well planned neighbourhoods.
The project is part of SPL’s larger plan. As of 31 March 2025, the company has a development pipeline of 37 projects totalling 37.1 million sq. ft. with 20 million sq. ft. under construction.
Market Outlook: Poised for a Turnaround?
Despite recent earnings headwinds, SPL’s fundamentals remain intact. The company closed Q3 FY25 with a net debt of INR 401 crore and a healthy net debt-equity ratio of 0.31:1, providing room for maneuverability and future investment. The recent land acquisitions — including parcels in Electronic City, Koyambedu (Chennai), and Yelahanka — collectively account for a potential development volume of over 1.1 million sq. ft. and a GDV approaching INR 1,000 crore.
Analysts note that SPL is steadily diversifying its project geography, with entry into Pune and deeper integration in Bengaluru’s growth corridors.
Conclusion
SPL’s Yelahanka acquisition not only reinforces its positioning in North Bengaluru’s competitive real estate market but also signals its intent to invest through cyclical volatility. With its robust pipeline, prudent capital allocation, and community-centric initiatives, Shriram Properties appears well-positioned to weather short-term setbacks and deliver on its mid-to-long term growth commitments.
As Bengaluru continues its northward sprawl, SPL’s latest venture may well set a benchmark in premium suburban living — and serve as a case study in strategic resilience and sustainable urban development. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
