Unitech Limited, incorporated in 1971 by a group of technocrats as a soil testing company, has evolved into one of India's leading real estate developers. It started business as a consultancy firm for soil and foundation engineering and has grown to have a highly diversified product mix in real estate. This includes world-class commercial complexes, IT/ITeS parks, SEZs, integrated residential developments, schools, hotels, malls, golf courses, and amusement parks.
The company has a significant presence across India's major cities and offers a variety of services, including the construction of highways, roads, powerhouses, residential and commercial complexes, property and facility management services, telecom business, transmission services, and amusement parks. Its multi-faceted business now encompasses six main segments: real estate, construction, transmission towers, consultancy, hospitality, and others.
Unitech Limited, together with its subsidiaries, engages in real estate development and related activities across India. Its core business operations consist of:
- Construction Contracts: Development of highways, roads, powerhouses, and transmission lines.
- Real Estate Development: Residential projects like Unitech Cities/Uni World in cities such as Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bengaluru, Noida, Gurugram, and more. The company has launched numerous projects totaling 10.4 million square feet across various Indian cities.
- Consultancy and Management Services: Property and facility management.
- Hospitality: Development and management of hotels.
- Manufacturing: Power transmission and telecom towers, including their installation.
- Rental and Investment Businesses: Engaging in property rental and strategic investments.
Based on the latest available financial data, Unitech's financial performance has been under significant pressure. The company reported a market capitalization of ₹2,098 Crore (down -26.6% in 1 year as of recent reports).
Key financial indicators highlight ongoing challenges:
- Revenue: ₹322 Cr (recent reports); ₹73.72 Cr as of December 2024 (Q4 FY2024-25).
- Profit: -₹3,178 Cr (recent reports); Net Profit of -₹716.62 Cr as of December 2024 (Q4 FY2024-25).
- Sales Growth: Poor sales growth of -28.5% over the past five years.
- Earnings Per Share (EPS): -1.18 for the quarter ended March 2025 and -12.72 for the financial year 2023-24.
- Return on Equity (ROE): Approximately -540.90%.
- Debt Burden: Significant contingent liabilities of ₹3,138 Crore.
The promoter holding in Unitech Ltd has remained stable at 5.14% as of March 2025 (from June 2024). This relatively low promoter holding is a crucial aspect, especially given the company's current management structure.
The company is currently under government-appointed management, a direct result of intervention by the Supreme Court. In December 2019, the apex court directed the central government to take over the management, primarily to protect the interests of approximately 30,000 homebuyers.
Unitech has faced extensive legal proceedings and stringent regulatory oversight.
- License Cancellations and Arrests: A total of 22 licenses were cancelled by court order, and the Managing Director, Sanjay Chandra, was arrested along with his brother Ajay in March 2017 by the Economic Offences Wing of the Delhi Police, for allegedly duping homebuyers.
- Supreme Court Oversight: The Supreme Court has taken direct oversight of the company's operations, emphasizing the monetization of Unitech's assets, including leasehold interests, to fulfill commitments to homebuyers. The Court has also directed authorities like NOIDA to restore land leases to facilitate project completion.
- RERA Exemption: In a significant recent development, the Supreme Court granted Unitech housing projects exemption from RERA registration. This decision aims to aid homebuyers in loan disbursal and facilitate the completion of stalled projects, offering relief to thousands of affected buyers.
The company is now operating under a board of government-appointed directors, as mandated by the Supreme Court. The present management has taken steps to address regulatory compliance issues, including the payment of listing fees to stock exchanges and seeking waivers for penalties.
Under the Supreme Court's directions, a portal was created for homebuyers. Out of 12,130 registered homebuyers, 4,576 opted for refunds as per orders dated September 15 and 21, 2017. The current focus is on project completion and delivery.
The company's current management is dedicated to completing pending projects and addressing homebuyer concerns under Supreme Court supervision. The primary objective is to ensure that construction commences and flats are delivered to homebuyers promptly.
Key recovery efforts and future plans include:
- Project Completion: A strong focus on completing existing projects and delivering them to waiting customers to restore stakeholder confidence.
- Restoring Trust: Regaining trust and reputation in the market will be crucial for Unitech's long-term viability.
- Asset Monetization: The company maintains significant land bank assets across prime locations, which could potentially support future recovery efforts under proper management and regulatory oversight.
