Key Financial Figures (Q2 FY27)

  • Revenue: ₹121 crore (entirely from project land sales)
  • EBITDA: ₹98 crore
  • EBITDA Margin: 80.7%
  • PBT: ₹89 crore
  • PAT: ₹67 crore
  • PAT Margin: 55.1%
  • EPS: ₹8.02

Sequential Performance Comparison

  • PAT increased 59% from ₹42 crore in Q1 FY27 to ₹67 crore in Q2 FY27
  • EBITDA margin recovered from 39.3% in Q1 FY27 to 80.7% in Q2 FY27
  • Management attributed Q1 margin compression to high cost basis land inherited through 2020 amalgamation and one-time tax charge on sale of One 91 Thaltej land

Year-on-Year Performance Comparison

  • Revenue decreased from ₹174 crore in Q2 FY26 to ₹121 crore in Q2 FY27
  • PAT decreased from ₹108 crore in Q2 FY26 to ₹67 crore in Q2 FY27
  • Management noted Q2 FY26 was a high base period

First Half FY27 Performance

  • Revenue: ₹402 crore
  • EBITDA: ₹208 crore
  • PAT: ₹109 crore

FY27 Guidance Reaffirmed

  • Revenue guidance: ₹1,000-1,200 crore
  • PAT guidance: ₹300-325 crore
  • Management expects significantly better performance in H2 FY27

Market Environment Context

  • Indian real estate market described as consolidating rather than retreating
  • Housing sales across 8 major cities at 86,800 units (broadly flat YoY)
  • Homes above ₹1 crore now represent 55% of sales
  • Office leasing held steady at 66.7 million square feet in first 9 months of 2026
  • RBI raised repo rates by 25 basis points to 5.5% on October 7, 2026
  • Ahmedabad market performed better than most with 14,300 housing sales (up 2%)

Million Minds Tower 1 Update

  • Leasing status: 68.4% of leasable carpet area let across 15 deals
  • Leasable carpet area: 6.16 lakh square feet
  • Let area: 4.21 lakh square feet
  • Average rent: ₹110.20 per square foot per month
  • Contracted rent roll: ₹55.7 crore annually
  • New tenants signed in Q2: Airtel, Conga Software, Flagler Health, iBase-t
  • Rental progression: ₹90 (2025 leases) → ₹115 (2026) → ₹122.4 (Q2 FY27)
  • Co-working concentration reduced from 36% to 28.7% of let space
  • Target: 90% leased by March 2027
  • Fully let projection: ₹84 crore annual rental income at ₹120/sq ft
  • Fit-outs progressing with lease rentals expected from Q4 FY27

Malabar Retreat Residential Project

  • Completion status: 87% complete
  • Booking status: 76 units sold (50% by units, 53% by carpet area)
  • Collections to date: ₹132 crore
  • Expected receivables (booked and unbooked): ₹305 crore
  • Possession intimation: January 15, 2027
  • Building Use (BU) expected: mid-February 2027
  • No discounting offered, priced at top of micro market

Project Pipeline and Expected Values

  • Ongoing projects expected sales value: ₹1,500 crore
  • Planned pipeline: 28.8 million square feet with ₹21,000 crore expected sales value
  • Completed projects: ₹2,680 crore sales value delivered with ₹840 crore free cash flow generated
  • Ongoing projects: ₹600 crore expected free cash flow
  • Planned pipeline: ₹12,500 crore expected free cash flow

Million Minds Phase 2 (Tower 2)

  • Plans finalized and submitted for approval: 6.6 lakh square feet leasable carpet on 14.5 lakh square feet construction
  • Bhumi Pujan (groundbreaking) targeted for November 24, 2026 (Dev Diwali)
  • Construction timeline: 18-24 months
  • Ready for fit-outs between May-November 2028
  • Pre-leasing to open from late 2027
  • Target rent: ₹118 per square foot
  • Projected annual rent at full occupancy: ₹94 crore
  • Combined Tower 1 + Tower 2 projected rental income: ₹170+ crore annually

Residential Phase 1 at Million Minds

  • Launch planned: Q4 FY27
  • Size: Approximately 9 lakh square feet
  • Units: 334 units (primarily 3 BHK)
  • Expected GDV: ₹500 crore
  • Timeline: 2-2.5 years construction period

Land Bank Status

  • Fully paid land reserves: 513 acres
  • Breakdown: 405 acres at Godhavi, 65 acres at Million Minds, balance in and around Ahmedabad
  • Additional parcels under negotiation/acquisition with partial payments made (not included in 513 acres)
  • Godhavi monetization plans expected in next 6 months

Capital Structure and Funding

  • Balance sheet described as "almost debt free"
  • Current lending is against lease rentals (discounted)
  • Management indicated willingness to take "a bit of leverage" for growth but not at historical levels
  • Funding strategy includes cash flows from residential projects funding commercial development

Forward-Looking Milestones

  • Million Minds Phase 2 Bhumi Pujan: November 24, 2026
  • First rentals from Million Minds Tower 1: Q4 FY27
  • Residential Phase 1 launch at Million Minds: Q4 FY27
  • Godhavi plan update: Expected in next 6 months
  • FY28 guidance: To be provided in Q4 FY27 or Q1 FY28