Operational Highlights

Residential Business Performance:

  • Q1 FY27 residential presales reached ₹925 crore, representing 106% year-on-year growth
  • Successful launch of Mahindra Rainforest project in Bhandup (Kanjur NX)
  • Sustenance sales contributed 42% of total sales from projects including Blossom, Vista, Marina64, and IvyLush
  • Five additional launches planned for H2 FY27: Mahalunge, Lakewoods, Sai Baba, Navaratna, and West Era
  • Three Occupancy Certificates (OCs) received in Q1: Eden Phase-2, Luminar, and Palghar 2.1.8 (second building)

Business Development:

  • Added Kandivali land parcel of approximately 15 acres with ₹5,600 crore GDV
  • Total project portfolio GDV now stands at ₹50,000 crore
  • Target to add ₹10,000-20,000 crore GDV through new deals in FY27
  • Geographic mix target: 60% Mumbai, 20% Pune, 20% Bangalore

Industrial Clusters & Industrial Cities (IC&IC) Business:

  • Signed Phase-2B partnership with Sumitomo (following initial 2015-16 partnership and November 2024 agreement)
  • Annual revenue target of ₹400-500 crore with PAT contribution of ₹100-150 crore
  • Q1 performance described as "muted" but healthy pipeline expected for Q2 closures

Financial Performance

Q1 FY27 Financials:

  • Total revenue from operations: ₹962 crore
  • Profit After Tax (PAT): ₹86 crore, representing 67% YoY growth
  • Residential segment PAT: ₹76 crore
  • IC segment PAT: ₹10 crore
  • PBT margins from completed projects (Eden Phase-2 and Luminar): approximately 26%

Balance Sheet & Cash Flow:

  • Net Debt/Equity: -0.2 (negative, indicating net cash position)
  • Company-wide cash: approximately ₹1,100 crore
  • Operating cash flow: ₹134 crore
  • Cost of debt: 7.5% (down from 8.1%)
  • Expected cash flow from current project portfolio: ₹15,300 crore (excluding Jaipur Residential and Murud land)

Collections:

  • Residential collections: ₹527 crore in Q1
  • Rainforest collections expected to come in Q2 due to late-June launch

Project Specific Updates

Completed Projects:

  • Eden Phase-2: Completed, PBT margin ~26%
  • Luminaire: Completed, PBT margin ~26%, company now consolidating 100% after buying out partner
  • Palghar 2.1.8: One tower completed (breakeven project)

Upcoming Launches:

  • Mahalaxmi (South Mumbai): Pre-launch activities started, first sales expected first week of August 2026
  • Beacon Hill: Recently launched, marketing ongoing
  • Lakewoods: FNG phase launch expected this quarter
  • Alcove: Remaining two towers expecting OC soon

Land Development:

  • Origins, Pune: Land aggregation ongoing, aiming to create healthy-sized industrial park
  • Origins, Ahmedabad: Awaiting suitable anchor client, potential data center opportunity
  • Thane project: Planning stage with estimated GDV of ₹7,500 crore, proposed mix of 20-25% commercial and 70-75% residential

Market Conditions & Strategy

Market Sentiment:

  • Q1 impacted by geopolitical tensions (Iran war) affecting March and April footfall
  • Recovery began in May with June being one of the best months in 1-2 years
  • Current inventory months: MMR ~16-16.5 months, Pune and Bangalore ~8-10 months
  • Cancellation rate remains below 1%

Cost Management:

  • Construction cost pressures noted due to geopolitical situation
  • Additional 1% contingency created for potential cost increases
  • Contract awarding strategy: 25-30% in year one, phased over project duration

Strategic Positioning:

  • Focus on premium/mid-premium segments rather than luxury
  • Emphasis on branded developers gaining market share during slowdown
  • Conservative underwriting with "over-cost and under-price" approach