Management Attendees

  • Mr. Amit Sinha - MD and CEO
  • Mr. Vimalendra Singh - CBO Residential
  • Mr. Vikram Goel - CBO Industrial
  • Mr. Sriram Kumar - CFO
  • Mr. Devavrat Mastakar - Investor Relations

Operational Highlights - H1 FY27

Residential Business Performance

  • Pre-sales of ₹1,988 crores, representing 66% year-on-year growth
  • 60% year-on-year growth in residential sales
  • Sustenance sales contributed 40% of total sales
  • Successful launches include Rainforest (Bhandup), BeaconHill, and Citadel Phase 3
  • Received RERA approval for Mahalunge Phase 1 (Rivenza project)

Project Launches and Approvals

  • Rainforest (Bhandup): Successful launch with approximately ₹600 crores initial sales
  • BeaconHill (South Mumbai): Good early success with approximately ₹300 crores sales
  • Citadel Phase 3: Strong performance with good velocity
  • Mahalunge Rivenza: RERA approval received, expected to impact Q3/Q4 sales
  • Upcoming launches expected in H2: Sai Baba, Navrat, Westera

Business Development & GDV Pipeline

  • Added ₹7,100 crores GDV in H1 FY27
  • Total GDV pipeline maintained at healthy ₹50,000 crores
  • New additions include:
  • Sai Baba society addition: ₹1,000 crores
  • Chembur society addition: ₹500 crores (total cluster ₹2,200 crores)
  • K2 Kandivali greenfield acquisition: ₹5,600 crores
  • Borivali cluster expansion: ₹2,800 crores total GDV
  • Focus on creating larger clusters for efficiency and economies of scale

Industrial & Logistics Business

  • Sold 38.9 acres in H1 FY27 (vs 35.6 acres in H1 FY26)
  • Revenue of ₹113 crores (vs ₹219 crores in H1 FY26)
  • Lower realization due to sale of OBL (Outside Boundary Lands) which have lower value
  • 34 acres of the 38.9 acres sold were OBL lands
  • Cleaned up legacy OBL lands in MWC (Mahindra World City)
  • Expect significant deal closures in H2 FY27, particularly in Q3

Financial Performance - H1 FY27

Consolidated Financials

  • Total revenue: ₹2,101 crores (Residential + IC business)
  • PAT: ₹102 crores (vs ₹99 crores in H1 FY26)
  • Residential PAT: ₹56 crores
  • IC business PAT: ₹46 crores
  • Q2 PAT: ₹16 crores
  • Q1 PAT: ₹86 crores
  • FY26 full year PAT: ₹298 crores

Segment-wise Performance

  • Residential collections: ₹1,152 crores in H1
  • Operating cash flow: ₹341 crores
  • Land outflows: ₹332 crores spent in H1
  • Additional ₹400 crores spent on K2 transaction closure in early Q3
  • Closing cash balance: ₹1,036 crores system-wide

Balance Sheet Metrics

  • Net Debt to Equity: -0.28 (negative)
  • Cost of Debt: 7.55%
  • Net worth: approximately ₹3,600 crores
  • Borrowings: steady at ₹600 crore level (includes ICDs from M&M)

Special Items

  • ₹25 crores reversal recorded as cost savings from completed projects
  • Savings realized from projects that received OC more than 6 months ago (Tathawade, Nostalgia, Eden, Luminare, Vicino)
  • Conservative accounting approach - waited 6 months post-OC to recognize savings
  • Profit from sale of stake in Ample Parks reflected in IC business results

Project Pipeline and Future Outlook

Residential Launch Timeline

  • H2 FY27 expected launches: Mahalunge Rivenza, Sai Baba, Navrat, Westera
  • Sai Baba and Westera: Targeting Q3-end/Q4 approvals through PAAA process
  • Navrat (Greenfield): Approval process ongoing
  • Thane project: Expected launch in FY28
  • Chembur project: Working to accelerate from FY29 to FY28 launch
  • FY28 focus: K2 Kandivali and Mulund projects

Cash Flow Projections

  • Estimated net cash flow from existing projects: ₹15,280 crores
  • Excludes Jaipur and Murud projects which are still in business case development
  • Includes Thane project cash flows
  • Represents collections minus construction spend and overheads
  • No additional land spend required in this projection

Industrial Business Outlook

  • Total potential business value: ₹1,500 crores over 10 years
  • Expected PAT: ₹150-200 crores annually
  • Five-year cash flow potential: ₹750-800 crores
  • Key locations:
  • Pune: Land aggregation and contiguity focus
  • Ahmedabad: Securing special power and water approvals
  • Jaipur: SEZ denotification process ongoing with state government
  • Chennai: OC1 with Sumitomo complete, OC2 approvals in progress

Market Conditions and Strategy

Market Sentiment

  • Slight slowdown in sales velocity observed
  • Impacted by geopolitical events (Iran-US war), job market concerns (AI impact), and financial market conditions
  • Land prices have run up significantly, requiring careful assessment of new deals
  • Corporate developers gaining market share at expense of tier 2/3 developers

Business Development Strategy

  • Maintaining BD momentum but being selective due to high land prices
  • Target range: ₹10,000-20,000 crores GDV addition for FY27 (already achieved ₹7,100 crores in H1)
  • Focus on strategic locations that align with existing strategy
  • Strict financial guardrails - must make both strategic and economic sense
  • Balance between redevelopment and greenfield projects

Synergies with Mahindra Holidays

Three key areas of potential synergy:

1. Functional synergies: Purchase, contractor, and approval synergies across both entities

2. Business synergies: Senior living (Lifespaces development + Holidays services), service villas with resort management

3. Branded residences: High-end developments with hospitality-level services leveraging Mahindra Signature Resorts

Guidance and Targets

  • FY27 pre-sales guidance: ₹4,500-5,000 crores (midpoint ~₹4,750 crores)
  • Targeting healthier growth year compared to FY26's ₹3,400 crores
  • Expect strong H2 performance with new launches and sustained sales
  • Maintaining focus on pricing discipline rather than artificial velocity enhancement