Modi's Navnirman — Q2 FY26 earnings call

Call held 10 Nov 2025

Management summary

Modi's Navnirman reported strong H1 FY26 results with significant year-on-year growth in revenue, EBITDA, and PAT, driven by its asset-light redevelopment model. The company achieved key strategic milestones including a subsidiary merger and is progressing towards a main board listing, all while maintaining a debt-free status. Management expressed confidence in sustaining growth through its project pipeline and planned expansion within the MMR.

Highlights

  • Revenue of ₹83.39 crores, up 128% YoY.

  • EBITDA of ₹16.04 crores, up 164% YoY.

  • PAT of ₹12 crores, up 165% YoY, matching previous full year's profit.

  • Successfully merged subsidiary Shri Modi's Navnirman Private Limited within three months.

  • Progressing towards migration from BSE SME to main board of BSE and NSE.

  • Maintained debt-free status and asset-light philosophy.

Key financials

  1. Revenue ₹83.39 Cr +128%YoY
  2. EBITDA ₹16.04 Cr +164%YoY
  3. PAT ₹12 Cr +165%YoY

What they filed

Q1 FY27: revenue up 27.9%, net profit up 26.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue37 32 20 46 38 +3%54 +70%51 +158%58 +28%
EBITDA5 8 3 10 6 +9%15 +89%5 +54%11 +11%
Net profit5 7 2 7 5 +15%13 +82%4 +195%9 +27%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

medium confidence

Execution

roughly takes around 2 years for project completion once society vacates

Composition

Mix 2 segments
  • Residential 85%
  • Commercial 15%

Share of order book by segment

Pipeline

other

Ongoing work of 7.5 lakh sq ft and upcoming work of 10 lakh sq ft.

The company operates on an asset-light redevelopment model, focusing on timely completion and efficient fund movement, enabling a debt-free status.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹0 Cr · Net ₹0 Cr · 0.0× EBITDA
    I am glad to share that we are a debt-free company.
  • M&A Shri Modi's Navnirman Private Limited Merger · Closed

    Strategic milestone to consolidate operations within the listed entity.

    Successfully merged within three months, a fast-track merger.

    The strategic milestones which we have achieved in the first half of 2025-26 is we have successfully merged our subsidiary company of Shri Modi's Navnirman Private Limited within our listed company. We have been one of the first in the last few years in the fast-track merger. We have been the first company since 2017 to get an approval within three months from the registration of companies.
  • Liquidity Liquidity disclosed Company maintains strong liquidity through its asset-light model and timely project completion, enabling efficient fund movement.
    This allows us to maintain strong liquidity, and I am glad to share that we are a debt-free company.

Guidance & targets

Profitability

  • Full Year FY26 Results Profitability · FY26 · Medium confidence Similar to or better than H1 FY26 results (PAT of ₹12 crores)
    So, we are targeting to maintain this. The full year results will be going on these lines only. That is what we are assuming. It can be a little better, but not less than this because we are going to deliver, we are going to be delivering one more project, probably this month delivering it. So, that will create a lot of impact on the sales and everything. The result will be a bit better than what it is because of the factors wherein we are delivering one more project.

    — Mahek Modi

Project Completion

  • Upcoming Projects Completion Project Completion · FY27-28 · High confidence All 3 upcoming projects completed
    FY27-28, it should be done. That should be done by FY27, 28.

    — Mahek Modi

Revenue Composition

  • Commercial Revenue Share Revenue Composition · Ongoing · Medium confidence 10-15%
    Commercial will also be in the range of around 10% to 15%.

    — Mahek Modi

Debt

  • Debt Levels Debt · Next couple of years · High confidence Maintain debt-free status
    We plan to maintain current debt levels. There are no debt levels actually. So, we are on that vision only that we don't want debt. But see, you don't know what future holds for you. But as of now, what we see for the next couple of years, I don't see we raising any debt.

    — Mahek Modi

What to watch in Q3 FY26

Completion of one more project

H2 FY26
Current One project ongoing, expected to be delivered in H2 FY26.
Target Project completion and handover.

Why it matters

Direct impact on sales, revenue, and profitability for FY26.

we are going to deliver, we are going to be delivering one more project, probably this month delivering it. So, that will create a lot of impact on the sales and everything.

Risks & concerns

  • Competition in new micro-markets

    medium

    Management believes their focus on smaller redevelopment plots (2,000-5,000 sq m) and strong execution skills differentiate them from larger players who target bigger plots and often avoid redevelopment.

    Analyst downplayed

  • Impact of high interest rates on sales

    low

    Management states interest rates do not significantly affect sales, as demand is driven by desire for new flats, amenities, and a post-COVID shift towards spending on self-enrichment rather than saving.

    Analyst downplayed

Q&A highlights

8 direct
Geographic expansion plans beyond current western Mumbai focus Direct
We are planning to expand into the other regions. We have ongoing talks with different regions of MMR wherein we are placed at the top three categories and everything. So, we are planning to expand our portfolio from the western suburbs to the other areas of MMR.

Indicates future growth avenues and potential diversification from current concentrated areas.

Asked by Vikrant Sahu

Status of approvals for upcoming projects and managing regulatory delays Direct
Currently, out of three projects, two projects we have already got approvals of everything. And in redevelopment, we go by a society that once we get all the approvals, we tell the society to vacate and then we demolition will start. So, out of the three projects, two projects, we have got all the approvals and the vacation date was 1st November of this month. So, both the societies have been vacated and the demolition process and everything will start in due course within this month. And the third project has gone into an approval stage and the approval stage is going through BMC...

Provides clarity on project readiness and the company's ability to navigate regulatory processes.

Asked by Vikrant Sahu

How the company maintains debt-free status and funds its project pipeline Direct
The pipeline funding, we are majorly the funding, we do not take any project finance, we do not do anything. Our major focus is being profitable in terms of delivering the projects, selling of the projects and using that funds only to churn into the new projects and everything. So, that is how we have, that is why we are debt-free because our major plus point is timely completion. So, if our projects do not go beyond the timeline of 2 years. So, in 2 years, the churning amount, the cycle of fund movements is very easy.

Explains the company's unique asset-light and self-funding model, which is a key differentiator and risk mitigator.

Asked by Vikrant Sahu

Effect of high interest rates and affordability challenges on bookings, cancellations, and price movements Direct
The interest rates are not majorly affecting the sales and everything. In terms of over supply being there, that hampers the sale. In terms of number of projects being developed, that hampers the sale. The interest rates do not matter a lot because people want to take new flats, new opportunities, new amenities and everything. So, post COVID, the mindset wherein it was a saving mindset, you should not be spending that much. Post-COVID, it has drastically changed into spending on yourself and the amenities which you get in everything.

Provides management's perspective on market demand drivers, suggesting that product quality and amenities outweigh interest rate concerns for their target segment.

Asked by Nimesh Pandya

Expectations for FY26 revenue, margins, and launches given H1 profits matched full FY25 Direct
So, we are targeting to maintain this. The full year results will be going on these lines only. That is what we are assuming. It can be a little better, but not less than this because we are going to deliver, we are going to be delivering one more project, probably this month delivering it. So, that will create a lot of impact on the sales and everything. The result will be a bit better than what it is because of the factors wherein we are delivering one more project.

Gives guidance on the full year performance, indicating stability or slight improvement over H1, driven by project deliveries.

Asked by Nimesh Pandya

Pricing assumptions for upcoming launches and product mix shift (premium vs. affordable) Direct
So, the three projects which are upcoming, we have in different areas. One is coming up in Dahisar. So, we have made the project in a way there is, it is more of an affordable area. We have not gone into more of luxury, but we have gone into affordability. The one project, Rashmi Icon, which is coming up in Kandivali, that is a bit going on the medium luxury segment area. And the third project, which is there on the main link road of Malad, that is going into more of a luxury category.

Details the company's diversified pricing and product strategy across different micro-markets to cater to varied demand segments.

Asked by Shanaya Jain

How the company plans to handle competition from larger developers in new expansion areas like Santa Cruz, Khar, and Ghatkopar Direct
Not actually because larger players deal into larger plot sizes. They will not be coming into smaller plots. So, I will give you an example, 2,000 square meter to 5,000 square meter will be our range. 10,000 square meters is a project where larger players will come in wherein you have your Lodha, you have Mahindra. All those go into that market. They go over there. They don't come into this. Plus, a lot of larger players don't also get into redevelopment. For example, Oberoi does not do redevelopment. So, my point is they do different segments of real estate.

Clarifies the company's competitive advantage by focusing on smaller redevelopment projects, a niche not typically targeted by larger players, and highlights their execution skills.

Asked by Akash Sharma

Plans regarding maintaining debt-free status or taking on debt for project inflow Direct
We plan to maintain current debt levels. There are no debt levels actually. So, we are on that vision only that we don't want debt. But see, you don't know what future holds for you. But as of now, what we see for the next couple of years, I don't see we raising any debt.

Reaffirms the company's commitment to its debt-free philosophy for the foreseeable future, which is a key aspect of its financial prudence.

Asked by Rohan Mehta

3 min read 7 chapters

Detailed narrative

H1 FY26 Financial Performance

Modi's Navnirman reported robust financial performance for H1 FY26, achieving a revenue of ₹83.39 crores, representing a 128% year-on-year growth. EBITDA surged by 164% to ₹16.04 crores, and Profit After Tax (PAT) increased by 165% to ₹12 crores. Notably, the H1 FY26 PAT of ₹12 crores matched the company's entire PAT for the previous financial year (FY25), highlighting strong operational leverage and execution.

Business Model and Project Pipeline

The company operates on an asset-light redevelopment model, focusing on partnerships with societies rather than outright land acquisition. This strategy allows for strong liquidity and a debt-free balance sheet. Currently, Modi's Navnirman has 5 ongoing projects and 3 upcoming projects. The company has delivered over 6 lakh square feet to date, with 7.5 lakh square feet of ongoing work and an additional 10 lakh square feet in the upcoming pipeline, totaling 17.5 lakh square feet of future development.

Strategic Milestones and Debt-Free Status

In H1 FY26, Modi's Navnirman successfully merged its subsidiary, Shri Modi's Navnirman Private Limited, into the listed entity, completing the process within three months, which is noted as a fast-track merger. The company is also in the process of migrating from the BSE SME platform to the main board of BSE and NSE, a move expected to enhance liquidity, visibility, and credibility among institutional investors. The management emphasized its continued commitment to being a debt-free company, underscoring disciplined financial planning.

Industry Outlook and Expansion Plans

Management highlighted the Indian real estate sector's structural growth, driven by urbanization and significant infrastructure investment, positioning organized and transparent developers like Modi's Navnirman as key beneficiaries. The company plans to expand its portfolio beyond the current western Mumbai suburbs (Kandivali, Borivali, Malad, Goregaon, Dahisar) into other regions of the Mumbai Metropolitan Region (MMR), with ongoing discussions in areas like Santa Cruz, Khar, and Ghatkopar.

Project Timelines and Approvals

The company detailed its project execution timeline, stating that once a society vacates, project completion typically takes around two years. For its three upcoming projects, two have already received all necessary approvals, and the societies vacated on November 1, 2025, with demolition expected to start this month. The third project is currently in the approval stage with the Brihanmumbai Corporation of Mumbai (BMC).

Pricing Strategy and Market Dynamics

Modi's Navnirman employs a diversified pricing strategy across its upcoming projects. A project in Dahisar is positioned for the affordable segment, while Rashmi Icon in Kandivali targets the medium-luxury segment, and a project on the main link road of Malad is aimed at the luxury category. Management noted that high interest rates do not significantly deter sales, as demand is primarily driven by the desire for new flats, amenities, and a post-COVID shift towards self-spending.

Competition and Execution Skills

Addressing concerns about competition, particularly from larger developers in new micro-markets, management asserted that their focus on smaller redevelopment plots (2,000-5,000 square meters) differentiates them. Larger players typically target bigger plot sizes (10,000+ square meters) and often do not engage in redevelopment. The company's 15-year track record of timely execution on 15 completed projects is cited as a key competitive advantage.

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