Mahindra Lifespace Developers Limited — Q2 FY26 earnings call

Call held 3 Nov 2025

Management summary

Mahindra Lifespace Developers reported a strong H1 FY26 with robust residential pre-sales of ₹1,200 crores and significant GDV additions totaling ₹9,500 crores, enhancing future project visibility to ₹46,000 crores. The company achieved a PAT of ₹99 crores, marking a substantial improvement, and maintained a healthy cash surplus with reduced debt costs. However, delays in regulatory approvals for several key projects are deferring a large portion of planned launches and sales to the latter half of FY26 and potentially beyond.

Highlights

  • H1 FY26 residential pre-sales reached ₹1,200 crores, with Q2 sales at ₹752 crores, representing an 89% YoY growth.

  • Total GDV additions for H1 FY26 were ₹5,200 crores, and by early October, the total GDV additions reached ₹9,500 crores, including a ₹7,500 crore unlock from Thane.

  • The company's total accumulated GDV for future projects now stands at ₹46,000 crores, offering robust multi-year visibility.

  • Consolidated PAT for H1 FY26 was ₹99 crores, a substantial improvement from a negative ₹1 crore in H1 FY25.

  • The balance sheet is healthy with a net debt to equity ratio of -0.17 (cash surplus) and a reduced cost of debt at 6.9%.

Concerns

  • Several key project launches, including Marina 64 Plot A, Hope Farm, Bhandup, and Sai Baba, are experiencing delays due to pending regulatory approvals (EC, BBMP, RERA), pushing sales to H2 FY26 and beyond.

  • The company remains dependent on new launches for a significant portion of its sales, though efforts are underway to increase predictability from existing portfolios.

  • Management acknowledged that rapid growth and project pipeline will 'stretch people,' requiring continuous capability building and hiring across functions.

Key financials

3 periods

Headline

  • Resi and IC Sales
    ₹1,419 Cr
  • PAT
    ₹99 Cr
  • Residential Collections
    ₹1,086 Cr
    YoY +9%
  • Net Debt to Equity
    -0.17
  • Cost of Debt
    6.9%
  • Operating Cash Flows
    ₹425 Cr
  • Closing Cash
    ₹830 Cr

Q2

  • Residential Sales
    ₹752 Cr
    YoY +89%

H1

  • GDV Additions
    ₹5,200 Cr
  • IC & IC Revenues
    ₹219 Cr

What they filed

Q1 FY27: revenue up 2906.3%, net profit up 68.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue8 167 9 32 18 +125%459 +175%670 +7344%962 +2906%
EBITDA-48 -25 -55 -55 -52 −8%30 +220%-44 +20%94 +271%
Net profit-14 -22 85 51 48 +443%109 +595%90 +6%86 +69%
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.

Segment breakdown

  • Residential Business
    — EBITDA
  • Industrial & Logistics Business
    — Profitability

Order book

high confidence

Total value

₹1,419 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹752 Cr

Composition

Mix 4 projects
  • NewHaven 80%
  • Marina (Lot B and C) 50%
  • Citadel 80%
  • Lakewoods, HNI 100%

Share of order book by project· categories overlap, and sum to 310%

Pipeline

other

Total accumulated GDV for future projects and H2 FY26 launch pipeline.

Strong momentum in GDV additions and residential sales, with significant future visibility from accumulated GDV, though some launches are delayed by approvals.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹1,400 Cr Cost 6.9%
    • Repayment Long-term debt repaid using rights issue proceeds.
    Our net debt to equity is at -0.17, which presents a very healthy balance sheet for future growth. And compared to Q2 last year, we were +0.26. And our cost of debt continues to be lower. And in Q2 of FY26, after paying off the long-term debt with our rights issue proceeds, we are currently at 6.9%.
  • M&A Thane land parcel Other · Pending regulatory

    Unlocking GDV for future projects.

    Unlocks GDV worth ₹7,000 to ₹8,000 crores, included in the ₹9,500 crore GDV additions.

    We are glad to share that, while last year we had done part 1, step 1, now we just got the DP plan announced for Thane region, and our land is now designated as R-Zone. Which means from a step 2 of the approval, it's all clear. It unlocks GDV worth 7,000 to 8,000 crores.
  • M&A OC-2 (Sumitomo partnership) Joint venture · Pending regulatory

    Extended partnership for industrial development.

    OC-2 which is the extended partnership with Sumitomo is in the last stages of DTCP and EC clearances. I'm hoping to hear back in this quarter of this financial year.
  • M&A Mahindra Vista (Kandivali) Other · Announced

    Partnership for execution quality and compliance.

    And last week itself we signed an MoU with Tata Projects, starting with Mahindra Vista in Kandivali, it's a large project, to make sure that the quality, cost, compliance are in line with what we expect from the project.
  • Liquidity Cash ₹830 Cr Healthy cash position and operating cash flows for H1 FY26.
    Our operating cash flows were at 425 crores for the first half of the year. And the launches coming up in H2, we are hopeful that this number will continue to be very positive in H2 as well. And in an overall level, we had a closing cash of around 830 crores compared to similar levels in H1 FY25.

Guidance & targets

Revenue

  • IC Business Annual Revenue Revenue · annually · High confidence ₹400 to ₹500 crores
    We've given a guidance of somewhere between 400 to 500 crores annually from the IC business, and I think we are well on our way to achieve that.

    — Mr. Amit Sinha

Pre-sales

  • FY27 Pre-sales Pre-sales · FY27 · High confidence ₹4,500 to ₹5,000 crores
    But for FY27, as we have highlighted in the previous discussions, we're hoping that it will be somewhere between 4,500 to 5,000.

    — Mr. Amit Sinha

Launches

  • H2 FY26 Launch Value Launches · H2 FY26 · Medium confidence ₹7,000 crores
    Yeah, so roughly 7,000 crores is the value of the launches that we are planning, or let me just say, this is the value of the launches we are seeking approval.

    — Mr. Amit Kumar

Completions

  • FY26 Project Completions Completions · FY26 · High confidence 8 completions
    We have roughly eight completions that are being planned for this financial year.

    — Mr. Amit Sinha

BD Momentum

  • BD Momentum BD Momentum · ongoing · High confidence continue
    Absolutely, absolutely. The BD momentum, as I said earlier in the previous CapEx question, I think right projects, right locations, which are good for our brand salience, we will continue to pick them up. So absolutely.

    — Mr. Amit Sinha

What to watch in Q3 FY26

Marina 64 Plot A EC clearance and launch

H2 FY26
Current Awaiting EC clearance
Target EC clearance received, project launched

Why it matters

This is a key large project, representing a 'bigger part of the inventory' for H2 launches.

Our big launches are likely to happen in H2. Not only Marina 64 that you see, Plot A, we're just waiting for the EC. You all know about the EC issues. That, as soon as it comes, we'll be able to launch the bigger part of the inventory from Marina 64.

Risks & concerns

  • Project Approval Delays

    medium

    Several key projects (Marina 64 Plot A, Hope Farm, Mahalakshmi, Bhandup, Sai Baba) are awaiting various regulatory approvals (EC, BBMP, DP plan, RERA), pushing launches to H2 FY26 and beyond.

    Management acknowledged

  • Dependence on New Launches for Sales

    low

    The current year's sales are still dependent on new launches, though the company aims to reduce this by leveraging its existing portfolio for more predictable sales.

    Management acknowledged

  • Management Bandwidth Strain due to Growth

    low

    Rapid growth and an expanding project pipeline will 'stretch people,' but the company is actively building capabilities and hiring across all functions concurrently.

    Management acknowledged

Q&A highlights

6 direct
CapEx update and market health Direct
Yeah, I think we see a healthy market. Overall, Residential market; a lot of worries at the start of this financial year that it might take a dip, given we have seen three years of buoyancy... but as you've seen, the market continues to be healthy.

Addresses broader market sentiment and company's view on residential demand, confirming healthy market conditions despite initial worries.

Project approvals for Bhandup, Hope Farm, Mahalakshmi Partial
Bhandup is in the final stages of plan approvals... for us to do RERA, there is a CC route and an EC route, and they converged in CC, which leads into RERA now... Hope Farm... we are waiting for the final set of approvals from BBMP... Mahalakshmi, the EC meeting has happened. So we are waiting for the Minutes to come out...

Reveals specific approval statuses and potential delays for key upcoming launches, impacting the H2 FY26 sales pipeline.

Asked by Parikshit from HDFC Securities

Value of new launches (GDV) for H2 FY26 Direct
Yeah, so roughly 7,000 crores is the value of the launches that we are planning, or let me just say, this is the value of the launches we are seeking approval.

Quantifies the potential sales value from projects expected to launch in H2 FY26, providing clarity on the near-term pipeline.

BD momentum continuation Direct
Absolutely, absolutely. The BD momentum, as I said earlier in the previous CapEx question, I think right projects, right locations, which are good for our brand salience, we will continue to pick them up. So absolutely.

Reassures investors about the company's ability to continue adding to its land bank and future project pipeline.

Project completion and deliveries for FY26 Direct
Yeah, so we have some that have happened, but I think the bulk of the completions are in H2, second half of this year. We have roughly eight completions that are being planned for this financial year.

Provides visibility on project handovers and revenue recognition for the latter half of the fiscal year.

Execution of under-construction projects and RERA timelines Direct
Yeah, that's it. I think that's my biggest priority... I track it on a frequent basis, make sure on the quality, cost, and timeline, all those are balanced in the best possible way. And that's happening.

Highlights management's focus on execution and timely delivery, a critical aspect in the real estate sector for customer satisfaction and financial performance.

Asked by Ashish Agarwal from Sundaram AMC

Management bandwidth for growth Direct
We are adding management capability. We are hiring people in our Construction team. We are hiring people in our Sales team. We are hiring people in our... all the functional Design team, Technology team.

Addresses concerns about scaling operations and ensuring adequate resources to manage the growing project pipeline and business expansion.

Asked by Deepak from Svan Investments

Sai Baba project update Partial
Yeah. I think Sai Baba, I think the design has been submitted. The DA was on some time back. We are facing a small issue with some road alignment with the neighboring society... My expectation is, this project may get launched in the next financial year, H2, of that, given it's a large project.

Provides an update on a specific large project, indicating potential delays due to external factors but still targeting H2 FY26 launch.

Asked by Shreyans from Equirus

2 min read 7 chapters

Detailed narrative

Strong Residential Sales and GDV Momentum

Mahindra Lifespace Developers reported robust residential sales, with H1 FY26 reaching ₹1,200 crores and Q2 alone contributing ₹752 crores, marking an 89% YoY growth. The company also demonstrated strong business development, adding ₹5,200 crores in GDV in H1 FY26, and a total of ₹9,500 crores by early October, significantly boosting its future project pipeline.

Enhanced Future Visibility with ₹46,000 Crores GDV

The company's accumulated Gross Development Value (GDV) for future projects now stands at ₹46,000 crores, providing multi-year visibility. A significant portion of this, ₹7,500 crores, was unlocked by the re-designation of the Thane land parcel to R-Zone, making it ready for development and launch. This unlock is included in the ₹9,500 crore GDV additions.

Healthy Financials and Reduced Debt

Mahindra Lifespace achieved a consolidated PAT of ₹99 crores in H1 FY26, a substantial improvement from a negative ₹1 crore in H1 FY25. Residential collections remained strong at ₹1,086 crores, growing 9% YoY. The company also reported a healthy balance sheet with a net debt to equity ratio of -0.17 (cash surplus) and a reduced cost of debt at 6.9% following the utilization of rights issue proceeds.

Industrial & Logistics (IC) Business Performance and Expansion

The Industrial & Logistics (IC) business continued its strong performance, contributing ₹219 crores in revenues during H1 FY26. The company is actively pursuing new opportunities, including OC-2 with Sumitomo, which is in the last stages of DTCP and EC clearances. They are also in advanced stages of land aggregation for Origins Pune, aiming to replicate success seen in Chennai and Jaipur.

Upcoming Launches and Approval Delays

While H1 FY26 saw smaller launches, the company anticipates major launches in H2 FY26, including Marina 64 Plot A, Hope Farm, Mahalakshmi, Bhandup, and Citadel Phase 3, with a total planned launch value of approximately ₹7,000 crores. However, several projects are experiencing delays due to pending regulatory approvals (EC, BBMP, RERA), pushing their market entry to H2 FY26 and potentially beyond.

Focus on Execution and Strategic Partnerships

Management emphasized execution quality, cost control, and timely delivery as a top priority, especially for under-construction projects. To enhance execution, the company signed an MoU with Tata Projects for the Mahindra Vista project in Kandivali and plans to continue such partnerships. This strategy aims to ensure high standards and meet customer expectations, with 8 completions planned for FY26.

Capital Allocation Strategy and Capability Building

The company is exploring various capital allocation avenues, including debt for projects, strategic equity partners, and leveraging capital-efficient models like society redevelopment and Joint Development Agreements (JDAs). To support growth, Mahindra Lifespace is actively building management bandwidth by hiring across construction, sales, design, and technology functions, acknowledging that rapid growth will 'stretch people'.

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