Mahindra Life.

Mahindra Lifespaces delivered robust financial results for FY26, with combined residential and industrial pre-sales reaching ₹4,120 crores. The company reported a significant 5x increase in PAT to ₹298 crores for the full year, up from ₹61 crores in the prior year, driven by strong collections and improved IC&IC performance. Operating cash flow for FY26 stood at ₹840 crores, demonstrating healthy cash generation after accounting for project approval costs.

The company maintained strong business development momentum, adding ₹10,500 crores in new GDV acquisitions, bringing the cumulative GDV pipeline to ₹18,000 crores. Key projects like Rainforest, with a GDV of over ₹12,000 crores, received RERA approvals for Phase 1. Mahindra Lifespaces plans to launch projects worth ₹10,000 crores in FY27, including the Thane mixed-use development, which is expected to launch by the end of the current year or early next year.

Mahindra Lifespaces reported a very healthy balance sheet with a net debt-to-equity ratio of -0.27 and a net cash balance of ₹1,127 crores against a gross debt of ₹383 crores. The strategic partnership with Mitsui Fudosan, which began with a 49% stake in the Blossom project, is a multi-project collaboration that enhances the company's financial flexibility. Management emphasized that capital is not a constraint for growth, supported by the strong balance sheet and Mahindra's backing.

The IC&IC segment showed strong performance, with ₹360 crores in new lease revenue in Q4 FY26, primarily from Origins Chennai 2A. The company expects this segment to generate ₹400-500 crores annually, with a PAT contribution of approximately ₹550 crores. Approvals are in place for Origins Ahmedabad, with marketing activities initiated, and land aggregation continues for Origins Pune, signaling future growth in the industrial portfolio.

While Q4 FY26 residential pre-sales were strong at ₹1,633 crores, management noted a moderation in footfalls and sales gallery activity towards the end of March due to geopolitical uncertainties and upcoming elections. However, they believe the underlying demand remains strong, with customers deferring purchases rather than cancelling. The company anticipates a shift towards trusted developers in a slower market and is cautiously confident in achieving its FY27 residential pre-sales guidance of ₹4,500-5,000 crores.

The company highlighted significant improvements in its operational efficiency and project execution, evidenced by receiving 8 OCs in FY26 and streamlining the RERA approval process. Management stated that they can now file RERA applications within a day of receiving Completion Certificates, which contributes to timely launches and project deliveries. This enhanced capability provides confidence in meeting future launch and delivery timelines, with projected costs remaining stable over the last 8 quarters.