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    Marathon Nextgen

    MARATHON
    Realty·12 Aug 2025
    Management Summary

    Marathon Nextgen reported a robust Q1 FY26, driven by strong pre-sales and collections growth, significant margin expansion, and a substantial increase in PAT. The successful INR900 crore QIP has eliminated net debt, providing a strong balance sheet for future growth. The company is actively pursuing new project launches and progressing with a strategic asset merger, positioning it well in the dynamic Mumbai real estate market.

    Highlights

    6

    • Pre-sales value jumped 16% YoY to INR183 crores, demonstrating continued market demand.

    • Collections surged 28% YoY to INR239 crores, indicating strong cash flow quality.

    • Total income grew 10% YoY to INR191 crores, and EBITDA expanded 27% YoY to INR81 crores.

    • Profit after tax (PAT) surged 63% YoY to INR62 crores, significantly outpacing industry growth.

    • Successful QIP fundraising of INR900 crores led to repayment of INR340 crores debt, resulting in an 'absolutely zero' net debt level and INR40 crores annual interest savings.

    • Occupation certificates received for three towers at Nexzone Panvel, accelerating revenue recognition and demonstrating execution capabilities.

    Concerns

    2

    • The asset merger with the parent company, while strategic, is progressing through regulatory approvals and is expected to take 12 to 15 months to complete.

    • Some litigated assets belonging to the Holdco are outside the listed entity and will not be part of the merger, limiting immediate access to their potential value.

    What Changed2

    vs Q2 FY26

    Guidance items1 → 5 (+4)Risks discussed1 → 3 (+2)

    Key financials

    Single quarter

    06 metrics
    1. 01Area Sold Growth7%+7.0%YoY
    2. 02Pre-sales Value₹183 Cr+16%YoY
    3. 03Collections₹239 Cr+28.0%YoY
    4. 04Total Income₹191 Cr+10%YoY
    5. 05EBITDA₹81 Cr+27%YoY

    Order Book

    high confidence

    Total Value

    ₹ 183 crores

    as of 2025-06-30

    quantified
    16.0% YoY

    Inflow this qtr

    ₹ 183 crores

    Pipeline

    other

    Upcoming launches include Monte South commercial (8 lakh sq ft, GDV INR3,500 crores), Nexzone Phase 3 (4 lakh sq ft, GDV INR500 crores), and two NeoHomes projects in Bhandup (3 lakh sq ft, GDV INR500 crores). Total pipeline for next 2-3 quarters is 15 lakh sq ft with a GDV of INR4,500 crores. Additionally, 418 acres of land from the merger could yield 4.2 crore sq ft carpet area. Unsold ready OC inventory includes 1.1 lakh sq ft in Monte South Tower A, 1 lakh sq ft in Nexzone, and 42,000 sq ft in Futurex, with Marathon's share valued at INR450 crores, expected to sell within 1 year.

    "The company has a strong launch pipeline for the next 2-3 quarters, totaling 15 lakh sq ft and INR4,500 crores GDV, complemented by significant land assets from the ongoing merger. Unsold ready OC inventory worth INR450 crores is expected to be monetized within one year."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    From QIP funds

    Debt

    Net ₹0 crores

    M&A

    Parent Company Assets

    merger · pending regulatory

    Liquidity

    Liquidity disclosed

    Sizable liquid balance available post-QIP and debt repayment, resulting in a net debt of zero.

    Guidance & targets

    5
    CategoryTargetPriority
    Launch Pipeline
    GDV from new launches
    INR4,500 crores
    		High
    Unsold Inventory Monetization
    Marathon's share of unsold ready OC inventory sales
    INR450 crores
    		High
    Merger Completion
    Timeline for parent company asset merger
    12-15 months
    		Medium
    Capital Allocation
    Earmarked funds for land acquisition
    INR300 crores
    		High
    Capital Allocation
    Earmarked funds for fast-pacing projects
    INR160 crores
    		High

    Credit Rating Re-rating

    Next quarter
    CurrentProcess on
    TargetUpgrade announced

    Why it matters

    A credit rating upgrade would confirm improved financial health post-QIP and could lead to lower borrowing costs for future projects.

    we have already approached all our existing credit rating agencies and new agencies to re-rate the company, and that process is on.

    How to verify

    capital_allocation.debt.actions

    Risks & concerns

    3
    RiskSeverity

    Merger completion timeline

    The asset merger with the parent company is subject to regulatory approvals and is expected to take 12 to 15 months, which could delay the full realization of its benefits. — Management acknowledged

    medium

    Litigated assets outside listed entity

    Some litigated assets belonging to the Holdco are not part of the merger and will remain outside the listed entity, meaning their potential value is not immediately accessible to Marathon Nextgen Realty Limited. — Management acknowledged

    medium

    Seasonal impact on sales velocity

    During the monsoon period, site visits are typically lower, which can temporarily affect sales velocity for high-value projects like Monte South. — Management acknowledged

    low

    Q&A highlights

    8

    “So Monte South is progressing very well. Tower B is almost at now 62nd floor. So like from RCC angle, it is almost like 90% complete. And we have already applied for part occupancy for the Tower B up to 35 floor. Tower C is also progressing very well. It has now reached on a 12th-floor level, and it is progressing very fast, almost slab to slab cycle, we have been achieving it every floor to floor is around 10 to 12 days. There is no change in the estimated cost and the cost remains same. On the velocity part, like particularly during monsoon period, typically the site visits are normally less. But otherwise, we've been reporting every month around 5 to 6 bookings that is a good velocity for the high-value project.”

    Provides detailed operational updates on a key luxury project, including construction progress, cost stability, and sales performance despite seasonal slowdowns.

    asked by Jai Chauhan

    3 min read6 chapters

    Detailed Narrative

    01

    Robust Q1 FY26 Financial and Operational Performance

    Marathon Nextgen Realty Limited commenced FY26 on a strong note, reporting a 16% year-over-year increase in pre-sales value to INR183 crores and a 28% surge in collections to INR239 crores. Total income grew by 10% YoY to INR191 crores, while EBITDA expanded by 27% to INR81 crores. The company's profit after tax (PAT) saw a significant 63% YoY increase, reaching INR62 crores, underscoring its focus on high-margin projects and efficient execution.

    02

    Strategic Project Positioning and Market Leadership

    The company's diverse portfolio, including luxury projects like Monte South in Byculla, affordable NeoHomes in Bhandup, and Nexzone in Panvel, continues to show positive market response. Monte South is ranked among the top 3 projects in both supply and sales volume, and Nexzone Panvel holds a similar position. NeoHomes in Bhandup is also among the top 3 by market supply, demonstrating the breadth of Marathon's market appeal across different price segments and locations.

    03

    QIP Success and Strengthened Balance Sheet

    A key strategic highlight of the quarter was the successful QIP fundraising of INR900 crores, which closed on June 30, 2025. This capital infusion enabled the repayment of INR340 crores of debt in July, resulting in an 'absolutely zero' net debt level and a sizable liquid balance. This debt reduction is expected to save INR10 crores quarterly and INR40 crores annually in interest, significantly strengthening the company's balance sheet and prompting a re-rating request to credit agencies.

    04

    Future Growth Pipeline and Land Bank Expansion

    Marathon Nextgen has a robust launch pipeline for the next 2-3 quarters, including Monte South commercial (8 lakh sq ft, GDV INR3,500 crores), Nexzone Phase 3 (4 lakh sq ft, GDV INR500 crores), and two NeoHomes projects in Bhandup (3 lakh sq ft, GDV INR500 crores), totaling 15 lakh sq ft with a GDV of INR4,500 crores. Additionally, INR300 crores from the QIP funds are earmarked for new land acquisitions, focusing on redevelopment in Central and South Mumbai, and INR160 crores for fast-pacing ongoing projects.

    05

    Strategic Asset Merger and Structural Simplification

    The asset merger with the parent company is progressing through regulatory approvals and is anticipated to complete within 12-15 months. This merger will integrate valuable land assets, including 418 acres (130 acres in Bhandup, 83 acres in Dombivli, 205 acres in Panvel), with a potential 4.2 crore sq ft carpet area, and premium projects. The net value of these incoming assets is estimated at INR3,100 crores, which includes 2.33 lakh sq ft of OC-ready carpet area in Futurex, aiming to create a simpler, more efficient corporate structure.

    06

    Operational Capabilities and DM Model Strategy

    The company emphasized its comprehensive in-house capabilities, covering all aspects of real estate from architectural design to construction, with a team of 880 people. This includes EPC capabilities, as demonstrated by the in-house construction of the 65-storey Monte South towers. Marathon is open to pursuing the Development Management (DM) model, particularly for projects in South Mumbai exceeding 1 acre and with a GDV over INR500 crores, leveraging its expertise for asset-light growth.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.