Marathon Nextgen Realty Limited — Q1 FY26 earnings call

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

So in next 2 to 3 quarters, Marathon is looking at almost 15-lakh square feet of launch and INR4,500 crores of GDV. In addition to that, as Chairman already mentioned, we have earmarked approximately INR300 crores for new land acquisition, new project. So all in all, we have around 418 acres that we are getting through the merger, where 130 acres is in Bhandup, 83 acres is in Dombivli, and 205 acres is in Panvel. So all in all, 4.2 crores square feet is what will be the area, the carpet area that can come through with this land. So this is subject to the approval from the authority. But that being said, we are working hard on getting that done in 12 to 15 months. Net value of the whole incoming asset is around INR3,100 crores.

Outlines the significant near-term launch pipeline and the substantial land bank and asset value expected from the ongoing merger, providing a clear growth roadmap.

Asked by Kush Shah

Yes. So there is definitely a strengthening of balance sheet. As I mentioned in my speech, debt-to-equity ratio, which is a ratio of two different denominator and numerator. Denominator has grown by INR900 crores of capital infusion and the numerator, the INR340 crores debt has already gone away. So currently, we are sitting on a sizable bank balance. So instead of debt, it is a sort of a negative debt or cash in the bank kind of a situation. With this, we have already approached all our existing credit rating agencies and new agencies to re-rate the company, and that process is on.

Confirms the immediate positive impact of the QIP on the balance sheet, leading to zero net debt, and the proactive steps taken to secure a credit rating upgrade.

Asked by Meer Desai

So we have always had a policy of distributing all our projects across three segments. One is, like you mentioned, luxury or South Mumbai project, where we already have Monte South going on. And we are actively seeking new projects in that area... Then we already have a project in suburbs, which is the Bhandup and Mulund area... And the third segment is periphery, that is Mumbai Metropolitan region, outside the city and suburb, the peripheral area of Panvel. The demand scenario is good. Like I mentioned again in my speech, the three micro markets that we are active in, all three micro markets, we are at top 3 rank in terms of sales and supply. And that being said, Marathon always acquired projects at a price, which is actually lower than the market. Hence, we have a higher margin. Hence, we can survive in any kind of condition.

Clarifies the company's diversified geographic strategy and provides confidence in the sustainability of current realizations due to strong market positioning and prudent project acquisition.

Asked by Meer Desai

So unsold ready OC ready inventory, we have around 1.1 lakh square feet in Monte South in Tower A, around 1 lakh square feet in Nexzone, which is in Panvel, and around 42,000 square feet in the Listco of Futurex. And all in all, the value of that would be around INR600 crores to INR700 crores. So INR700 crores, but the Marathon share is going to be around INR450 crores and of that 20%, which would be around INR90-odd crores. So I mean, the whole time line of the sales of this project, there will be 1 year. Yes, 1 year will be a good time where we'll be selling it.

Quantifies the value of ready-to-sell inventory and its expected contribution to PAT within the next year, offering clear short-term earnings visibility.

Asked by Sachin

Yes, we are open to the DM model. As you are aware, Marathon has capabilities of real estate from A to Z, 880 people are working for the group. And we have architectural capability, designing capability, marketing and sales capability, execution that is construction. The Monte South project that you see 65-storey towers are being constructed or built in-house. So there is an EPC capability also in-house. So we have all the capabilities, and we are okay to have a DM model assignment in South Mumbai and other areas.

Highlights the company's comprehensive in-house capabilities and strategic flexibility to pursue asset-light growth models like the Development Management (DM) model, particularly in premium locations.

Asked by Prasan

Yes, sure. See, the other income of about INR50 crores consists of one major item, which is capital gain on sale of investment of INR40 crores. These are the premises that we had built in Marathon Futurex and kept for investment, meaning we had rented them out. And those are the premises that we sold during this quarter, realizing about INR40 crores from that. So that's why there is a spike in other income. Although this INR40 crores is other income, it is actually something that we had constructed 3 years ago. Yes. See, if you see 5 years ago, we were selling in Futurex about INR20,000- INR25,000 a square feet. And that is the time when we rented some of the premises. And currently now, when we are selling it is INR45,000 - INR50,000 per square feet.

Provides a clear explanation for the one-time spike in other income, attributing it to the profitable sale of investment properties, demonstrating effective asset monetization.

Asked by Viral Shah

Currently, I mean, before QIP, it was 5.13 crores, then after QIP, it is 6.75 crores roughly. And post-merger, it would be about 11.8 crores or 11.9 crores. Yes, after QIP, your holding is 55%. So post-merger, what would be the promoter holding? Close to 75%. It will be 74.3% or so.

Clarifies the company's capital structure and promoter shareholding post-QIP and after the anticipated asset merger, providing transparency on ownership.

Asked by Jignesh