Marathon Nextgen Realty Q1 FY27 earnings call

Marathon Nextgen Realty Limited commenced FY27 on a strong note, reporting a total income of INR 217 crores, which represents a multi-quarter high. The company achieved an EBITDA of INR 66 crores and a Profit After Tax (PAT) of INR 52 crores, demonstrating healthy profitability. This performance reflects steady progress in execution across its diverse development portfolio, encompassing premium residential, affordable housing, and commercial segments.

The company recorded robust sales across its projects. The merged portfolio saw 46,000 sq ft sold, generating a booking value of INR 108 crores and collections of INR 146 crores. Specifically, Monte South sold 35,000 sq ft with a booking value of INR 125 crores, benefiting from ready-to-move inventory in Towers A and B. Nexzone in Panvel sold 14,000 sq ft for INR 17 crores, with Cedar and Daffodil Towers receiving full occupation certificates. Bhandup projects (NeoPark and NeoSquare) contributed 8,000 sq ft in sales for INR 14 crores, while commercial properties Futurex and Millennium added 4,000 sq ft (INR 19 crores) and 1,000 sq ft (INR 3 crores) respectively.

Marathon Nextgen strategically expanded its development pipeline by adding INR 900 crores in estimated Gross Development Value (GDV) through two new redevelopment opportunities. This includes a 1.5-acre project in Versova with an estimated GDV of over INR 450 crores, marking the company's first major entry into society redevelopment. Additionally, a 7,500 sq meter cluster redevelopment in Sewri, with an estimated GDV of around INR 450 crores, was secured. These projects align with the company's selective approach to growth, focusing on prime locations and capital efficiency.

The company maintains a strong and flexible capital structure, operating with a debt-free balance sheet. Following a successful QIP of INR 900 crores, Marathon Nextgen holds a net cash position with approximately INR 200 crores specifically earmarked for new acquisitions. This robust liquidity position provides the company with significant capacity to selectively pursue attractive new development opportunities and fund its growth initiatives without relying on external debt.

Management expressed a positive outlook for FY27, anticipating continued strong demand in the premium residential and commercial segments. The company plans to fully deploy its INR 200 crores of surplus capital into new projects this financial year, targeting EBITDA margins of 30-35% for acquisitions. Key growth drivers include upcoming projects like Monte South Commercial (INR 3,400 crores GDV), Monte South Residential Tower D (INR 1,600 crores GDV), and Bhandup Neo Series (INR 2,800 crores GDV). The new Permanent Transit Camps (PTC) sales vertical is also expected to contribute presales in the coming quarters^⏳.