Marathon Nextgen

Marathon Nextgen Realty delivered its strongest financial performance to date, with Q2 FY26 profit after tax reaching INR 67 crores, marking a 35% year-on-year increase. For the first half of FY26, the company reported a PAT of INR 128 crores, representing a 47% year-on-year growth. This robust profitability was attributed to steady execution, strong operating discipline, and a balanced contribution from both residential and commercial segments.

The quarter saw significant operational progress, including the receipt of an occupation certificate for NeoSquare in Bhandup and a partial occupation certificate for Monte South Tower B. Key new project announcements included Monte South Commercial, a large-scale Grade A office and retail development in a joint venture with Adani Realty, projected to have an estimated GDV of INR 3,400 crores across 7.5 lakh sq ft. Additionally, Phase 3 of Marathon Nexzone in Panvel, named 'Nirvana Collection,' was launched, covering 4.9 lakh sq ft RERA carpet area with an estimated GDV of INR 600 crores. The company also launched 2.2 lakh sq ft of residential space under the Neohomes portfolio in Bhandup, with a GDV of INR 370 crores.

In Q2 FY26, Marathon Nextgen achieved area sales of 65,845 square feet, an 18% year-on-year increase, driven by healthy demand across key micro-markets. Booking value for the quarter stood at INR 166 crores, up 29% year-on-year, while collections remained stable at INR 191 crores. For the first half of FY26, area sales increased 12% year-on-year to 143,600 sq ft, booking value grew 22% to INR 349 crores, and collections rose 17% to INR 430 crores. The company noted strong demand for its INR 340 crores worth of ready-to-move-in inventory, anticipating rapid sales.

Marathon Nextgen maintained a net debt-free position throughout the period, supported by healthy collections and disciplined capital allocation. The company recently raised INR 900 crores through a Qualified Institutional Placement (QIP), which will be utilized to pursue new project opportunities. This capital is intended to facilitate participation in redevelopment, joint development, and other asset-light opportunities across Mumbai, enabling faster scaling and portfolio expansion.

Management reported no slowdown in their micro-markets within the Mumbai MMR region, with demand remaining steady and buoyant. The ongoing infrastructure development push by the state government, including projects like the Atal Setu, GMLR, bullet train stations, and improved connectivity, is creating new growth corridors and boosting real estate values. This has led to price escalations of 5-6% in Panvel and approximately 2% in Futurex, indicating a robust market environment.

The company holds a substantial land bank of over 400 acres in high-potential micro-markets such as Panvel, Dombivli, and Bhandup. The monetization strategy involves self-development, B2B sales of FSI, and strategic partnerships. For Bhandup, the company has launched a INR 370 crore GDV project and anticipates a total potential of 15 lakh sq ft carpet area with a GDV exceeding INR 2,000 crores from its Neovalley and Neopark projects. They are actively working with the Slum Rehabilitation Authority to unlock this potential, following a favorable Supreme Court verdict on private forest lands.