Marathon Nextgen Realty Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Marathon Nextgen Realty reported its strongest financial performance to date in Q2 and H1 FY26, driven by robust sales, collections, and operational efficiency. The company maintained a net debt-free balance sheet while expanding its portfolio with significant new project launches and a major commercial joint venture. Management expressed confidence in continued growth, supported by strong infrastructure development in the Mumbai MMR region and strategic monetization of its extensive land bank.

Highlights

  • Highest ever quarterly profit after tax of INR 67 crores, a growth of 35% year-on-year.

  • Highest ever H1 FY26 profit after tax at INR 128 crores, representing a 47% year-on-year increase.

  • Achieved area sales of 65,845 square feet in Q2, an 18% year-on-year increase.

  • Booking value for Q2 stood at INR 166 crores, up 29% year-on-year.

  • Maintained a net debt-free position during the period.

  • Announced Monte South Commercial, a large-scale Grade A office and retail development in JV with Adani Realty, with an estimated GDV of INR 3,400 crores.

  • Launched Phase 3 of Marathon Nexzone (Nirvana Collection) with 4.9 lakh sq ft RERA carpet area and estimated GDV of INR 600 crores.

  • Launched 2.2 lakh sq ft residential space under Neohomes portfolio in Bhandup, amounting to GDV of INR 370 crores.

Key financials

  1. PAT Q2 FY26 ₹67 Cr +35%YoY
  2. PAT H1 FY26 ₹128 Cr +47%YoY
  3. Area Sales Q2 FY26 65,845 sq ft +18%YoY
  4. Booking Value Q2 FY26 ₹166 Cr +29%YoY
  5. Collections Q2 FY26 ₹191 Cr
  6. Area Sales H1 FY26 1,43,600 sq ft +12%YoY
  7. Booking Value H1 FY26 ₹349 Cr +22%YoY
  8. Collections H1 FY26 ₹430 Cr +17%YoY
  9. Ready-to-move-in Inventory ₹340 Cr

What they filed

Q1 FY27: revenue up 62.5%, net profit down 11.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue53 39 74 24 63 +19%22 −44%68 −8%39 +63%
EBITDA24 19 19 3 27 +13%10 −47%28 +47%16 +433%
Net profit36 35 41 42 61 +69%28 −20%59 +44%37 −12%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹349 Cr

as of 2025-09-30 quantified

22% YoY

Inflow this quarter

₹166 Cr

Pipeline

other

Upcoming launches include Monte South Commercial (7.5 lakh sq ft, GDV INR 3,400 crores), Marathon Nexzone Phase 3 (4.9 lakh sq ft RERA, GDV INR 600 crores), and Neohomes Bhandup (2.2 lakh sq ft, GDV INR 370 crores). Total Bhandup potential from Neovalley and Neopark is 15 lakh sq ft carpet area with GDV INR 2,000+ crore.

Our balance sheet continues to remain strong. We maintained a net debt-free position during the period, supported by healthy collections and measured capital allocations. With a robust launch pipeline and consistent progress across ongoing developments, we remain well positioned to deliver sustained growth in the periods ahead.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Net ₹0 Cr
    Our balance sheet continues to remain strong. We maintained a net debt-free position during the period
  • M&A New Project Opportunities (via QIP) Acquisition · Announced · Consideration ₹900 Cr (cash)

    To participate in redevelopment, joint development and other asset-light opportunities across Mumbai, enabling faster scaling and portfolio expansion.

    supported by the capital raised through the recent QIP of INR900 crores. This positions us well to participate in redevelopment, joint development and other asset-light opportunities across Mumbai, enabling faster scaling and portfolio expansion.
  • M&A Monte South Commercial (JV with Adani Realty) Joint venture · Announced

    Large-scale Grade A office and retail development, significant expansion in South Mumbai commercial market.

    Additionally, we announced Monte South Commercial, a large-scale Grade A office and retail development at Byculla being developed in joint venture with Adani Realty.
  • Liquidity Liquidity disclosed Healthy collections and QIP funds support new project opportunities and maintaining net debt-free status.
    Our balance sheet continues to remain strong. We maintained a net debt-free position during the period, supported by healthy collections and measured capital allocations... supported by the capital raised through the recent QIP of INR900 crores.

Guidance & targets

Project Potential

  • Bhandup Project GDV Project Potential · future · High confidence INR 2,000+ crores
    All in all, it's a 15-lakh carpet area which is balanced, with GDV of INR 2,000-plus crore, balanced from both these projects.

    — Kaivalya Shah

What to watch in Q3 FY26

Collections growth in H2 FY26

Next quarter (Q3 FY26)
Current Q2 collections INR 191 crores (stable)
Target Strong growth

Why it matters

Collections are crucial for cash flow and maintaining a net debt-free position. Management expects strong growth due to construction progress.

And next quarter also, we will see some good construction progress happening. So yes, collections will be going strong.

Risks & concerns

  • Land acquisition/clearance for Bhandup project (slums, private forest)

    medium

    The difficulty in Bhandup involves demolishing slums, which the company intends to address by working with the Slum Rehabilitation Authority. The issue of private forest land has been resolved by a Supreme Court verdict on November 8, benefiting private landowners.

    Analyst acknowledged

Q&A highlights

8 direct
Projects contributing most to sales growth Direct
Yes. The major project that contributed is actually Futurex. We are seeing phenomenal demand in terms of Futurex sales. In fact, within the building, our existing Grade A clients are demanding extra area. So Futurex as a commercial asset is doing superbly well. And along with it, Monte South and Nexzone are supporting the sales growth as well.

Identifies the key growth drivers for the quarter's strong sales performance.

Asked by Mihir Desai

Collections outlook for H2 FY26 Direct
So collection is a factor of percentage completion in terms of the milestone of that specific building. So as and when the progress of the project happens and which is happening rapidly, especially in Monte South, if you look at it, Tower B, we have topped out in terms of 65 floors in terms of RCC... And next quarter also, we will see some good construction progress happening. So yes, collections will be going strong.

Clarifies the quality of collections and provides a positive outlook for future cash flow based on project progress.

Asked by Mihir Desai

Unsold inventory position and sales pace Direct
All in all, ready-to-move-in inventory is around INR340 crores worth. And that -because it's a ready building, the demand is high for ready-to-move-in units. So we will be selling that on a super-fast pace.

Quantifies ready-to-move-in inventory and indicates strong demand, suggesting quick monetization and cash generation.

Asked by Mihir Desai

Strategy for premium vs. affordable housing and market trends Direct
Basically, our portfolio is spread across premium and affordable housing... So we have, see, basically in the premium, what we are talking is between INR 3.5 crores to INR7 crore kind of a market in South Mumbai... But particularly, this INR3.5 crores to INR7 crores market is still going strong.

Details the company's product mix and identifies a strong, high-value segment within the premium market that is performing well.

Asked by Mihir Desai

Macroeconomic environment and real estate demand Direct
We actually, in our micro market, have not seen a slowdown. It's steady and ongoing. And in the Mumbai MMR region, with the infrastructure development push by the state government, we see a really big real estate play still there, particularly in the outskirts.

Reassures on robust market demand in key operating regions, attributing strength to government-led infrastructure development.

Asked by Kinsisha Sharma

Buyer sentiment and pricing trends Direct
in the Panvel project we have seen an escalation of almost 5%-6% in price... And we've seen similar, or probably percentage or 2% more, increment in pricing in Futurex as well.

Provides specific pricing growth figures in key micro-markets, indicating healthy demand and realization per square foot.

Asked by Kinsisha Sharma

Monetization strategy for large land banks (Panvel, Dombivli, Bhandup) Direct
So yes, we have large land banks in these three areas... We are doing self-development as much as we can... The other strategy is B2B sales... And we can also employ strategic partnership... we intend to do large-scale township there.

Outlines a multi-pronged and flexible strategy for unlocking value from significant land holdings, including self-development, B2B sales, and partnerships.

Asked by Varun

Bhandup project potential and timeline Direct
So Bhandup project, we already announced today morning that we are launching an INR 370 crore GDV project. The area is 2.2 lakh square feet. Going forward, our focus is on Neovalley and Neopark... All in all, it's a 15-lakh carpet area which is balanced, with GDV of INR 2,000-plus crore, balanced from both these projects.

Provides specific details and long-term potential for a key project in a strategic micro-market, highlighting significant future GDV.

Asked by Jignesh

3 min read 6 chapters

Detailed narrative

Q2 & H1 FY26 Financial Performance Highlights

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.

Project Progress and New Launches

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.

Sales, Bookings, and Collections Performance

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.

Balance Sheet Strength and Capital Allocation Strategy

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.

Market Outlook and Infrastructure-Driven Growth

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.

Land Bank Monetization and Future Potential

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.

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