Marathon Nextgen Realty Limited

Marathon Nextgen Realty reported its highest-ever nine-month Profit After Tax (PAT) of INR 161 crores for FY26. The company achieved post-merger area sales of 2.46 lakh square feet, with a booking value of INR 628 crores and collections of INR 798 crores for the nine-month period. Total revenue for the nine months stood at INR 487 crores, driven by robust commercial and steady residential contributions, with a 60% residential and 40% commercial mix in top-line revenue.

The company remains focused on the Mumbai Metropolitan Region (MMR), benefiting from significant infrastructure projects like the Navi Mumbai International Airport and Atal Setu. Management highlighted that these developments are enhancing connectivity and driving demand in peripheral areas, where the company holds substantial land banks in Panvel, Dombivli, and Bhandup. This strategic presence positions Marathon Nextgen to capitalize on the region's growth, with a strong belief in sustained momentum through FY26 and beyond.

Monte South, a premium residential project, continues to see steady sales of approximately INR 100 crores per quarter, with Tower B securing OC up to the 45th floor and full OC expected by December 2026. Nexzone Phase 2 in Panvel is set to receive OC for two towers by the end of FY26, with the remaining two by Q2 FY27. New launches include Nexzone Phase 3 in Panvel (4.9 lakh sq ft, GDV INR 600 crores) and Bhandup Neo series (GDV INR 170 crores), alongside Marathon Nextown and Nexworld in Dombivli, expected to generate 7-8 lakh sq ft of presales in the coming year.

Marathon Nextgen has achieved a net debt-free status, with current balances exceeding its minimal outstanding loans of approximately INR 20 crores. A significant portion of the QIP proceeds, around INR 340 crores, was utilized for debt repayment, contributing to this strong financial position. The company also acquired a 90% stake in Sunset Spaces Private Limited for INR 8.10 crores, adding two projects in Dombivli (75,000 sq ft each) to its portfolio, which will start recognizing revenue from March.

The merger and amalgamation process is progressing, with approvals from NSE and BSE already secured, and SEBI's due diligence in its final stages. Post-SEBI approval, the NCLT process is expected to take 6-7 months. The merger is anticipated to add approximately 400 acres of land in Panvel, Dombivli, and Bhandup. While analysts questioned the pace of redevelopment project announcements, management emphasized the lengthy due diligence required for such projects, stating that 45-50 projects have been evaluated, with announcements pending definitive agreements.

Management expressed optimism about the real estate market in MMR, citing stable interest rates, a shift towards quality developments, and sustained economic momentum. The company noted a 10% increase in sales value and realizations for its Futurex commercial project compared to the previous year, indicating strong demand and pricing power in its key assets. The consolidation trend in the industry is also seen as beneficial for the company, with new proposals coming from other developers.