Marathon Nextgen

Marathon Nextgen Realty Limited reported its highest-ever full-year profit after tax (PAT) of ₹190 crores for FY25, marking a 13% year-on-year growth. The total revenue for FY25 stood at ₹676 crores, with an EBITDA of ₹269 crores. For Q4 FY25, the company recorded a total revenue of ₹188 crores, EBITDA of ₹80 crores, and PAT of ₹54 crores. The company highlighted its consistent growth, achieving four consecutive years of profit after growth at a compounded annual growth rate of 48%.

The company achieved a substantial reduction in its net debt by over ₹200 crores during FY25, a 28% reduction from FY24. As of March 31, 2025, the net debt stood at ₹542 crores, resulting in a healthy net debt to equity ratio of 0.46. Management also reported a reduction in the overall cost of debt during the year. A portion of the debt portfolio includes lease rent discounting, and the company clarified that certain share arrangements are Non-Disposal Undertakings (NDUs) for construction loans, not pledges.

On March 31, 2025, the Board approved a composite scheme of amalgamation to merge assets and projects of promoter entities with the company. This scheme includes 205 acres of land at Panvel, 83 acres at Dombivli, 130 acres at Bhandup, several ongoing projects, and the Marathon Futurex office building in Lower Parel. The amalgamation aims to reduce legal entities, simplify group structure, and bring high net worth projects under the listed entity, benefiting public shareholders. The scheme is subject to regulatory and statutory approvals, which are estimated to take 12 to 15 months.

For FY25, Marathon Nextgen sold 265,376 square feet of area, achieving a total booking value of ₹605 crores and collections of ₹523 crores. The company received occupation certificates for four buildings: Atria and Triton at Nexzone (Panvel), Wing B of NeoSquare (Bhandup), and Monte South A Wing (Byculla) up to the 64th floor. Construction is progressing rapidly across all sites with a focus on quality and timely delivery. The company emphasized its in-house construction management and quality control processes, including the use of software and batching plants.

Management noted that sales realization increased by up to 10% year-on-year in some projects. They expressed confidence in the sustainability of the market momentum, driven by population growth, aspirational values attached to homeownership, and migration into Mumbai. The company anticipates that a potential drop of 0.25 to 0.5 basis points in the repo rate during the year could further boost the real estate market. The company's portfolio spans affordable, luxury, and commercial segments across key micro-markets in Mumbai.

The significant jump in other income was attributed to the profit generated from the sale of investment assets totaling ₹103 crores. These assets were previously completed and either held for leasing or converted into finished inventory, directly contributing to the profit reflected in other income. This sale contributed to the PAT growth despite the relatively flat revenue from core operations.

The company's existing project portfolio includes Monte South in Byculla (four residential towers and one commercial tower), Nexzone in Panvel (25 acres, 19 buildings with four proposed), two clusters in Bhandup (5.8 acres and 14 acres with four ongoing buildings), Millennium in Mulund (commercial project, 1.7 lakh sq ft carpet), and Marathon Futurex in Lower Parel (built, OC-ready commercial building). The incoming land bank from the amalgamation scheme includes 205 acres in Panvel, 83 acres in Dombivli, and 130 acres in Bhandup.