Max Estates Q1 FY27 earnings call

Max Estates reported consolidated revenues of ₹52 crores and a PAT of ₹8 crores for Q1 FY27. The company achieved robust pre-sales of ₹1,100 crores, marking a 5x year-on-year growth, primarily driven by the full sellout of Phase-1 of Terraces at Estate 361. Collections for the quarter stood at ₹575 crores, aligning with historical ranges and enabling self-funded construction without incremental debt on residential projects. Max Asset Services revenue grew 16% YoY to ₹15 crores, while lease rental income from commercial assets increased 5% YoY to ₹40 crores.

The residential segment demonstrated strong momentum, with Phase-1 of Terraces at Estate 361 in Gurgaon contributing ₹500 crores to pre-sales and selling out completely in the launch quarter. The total revenue potential across the launched residential and mixed-use portfolio is ₹17,500 crores, with ₹13,500 crores already sold and contracted. The embedded PBT from the sold portfolio is estimated between ₹4,500-₹5,500 crores. The residential launch pipeline, including unsold inventory and future launches, stands at ₹16,100 crores, with ₹4,000 crores already available for sale this year and ₹12,000 crores planned for new project launches in FY27. The company aims for an annual addition of 2 million square feet of residential development.

All three operational commercial assets—Max Towers, Max House, and Max Square—maintained 100% occupancy, reflecting strong tenant demand. Max Towers continues to command a significant pre-leasing premium, with a recent lease signed at ₹156 per square foot per month, against a weighted average rental of ₹132. Under-construction commercial projects, Max Square 2 and Max District, are on track for occupancy certificates by Q2 FY28 and Q3 FY28/Q3 FY29 respectively, expected to add ₹125 crores and ₹200 crores to the annuity portfolio. The company targets an annual rental income of approximately ₹700 crores at peak occupancy and aims to add 1 million square feet of new commercial business development annually.

Max Estates reported a net debt of ₹234 crores as of June 26, 2026, with gross debt at ₹1,960 crores and cash and cash equivalents at ₹1,727 crores. The company received a first-time issuer rating of A+ with a stable outlook from ICRA, a premium rating agency. This rating is supported by committed receivables of approximately ₹9,500 crores as of March 26, and a cash-flow adequacy ratio of about 105%, indicating strong coverage for pending construction costs and residential debt. Management projects annual collections of ₹2,500-₹2,700 crores and an Operating Cash Flow (OCF) of ₹750-₹1,000 crores for the current year.

The company remains optimistic about its execution capabilities and pipeline visibility, focusing on organized, trusted, and listed players in the consolidating real estate market. Max Estates views the recently cleared Delhi Master Plan 2047 as a 'transformational policy' for development and housing in Delhi, which could open significant opportunities. The relationship with Antara, a knowledge partner, involves a 9.5% fee on the topline for marketed portions, with Antara's premium pricing offsetting this cost, contributing to an intergenerational community offering.