Max Estates

The Indian real estate market continues robust growth, with Delhi NCR leading. The sector saw strong sales and new launches driven by increasing disposable income and infrastructure upgrades. Commercial real estate witnessed record office leasing activity, with gross office leasing transactions increasing by 27% in 2024 to 79 million square feet, surpassing pre-COVID levels. Delhi NCR accounted for approximately 15% of this volume. Residential sales reached a 12-year high, particularly in the INR 20-50 million segment, which grew 62% year-on-year.

Max Estates achieved INR 5,200 crores in presales for the first 9 months of FY25, marking a nearly 300% year-on-year growth. Total residential collections for the same period stood at INR 1,195 crores. The company reported a revenue of INR 121 crores, EBITDA of INR 35 crores, and a profit after tax of INR 12 crores for the 9-month period. Lease rental income grew 87% year-on-year to INR 83 crores, with Max Asset Services contributing INR 30 crores in revenue.

The company acquired a 10-acre land parcel in Noida (Sector 105) for INR 710 crores, adding 2.6 million square feet of mixed-use development potential with a gross development value (GDV) of INR 3,000 crores. This acquisition involved an upfront payment of INR 284 crores, with the balance payable in 8 half-yearly installments at 10.5% interest. Max Estates now boasts a diversified portfolio of 17 million square feet across Delhi NCR. A robust pipeline of 7 million square feet with a GDV potential of INR 14,000+ crores is planned for FY26 and FY27, with INR 14,000 crores of GDV potential already secured for launch within the next two years across projects in Gurugram, Delhi One, and Sector 105.

Max Estates' commercial portfolio is set for significant growth, with an expected INR 725 crores in annuity rental income over the next 5 years. The newly acquired Sector 105 project is projected to generate INR 140 crores in annuity income, and the Delhi One project is expected to add INR 120 crores. The company is also consolidating its ownership in Max Towers, increasing its annual rental potential from INR 42 crores to INR 50 crores. Max Square achieved 93% occupancy with a rental premium over 25% compared to the micro-market, including a large 150,000 square feet GCC deal.

The company maintains a strong liquidity position with INR 1,600 crores in cash and cash equivalents, resulting in a net cash surplus of INR 300 crores. Gross debt stands at INR 1,125 crores, including INR 800 crores of lease rental discounting debt. Max Estates plans to deploy INR 875 crores in its commercial portfolio over the next two years, funded by equity from New York Life and debt from a consortium led by SBI and ICICI Bank. An additional INR 5,000 crores is earmarked for residential development of already launched assets, to be funded by sales receivables.

Max Estates aims to achieve cumulative presales bookings of INR 21,000 crores over the next three years, targeting a 15-20% year-on-year growth. The company plans to add at least 3 million square feet of development potential annually, with a GDV potential addition of INR 4,000-5,000 crores in FY26. Major project launches, including Gurgaon 18.23 acres (Phase 1), Delhi One, and Sector 105, are scheduled to commence from Q2 FY26. The company is also exploring opportunities related to the Delhi land pooling policy, which could offer a significant asset-light growth avenue.