Max Estates — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Max Estates reported strong presales of over INR 1,900 crores for Estate 361 in Gurgaon, achieving premium pricing and high end-user demand. The company also secured a substantial pre-lease for its Max District commercial project, highlighting robust leasing momentum. With a launch pipeline of INR 14,500 crores GDV and aspirations to add 1-2 million sq ft residential and 1 million sq ft commercial annually, Max Estates is focused on growth in the NCR. Net debt increased to INR 414 crores due to strategic land acquisitions.

Highlights

  • Presales of over INR 1,900 crores in Gurgaon for Estate 361, with 60% of launched inventory sold in 35 days.

  • Average price realization in Estate 361 at INR 22,000 a square foot, reflecting a significant premium to micro market and previous launch.

  • Strong leasing momentum with pre-leasing 200,000 square feet at Max District, Gurugram, securing gross rentals of over INR 270 crores over the lease period, concluded 2.5 years ahead of project completion and at a 35% premium.

  • Overall commercial portfolio poised for an annuity rental income potential of more than INR 700 crores annually.

  • Consolidated lease rental income up 38% year-on-year to INR 115 crores in 9 months FY26.

Concerns

  • Net debt increased to INR 414 crores as of December 2025, from a net cash position, due to deployment of cash for new land acquisitions and project spends.

  • Reported operating margins for Q3 FY26 were impacted by advertising and marketing expenses being recognized earlier than corresponding revenue, though adjusted margins are over 25%.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹150 Cr
  • Consolidated EBITDA
    ₹27 Cr
  • Consolidated PBT
    ₹29 Cr
  • PAT
    ₹20 Cr
  • Lease Rental Income
    ₹115 Cr
    YoY +38%
  • Max Asset Services Revenue
    ₹40 Cr

Q3 FY26

  • Adjusted Operating Margin
    25%

What they filed

Q1 FY27: revenue up 0.9%, net profit down 30.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue40 40 40 51 49 +21%50 +24%49 +24%52 +1%
EBITDA9 12 9 14 10 +18%3 −75%-3 −135%8 −42%
Net profit-1 16 14 12 8 +667%0 −100%-4 −129%8 −30%
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

₹1,900 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹1,500 Cr

Composition

Mix 4 projects
  • Estate 361 (Phase 1) ₹1,500 Cr 15.9%
  • Estate 360 (existing inventory) ₹400 Cr 4.2%
  • Estate 128, Noida (cumulative) ₹2,700 Cr 28.6%
  • Estate 360, Gurugram (cumulative) ₹4,831 Cr 51.2%

Share of order book by project, derived from disclosed amounts

Pipeline

other

Launch pipeline with GDV potential

The company reported strong presales for its new launch in Gurgaon and has a significant launch pipeline for future growth.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹800 Cr
    • Project spends ₹350 Cr
    • Land acquisition (Golf Course Extension Road) ₹450 Cr
    So Pritesh, what is happening, what we have incurred in the current quarter is a number in and around INR350 crores on the project. In addition, in the current quarter, we also paid out for the new acquisition, which we did on the Golf Course Extension Road, which had an outlay of close to INR450 crores.
  • Debt Gross ₹1,700 Cr · Net ₹414 Cr
    The debt as on December '25 stood at INR1,700 crores, including LRDs of INR1,000 crores. Cash and cash equivalents as of December '25 stood at INR1,284 crores, resulting in the company having a net debt of INR414 crores.
  • Liquidity Cash ₹1,284 Cr Cash and cash equivalents as of December '25 stood at INR1,284 crores.
    Cash and cash equivalents as of December '25 stood at INR1,284 crores

Guidance & targets

Volume

  • Residential segment addition Volume · every year · High confidence 1-2 million square feet
    In addition, the company aspires to add between 1 million and 2 million square feet in the residential segment every year.

    — Sahil Vachani

  • Commercial office space addition Volume · every year · High confidence 1 million square feet
    Here as well, we aspire to add 1 million square feet of the commercial office space segment every year.

    — Sahil Vachani

Revenue

  • GDV of Noida residential launches Revenue · Q4 FY26 · High confidence INR 4,000-5,000 crores
    Max Estates is now planning launches, aggregating about INR4,000 crores GDV in Noida... targeted for Q4 FY '26.

    — Sahil Vachani

  • Annuity rental income potential (commercial portfolio) Revenue · annually · High confidence more than INR 700 crores
    Overall, commercial portfolio is poised for an annuity rental income potential of more than INR700 crores annually on a 100% basis across delivered and under-construction assets over the next few years.

    — Sahil Vachani

  • Sponsor land bank GDV potential Revenue · High confidence upwards of INR 10,000 crores
    As per the current guidelines of the land pooling policy that are in place, we are talking about a potential revenue of upwards of INR10,000 crores of GDV.

    — Sahil Vachani

Collections

  • Total collections Collections · FY27 · High confidence INR 2,800-3,000 crores
    No. It will come it will more range close to in the range of INR2,800 crores to INR3,000 crores.

    — Nitin Kansal

Sustainability

  • Renewable energy usage Sustainability · by 2030 · High confidence 50% of portfolio's energy usage
    This marks the first move towards Max Estates' long-term goal of shifting 50% of our portfolio's energy usage to renewable sources by 2030, aligned with India's climate pledge.

    — Sahil Vachani

What to watch in Q4 FY26

Final RERA approval for Max Estates and 105

Next quarter
Current Building plans received, awaiting final RERA approval
Target Final RERA approval obtained

Why it matters

Essential for launching the new projects in Noida (Max One and Sector 105) which are key to Q4 FY26 launch targets and future presales.

We've received building plans. We are just awaiting the final RERA approval... Very shortly.

Risks & concerns

  • Increase in net debt due to land acquisition and project spends.

    medium

    Net debt increased to INR 414 crores as of December 2025, from a net cash position, due to INR 450 crores spent on a new land acquisition and INR 350 crores on projects.

    Management acknowledged

  • Impact of accounting standards on reported operating margins.

    low

    Advertising and marketing expenses are recognized when incurred, while revenue is recognized later, temporarily depressing reported operating margins. Adjusted operating margin for Q3 FY26 would be over 25%.

    Analyst acknowledged

  • Delays in Delhi land pooling policy approvals.

    low

    No incremental progress on the Delhi land pooling policy, which could impact future project additions in Delhi, though management remains hopeful for resolution in the coming year.

    Analyst acknowledged

Q&A highlights

8 direct
Gurugram project (Estate 361) sales performance and end-user demand. Direct
absolutely, we see for us, particularly of the inventory that we've sold almost 66% to 70% is driven by end users... we have been able to have a good premium, not only to the micro market but also to our previous launch of Estate 360.

Highlights strong market acceptance and premium pricing power for Max Estates' residential offerings, driven by genuine end-user demand.

Asked by Mohit Agrawal

Max District, Gurugram pre-leasing terms and value. Direct
The leasing which we have done in Gurugram in Max District, what we have been able to better what we had estimated in our projections of INR723 crores centers on a full blown basis... This is again for a 9 years period with the same standard template of 3 plus 3 plus 3, with an escalation... Yes, yes. That also includes that. It's 15% every 3 years.

Confirms a significant pre-leasing deal at favorable terms (9 years, 15% escalation every 3 years) and exceeding internal projections, validating the commercial strategy.

Asked by Pritesh Sheth

Operating margins for Q3 FY26 after adjusting for marketing expenses. Direct
Yes. I think rightly pointed by Ronald, because of accounting standards, the advertising and marketing expenses go in the P&L at the -- when incurred and the revenue comes later. If we adjust for that, we would be looking at an operating margin in excess of 25%.

Provides clarity on the underlying operational profitability, which might be obscured by accounting treatment of marketing costs in the reported financials.

Asked by Ronald Siyoni

Capital expenditure and land acquisition spends in Q3 FY26 and impact on net debt. Direct
what we have incurred in the current quarter is a number in and around INR350 crores on the project. In addition, in the current quarter, we also paid out for the new acquisition, which we did on the Golf Course Extension Road, which had an outlay of close to INR450 crores... So if you say that debt number has not gone up since the cash got deployed in the new acquisition, the net debt number has come up.

Explains the increase in net debt, attributing it to strategic land acquisitions and project spends rather than operational cash burn, which is crucial for assessing financial health.

Asked by Pritesh Sheth

Expected collections for FY27 from existing and new project sales. Direct
From the existing sales, what we're expecting to make a collection in the range of INR1,500 crores to INR1,750 crores and an incremental number of INR1,000 crores to INR1,300 crores to come from the new sales... No. It will come it will more range close to in the range of INR2,800 crores to INR3,000 crores.

Provides clear forward-looking cash flow visibility, a key metric for real estate developers, indicating strong liquidity from ongoing and upcoming projects.

Asked by Samarth Agrawal

Geographic strategy and focus on NCR, and confidence in office leasing demand. Direct
At this stage of our journey, we remain committed to the National Capital Region... we are in Gurgaon and in Noida, which are 2 very large micro markets of the NCR market... we continue to remain very optimistic. And particularly with the brand, the track record and the experiences at Max Estates has already set up for its commercial offering.

Reaffirms the company's focused strategy on the NCR market, highlighting confidence in both residential and commercial segments within this region, and the brand's competitive advantage.

Asked by Amit Agicha

Project margins for outright purchases vs. Joint Development Agreements (JDAs). Direct
in the case of Estate 28, we would be having margins in the range of 40% to 45%, which is an outright asset. And in the case of Estate 360 and 361, which are in the nature of joint development agreement, we will have margins of 22%, 25%. But interestingly, both the projects will have IRRs of the same nature because the capital deployed on the JDA is significantly less as compared to an outright purchase.

Clarifies the profitability profiles of different project structures, showing that while JDA margins are lower, the capital efficiency leads to similar IRRs, which is important for capital allocation decisions.

Asked by Varun Bahl

Revenue potential of the sponsor land bank and timeline to become a dividend-paying company. Direct
that is obviously a 100-acre land parcel, mostly contiguous. As per the current guidelines of the land pooling policy that are in place, we are talking about a potential revenue of upwards of INR10,000 crores of GDV... We are very hopeful that with the completion of our residential projects in the next 2.5 years, we should get to that point because, as you know, the accounting in the real estate company, the profit will only be recorded on the books once we are able to get the OC.

Reveals significant long-term growth potential from the sponsor land bank and provides a timeline for when the company expects to start paying dividends, linking it to project completion and OC receipt.

Asked by Vikas Atri

3 min read 6 chapters

Detailed narrative

Strong Residential Presales and Premium Realization

Max Estates reported robust presales of over INR 1,900 crores in Gurgaon for Estate 361, with 60% of the launched inventory sold within 35 days. The average price realization for Estate 361 stood at INR 22,000 per square foot, reflecting a significant premium over the micro market and the company's previous launch, Estate 360. Management highlighted that 66-70% of these sales were driven by end-users, underscoring strong demand for their differentiated product offering.

Robust Commercial Leasing Momentum

The company demonstrated strong commercial leasing momentum by pre-leasing 200,000 square feet at Max District, Sector 65, Gurugram. This long-term lease agreement is expected to generate gross rentals exceeding INR 270 crores over the lease period. Notably, this transaction was concluded 2.5 years ahead of project completion and achieved a 35% premium to prevailing micro market rentals, validating the company's commercial strategy and brand strength. The overall commercial portfolio is projected to yield an annuity rental income potential of more than INR 700 crores annually.

Strategic Land Acquisitions and Pipeline Expansion

Max Estates expanded its land bank by acquiring development rights on a 7.25-acre parcel in Sector 59, Gurugram, with a GDV potential exceeding INR 3,000 crores, slated for launch in FY27. Additionally, a 10.33-acre land parcel was acquired in Sector 105, Noida, with Phase 1 alone offering a GDV potential of over INR 3,000 crores. These acquisitions contribute to a substantial launch pipeline with a total GDV potential of about INR 14,500 crores, reinforcing the company's growth strategy in the NCR.

Financial Performance and Debt Position

For the nine months ending December 2025, Max Estates reported consolidated revenue of INR 150 crores, EBITDA of INR 27 crores, and PAT of INR 20 crores. Lease rental income grew 38% year-on-year to INR 115 crores. The company's net debt stood at INR 414 crores as of December 2025, an increase from a net cash position, primarily due to the deployment of approximately INR 450 crores for new land acquisitions and INR 350 crores on ongoing projects during the quarter.

FY27 Collection Targets and Project Margins

Max Estates anticipates robust collections for FY27, targeting INR 2,800-3,000 crores from a combination of existing sales (INR 1,500-1,750 crores) and new sales from upcoming launches (INR 1,000-1,300 crores). The company clarified its project margin profiles, with outright assets like Estate 28 yielding 40-45% margins, while Joint Development Agreements (JDAs) such as Estate 360 and 361 are expected to have 22-25% margins. Despite the difference, both models are designed to achieve similar Internal Rates of Return (IRRs) due to varying capital deployment.

NCR Focus and Sustainability Initiatives

The company reiterated its commitment to the National Capital Region (NCR), focusing on both Noida and Gurgaon as key micro markets for residential, senior living, and commercial developments. Max Estates aims to add 1-2 million square feet in residential and 1 million square feet in commercial space annually. In sustainability, the company initiated solar power sourcing for its Max Square project, marking a step towards its long-term goal of shifting 50% of its portfolio's energy usage to renewable sources by 2030.

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