MODIS

Modis Navnirman Limited achieved its highest-ever revenue and profitability in FY26. Revenue from operations surged by 84% year-on-year to INR189 crores, up from INR102 crores in FY25. EBITDA also saw a significant increase of 35% year-on-year, reaching INR38.46 crores compared to INR28.47 crores in the prior year. Profit after tax grew by 26% to INR29.14 crores, resulting in an improved EPS of INR14.89.

The company successfully completed and handed over two major projects in FY26. Rashmi Vasudev in Borivali West saw the handover of 90 residential units. Additionally, Rashmi Celestia on LT Road in Borivali was completed, comprising 81 residential units and over 10,500 square feet of commercial space, including 23 commercial shops. These completions underscore the company's strong execution capabilities and timely delivery.

Modis Navnirman boasts a strong project pipeline, with 12.5 lakh square feet currently under construction and an additional 9 lakh square feet in the pipeline for upcoming projects. This includes recently acquired projects like Rashmi Sheetal and Rashmi Gold, as well as projects under approval such as Rashmi Paradies and Govind Dalvi Nagar, with execution for Rashmi Paradies expected to commence in Q1 or Q2 FY27. This portfolio provides strong visibility for future revenue growth.

The company reported healthy sales demand, with 4.92 lakh square feet already booked out of a total project portfolio of 7.5 lakh square feet, leaving 2.40 lakh square feet of available inventory. Projects like Rashmi Kavita, Rashmi Vasudeo, Rashmi Celestia, Rashmi Enclave, and Jewel are fully sold out. Rashmi Square has achieved 69% booking, and Rashmi Signature is at approximately 50% booking, with management expecting it to reach 75% in Q2/Q3 FY27.

FY26 was marked by significant strategic milestones, including the migration from BSE SME to the BSE Main Board and NSE Main Board, reflecting growing scale and governance. The company also completed the merger of its private entity into the listed entity and established the Modis Navnirman Foundation for CSR. Management expressed optimism about the Indian real estate sector, expecting substantial growth driven by urbanization, infrastructure development, and redevelopment opportunities in Mumbai.

Modis Navnirman maintains a debt-free model despite rapid growth, emphasizing low leverage and disciplined capital allocation. The company relies on healthy operating cash flows and internal utilization of funds from high-profit margin projects like Rashmi Signature and Rashmi Square to fund new developments. This asset-light expansion strategy allows for responsible scaling without incurring unnecessary balance sheet risk.

While margins saw some moderation in FY26, management attributed this to project mix, execution, and increased construction costs, particularly impacting Rashmi Square and Rashmi Signature due to raw material price hikes. They consider this temporary and expect margins to bounce back to previous levels in FY27, aiming to restore the EBITDA margins achieved in FY25 (approximately 28%).

The company is actively pursuing geographic expansion, targeting South Bombay areas like Dadar, Khar, and Parla, where it is in advanced stages for new projects. For instance, a project in Khar is expected to command a sale rate of ₹45,000-50,000 per square foot. Modis Navnirman is also exploring opportunities for township projects outside Mumbai, contingent on securing suitable land and locations.