Mahindra Lifespace Developers Limited (NSE: MAHLIFE) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Unidentified Speaker
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Presentation:
Unidentified Speaker
Good evening everyone. We are here for the Q3 Q3 update. For the minor ice passes we are presenting the investor presentation for the quarter ended December 25th for financial year 2526. Now I will hand over to our CFO and our CEO Mr. Mr. Amit Sinha to take out through the Q3 journey of Mindalaispace.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Yeah yeah. So this is Amit I think and then I’ll request Sriram. So as you know last quarter Sriram was still coming on board to the full CFO role. So this is the first quarter where he is taken over the full cfo.
So he’ll be jumping on separately. Meanwhile I will take you through the short presentation. So can you just go to the next slide? Okay just a second. Hopefully you can see the screen. Can you go to next slide? We press ok on that. I won’t spend too much time on this. The strategy part we don’t have many changes to it but the only point to Note is our GDV edition is at roughly 47,000 crore which is being executed. Rest of the elements of our strategy stays consistent with the past discussions. Let me share a quick update on our overall business.
First and foremost I think on the residential side we have reported a pre sale of 572 crores. We are at roughly 17731800 crore in the nine month period. We’ve had some very successful launches this year so far. New haven in Bangalore, Marina 64 in Mumbai, Citadel in Pune and Lakewoods in Chennai. They have been successful launches. Sustainance sales have contributed significant part of our sales so far. Vista in Kandivali, Ivy Lush and Pune, Wagoli, Citadel in Pune and Green Estates in Chennai. They have given us a significant part of our pre sales this year. We also had a very successful launch of Mahindra Blossom in Hope form Bengaluru.
I’ll share the details and highlights later in the presentation. It’s not yet counted. It’s not counted in Q3 because the launch netting etc only happened last weekend. But it’s been very successful For US and Q4 launches I think we’ve got in Maa Lakshmi and Panduk to the last to the finish line. I think the last bit of approvals on the RERA side etc are being filed as we speak. We will hopefully get the RERA in the next next few days. I’m not sure how much of the resale will recognize in this quarter but it will set us up really well for the next quarter on the Execution side there is a lot of momentum.
BD continues to be strong. This has been a concerted effort for us over the last couple of years. The GDV addition for this year so far is 10,600 crores which is solid. We have very strong progress on e. Ec for most of the project. As you know in the last six months or five months ECs have become a requirement before we can get RERA. So that’s why some of the RERA launches are delayed. But it’s a one time correction. Future will automatically get adjusted to the new requirements. We all also achieved quite a number of OCS.
Overall six OCS we have received in the last 45 days. Some are captured in our the 31st December quarter end and there are two or three. Three. Three are captured before the 31st December and three are after. But most of the valuable ones are captured in December quarter. And given our discussion about de risking execution, we’ve also continued to invest in partnering with tier 1 1.5 vendors especially for Core and Shell and bigger part of the project. Significant investment on the employee side, culture side, training side and culture creation side. On the ICNIC side We see strong leasing activity in Jaipur and Chennai. These are the places where we have good amount of land that is coming for availability. The realization has been quite good, better than what we expected in at the start of the year.
That shows the robustness in the in the demand, in the economy, in the industrial demand. We received the Origins 2a if you recall almost a year back we had shared the details of our partner, our extension of our partnership with Sumitomo that has now been approved which allows us to bring to market our almost 125 plus acres of land for leasing. We are also trying to bring other locations to market such as Ahmedabad. I think we are. Hopefully we’ll start sharing some updates as we get all the clearances, all the approvals and the leasing activity picks up in that area.
Overall financials 9 month consolidated residential and IC sales combined is at 2125 crores Strong pad delivery of 208 crores so far I think for this quarter it was 109 crores right. So it’s a very healthy quarter supported by some of the successful OCS and also a strong IC performance. Collections have been strong for the Resi 1472 crores and ever since we did our rights issue earlier in the year our balance sheet continues to be quite healthy, quite conservative from a net debt to equity ratio of -0.12. So we have more cash available and cost of debt is at a very I would say competitive level at 6.7%.
Obviously it includes CPs as well as other ICDs etc that we have. So it’s a. It’s a low amount of debt and whatever debt we have is at a very competitive rate. If we can move forward. I think you’ve seen a variant of this slide. This is everything that we have done this year. I think the latest one is the extreme right column which is a new society redevelopment clustered of redevelopment. It’s roughly thousand crore. The name of the society Lokman very premium location, very well connected to the eastern highway and I would say near Shivaji Park.
Great location and we are very excited to have won this mandate to pursue this society. This captures the year to date as well as inception to date in terms of the GDV. As you can see current inventory as of 31st December Blossom is included there as inventory. Roughly 1800 crore would be included in that. From Blossom we have Vista, Ivy, La Citadel, New Haven Green Green Estate are small but the first four are quite big. In fact the biggest is Blossom and that gets consumed significantly in this quarter. The part B is future phases of current projects.
Citadel phase three which is quite large. Citadel commercial another big one, Marina 64 is the plot a part which is expecting the RERA anytime, Lake woods and others together. So that’s 2,600 crore and then pipeline projects which are yet to be launched, captured long list all the way from Santa Cruz west which is Westera all the way to Matunga which is the recent win that we have and then some of the other strategic projects which are Jaipur and Muru that have significant potential but yet we have not given them full value because we need to first get them moving and then really extract full value through design and execution.
So overall 47,046, 770. 46,000. 47,000 crores of GDV which is with us today and we only hope that it goes forward aggressively. This chart you have seen before in terms of how we are planning. I think this looks good if I tell you that Mahindra Blossom in the last weekend itself, one weekend when we did all the netting etc. Did more than thousand crores of selling, we have not captured that number because that will be in Q4. But if you add that thousand plus crore just from one weekend and then add other sustainable sales and the remaining two months of sales for Event Blossom, I think we are looking at a healthy growth in our sales numbers.
The good news is that if the moment we get approvals we generally have a very strong sales performance. So given the point I mentioned earlier about ec if we didn’t have the delay we would have seen many more renal launches with significant time for us to prime the market and convert into sales. So blossom has happened. Marina 64 is happening right as we speak. Hopefully RERA anytime and then Beacon Hill and Barduk they will happen hopefully later part of this quarter. But the impact might be coming in the Q1 of our next financial year. Yeah, go ahead.
Our march towards 10k vision stays healthy. You’ve seen the GDV 47,000 crore but this phase lays out how we are thinking about our projects and how they fit into our 10,000 crore journey. 9,500 coming from Resi, 500 coming from IC Business and we had we have a few holes to fill. I think slowly we are filling all those hill all those holes as well. And our goal is not to not to wait for these years to convert them in them into sales like Matunga and chamber in AV2. A lot of effort are already underway to move them by at least a year.
So hoping that we achieve our aspirations sooner than later. Go ahead. IC Business continues to be very healthy. We are quite pleasantly surprised with the buoyancy in the business. It’s just an example oc2a took almost a year for us to get all the approval and everything. But looking at the demand I think we have sold almost 50% or we have already done LOI for almost 50% of that in the 30 days and obviously they were in the pipeline for a long time. But there is a lot of demand for strategic industrial clusters and we have the inventory at the right place and there is a lot of preference for our kind of industrial park then the competition.
So we see tremendous growth in that. We expect that business to continue to grow at a healthy rate even in quarter four given the pipeline that we have. Right. So it’s a good, good traction we are getting in our industrial business. I’ll share more update at the in quarter after the quarter four so we’ll have full visibility of how the performance is going to be for this financial year. Go ahead. On this page it shows that you know many of our peers in this industry have plotted which gives them short term profitability given the accounting rules that benefit plotted for us IC business is the plotted it’s industrial plot, not residential plots.
So slightly different but it shows you how much gross area and net leasable area we have which can be monetized similar to the plotted that some of our peers have in the residential side. It’s not that we don’t have plotted on the resi side we’re building that business but industrial plot business gives us tremendous strong starting point as we as we look at the overall residential plus industrial business rather than industrial alone and residential. So good amount of opportunity to be monetized from our IC business. Yeah. Let me pause here and then request Sriram to jump in on the financial side.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Thanks. So on the financial side at an overall level we had Q3 residential sales of 572 crore against 334 crore in in the prior year. And for the nine months ended we had 1773 crore against 1749 which reflects you know a 2% growth. But as blossom and you know the other sales are expected to lock in in in Jan, you know this number is expected to surpass you know the prior year numbers of 2804 crores. On the IC and ICI side the performance continues to be really robust. In the nine during the nine months period we have grown close to 30% and the pipeline looks very strong.
We had just unlocked OC2A in December 25th and we are you know we are already seeing good traction for IC leasing in in our origins Chennai location. So looking ahead for a good Q4 from from the IC side on the GDV side we had done 10,560 crores. This is on the back of 18,000 we did last year. So the GDV momentum continues to be very robust. And you know we the additions that we have made so far in this year, you know are a good mix of redevelopment outright transactions across Mumbai, Pune and Bangalore which are our core markets.
The residential collections were at 1472 crores. Again you know an 8% growth over prior year. That said the OCS that we received in December we actually got it towards the fag end. We will expect to catch up on the residential collections in Q4 of this year. The balance sheet continues to be healthy with negative net debt to equity ratio of 0.12 and the cost of debt for us is currently at 6.7% versus 8.9% a year before 1. So this is the segment results which we had started publishing a few quarters back. As you can see with the OCS coming in in the December quarter for the entire nine month period we have a residential path of about 43 crores.
The Q3 residential path was almost 64 crores which is a reflection of the OCS that we received which is primarily Eden Phase 1, Nostalgia Phase 1 and our project in Chennai Happiness, those got the OCS and the profitability reflects a decent portion of how profitable these projects are. And effectively the IC and IC business continues to be very robust. You can see the there has been an increase in the acreage least from 47 to 53 crores. But more importantly the realization has also been high. And the EBITDA margins and the packed margins from the IC business continues to trend up with solid leasing activity across Jaipur and Chennai.
On the cash flow side for the nine months ended we did operating cash flows of roughly 558 crores. There was investing and financing cash flow as well of 250 crores. So overall we ended with 724 crores of closing balance which includes, you know our balances under under RERA accounts. On the land outflows you would see it’s 802 crores compared to 715 last year during the same time. And it includes the transactions that we had done for the nine months ending December 25th. This is one slide we added based on the discussions we’ve had with you in the past.
So we brought it back to show the cash flow potential from our existing GDV existing projects. It says it’s about 13,065 crores. The big disclaimer is it does not include Thane, Pink and Muroot as yet. If we include that we could add another, you know roughly 30003000 ish crores.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Pink is Jaipur,
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Pink is Jaipur. Yeah, sorry, Jaipur Residential.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
I think for the next meeting we’ll add Thane as we are advanced stage of design and whole planning phase. So we’ll include that absolutely.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Next page. So on the P L side for the quarter ended we did about 109 crores of pat. And for the Q compare this. Comparing this against the last quarter which was about 48 crores and Q3 of last year was minus 23 crores. So overall for the nine month ended we did 208 crores against negative 24 crores for the same nine month period last year. Moving on to the balance sheet as we did the rights issue in Q1 of this year the net worth reflects the equity portion of the rights issue. The use of proceeds of the rights issue was to pay down the long term debt which we had done about 918 crore has been completely paid out.
And on the inventory side you would see that the inventory has gone up from 4400 to almost 5600 crores. This reflects the new projects that we have added. We also had Luminaire which actually became 100% subsidiary this year. So that also got added to our inventory in this quarter. So overall looking healthy with our, you know, with our balance sheet position. Yeah, I think with that we will sort of open it up for questions and you know, take care, take any. I have to take questions. Okay. I think we’ll take Parikshit’s question first. So he was asking about the response for Blossom which I think we addressed.
He’s asking on GDB launches and sold the amount we sold for Blossom and on the PD he had said we had already done 10,600 crores for the nine months ended. Where are we likely to end up in FY26 and when is Marina 64 getting launched? That’s the other major question.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Yeah. So let’s start with the bottom. Marina 64 anytime now parikshit. I think it’s. It’s been through the RERA approval process for, for a few days now. There were some questions that came up. We have addressed them, most of them. So we expecting any time. So should be, should be maybe let’s say a week to 10 days is what I’m hoping. So Marina 64 but plot B and C is in healthy shape. We’ve captured that sales already in our pre sales number. That’s. That’s one second is gdv. I think we don’t, as we have spoken in the past, we don’t have a GDV target per se.
I think we want it to be healthy so that our 10, 000 crore journey is viable. Is is likely to happen in a predictable manner. And I think we have, we have gotten quite close to that from our portfolio. Now how can we get the right GDB that gives us right mix of geographic spread, right mix of great locations where projects are quite successful. Fortunately we have got a large number of deals coming our way. Given some of the, some of the traction we have gotten with playing in the market in a. In the right way.
When we don’t like the deal, we say no immediately. When we like the deal, we take it to the logical conclusion and we move fast through it. So I think many players in the industry, landowners, partners prefer that clarity of thought. So we have good deals to choose from. We are given the portfolio that we have, the pipeline we have. We will always choose deals that will be, that will be good deals for us at a great location. So that’s a fundamental principle I’ve set for the team and we have good number of deals so hopefully some good deals will close that are in the pipeline evaluating but hopefully at good terms.
So that’s part one and part two and the same question is I think we also see a little bit of correction moderation happening especially on the luxury side. You see a lot happening in the NCR region where we are not playing right now from a sales perspective. So we also have a view that as market slows down a little bit our strategy is going to work out really well. We have great customer pool because of our brand. We are not trying to play in segment that is likely to see significant slowdown like affordable. You have seen in the last few years luxury might be slowing mid premium, premium segment that will continue to have good demand and as long as we keep the ticket price I would say optimal, I will not use the word affordable optimal.
We’ll continue to have takers for our kind of brand from the organic demand that exists with end users. And we always prioritize end users over channel partners. We want customers who are going to live there to buy our homes and I think hopefully that allows us to continue to gain momentum. And in that context Mahindra Blossom is a shining example. We didn’t have to do a lot. We did. We started marketing only after we got RERA. In one weekend we did more than thousand crore. Total GDV is 1800 crore. And I think we continue to maintain the momentum at Mahindra Blossom and our goal is not to do a sellout.
I think right now we got in good traction, good velocity. Our goal was to sell 50 to 60% and we have got into that level already and we’ll see you know how the market shapes up how the as a construction we already have EC so we’ll start the construction immediately and hopefully we’ll have more appreciation for our customers and a fast execution to OC even for Blossom. So that’s quick answer to all the questions that Parikshit asked, right? Hopefully. Right.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
One more question. Generally you’ve been asked by everybody that status on Bandu if we can highlight about the approval status and how we are looking at launch and also with.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Yeah so ondoop I think positive news. I think concessions that happened IOD has been has happened. Now you have received EC also last week or 10 days back. So now we are filed for CC. Right. And then so I think it’s a question of CC takes I think anywhere from 2 weeks to 20 days and same time for RERA if everything is aligned. So we are looking at maybe a month, maybe March 10th is the time frame we have which could be that you know when we get all the approvals on, on, on for RERA for, for us to launch including re.
So that’s Bhandu and then Lokhandwala. I think Lokhandwala is at the design and you know, stage of alignment with the societies. I think it will take some time because it’s a marquee location, marquee project for us. We want to invest enough time to make sure that the designs, planning, the approval process etc is in the right shape. So maybe in the next meeting when we have I’ll give more concrete details of Lokhandwala as a specific project. But I think typically it takes you know anywhere from 15, 18 months to 2 years for us to launch society redevelopment project.
Sometime even longer as we have seen.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
There are some questions on market. I’ll bunch them up basically if we can outline on what the, how we see the market again if we can also outline the demand we see by cities in our core markets how do we see the demand going there and any sort of sluggishness that we are seeing.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Yeah, so, so I’ll give, maybe I’ll make four or five points there. The first and foremost is we look at overall inventory overhang. Right? Inventory overhang has gone up from roughly 13 months to now 15 months. So there is, there is slight slowdown that we have seen in the compared to last year. But a real slowdown in the industry when this number crosses 30 or 36. Right. You have two and a half, three years of inventory sitting and the market pickup is low. Right now we are just over one year which is still quite healthy.
You could, so that’s point one. So it’s slightly inventory overhang is higher. Second is we see slowdown. Obviously we talked about affordable but lately we have started to see slowdown wherever the luxury projects are happening. And I’ll give the example of Gurgaon for example. There are very few projects which are like where you can buy a 2 bedroom, 3 bedroom for 2 crores to 3 crores, right? Most of the homes are 7, 8, 9, 10 crores plus. And we see slowdown that’s happening in that segment. It will take some time for us to see the correction.
But it’s important for us to note that the number of buyers for that size, that ticket size, you know is not as high as there is for mid market and premium products. So we are, when we look at the market we not only look at the units but also look at square foot. We also look at the pricing. You get a true sense of what’s happening. So the units actually have come down. But that’s not a really bad thing because in Mumbai, for example, the approvals have delayed the number of units in case of most of the.
In the past the square foot actually went up because many of the places were launching larger side homes, obviously Bangalore, Pune, even Delhi, Gurgaon to a greater extent. And that’s why it has a very big impact on the ticket size. And we believe that if you get the ticket size wrong, you’ll see a sudden change to your velocity because people respond to the price. Velocity is not there beyond a point. So overall we feel slight slowdown is happening now in our context because we have tried to be very careful about the segmentation that we play.
We’re not playing in the luxury segment, right. So we don’t see those kind of headwinds. But we have been affected by the slight slowdown on the approval side. Right. And as we just talked about, Bando, Mahalakshmi, Navy, they are all slightly slower than we would have liked it to be. It should have been a quarter or at least couple of months faster. Would have given a full year impact. But it’s a one time correction that’s happening because of the new regulations where EC is a requirement for CC which leads into rera, but it will get corrected in future cycles.
So I think we have been very focused on our strategy. Mid premium to premium, great locations. Keep the ticket size which is affordable for a big part of that segment and make sure that you’re able to get great locations. Because at the end, real estate, if you find a well connected great location, you’re able to find buyers for it. You’re not betting on future infrastructure, you’re betting on current infrastructure. So my takeaway from what I just said on the market is I think we see some slowdown and more in some of the specific segments or specific markets.
But we are treading the path very carefully so that we are able to manage our, our financial goals, our growth goals in a balanced way. Blossom, for example, is a project where we not only got the velocity but we also got the pricing. And some of our peers are the largest players in Bangalore. We are able to get a premium even on them. So I think a good, good project, good segmentation helps you manage through the slowdown because of the overall buoyancy that we see towards corporate brands like us.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Thanks. I think one question on IC. Yeah what is the value of potential of the 1520 net leasable acres we’d announced and what’s the period for unlocking the potential and the margins that we are seeing on the ground? It seems to be. It seems to be.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
What was the first question again?
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Value potential of the 1520 acres, our IC business?
Amit Kumar Sinha — Managing Director and Chief Executive Officer
15. Oh, 1500.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
1500 acres.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Okay. 1500, yeah.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
About 5000 to 6000.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Yeah, yeah, I think. Yeah. So that slide was. It’s on an average we’ve used three crores, right? Three, three and a half.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Right?
Amit Kumar Sinha — Managing Director and Chief Executive Officer
You want to answer that?
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Yeah, so I’ll take it. So overall value that we are seeing is about 5000 to 6000 crores of sales for the IC business which covers this 1520 acres. The packed potential from this is roughly about 1500 crores over a period of time. I think your question was also on the timeline for unlocking this potential. In our estimate, we think that this will take about, roughly 10 years or so. If you see the 1500 acres, you know, roughly half of it is in, in Jaipur. And we also have locations like Pune, Ahmedabad and Origins Chennai. Origins Chennai phase to be, you know, is yet to be sort of brought to the market.
But we are also working on Origins Pune and Abadabad as well, you know, to sort of bring that into the market. So overall that’s the timeline we are, we are sort of working towards. It could be, it could be quicker as well if you know, the demand continues to see good traction. So yeah, that’s, that’s the answer to this question. I think there are some questions on guidance for 27 and 28. If we can give. I think we stayed away from 20.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
I think we, we first time we’ve given a guidance of 27 at 4,500 to 5,000 crore of pre sales. I think I’ll request allow us to deliver this for us to give you the guidance for the Next, next year F28 I think. But our trajectory, we are in the upward trajectory. Right. We may need to think about if markets slow down significantly. But at this time we’re holding our, you know, target for next financial guidance for the next financial year between 4, 500 to 5,000 crore.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
And there is a question from Charlene from Sears on the Rizzi profitability and which historically has been impacted by the legacy projects. How do we see that tracking over time? So I’ll take this on the Rizzi profitability we saw this this quarter we had done about 63 crores of PAT primarily driven by three critical OCs. We received which is Eden phase 1 towers A and B Nostalgia phase 1 towers ANC and we also had phase 2 of Happiness Chennai that also we received in December. So all of this is contributed to you know, increase in gross margins from the residential side which is trickling down into the profitability.
So net net we were at close to almost you know, 10% of margins which is a. Is a good starting point from the RESI perspective. But as we see more and more residential projects that come up for completion. So we have Eden Phase two, we have a few of the other projects coming up in, you know, in nostalgia alcove luminaire. So all of those are expected to contribute to, you know, our continued pad profitability delivery over time. So that’s. I think I would, that’s where I would, I would kind of say that it’s a, it’s a, it’s a good situation to be in with the, with the resi profitability turning positive from the pad side, you know after, after a long time.
And we, we. With the continued OC delivery we expect to know the endeavor is to maintain that as we, as we go forward. But on the IC side I would say that that’s been a significant contributor and continues to, you know play an important role from the overall company’s profitability. One question on value of FY26 launches and value of FY27 launches. I think on the FY26 launches. Yeah, the launch.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Yeah.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
GDV of. Of the launches that we had.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
So if you exclude Mahalakshmi and it’ll be roughly 3,000, right?
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
3,500.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
3,500 crores, right?
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Yeah.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Handoop and, and Mahalakshi will get launched this quarter our estimate. But most of the sales impact would be in the next quarter. So. So the pre sales of new launches that we have done this financial year will be roughly 3,500crore excluding Bandu, excluding Malaju and.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
And going into FY27 it’ll be somewhere.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Between depending on our success with the launches. But our goal is to take it to somewhere between 5 to 7,000 crore. Right. Because the bandup and Malakmi itself would be quite large depending on the phases. And then we’ll have a couple of other launches to support that.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
I think. One question from Johan on the Sai Baba redevelopment update. Any progress and update on when we are expecting launch on that.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
I think the launch will be in quarter two. Our target is quarter two of next financial year. Most of the groundwork has been done right now. The concessions are underway. So that’s a big if we can get the approval it will trigger all the other activities with the Society on P AAA and the prerequisite plan sanctions towards RERA and the demolition that we’ll have to do. Right. So quarter two of next financial year is something that we are shooting for on Sai Baba. Concessions are underway.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
One question related to the recent budget. Are we expected to see any, any benefit from the CPSC real estate monetization and if so in what manner? So this is related to the unlocking of the real estate assets of the public sector companies.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
I think we’ll, we’ll wait. It just came out. I think we need to understand this better. I think before we can comment. Any unlocking of real estate is good but we also very much aware of the. You know for us getting the price under control is extremely important. The ticket size under control and then that means everything has to work seamlessly on the land prices, on cost of construction, labor cost etc so we’ll, we’ll wait to understand what land, what what unlocking is planned and which cities where they are and what kind of commercials it will mean for.
For any buyer.
Unidentified Speaker
So thank you everyone for participating in our. Do you have. Do you have any other question?
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
If you have any other questions please. You can type it.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Guys there no question. This is a. Generally it’s a shorter. I. I hope you can. You could hear us well you could see the presentation. If you have any feedback whether it’s working or not. This is the second time we tried. Please let us know. One, one question came in. Okay, we’ll do that and in the meanwhile next which is the end of the year, we will plan to do it in person as we have done a couple of times this financial year. Right. So we’ll do that so we get to learn from you, get your feedback and make it more.
More conversational in terms of our engagement. Sriram, you have a last question just.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Came in from Ronald from ICIC securities. He’s asking elaborate on construction execution capability scale up as we have now more and more projects come.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Yeah, yeah. That’s my biggest priority and I wish you were in our office. You could see we celebrated our project leadership team that helped us get actually those six OCs and a few more in the pipeline. And you’ll find that half of the team is new and half of the team is old. A key part of the ocs that have come through is a lot of colleagues in the projects organization who started the project. They are there to get the oc. So they, they were there from excavation to all the way to get to oc.
And a new set of people have joined from other firms who are excited by the project outlook. The portfolio projects we have across all the three cities, they’re looking for growth and we are able to attract them because they are very keen to create a meaningful impact in our organization. So first part is getting the right people and we’ve added a large number of people to prepare ourselves for significant number of project sites in addition to launches that will happen. The second part is a partnership with other contractors and vendors. I think if you work with tier three, tier two kind of contractors everywhere, the bandwidth required within the organization is significantly large.
And I think we are trying to move a big part of our portfolio to tier one, tier one and a half contractors who have, you know, experience, scale, we may have to, you know, pay a little bit more for there. But they come with their benefits which we are trying to factor in our commercial planning. So that’s the second part. And the third part is overall systems to ensure safety, ensures quality, ensure progress tracking, ensure work done, billing productivity. I think we are putting small, small systems that are going to be very powerful. An example of that is how do we do snagging de snagging at the end of a project right when the OC has happened and we are doing the handover.
You could make beautiful strong apartment. But if the possession has any, even a chip, tile or a crack can really make a customer’s customer worry about the quality altogether. So we have put a three step process, a large number of team is involved to ensure there is a system that has been put in place which has projects, quality and facility management teams involved. So making sure that all three elements. Number one element is the right people, right leadership team. Number two is right ecosystem with our contractors and vendors and right set of processes and technology solutions that are there to support us.
All three of them are important for us to do execution really well and really want to create a name for ourselves. When somebody walks into a Mahindra home, they should really be wowed. And that experience we were too much into affordable in the past that was getting limiting. But now we are playing in the right segment and hopefully we’ll continue to delight our customers. Okay, great, great then thank you so much. And we are, we remain clued into any and every feedback. If you have any comments, any suggestions, please let us know. We’ll be happy to address them.
You know, thank you so much as always for, for being there for us.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Thank you. Thank you everyone.