Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Mahindra Lifespace Developers Limited (NSE: MAHLIFE) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Amit Kumar Sinha — Managing Director and Chief Executive Officer
Unidentified Speaker
Vimalendra Singh — Chief Business Officer
Vikram Goel — Chief Business Officer
Analysts:
Parikshit Kandpal — Analyst
Rishab — Analyst
Presentation:
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Good evening everyone and a very warm welcome. Thank you for joining us today for our Q4 and full year FY26 signing update. We truly appreciate your continued interest and participation. We have with us Mr. Amit Sinha, Managing Director and CEO Mr. Shiram Kumar, Chief Financial Officer Mr. Vimlendra Singh, CBO Residential. Mr. Vikram Goyal, CBO Industrial. Today’s meeting will begin with a brief presentation covering our operational and financial highlights. Following which we will open the floor for Q and A session.
With that I am pleased to invite Mr. Amit Sinha, Managing Director and CEO to take us through the presentation.
Amit Kumar Sinha — Managing Director and Chief Executive Officer
So welcome everybody. I think we’ll move through the slides pretty quickly so that we have as much time for Q and A. By the way, the first picture was that of. Let me go back actually this was of Pandu, our recent launch. I think the sales gallery and everything is ready. We’re just waiting for the EOIs and the CP meet to happen for us to start opening the gallery for customers to take a look at what we have to offer there. And this picture is from Mahindra Blossom in Bangalore which did really well last quarter.
60% sold within a week of its launch. So it’s done really well. But obviously this launch was before the war so I think let’s see how the impact of war is on the sentiments and the real estate buying behavior. I think in terms of you’ve seen this slide before so I will not do any too much time but I think we are continuing to execute on a well defined strategy. You know, you know our aspiration to be a meaningful scale player in the industry. 8 to 10,000 crore GDV addition of 45,000 crore which is in looking very good shape.
In fact we have crossed that and we are thinking ahead in terms of how we build the GDV portfolio for future. The portfolio choices you’re well aware of in terms of three cities, Premium, mid premium and exiting affordable segment business development engine which allows us to pick and choose the right set of deals, get us approvals in time to launch and then make sure we adhere to all the financial guardrails. Customer experience. In the last year we have really pushed the needle on providing superior customer experience to our customers.
It has obviously design elements, sustainability elements, some kind of innovation which are more practical but also a key part of industry challenge has been how do you provide a seamless possession experience which we have worked really really well. Project execution is fundamental, a first time right approach to construction on time delivery. And I’ll share some of the update on OC and then how do we actually become more industrialized in the project business by having designs and spaces which can be standardized for repeatability.
Icnic you’ll hear more from us on the business. It has done really well and across the existing location and we continue to monetize the asset that we have and the bedrock for us has been the robust financial discipline, irr prudent capital allocation and then making sure that we have strategic funding to support our growth aspiration and then you have some of the future proof mlive from a talent, performance culture and new technologies. So not deviating from the strategy that we have highlighted two and a half years back but I think we are making strong progress on each one of them.
Some highlights just to give you you have seen the brief already but Q4 pre sales on the resi side was 1633 crores. Overall we finished the resi pre sales for the financial year at 3,400 crore Supported by good successful launches at Blossom Marina 64 New Haven, Citadel Tower, L Lake woods in Chennai and Sustainance sales which is our continuous effort to actually not depend on the launches. In year launches 40% of our sales came from Sustainance and our goal is to continue to improve that rainforest.
It’s a one of the largest project that we have taken. Full GDV is more than 12,000 crore. We have achieved received RERA from Mahindra Rainforest Phase 1 and we will share with you in future months how the response is strong launch pipeline heading into FY27 a lot of GDV that we acquired in the past years is coming up for launches. The approval process are well underway so we hope to see a significant jump in our pre sales this year. BD momentum continues 18,000 crore including Thane this year as well and total GDV for more than 45,000 crore.
We have our focus on execution continues. We had planned to receive 8 OCS and I’m glad to share that. In the last financial year plus seven days we received two OCS by April 7th. One came on April 1st and one came on April 7th. So within that’s a 372 days. What we achieved was in line with what the expectation were for FY26. We also have a strategic partnership announced. The first part of infusion of capital has happened. This is a multi project partnership. It started with Blossom where they have 49% stake and it’s going to be a game changing partnership.
From our point of view Mitsui Fudosan is the largest real estate player In Japan and they’ve chosen us to be their partner for the residential segment. They had partnership in the past on the commercial side. But residential, this is the first partnership. ICNIC continues to be a very strong. Unlike other firms in the space who have resi plots, we have industrial which is like industrial plots. So the kind of margin profile, the kind of land bank that’s required we do have in IC business we have seen leasing activity very strong in Jaipur and Chennai.
Realizations have improved quite a lot. And then we are working on Origins Ahmedabad and Origins Pune origin. Ahmedabad has all the approvals. We are looking for the first set of anchor client. It has been slow in the past but right now we are receiving healthy inquiries. And then land aggregation in Origins Pune continues to move at good speed. Financial point of view, almost 4120 crores of combined resi and IC pre sales PAT. There’s a significant growth for us and we believe that’s going to be a new normal where we’ll see good pad performance for the next few years as completions happen.
And as I see leasing continues, collections has been strong, more than 2,100 crore. Despite not having some of the launches like Bhandup happen in the time frame we expected, the collections were very healthy. And then given our desire to be very prudent about our balance sheet, I think we have a net debt to equity of negative 0.27 which is healthy, right? And especially in the times when there are volatility expected in the market driven by war, driven by other reasons. Having a healthy balance sheet helps build a stronger business.
So that’s the key highlight. You have known most of these things but in summary this page captures the GDV edition. 10,500 odd is the new acquisitions. And the last column is Thane. You’ve heard us and even you probably heard me talk about Thane for some time. But finally we have gotten the approval from Thane which is our zone. And given the infrastructure development, Metro and the tunnel, we expect this land will become very valuable to us. We are in advanced stages of design I think. I’m sure Chief Design Officer is here.
The idea is to develop this into a large mixed use project which will have retail, which will have residential, which will have commercial. It will have other amenities and make it a destination of its kind. So 18,000 crore. Just to remind you, last year F25 also was 18,000 crore for us. We maintained a very healthy addition to our GDV and our belief is that we will be able to sustain this kind of GDV activity over the next few years. So please stay tuned for more details and more action on that front.
Cumulative GDP you have seen. It captures all the latest and the greatest. The colored blue is something that has happened in the current financial or past financial year. FY26. The current inventory on the leftmost column actually has jumped because as of the 31st of March we had rainforest that was launched. None of that had sold. We are still collecting eois and during the early stage of marketing. But roughly 3,000 crore of inventory has been added to the leftmost column making it 6200 crores.
Right. Launch plan? I think a steady recovery. I would say recovery. But steady growth that we have seen in this year. Strong momentum. Roughly 20%, 21% growth over the last financial year. We had planned almost eight launches. Five launches happened and we have in year impact to that rainforest while the launches happened. You’ll see the impact of that in the current financial year. Beaconil and Citadel Phase 3 in Pune are at the very last stages of approvals RERA and hopefully we’ll have them this quarter to benefit the sales from multi month effort.
You’ve seen this slide. I think I will dwell on it. Our trajectory continues. We have an important year in FY27. In the past we have given a guidance of 4,500 to 5,000 crore for our pre sales for FY27. And this will be an important year where we’ll break out from the 2025 percent growth that we have seen in the last few years. And we think we are ready for that jump. The reason is the gdv. All the effort that we put in the last two years is seeing traction. Some launches have already happened. The remaining launches which we expect to happen will give us not only the impact in the current year FY27 but also give us momentum in the next few years.
You’ll also note that the extreme right. Your extreme right. Yeah. The proportion of new launches continues to come down. Which is good because in the past we’ve always been dependent on one or two marquee launches. They were make or break for us for the year. But as the as FY26 is 6040 we hope to reverse that in the next year. Right. The sustenance sale will become very important and then that trend should continue. So we will gain more from sustenance and past year launches than just depend on the current year launches.
ICNIC Business Vikram is here. I think he has done very well in terms of jumping. Obviously it was really helped by the approval we received in OC2A origins Chennai 2A part A we already had OC1 with Sumitomo. OC2A is a partnership with sign with them. They came In I think November 2024 and then by end of December 2025 we had received the final approvals and quarter four of last financial year received as you can see 360 crore worth of new lease revenue that came in and that was already in the pipeline.
But receiving the approval allowed us to convert that pipeline into real opportunity. It also tells us that the demand especially when we have a partner like Sumitomo in our in our stable is outstanding. And the largest customer actually that you see there on the page 180.4 is actually Japanese customer. The second largest is also a Japanese customer. The third one is also a Japanese customer. So this has been a tremendously powerful partnership for us as we are able to bring more land for business.
Our partnership allows us to pick the right set of clients from from outside India. Even the domestic customers have been quite, quite active in especially in Jaipur region. So good strong performance on the IC side. And just to remind that IC we are only firing let’s say three to four out of the six locations that we have. Right. So OC2A is firing. 2B is under aggregation and approval soon after. Ahmedabad and Pune are not yet ready. Ahmedabad while technically it’s ready but we are waiting for the right anchor client and Pune we are finishing the Rand aggregation and the potential is huge as you can see.
And you know we have always guided that this business will give us 400 to 500 crore every year. Let’s say 500 as the midpoint that we given what we have seen in the last year and then this will have a pat performance of roughly 550 crores for us to to benefit from financial highlights. I think maybe Sridhar might cover that or you are covering it. I covered it. Right. So sales I think you’ve seen this before. Q4 was great on the resi side. Financial year had 3400 crore. Obviously our aspiration is much bigger and you’ll see some of that come through in the coming years.
This compares well compared to the last year as well as last year’s final quarter. ICNIC again very very strong growth financial year as well as the quarter four GDV GDV we have been cautious. We already have a healthy GDV for the financial year. We didn’t want to sign a deal that didn’t meet our stringent Financial guardrails. So you see nil in the last quarter of last financial year. But I think we have enough for us to convert from GDV to launches Resi collection strong as we discussed debt to equity very healthy and cost of debt.
Despite some of the challenges in the market, I think it continues to be at a very affordable rate. Let me just invite Sriram to cover some of the segment performance and then we’ll take Q and A.
Unidentified Speaker
Thank you Amit. On the segment performance I think the point to highlight is the raci profitability which we discussed in the last earnings call that continues to be positive and you know with the few more ocs that we received during the quarter, you know it it ends up being a very good year for us with a positive resi profitability and IC continues to be extremely important from a pat contribution perspective. You know significant amount of leasing revenues and and highest higher realization really helped us to achieve the path for the year compared to the last year.
On the cash flow statement I think you know we are in a very good position. The operating cash flow for the year FY26 is about 840 crores compares to 832 last year. Two things to highlight. One, you know we did have about the approval costs for Mahindra Rainforest spent in the factored in the operating cash flows. So that’s about roughly you know 200, 250 crores which basically the 840 crores that you see is after accounting for that and you know healthy, you know investing and financing cash flows largely due to the transaction, the strategic partnership with Mitsui and also the rights issue we had at the beginning of the year.
The land outflows is around 900 crores for the year. To get to that GDV of of 10, 560 crores. But this 903 also includes existing land commitments which also should be factored in. So overall the net cash balance at a group level is about 1127 crores against gross debt of about 383. So we are in a very good position from a leverage perspective. This is the cash flow statement which I think we project out every quarter. So what we have done this quarter is added Thane to our mix. So the cash flow including Thane we are looking at roughly about 14,000 crores effectively to come from our current projects, the ongoing projects, the remaining cash flows that will come and also the projects that are in the pipeline that are yet to be launched.
You know still Jaipur Residential and Murud is not Included in that but 14510crores is what we are sort of working towards. And this is the consolidated P and L from a reporting perspective. So for the quarter we ended up with 90 crores of PAT compared to 85 crores last year. And for the full year ended we had done about 298 crores of PAT compared to 61 crores in the prior year. So almost a 5x stem. On the balance sheet side as we discussed the, you know the equity, the balance sheet looks very healthy with a solid equity net worth of about 3,600 crores.
This has gone up primarily obviously because of the rights issue we had at the beginning of the year plus the profits that gets consolidated in our numbers with the rights issue proceeds we paid the long term borrowings and overall at a net debt to equity ratio, as I said, we were in a very healthy position at negative 0.27. I think we have completed the slides that we wanted to present. I think we can open up for questions.
Sriram Kumar — Financial Planning and Analysis, Costing and Investor Relations
Mike. Mike.
Questions and Answers:
Parikshit Kandpal
Yeah. Hi, this is Parikshit from HDFC securities. So my first question is I think Amit, earlier in the call you said that next year looking at a significant jump in pre sales. I think last guidance you’d given on the third quarter call was about 4,500 to 5,000 crores. So given that some of the launches got pushed out into FY27 if I remember at least two. So how do you see any upside to this guidance? I mean so if you can quantify the growth, I mean when you talk about the growth or the guidance, if there is any upside to this guidance.
Amit Kumar Sinha
So we anticipated some part of the launches to give us a pre sales in the in FY27. I think some part was either Q4 or potentially go from Q4 to Q1 of this year. So if we include the value of all the launches that we have planned plus Rainforest which was technically launched in the last quarter is roughly 10,000 crore. So we would hope to actually really do well on the pre sale side. But the part that we are seeing in the market, I think we have seen some slowdown in terms of footfalls in our galleries, sales galleries and obviously some of them will come back.
But I think we want to be cautious in terms of what the impact of war is. So we will keep you updated from what we think our goal is to first meet the expectations or guidance that we have provided. And I think that multiple launches, sizable launches that we have this year should give us the inventory to actually convert now external as well as our ability to execute will demonstrate how far we are or how much you can over deliver on that.
Parikshit Kandpal
So this 4,500 to 5,000 is pure resi. Right. This does not include the industrials. Industrial sales will be on top of it. Yeah,
Amit Kumar Sinha
Exactly. Exactly.
Parikshit Kandpal
Second question is if I know look at your launch pipeline. So the Bangalore is doing so well but we have very scarce inventory there. Now I think if I combined unsold inventories, about 3000 crores. Pune still we have about 5 to 6000 crores. But so how do you think that how will you supplement the business development now? Because Bangalore has given good sales for us this year. So in next year I think beyond one major launch I think that’s about 1000 crores Navrat. So I don’t see any other major launch there.
So from the sales point of view and from business development, if you can give us some color, how is Bangalore looking at.
Amit Kumar Sinha
So I will give and then I’ll ask Vimlindu to jump in. We have combined Navrat 1 and Navarat 2 together into one project. The combined inventory from that project would be close to 2,100 to 2,200 crores. So essentially and then we will have the leftover or so to say the inventory from Mahindra blossom. We sold 60%. We had held some of the good quality inventory for subsequent sustainance sales. You will see maybe 2000 crore, 2200 plus another 8800 crores from Mahinda Blossom that will be there. So 3000.
We also have a couple of high profile business development efforts underway. So you know, and I think Bangalore has been a great market both for velocity pricing, IRR for us. So if we find the right land parcel we’ll pursue it. Maybe I’ll request Vimlin to talk about what kind of deal activity he’s seeing in Bangalore and then we can come back to Pune.
Vimalendra Singh
Yeah. So Parikshit rightly said that Bangalore has done very well for us. And there’s a significant focus that as a BD function we are putting in Bangalore. And you know, as we have stated in the past, we really don’t want to pursue transactions which don’t meet the financial guardrails. There are enough and more opportunities, of course. And given how we have scaled up Bangalore over last 3, 4 years you must have seen that we do just a project from one project. Today we are five projects. And as Amit said we have the ability to do Navrat 1 and Navrat 2 together actually.
And that’s how from a design intent approvals perspective, we are moving ahead. So we’ll have 3,000 crores in terms of overall sales value which is available, plus there are a few deals which are in advanced stages, will not be able to discuss or disclose us at this point of time, but principally aligned. And we are actually working in a direction to supplement Bangalore in a big way. And good thing for us is, you know, our portfolio is fairly diversified. We don’t run a concentration risk. And I think that’s a very big strength for us as a company.
We are very well, you know, placed across all the three key markets that we have said we’ll focus on. So we’ll continue to focus on all the three and yeah,
Parikshit Kandpal
Just the last question. So we have 1127 crores of cash. We have a partner in Mitsui, which I think Amit earlier highlighted is one of the largest developer in Japan. So strong funds. So when I look at the business development last two years have been phenomenal. We have crossed almost touching 18,000 crores which some of the larger developers do. So from the intent point of view, how do you think business development will play out for FY27? And so what will be your efforts in terms of Pune and Bangalore and Mumbai?
So if you can give some sense in terms of how it will be split across these three geographies,
Amit Kumar Sinha
Let me take that. And then I think when we set out on our journey for scale up, I think we had to do a few things. Right. The first one was can we do business development? Right, right. And I think we made tremendous progress on that. And the big thing is we are not desperate for deals. I think good quality deals come our way and we can pick and choose based on our risk and reward metrics. Right. The second one was can we actually execute well on the ground? And I think last year was a big, big year for us as we are able to get approvals, get launches done, get ocs done.
I think we’ve received eight ocs last year. And Sudarshan will have played a very important role from a project point of view. And you know, and that has shown financial returns to our shareholders also. So when you’re able to get the deals, when you’re able to execute well and you’re able to show returns, you know, we earn the right to ask for more capital. Some of that has already happened in the rights issue. Some is strategic partnership Mitsui. And we have, I would say another three discussions underway with different investors who are keen to partner with us.
In fact, Mitsui is already committed for another deal and then they are looking for additional deals beyond that. So our partnership with Mitsui is deeper than what has been publicly announced. It’s for multiple deals. So with Mitsui as well as with some of the other discussions underway and support of Mahindra and a very healthy balance sheet allows us to flex the financial muscle when we need to. Right. And that gives us flexibility to pursue larger deals, but more importantly right deals. We have a healthy portfolio.
Earlier today we had the board meeting and it was clearly told to us supported that hey, you work on building a good business for the long term. Capital is not going to be a constraint and hopefully that will play out as we look for all sources of capital for business development. Growth could be Mahindra’s capital support could be strategic partnership capital coming in or augmenting debt to equity in a healthy way. So all source are available to us.
Parikshit Kandpal
But from guidance point of view, I mean what could be the number which one should look at for FY27 in terms of business development?
Amit Kumar Sinha
I would say we’ll be north of 10,000. And you know, that’s the reason I say that is because if we do more society redevelopments, we can do more. Right. And I think for us to continue on the journey of get to 10,000, you have to do minimum 10,000. Our goal would be to at least do more of that.
Parikshit Kandpal
And the split between Pune and Bangalore
Amit Kumar Sinha
It always be 60, 20, 20, 60% would be Mumbai. But if you look at our 45,000 crore, we are 35,000 crore right now is in Mumbai and 5,000 each on the other two cities. So we have a lot to do in Mumbai and a big part of that is society redevelopment. So we’ll continue to make sure that we augment the right kind of deals. In Mumbai we can’t just do society redevelopment because they take a lot of time. We can’t do only outright in Pune and Bangalore because they require a lot of capital. So. So we’re looking at balancing the deals in each of the geographies with the other kind of deals.
So that’s the basket of deals we’ll build.
Parikshit Kandpal
Sure. Thank you. I’ll join.
Rishab
Hi Pritesh from Axis Capital continuing from business development. One of the slide I saw we had a target laid out for every year that which all projects we need. We are almost there in terms of visibility till FY30. So from business development perspective, whatever we do now would be for, you know, growth which will achieve over and above what we have guided for. Or we’ll think of it as a cushion that if market slows down, velocity comes off at least more number of projects will at least ensure that we achieve our target.
So what would be the thought process?
Amit Kumar Sinha
I think it’s both, I think both as a cushion. The good and bad part of our portfolio is that a large number are society redevelopments, especially in Mumbai. And they take a long time and we have been at it for some time. We are reducing. Our first deal took us almost two years. The second deal took one and a half years. Right. Third will take 400 days. We are measuring the number of days from the time we sign the definite documents. So we’re measuring that. So there is likely more slippage on the timelines.
When you have society redevelopment and when you have JDA or Greenfield, I think you’re able to get to your timelines which are slightly better control. So the acquisition that we are doing is for I would say two reasons. One is to have cushion. If you have more projects, it gives you the ability to actually cover your targets better, faster. And the second one is why not think of an accelerated growth plan. Right. Some of our peers have really done it. But only difference I want to have is I really want to have profitable portfolio rather than just a portfolio that’s growing.
And that’s why our focus on picking the right deals is very important. And you’ll continue to see the cash flows and hopefully the pat impact in our financials.
Rishab
Sure. And just on that, I mean let’s say if velocity gets impacted, we are not able to sell as much as we are right now at that point time. There would also be a thought process that let’s first, you know, focus on achieving a certain velocity so that this project gets self funded and you know, let’s, you know, push out some of the launches that we are planning. You know, at that point in time will your balance sheet, you know, be more key to carry forward with the new launches or you would really think of, you know, first achieving a certain velocity.
So would more pipeline be a burden on you that you know, we have the pipeline but we are not able to launch because of a lower velocity, you know. So what would be the.
Amit Kumar Sinha
Let me attempt to answer your question. I think, and if I don’t get it right, you correct me. I think we are at a stage where we have earned some stripes from our shareholders. Right. They feel comfortable putting more money behind it. We as a team, and most of the team is sitting in this Room feel comfortable and confident that we can continue to scale this platform to deliver higher numbers like larger numbers. Right. And those are too important. Right. Because you have the shareholder support and you have the team committed and hungry to actually deliver more.
We will take calls on deals. Right. And sometimes when things slow down, those are great opportunity to regain ground for somebody like us who may have lost ground in the past or not benefited from it. If our balance sheet is healthy and we have a desire, we have shareholder support, why not capitalize on that moment? But I can’t say that now till we continue to perform. This year is an important year for to perform well on the. On the sales side like we have done 20, 25, 27 crore, 28 crores. But can we do a 50% growth year or not?
That 3,400 to 45 to 50 would be a significant jump. Right. So why not push and deliver that. Once we do that, it will give confidence to our shareholders that hey, you know, we continue to perform and address each element of our execution muscle. So at that time we’ll decide which project should we do this, should we not do that. Bangalore for example is gives us highest irr. Right. But Mumbai has the highest volume. And then Pune is something which just velocity wise very steady. Right. You know, so each has its own, you know, benefit.
So we always want to balance with the right, right side, right size of deal site kind of deals in our portfolio.
Rishab
Sure. And twice you mentioned about the current demand environment. You know, is it across the board you are seeing that slower lower walk ins conversions or is it specific to certain market or certain ticket size and you know what would be your estimate in terms of when should things start getting normal? I’ll
Amit Kumar Sinha
Let address that from what you’re saying and then maybe we’ll link it to IC also because that’s also very important for us. Right.
Vimalendra Singh
So, so there is. See what is happening is while even the walk ins have moderated, I think there is, there is this intent to purchase it. Just that given the. Given the geopolitical scenario, you know, people are just waiting. They say let’s. Let’s see what is happening. When is it going to get settled. Because the energy is something which impacts everything and everyone. And generally without talking about other things. In India they’re just waiting for the other elections also to get over. And that’s the conversation which is coming very clearly.
Let things settle down. We will know honestly we are only operating in mid premium, premium segment. Right. We are not operating in the luxury segment. So to that extent we have not really seen that great an impact. We have just got the RERA last month for rainforest. We have started the UI activity and I wouldn’t say it’s been spectacular but it’s not bad. It’s very steady and compared to the history of the micro market that if you see we are very well positioned. But we just started that journey.
Our sales gallery will be up and running and we still have time to go into the market. So the price segment where we are, we are okay. And if I look at the one barometer that I look at is the sustenance sales across Pune and Bangalore and let me tell you, they continue to do very well frankly without getting into the numbers for this month. It’s quite robust and it’s on a very good, you know, track so it will settle down. I think these, some of these things happen during the course of, you know, time and once the, you know, there is some kind of finality to that particular situation, it will come back.
Fundamentally the demand is there. It just that because of certain external factors people have just deferring it. It’ll come back in a hurry so don’t worry too much about it.
Rishab
So just this comment about lower walk ins is just because what we are seeing in rainforest right now because sustenance as Vimlendra said that it’s doing fine. Is it just because you know of rainforest?
Vimalendra Singh
Yeah. And it is because you know, obviously we want to give a superlative experience and to all the customers. So we really over indexed on the sales gallery and we’ll invite you, all of you probably, you know, from next week onwards it will be open and you can come and experience it and I’m sure you’ll be amazed, you’ll be wowed by what we have created and it’s the biggest and the best that we have done as a company in line with the aspirations that we have. So it was an active construction side.
We were not really able to do justice to a lot of the walk ins and hence that was the impact. But it’s not as if, you know, people are really not coming or not wanting to buy. It will get on track once the sales gallery is fully operational.
Rishab
And one last on ICNIC on the Ahmedabad I think it has been quite some time we are hearing about anchor, you know, tenant, you know, where exactly are we and because for now I think we are fine with the inventory that we have across other locations but at some point time I think both Ahmedabad and Pune will have to kick in. When would that time be
Vikram Goel
So I think Ahmedabad right now we’re in a position where we cleaned up all the legacy issues. The approvals are in place. We’ve already started the marketing activities and started talking to the consultants in the local market. And I’m pretty positive that this year Ahmedabad should kick in and we’ll have the fourth front which will start. We have three projects which are on. My sense is fourth. Ahmedabad this year will certainly start. That’s a short answer.
Rishab
And Pune.
Vikram Goel
Pune. We are going through land aggregation right now. So Pune would be. Pune would take some more time. But we already acquired about 400 plus acres touching about 500 acres. We’re looking at some contiguity and some excess which is already there. My sense is, you know, it’ll be more FY27, FY28 when we look for approvals and go forward. The idea is to plan it. We have enough inventory for the next two years including Ahmedabad and then Pune would be next after that. Thank
Rishab
You. That’s it from my side.
Sriram Kumar
Any other questions? Yeah, there are a few questions online. First one is about the Thane project. So what is the current status of Thane land and what is the raci and commercial mix for the Thaniland?
Vimalendra Singh
So as during the presentation, Amit has already mentioned that the Thane land is now fully a residential zone. So I think that is one big thing that has happened in this financial year. It is. We are free to develop it the way we want to develop it. Residential. We have started the initial design intent with the design team. We are looking at a mixed use, looking at a certain amount of commercial, high street, retail, residential. And we want to really do a great job with this project because the location is amazing.
You know, it is basically abating Sanjay Gandhi National Park. The Metro station, the Gai Muk Metro station. The first metro station is bang in front of the land that we have the good news. You must have read that the tunnel work has actually started. Thane Borivali. And that’s actually going to be a game changer. Plus, let me also tell you if you might be aware, they’re actually constructing a coastal road towards that creek. So with all this infrastructure which is coming, our belief is that this will significantly enhance value to the company and to the project.
But the work has truly started on the ground. The teams are working on it and hopefully we’ll be able to launch the initial phase of that particular project towards the end of this year or early next year.
Amit Kumar Sinha
Actually the more we wait, the more value we’ll create. You Know in a way, right. Because the impact of Metro infrastructure tunnel. I think there’s aims, new aims I think coming up. Right. All that will start to have a positive impact. So in terms of the other question was I think it’s roughly 7,500 by value but we are thinking of 2 million square foot of office roughly and 4 million, 2 million square foot of commercial, 4 million square foot of residential. And then there’ll be some other mixed use like retail and a couple of other things.
So somewhere around six, six and a half million square foot construction.
Sriram Kumar
Next question is on Mahalakshmi, Mahalakshmi project when the same is going to be launched. And there is one more question related to the luxury segment. Whether the Mahindra Life space will play out in the luxury segment in future.
Amit Kumar Sinha
Maybe I’ll answer the last one. I think we are, we are. Our aspiration is to play in premium, mid premium, super premium, whatever you want to call it. I don’t think we want to go into the luxury segment and in case of Mumbai we have put a price point of some around 60, 70,000 rupees per square foot as a definition of what that means. We have seen that the moment ticket price goes beyond 10 crore the demand elasticity is very different. Even between 5 to 10 crore it starts to be not high velocity.
So we want to maintain creating homes for our customer which are in the right ticket size. So we’ll continue to play in the mid premium, premium segment. Maybe I’ll request Vimander to answer the Mahal Lakshmi question.
Vimalendra Singh
So the question on the, on the approval stage. We are towards the last stages of the approval process and you know, hopefully we should be able to launch it soon once we, once we get rera. But we’re targeting this quarter itself.
Sriram Kumar
There is one last question. The question, the question is whether are you seeing any demand softening in MMR region or buyers sort of delaying their purchases?
Vimalendra Singh
Yeah, so I’ve stated that earlier. See honestly it’s too early. It’s too early. You know the war has just started towards, you know, you know, end of March. We didn’t see any impact of it in the Q4 numbers or March numbers. You’ve seen pretty much everybody. The sector has done very well. We have done very well and for me the, the true barometer is the sustained sales and we continue to perform well and from what I’ve spoken to others, they continue to do well. There are people, I think, I think we will definitely be seeing an impact at a real high end which is the luxury segment.
But we don’t operate in the luxury segment. So for the portfolio that we have, I think we are in pretty good shape. Yes, there is a slight delay in terms of decision making because of factors beyond anybody’s control. And once those factors settle down, inherently fundamentally the sector is doing very well. It’s on a very good wicket and the demand is inherently very strong. So it will bounce back significantly.
Sriram Kumar
Those are only the. I’ll just add
Amit Kumar Sinha
I think because the questions here question. I think there is a maybe audience have picked up that we are the war is creating a huge impact on the walk ins and the demand. I think it’s actually too early for us to say like whether demand is going away or demand is just differed by a few weeks. We’ve also seen that the organic demand doesn’t just go away. Right there is a healthy demand that will continue and when, when there is little bit of slowness in the market which may happen and it’s expected because we had three, four years of strong growth in the past post Covid.
So some moderation will happen and we’ve seen that even in the last year in terms of units, in terms of apartment size, in terms of the pricing. And that will not continue this year for sure. But when that happens there is a clear shift towards trusted developers, trusted brand where customers feel that hey, instead of taking risks with somebody who’s let’s say not as stable, let’s try and buy something which is going to be coming from the portfolio is stronger, well placed developer with a stronger balance sheet.
And I think that shift will continue. And whatever you may lose in terms of few points of growth at the industry level, you might be able to gain back in terms of share gain away from smaller developers. So my sense is over the full year or longer period of time the war impact will get neutralized and we will go back to what we ought to be seeing. In a country where per capita income is increasing, per household income is increasing, urbanization is significant and then demand for housing continues to be there.
Parikshit Kandpal
So how has been the experience now on the approval side? So if you can help us understand both for the three geographies, Pune, Bengaluru and Mumbai. So EC issue was sorted out in Mumbai. I think that helped us accelerate some of the approvals. But if you can give some color how fast or slow now things are there on the approval side.
Vimalendra Singh
So I think the system by and large remains the same. But we as a company have really improved, let me put it that way. And there are and the fact that we have got eight OCS in a very timely manner, regimented manner. Right. The fact that we were able to launch as per what we committed at the beginning of the year, that’s kind of a proof that we have got better at what we do as a team, as a system. And there are a lot of reasons. Obviously we have a clear task force, we have a very strong collaboration culture where all the functions come together.
There’s no and in real time like even the RERA 2.0 now, you know, it’s, they’ve upgraded their website and they’ve made a lot of the changes. And with legal team, the design team, the finance team, they practically sit during the whole day, the projects team. Morning we sit in, by evening we’re able to file. This is just one example, right. Earlier it used to take seven days to file for are application. Today we are, and I’m very happy to say that you know, we’re so efficient. If we receive a CC today, by tomorrow, end of day the RERA is filed and then we make sure that our corporate affairs team actually, actually while it’s an online system but the assessment happens offline.
So you know, we actually tell, hey, we have already done this is our application number, can you please expedite that? So we have improved at every stage. And so and this is across the locations just to give you an example in Bangalore, the Blossom lawns, you are aware, you know, suddenly we got, I spoke to a few of the investors, they said, oh we are surprised that you’ve got Blossom rera. We said, you know, it’s not a miracle but it’s a process that we have as a team, as a company has followed.
Right. So yeah, I mean the system by and large remains the same but I guess we have become better at it and that’s allowing us to actually be very good at predicting timelines. And that’s why when Amit presented those and we have the confidence of saying that what is Q1, Q2, Q3 across all the, all the way till FY30 as a management team we’re putting our neck out and saying that hey, this is what we will deliver because I think we have really, really streamlined a lot of the things and we remain confident that we’ll be able to deliver it.
Parikshit Kandpal
And on the NVT portfolio, I don’t know what’s the strategy now but you said that in Gorbandar we’ll do a 2 million square feet of commercial. So if you can help us understand it is the Annuity strategy or Strata or so how things will move on there.
Amit Kumar Sinha
We are moving towards mixed use where at least three locations, Kanjur or Bandup, Thane and Citadel. All of three are land where we have two of them are outright owned by us and one is a jda. We will have a portfolio. We will not do a starter sale. Based on our latest thinking we feel that we can add more value by owning the asset and creating annuity portfolio. These are great locations. So our current view is that we want to develop them as mixed use locations. And it’s also necessary because there are so many people living.
It’s good to have work locations there. So that’s our current plan and that’ll give us the little bit of annuity portfolio that you need. And the yields tend to be better when you develop an asset rather than a buy in asset. Right. So hopefully and Thane would be a very different price point. Very different price point and Bahanda would be a different price point. But I think that’s where we are hoping to build a healthy portfolio.
Parikshit Kandpal
So in 45 years we expect to be about 300 crores of annuity portfolio. In terms of rent generating
Amit Kumar Sinha
I don’t think we’ll be able to get to that because Thane is very low right now. Relatively cost of construction and land prices are relatively. And Pune is lower than Mumbai. So I think our desire is to first get to somewhere between 150 to 200 before we put more assets, more capital to develop more commercial assets.
Parikshit Kandpal
So this will be about four to five years like out from here.
Amit Kumar Sinha
Yeah. Yeah. Okay.
Parikshit Kandpal
And just the last one on the deliveries for FY27. So. So in million square feet in terms of value. So what kind of revenue recognition we are looking at for FY27 from the status of the current projects which will complete in FY27.
Unidentified Participant
So Parikshit, the numbers I will not be able to share exactly. But I can tell you that the OCS that we are expecting for FY27 should. Should contribute to a good growth over. Over the. Over the. Over the prior year. FY26.1. One thing I would like to highlight is a couple of projects right. Eden phase two. We received the OC on. On 1st of April. So we didn’t. We. We couldn’t recognize obviously the revenues on third by 31st March. So that is already in the back. So we will, we will recognize that and you will see that numbers coming through in Q1 of FY27.
Similarly the Project Luminaire in NCR that also OC we actually received on 31st of March but again we couldn’t send the demand letters on time. So again that will come to give to be recognized in Q1 of FY27.
Amit Kumar Sinha
So I’ll just augment we have eight OCS planned for this year. Two of them have already happened right Based on what Sriram said and the six remaining will happen of the six, two are on the affordable, four are. Six are including the two that we have gotten are in the premium segment. So four premium, two affordable and two already premium received. So that’s our current plan. It should give a healthy growth over the current year portfolio.
Parikshit Kandpal
Just the last thing have we started looking at the Gurgaon market now because next year if we end close to about 5 somewhere in the vicinity of 5000 crores and then again if you have to plan going back to Gurgaon again so it’ll need at least one year or two years to come back to have a launch in a new again a market which you are already present for some time but now you advocated and then again you’re thinking so any thoughts there? How are you looking at re entering from time point of view?
Amit Kumar Sinha
Yeah, yeah. You know I think we are still hoping to go deep in the existing three markets before go back to Gurgaon. And to the point that you guys asked earlier in terms of capital allocation if I have to fund capital for another market it will take away from let’s say Pune or Bangalore or even Mumbai. And I think our next maybe two years it’s better for us to go deeper. But I think if if we feel comfortable that we have a path to 5, 6, 7,000 we’ll start to think about another geography. That doesn’t mean it has to be Gurgaon.
It could even be let’s say Chennai. I’m just giving a name to you and the reason it is because Chennai we already have Mahindra World city Chennai so there is a rub off effect. We have our research Valley Mahindra name is popular. We have origins Chennai in the northern part of the Chennai and we feel that there is a good brand pull from local customer and we have done 4,000 apartments already in wall city Chennai. So there is reason for us to can at least make make a case for why not Chennai, why just Delhi right.
Obviously markets are smaller but we’re not looking to do a high volume. We are trying to do the right volume for each of the market market.
Rishab
Just last two questions first on in terms of delivery for this quarter Q4 which are the Projects we delivered. Because I still see, you know, gross margins pretty low, around 6 odd percent as per my calculation. I might be wrong but. So what were the deliveries? If you can highlight. I thought Luminaire would be the one and I was concerned that why Luminar would be such a low margin project. But if it’s Q1, then which were the other projects which got recognized?
Unidentified Participant
So we pretty much got phase one of most of the projects we have Pritesh, like for example phase one of Eden is there. Phase one of nostalgia is there. Tatavade, which actually is a affordable project. Phase one was slightly in fact lower than lower margin compared to the others. So we also had some of the OCS come through on the affordable side. Palgar is also reflected in some of these numbers here you would see that the phase one of the projects typically tend to be a little lower in margin compared to the remaining phases.
So you know, you will see that getting reflected in the coming quarters when we recognize revenues for phase two for some of the projects
Rishab
And what should be the ballpark gross margins that we should be looking at for FY27 deliveries.
Unidentified Participant
So if I were to think about the gross margin, I think I can talk to you about the project level. Around the project level gross margins these would be upwards of around 30%. For example, some of the projects like Luminaire and the premium projects could be around that level. But again for next year you will have affordable projects as well in the mix for us. So we have two projects that are coming up for OCS next year. So again, I don’t want to give a number and you know, like, you know, kind of justify the reasoning for it, but it will, it will be a mixed pack.
But you would see as the phase two of the projects getting recognized, the profitability will improve.
Rishab
Sure. And one last on, on launches for FY27, just a broader cumulative number. So I think Amit
Unidentified Participant
Said it’s about 10,000 crores roughly. Yeah.
Amit Kumar Sinha
So that’s okay. Seven plus three 3,000 of rainforest will be this year. Okay. The remaining 7,000 for the other seven, eight launches that we have. So the inventory launch should be 10,000. We are hoping to do well on that front given the earlier part of discussion.
Rishab
Okay,
Amit Kumar Sinha
Right, right. We, I think our affordable portfolio will continue to come down. But in this year there’ll be a good number still. Right? Correct. The third and, and Palgar. Right. And so Kalyan, so you, you will have a little bit of drag even in this year. But I think from next year onwards what will happen? The premium portfolio will become dominant. So and the moment you have affordable the volumes are high, the revenues are less, the PAT is less. It affects the financials in a, you know, in the wrong way.
So from But I think the impact of mid premium premium will start to see and maybe in the next meeting we’ll share with you what irrs are there for our portfolio. So I can verbally tell you is roughly, roughly 17% is the portfolio Aira that we’re carrying. There are 26 projects that are part of it. Including affordable. Including affordable. Right, including affordable. Obviously the affordables contribution is small but they are you know, close to, you know, single digits in some cases even negative.
Right. And we are trying to fulfill our RERA commitment, uphold our brand promise. But the the current year projects are doing really well or the last year projects are doing very well. Last three years. Every project that we have launched it has good margin profile but we always have to watch out that price gets locked early and then the cost happens later and you have new labor code and all those things because of war energy costs are getting in the way. We have healthy accounting practices to make sure you have contingencies and escalations and DLP and everything.
But despite that we need to have a razor sharp eye on our cost and that’s what the where the execution is. We just discussed this in our meeting today. Over the last eight quarters our projected costs are. I have not changed by more than 10 crores for all the projects over 8 quarters. Obviously it has a lot of cushion and contingency, etc. But we are not changing the cost of for last eight quarters.
Rishab
Perfect. Very helpful, thank you.
Sriram Kumar
Yeah, I guess we have covered all the questions. Yeah, we have got all the questions.
Amit Kumar Sinha
Well, I think. Thank you, I think for coming over and you know this has been a strong year and my whole team is here. We had our internal town hall and we are very excited at the prospect of doing even better on the foundation what what has gone in for the past year. So we’ll keep you updated. The challenge is ahead and hopefully we’ll meet up and exceed the expectations. Thank you,
Sriram Kumar
Thank you, thank