Event Participants
Executives
4
Chetan R. Shah, Mayur Shah, Samyag Shah, Shreya Bhite
Analysts
3
Karan Mehra, Manav Jain, Mihal Shah
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | (not disclosed) | Multi-quarter high for Q1 FY27 |
| EBITDA | ₹66 crores | Maintained healthy profitability |
| Profit After Tax | ₹52 crores | Continued steady profitability |
| Sales Volume (MNRL share) | 38,000 sq ft | 40% stake basis in Monte South |
| Bookings (MNRL share) | ₹86 crores | Includes Monte South at 40% stake |
| Collections (MNRL share) | ₹118 crores | Strong collection efficiency |
| Sales Volume (merged portfolio) | 46,000 sq ft | Includes merged entity position |
| Bookings (merged portfolio) | ₹108 crores | Higher than MNRL standalone |
| Collections (merged portfolio) | ₹146 crores | Reflects full portfolio |
| Unsold GDV - Existing Portfolio | ~₹8,000 crores | Provides multi-year development visibility |
| Acquisition Capital | ~₹200 crores | Net cash position, debt-free balance sheet |
| Redevelopment GDV Added (Q1) | ~₹900 crores | Versova (₹450 cr) + Sewri (₹450 cr) |
Geographic & Segment Commentary
Monte South (Bandra East): Sold ~35,000 sq ft with bookings of ₹125 crores and collections of ₹140 crores. Tower A has received occupation certificate; Tower B completed RCC up to 65th floor with partial OC up to 46 floors; expected full OC during FY27. Tower C progressed to 28 floors. Strong demand for ready-to-move inventory in Towers A and B selling at premium.
Marathon Nextzone (Panvel): Sold 14,000 sq ft with bookings of ₹17 crores and collections of ₹43 crores. Achieved full occupation certificate for Cedar and Daffodil towers enabling handovers and supporting collections. Benefiting from operational Navi Mumbai International Airport, Atal Setu connectivity, and Panvel-Karjat corridor progressing toward December 2026 deadline.
Bandra Portfolio (Neopark, Neo Square, Neo Valley): Combined sales of 8,000 sq ft with bookings of ₹14 crores and collections of ₹9 crores. Neo Square received OC; construction ongoing at Neo Valley and Neopark. Market outlook supported by GMLR project with tunnel construction started and 350+ slum families rehoused for the road project.
Commercial Portfolio (Futurex, Millennium): Combined sales of ~4,000 sq ft (Futurex) with bookings of ₹19 crores and collections of ₹23 crores; Millennium sold 1,000+ sq ft with ₹3 crores bookings and ₹1 crore collections. Futurex has OC; Millennium construction on schedule. Strong leasing and outright sales demand; planned Monte South commercial (5 minutes from Futurex) to leverage existing relationships and limited Grade A supply.
Redevelopment - Versova: Development agreement through subsidiary Concept Phase for ~1.5-acre residential society redevelopment, estimated GDV over ₹450 crores. Low-density residential with emphasis on open/landscaped spaces; first major society redevelopment entry.
Redevelopment - Sewri: Joint development agreement for cluster redevelopment across ~7,500 sq meters, estimated GDV ~₹450 crores. Benefiting from improving connectivity, south-central Mumbai location, waterfront views, and relative affordability.
Company-Specific & Strategic Commentary
Redevelopment Selectivity: Management emphasized strict financial metrics and expected profit margins (30-35% EBITDA) for project acquisitions. Not pursuing high-offer deals that risk getting stuck; financially balanced approach preferred for occupant benefit and project viability.
Merger Consolidation: Proposed merger brings 400+ acres of land, ongoing projects, and ready inventory at FutureX into listed entity. Shareholder and stakeholder meetings planned for first week of September; second NCLT hearing to follow; completion expected December 2026 but dependent on NCLT schedule.
PTC Sales Vertical: Newly initiated vertical following Q4 FY26 acquisition of Kanjur Marg land. PTC (Permanent Transit Camp) area sold to fellow developers in neighboring wards in lieu of FSI. Strong demand from nearby redevelopment projects; potential pre-sales expected in coming quarters.
Capital Deployment: ~₹200 crores acquisition capital expected to be fully deployed during FY27. Debt-free balance sheet following successful ₹900 crore QIP provides flexibility for selective acquisitions.
MMR Infrastructure Tailwinds: Portfolio positioned across established locations (Bandra, Baikala) and growth corridors (Panvel, Virar). Infrastructure developments—Navi Mumbai Airport, Atal Setu, Panvel-Karjat corridor, GMLR—progressively bringing peripheral markets closer to business districts.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY27 Sales Outlook | Positive; expected to exceed FY26 | Driven by Monte South footfalls, new phase launch in Bandra, and Panvel launches; bookings only recognized on registration |
| Collections Trajectory | "Slightly heavier side" for FY27 | Ready-to-move inventory (Futurex, Monte South Towers A/B) collects 100% within ~3 months of sale; Monte South Tower C at ~40% collection milestone |
| Capital Deployment | ~₹200 crores fully deployed in FY27 | For new project acquisitions with 30-35% EBITDA margin targets |
| Merger Completion | Expected ~December 2026 | Depends on NCLT dates; shareholder meetings planned for first week of September |
| Monte South Commercial Launch | Planned (no timeline given) | 5-minute drive from Futurex; leveraging existing relationships and limited Grade A supply |
Risks & Constraints
| Risk | Context |
|---|---|
| NCLT Merger Timeline | Merger completion depends on NCLT availability which has been challenging to schedule. Management expects completion around December 2026 but acknowledged uncertainty based on court processes. |
| Booking Recognition Timing | Bookings only recognized on registration, creating timing mismatch between sales momentum and reported numbers. New launches in Bandra and Panvel may show results only in subsequent quarters. |
| Redevelopment Competition | High developer offers in redevelopment market create risk of unviable projects getting stuck. Management maintains strict financial thresholds (30-35% EBITDA margins) and selective approach to avoid overpaying. |
| Infrastructure Dependency | Project performance linked to infrastructure completions (Panvel-Karjat corridor, GMLR); delays could impact market sentiment in peripheral corridors. |
Q&A Highlights
Redevelopment GDV Addition & Timelines
- Question: What is the launch timeline for the ₹900 crore redevelopment GDV (Versova + Sewri) and how much additional redevelopment GDV can be added in 12-24 months? (Mihal Shah, MP Securities)
- Answer: The ₹900 crore GDV represents the additional pipeline added during the quarter—Sewri at ₹450 crores and Versova at ₹450 crores. (Chetan R. Shah)
FY27 Business Outlook & Collection Trajectory
- Question: Q1 bookings were ₹108 crores; what is the FY27 outlook and which projects will drive acceleration? Also, how should collections trajectory evolve post recent OCs? (Karan Mehra, Nata Investments)
- Answer: Management sees positive FY27 outlook with demand strong in commercial and Monte South; footfalls "dramatically increased." New phase launched in Bandra and Panvel launch showing good numbers but bookings recognized only on registration, so results visible in coming quarters. For collections, ready-to-move inventory (Futurex, Monte South Towers A/B) generates 100% collection within ~3 months of sale. Monte South Tower C at 28 floors reached ~40% collection milestone—the maximum possible at that stage. Collections for FY27 expected "slightly on the heavier side." (Chetan R. Shah)
Other Income Decline & Merger NCLT Status
- Question: Why is there a reduction in other income this quarter? Is the September hearing the first or final NCLT hearing for amalgamation? (Unidentified Individual Investor)
- Answer: Other income reduced because the specific floor of Futurex investment property was not sold this quarter. For NCLT, this is the first hearing; public shareholder meeting dates have been scheduled—convening all stakeholder meetings planned for first week of September, after which second hearing will proceed. Completion timeline uncertain as NCLT schedules are heavily loaded. (Chetan R. Shah, Samyag Shah)
Redevelopment Pipeline & PTC Sales Vertical
- Question: How large is the current redevelopment opportunity pipeline beyond the ₹900 crore added? What is the selection framework? Also, provide insights on the PTC sales vertical. (Manav Jain, MJ Investment)
- Answer: Redevelopment opportunities in Mumbai are "very huge" given buildings constructed 40+ years ago; revised FSI makes them financially viable. Selection criteria: prime locations in heart of suburbs, strict financial metrics and profit margins, avoiding overpriced deals that get stuck. The team built experience over past year or two with many opportunities under consideration. For PTC: Kanjur Marg land caters to western and central suburbs (Mulund to Ghatkopar, Chembur; western side to Bhandup). PTC area sold to fellow developers in neighboring wards in lieu of FSI; strong demand from nearby redevelopment projects; pre-sales from PTC area possible in coming quarters. (Chetan R. Shah, Unidentified Speaker)
Capital Deployment & Return Thresholds
- Question: With debt-free balance sheet, how much capital to deploy in FY27 and what return thresholds are targeted? (Unidentified Analyst, Saeed Advisories)
- Answer: Target EBITDA margins of 30-35% for acquired projects. Surplus capital of ~₹200 crores expected to be fully deployed within the current financial year. (Chetan R. Shah)
Key Takeaway
Marathon Nextgen Realty delivered a multi-quarter high total income in Q1 FY27 with EBITDA of ₹66 crores and PAT of ₹52 crores, supported by strong execution across Monte South (₹125 crore bookings), Nextzone Panvel (₹17 crore bookings with full OC for two towers), and commercial portfolio (₹19 crore bookings at Futurex). The company added ₹900 crore of redevelopment GDV through Versova and Sewri projects, expanding its approach into Mumbai's mature micro-markets while maintaining strict 30-35% EBITDA margin thresholds on acquisitions. With a debt-free balance sheet, ~₹200 crore deployment capital expected to be fully utilized in FY27, and an estimated ₹8,000 crore existing unsold GDV, the company is positioned for accelerated growth. The proposed merger bringing 400+ acres into the listed entity progresses with stakeholder meetings scheduled for September. Management guides for a positive FY27 with collections skewed heavier due to ready-to-move inventory, while booking recognition timing on new launches and NCLT approval timelines remain key monitoring points.