Mahindra Lifespace Developers Limited (MLDL), the real estate and infrastructure arm of Mahindra Group, has announced its financial results for the quarter ending December 31, 2024. The results, released on Monday, highlight the company’s performance under the INDAS 115 revenue recognition standards, which dictate that revenues are recognized based on the completion of the contract method. In the first nine months of fiscal year 2025 (9M FY25), MLDL achieved pre-sales of ₹1,749 crores from a saleable area of 2.15 million square feet (msft), with residential collections standing at ₹1,365 crores, a significant increase from the previous year’s ₹973 crores. The company also reported pre-sales of ₹334 crores for the third quarter of FY25 (Q3 FY25) from a saleable area of 0.45 msft.
MLDL has made substantial gross development additions amounting to ₹14,050 crores in 9M FY25, a notable rise from ₹2,360 crores in the same period last year. This growth includes a significant 37-acre land parcel Joint Development Agreement (JDA) in Bhandup, which is planned for residential, commercial, and retail purposes, with a potential Gross Development Value (GDV) of ₹12,000 crores. Furthermore, the company acquired an additional 8-acre land parcel near Bengaluru airport, expected to have a GDV of ₹1,000 crores. Despite the challenges faced in the market, MLDL’s diversified strategies appear to be bolstering its growth trajectory as it gears up for future developments and launches.
Significant Growth in Residential Sales
In the third quarter of FY25, Mahindra Lifespace Developers reported a robust performance in its residential segment, achieving pre-sales of ₹334 crores. This figure reflects a saleable area of 0.45 msft and a RERA carpet area of 0.33 msft. The overall residential collections for the first nine months of FY25 reached ₹1,365 crores, showcasing a significant increase compared to ₹973 crores in 9M FY24. The company’s strategy to launch new projects, such as IvyLush, has contributed to this positive growth, indicating a favorable response from the market.
This growth trajectory comes at a time when the real estate sector is recovering from previous economic downturns. MLDL’s ability to adapt and launch new offerings has positioned it well in a competitive landscape. CEO Amit Kumar Sinha stated that the pre-sales primarily stemmed from sustaining existing projects, although they were slower than the previous year. This indicates a cautious yet optimistic approach as the company prepares for planned launches in Q4 FY25 across key markets, reinforcing confidence in its growth potential.
Financial Highlights and Future Outlook
The financial highlights for Mahindra Lifespace Developers Limited reveal a mixed performance, with a consolidated total income of ₹408.4 crores reported for 9M FY25, compared to ₹224.5 crores in 9M FY24. In Q3 FY25, the consolidated total income surged to ₹185.8 crores, a significant increase from ₹88.8 crores in Q3 FY24. However, the company faced challenges with a consolidated loss of ₹23.8 crores in 9M FY25, starkly contrasting with a profit of ₹26.8 crores during the same period last year.
The loss was more pronounced in Q3 FY25, where it stood at ₹22.5 crores against a profit of ₹50.0 crores in Q3 FY24. The challenges faced in maintaining profitability are indicative of the broader market dynamics that the company is navigating.
Strategic Acquisitions Enhance Portfolio
Mahindra Lifespace Developers is not only focusing on sales but also on strategic acquisitions to enhance its portfolio. The acquisition of a 37-acre JDA in Bhandup, aimed at a mixed-use development plan, is a critical move expected to bolster the company’s presence in the Mumbai market. The potential GDV of ₹12,000 crores from this development signifies the scale of opportunity MLDL is tapping into. Additionally, the acquisition of an 8-acre land parcel near Bengaluru airport, with a GDV potential of ₹1,000 crores, aligns with the company’s strategy to invest in high-growth regions.
These acquisitions reflect a proactive approach to capitalize on urbanization trends and increasing demand for housing and commercial spaces. The company’s commitment to expanding its land bank will facilitate future growth and project launches, further solidifying its market position.
