Mahindra Lifespaces Q2 bookings up 41% as consolidated profit falls 66%
Pre-sales growth in Mumbai and Pune is strong, but lower profit and softer housing sentiment will be watched closely.
Key points
- Q2 FY27 residential pre-sales rose 41% to ₹1,063 crore; H1 pre-sales rose 66% to ₹1,988 crore.
- Consolidated profit after tax for Q2 was ₹16 crore, against ₹48 crore a year earlier, a fall of about 66%.
- FY27 residential pre-sales guidance of ₹4,500–5,000 crore was maintained, implying ₹2,500–3,000 crore in H2.
- Upcoming launches include Rivenza in Mahalunge, Pune, expected in early December.
Mahindra Lifespace Developers reported a 41% rise in second-quarter residential pre-sales to ₹1,063 crore, but consolidated profit after tax fell to ₹16 crore. The board approved the unaudited results for the quarter and half year ended 30 September 2026 on 22 October 2026, and the company released an investor presentation the same day.
Consolidated sales for the quarter were ₹1,126 crore, up 32% year on year. Consolidated profit after tax was ₹16.34 crore, against ₹47.91 crore in the same quarter last year, a decline of 65.9%. The shares touched a day high of ₹359.50 on 22 October, up 5%.
Pre-sales growth comes from Mumbai and Pune
For the first half of FY27, residential pre-sales reached ₹1,988 crore, up 66% from ₹1,200 crore a year earlier. Consolidated sales across residential and integrated cities and industrial clusters were ₹2,101 crore, up 48%.
Motilal Oswal, which retained its BUY rating with a target price of ₹470, said in a note that Q2 bookings were driven by new launches. Beaconhill in the Mumbai Metropolitan Region contributed ₹280 crore, or 26% of bookings, and Citadel in Pune contributed ₹200 crore, or 19%. Lakewoods Phases F&G in Chennai was launched in the quarter.
The company said it sees strong demand in its core residential markets of Mumbai, Pune, Bengaluru and Chennai. It also said broader housing sentiment has softened. Investors will want to see whether pre-sales hold up in the second half.
The pipeline and the guidance
The company added ₹7,100 crore of gross development value (GDV) in the first half, up 36.5% from a year earlier. In the second quarter it also added two society redevelopment projects in the MMR, at Chembur and Borivali, with combined GDV of ₹1,500 crore.
- Mahalunge Phase I, Pune: RERA registration received; GDV of ₹3,500 crore.
- Navrat, Bengaluru: Phase I GDV of ₹2,100 crore.
- Saibaba Nagar, Borivali: Phase I GDV of ₹1,800 crore.
- WestEra, Santacruz: GDV of ₹550 crore.
Management maintained FY27 residential pre-sales guidance of ₹4,500–5,000 crore. After first-half pre-sales of ₹1,988 crore, that implies about ₹2,500–3,000 crore in the second half. Motilal Oswal expects pre-sales to grow at a 27% compound annual rate over FY26–28E.
The company said it remains a net cash company, with a net cash-to-equity ratio of 0.28 times. Its stated strategy is to deepen its presence in the Mumbai Metropolitan Region, Pune and Bengaluru, focusing on premium and mid-premium segments, while exiting affordable housing.
One timing point needs care. Motilal Oswal describes the Mahalunge Phase 1 project in Pune as recently launched. Management has said Rivenza in Mahalunge is expected to launch in early December. Readers should check the company's presentation for the current status of the project.
What investors will watch
The next markers are the Rivenza launch in early December and approvals for Saibaba Nagar in Borivali, which the company expects by the end of the third quarter or mid-fourth quarter. The second-half pre-sales run-rate against the ₹2,500–3,000 crore implied by guidance will also be important.
Motilal Oswal flagged that the sector remains sensitive to regulatory approvals, construction execution and interest-rate changes. For now, the gap between strong pre-sales growth and a sharply lower quarterly profit is the main point for investors to track.
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