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We maintain BUY on Mahindra Lifespace Developers (MAHLIFE) with an unchanged TP of Rs500, based on 8x EV/embedded EBITDA at a 25% premium to NAV (the stock is trading at a 12% discount to NAV). In 1HFY27, MAHLIFE delivered healthy pre-sales of Rs19.9bn (66% yoy) and business development of Rs71bn GDV. With a healthy launch pipeline of over Rs38bn and unsold inventory of Rs70bn for 2HFY27, coupled with seasonally stronger absorption in 2H, MAHLIFE is poised to achieve its FY27 pre-sales guidance of Rs45-50bn. The balance sheet remains strong, with a net-debt-to-equity ratio of -0.3x (including JVs). We are also recognizing Rs1bn in annual JV profit in PAT, supported by improved visibility on IC&IC land monetization amid a stronger pipeline.

2QFY27 snapshot

Operational: MAHLIFE reported healthy pre-sales of Rs10.6bn (+41% yoy) in 2QFY27 vs our estimate of Rs10bn. 1HFY27 pre-sales stood at Rs19.9bn (+66% yoy). Pre-sales guidance for FY27 is Rs45-50bn. Mahindra Rainforest in Bhandup and Mahindra Beacon Hill in Mahalaxmi clocked pre-sales of Rs4.4bn, contributing 42% to total pre-sales in the quarter. Business development (BD) continues to see momentum, with GDV addition of Rs15bn in 2QFY27, resulting in GDV of Rs71bn in 1HFY27. BD guidance for FY27 is Rs100- 150bn GDV. Collections and operating cashflow (OCF): Collections were steady at Rs6.3bn (+10% yoy) in 2QFY27, with 1HFY27 collections at Rs11.5bn (+6% yoy). Net OCF stood at Rs3.41bn (-20% yoy). Financial performance: In 2QFY27, MAHLIFE recorded revenue of Rs0.3bn (+85% yoy), EBITDA loss of Rs0.6bn, and PAT of ~Rs0.2bn (-66% yoy). In 1HFY27, it posted revenue of Rs9.9bn (+1,900% yoy), EBITDA of Rs0.4bn, and PAT of Rs1bn (+3% yoy). MAHLIFE remains net cash positive, with net debt to equity at -0.3x (including JV assets)

Healthy launch pipeline to help achieve FY27 pre-sales guidance

MAHLIFE has a healthy launch pipeline of Rs38bn GDV for the remainder of the year. Rivenza (Rs17bn GDV) has received RERA approval and is expected to commence selling from Dec-26. The Borivali project (Rs10bn GDV) has received IOD. Navrat, Bengaluru (GDV Rs11bn), too is at an advanced stage of approval. Both projects are expected to be launched in 4Q. With unsold inventory of Rs70bn, if all launches materialize then MAHLIFE would easily meet its pre-sales guidance of Rs45-50bn.

BD momentum to continue; IC&IC to pick up

MAHLIFE added two projects in 2QFY27, with an estimated GDV of Rs15bn. Currently, it has a portfolio of Rs392bn GDV to be launched. The BD momentum is expected to continue, with the management guiding for GDV addition of Rs100-150bn in FY27. IC&IC deal pipeline remains strong, and uptick is expected from 3QFY27.

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