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Q2FY27: Strong Sustenance, With a Crucial H2 Ahead

Change in Estimates post Q2FY27 Results

FY27E/FY28E: Presales: 0%/0%

Recommendation Rationale

* Operational Performance: Man Infraconstruction Ltd (MICL) delivered a strong operational performance in Q2FY27, generating pre-sales of Rs 412 Cr from 1.1 Lc sq. ft. of carpet area sold and achieving collections of Rs 355 Cr. For the half-year (H1FY27), the company recorded total sales of Rs 702 Cr and collections of Rs 599 Cr. A major highlight for the quarter was the landmark collaboration with Godrej Properties Group for the sea-facing Marine Lines project, which unlocks a Rs 6,000+ Cr revenue potential (GDV) and allows MICL to recoup its Rs 300+ Cr existing investment while still retaining a revenue share in the development. On the financial front, consolidated revenue from operations for Q2FY27 surged 57% YoY to Rs 266 Cr, while Profit After Tax (PAT) grew 14% YoY to Rs 65 Cr, achieving a PAT margin of 25%.

* Launches Pipeline & BD: MICL is embarking on a massive launch phase, with its upcoming launch pipeline at Rs 9,500+ Cr GDV (~11.0 Lc sq. ft. carpet area). Key upcoming residential launches driving this include the Marine Lines project (Rs 6,000+ Cr GDV), Tardeo 2.0 (Rs 2,000+ Cr GDV), and Trishul in Bandra West (Rs 1,000+ Cr GDV). The company has reiterated its ambitious combined pre-sales guidance of over Rs 5,000 Cr for the FY27–FY28 period.

* Robust Balance Sheet: MICL continues to operate with exceptional financial strength and a net-debt-free consolidated balance sheet. As of 30th September 2026, the company held Rs 698 Cr in cash and cash equivalents, up from Rs 686 Cr in Mar’26, while total borrowings were reduced further to a minimal Rs 48.1 Cr. Furthermore, MICL is executing an open-market share buyback of Rs 169 Cr; as of 28th October 2026, it had successfully completed 75.2% of the buyback size, acquiring shares worth Rs 127.4 Cr. This liquidity ensures the company is fully funded to execute its hefty upcoming launch pipeline.

Sector Outlook: Positive

Company Outlook & Guidance:

Management highlighted a strong first half and expects upcoming new launches to act as the primary catalyst for sales momentum in H2FY27. With the launch pipeline expanding to Rs 9,500+ Cr GDV across premium Mumbai micro-markets (Marine Lines, Tardeo, and Bandra West), MICL is strongly positioned to execute its Rs 5,000+ Cr combined pre-sales target over the next two years. Revenue recognition strongly depends on timely deliveries of key projects like Aradhya Parkwood and Aradhya One Park.

Current Valuation: 7x FY28E EBITDA

Current TP: Rs 135/share (Earlier TP: Rs 120 /share).

Valuation & Recommendation: We maintain our pre-sales estimates, supported by improving bookings and a robust H2 pipeline, underpinning our target price of Rs 135/share, which implies an upside potential of 23% from the CMP. We maintain our BUY recommendation on the stock.

Financial Performance: The company reported consolidated revenue from operations of Rs 266 Cr in Q2FY27, up 57% YoY from Rs 169.2 Cr in Q2FY26. Its EBITDA stood at Rs 80.6 Cr, reflecting a healthy EBITDA margin of 30.3%. The Adjusted PAT for the quarter stood at Rs 65 Cr, up 9% YoY. For the quarter, pre-sales momentum improved sequentially, standing at Rs 412 Cr, while collections remained robust at Rs 355 Cr.

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SEBI Registration number is INZ000161633