Company Update : Mahindra Lifespace Ltd by Motilal Oswal Financial Services Ltd
Strong operational but weak financials
Net cash company
Operational performance
* MLDL achieved bookings of INR7.5b, up 89% YoY and 67% QoQ (in line with estimate). In 1HFY26, presales stood at INR12b, down 15% YoY.
* Sales volume in 2QFY26 stood at 1.2msf, up 121% YoY/102% QoQ. In 1HFY26, booking area stood at 1.8msf, up 3% YoY.
* Blended realization in 2QFY26 was down 14% YoY and 17% QoQ at ~INR6,427psf.
* Quarterly collections rose 24% YoY/10% QoQ to INR5.7b.
* In 2QFY26, MLDL added projects with INR17b GDV, up 2.6x YoY. In 1HFY26, the company added projects with INR52b GDV, up 2.5x YoY.
* Revenue from IC&IC business stood at INR990m, down 11% YoY. Total leased area stood at 16.9 acres.
* MLDL is a net cash company and the net cash-to-equity ratio stands at 0.17x.
Financial performance
* Revenue came in at INR176m, +131% YoY/-45% QoQ (80% below estimate). In 1HFY26, revenue came in at INR495m, down 75% YoY.
* 2QFY26 operating loss was INR525m vs. a loss of INR478m for 2QFY25. In 1HFY26, operating loss came in at INR1.1b vs. loss of INR893m YoY.
*PAT was at INR479m (4x above estimate) against loss of INR141m YoY due to higher share of profit realization from JV. In 1HFY26, PAT came in at INR991m vs. loss of INR13m YoY.
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