Modis Navnirman Ltd Q2 FY2026 Concall Summary

Key Takeaways

• H1 profit equals full-year FY25: PAT of ₹12 Cr in H1 FY26 already matches the entire FY25 figure, driven by execution and an asset-light redevelopment model.
• Debt-free, self-funding cycle: Timely project completion within 2 years enables fund churn without project finance, keeping the company virtually debt-free with no plans to raise debt for the next couple of years.
• Pipeline building beyond the western suburbs: Three upcoming projects are set to launch by early FY27, while discussions are active with 5–7 societies in new MMR regions like Santa Cruz, Khar and Ghatkopar.
• Board migration underway: The company is moving from the BSE SME platform to the main board of BSE and NSE, a step that could broaden its investor base.
• What to watch next quarter: Progress on the three upcoming project launches, any concrete wins from expansion talks in new MMR pockets, and whether the main-board migration completes on schedule.

Financial Performance

• H1 FY26 snapshot: Revenue reached ₹83.39 Cr (128% YoY), EBITDA ₹16.04 Cr (164% YoY), and PAT ₹12 Cr (165% YoY). The half-year profit already equals the full-year FY25 PAT, a milestone management attributes to execution strength, financial prudence and brand trust built over years.
• H2 outlook: Management expects H2 to be better than H1, with full-year FY26 results on similar lines or a little better, helped by the delivery of Rashmi Celestia this month (November 2025). The company is targeting to at least maintain the H1 run-rate.
• Revenue composition: All revenue booked in H1 came from the redevelopment model. New projects starting this year will not contribute to the P&L until next financial year.

Mahek Modi: "Our major focus is being profitable in terms of delivering the projects, selling of the projects and using that funds only to churn into the new projects and everything. So, that is how we have, that is why we are debt-free because our major plus point is timely completion."

Business Model & Competitive Position

• Asset-light redevelopment focus: The company operates exclusively in Mumbai's western suburbs (Kandivali, Borivali, Malad, Goregaon, Dahisar), using a partnership model where the society gets a share of units and the company sells the balance. Projects typically complete within 2 years, enabling easy fund churn without project finance.
• Execution as a moat: Management points to a track record of 15 projects executed in 15 years as its competitive advantage, claiming execution skills are "far better" than other developers in the space.
• Niche positioning: The company operates on plot sizes of 2,000–5,000 sq m, a range where larger players (who deal with 10,000 sq m+ plots) typically do not compete, and those larger players tend to acquire land and build rather than pursue redevelopment.
• Project mix: Majorly residential. Of five ongoing projects, two have commercial components and three are purely residential. The company is exploring expansion into commercial and township projects.
• Pricing floor in Bombay: Management argues that Bombay prices will not reduce because acquisition costs (BMC charges, society costs) are structurally high. Minor reductions could occur only if a developer wants to sell early flats to generate capital, not as a market-wide trend.

Mahek Modi: "Competition is there in Bombay, but it all depends on your execution skills. That has been a plus point wherein in 15 years, we have already executed 15 projects. So, our execution skills in terms of other developers have been far better."

Project Pipeline & Launches

• Recent delivery: Rashmi Vasudeo, a 90-unit premium residential tower in Borivali, was successfully handed over, reinforcing the company's commitment to on-time delivery.
• Imminent delivery: Rashmi Celestia is set for delivery this month (November 2025), which will support H2 revenue recognition.
• Three upcoming projects: Two projects have all approvals in place, with societies vacated on 1st November and demolition starting within the month. The third project is in the BMC approval stage. These span Dahisar (affordable, ₹23,000–24,000/sq ft), Kandivali/Rashmi Icon (medium luxury, ₹27,000–28,000/sq ft), and Malad link road (luxury, starting at ₹30,000/sq ft).
• Launch timeline: Two projects start in the last quarter of FY26, the third (Malad) in Q1 FY27. All three are targeted for completion by FY27-28. Revenue from these will appear in the next financial year.
• Pipeline beyond these three: The company is in discussions with 5–7 societies and is among the top 2–3 shortlisted developers in new areas including Santa Cruz, Khar and Ghatkopar, signaling intent to expand beyond the western suburbs into other MMR regions.

Balance Sheet & Capital Allocation

• Debt-free stance: The company is virtually debt-free and plans to maintain current debt levels. Management does not see any debt being raised for the next couple of years, though it acknowledges that the future is uncertain. The self-funding model relies on churning sale proceeds from delivered projects into new ones.
• Subsidiary merger complete: Shri Modi's Navnirman Private Limited was merged into the listed entity via a fast-track merger, becoming the first company since 2017 to secure approval within three months from the ROC.
• Board migration: The company is in the process of migrating from the BSE SME platform to the main board of BSE and NSE, a move that could improve liquidity and broaden the investor base.

Mahek Modi: "We plan to maintain current debt levels. There are no debt levels actually. So, we are on that vision only that we don't want debt. But see, you don't know what future holds for you. But as of now, what we see for the next couple of years, I don't see we raising any debt."

Market Context & Demand

• Post-COVID shift: The pandemic shifted buyer mindset from saving to spending on amenities, altering market dynamics in ways that continue to play out.
• Sales headwinds: Interest rates are not the primary drag on sales. Oversupply and the sheer number of projects being developed in the market hamper sales more than financing costs.
• Monsoon irrelevance: Seasonal factors like the monsoon no longer materially affect results or sales; in Bombay, management says, "the whole year is season."
• Industry sizing declined: When asked for the market size of redevelopment in MMR, management declined to provide even a ballpark figure, arguing that Bombay's construction landscape mixes redevelopment, slum projects and MHADA projects too tightly to bifurcate cleanly.

ESG & Governance

• Foundation launch: The company is establishing Modi's Navnirman Foundation to promote sustainability, education and community development, formalizing its ESG and social responsibility efforts.
• Stated philosophy: Management says it aims to embed ESG and technology-driven processes to enhance stakeholder value, though specifics on technology adoption were not detailed.

Mahek Modi: "...we just don't build walls, we build homes that embed our warmth, purpose and progress."

Guidance & Commitments

Key Metrics