Modis Navnirman Ltd Q1 FY2027 Concall Summary

Key Takeaways

• Strong quarter, steady hand: Revenue grew 27.92% on new project launches and completions, with ~44,000 sq ft sold in Q1 as the metric management says best captures on-the-ground momentum.
• Margin dip is war-driven, not structural: EBITDA margin fell from 22.3% to ~19.8% because war situation caused material cost spikes and shortages; management says conditions have stabilized and this quarter should normalize.
• The pipeline is concrete and near-dated: Rashmi Paradise launches in this quarter, Rashmi Gold and Sheetal in Q3, and the Khar project in Q4, with ~₹800 crore GDV across upcoming projects.
• Geographic expansion is real but measured: The company moved beyond its Kandivali–Borivali–Malad base into Santacruz West and Khar, with Parle tenders and Ghatkopar discussions ongoing but nothing finalized.
• What to watch next quarter: Whether this quarter margins actually normalize as promised, whether Rashmi Signature and Rashmi Square hit their Q3 OC handover, and whether the two-to-three new project additions materialize.

Quarterly Performance

• Revenue engine: 28% growth came from launching new projects and completing existing ones; Rashmi Celestia finished in the last quarter, making inventory ready for buyers to move in.
• Sales conversion: Rashmi Signature and Rashmi Square have done "tremendously well" and are nearly at closing stages; expected OC handover in Q3 FY27 drives sales because buyers perceive less risk of project stoppage.
• Area sold: Management highlighted ~44,000 sq ft sold in Q1 FY27 as the number that "best captures what's actually happening on the ground," with more families choosing the company quarter-on-quarter.
• Execution discipline: Steady progress across all six ongoing projects; management framed on-schedule slab progress as the discipline they want investors and homebuyers to "set their watch by."
• Pricing stability: No significant volatility in pricing; rates in well-connected western suburbs with good amenities and strong connectivity have been "pretty much good enough."
• Labor availability: No challenges pertaining to labor availability or labor cost; management said such issues are "long gone" and there are no operational issues at any projects.

Mahek Modi: "We don't just build walls, we build homes. This isn't a tagline for us, it is a filter which we run every, in every decision which we take."

Margin Walk

• The compression: EBITDA margin fell from 22.3% to ~19.8% because the war situation in April–May caused material cost increases, panic buying, material shortages, and labour shortages; management says this has now stabilized.
• Project-level impact: Rashmi Square and Rashmi Signature margins are running a little below original underwriting because both projects were at advanced completion stages and had to procure materials during the war period; over a two-to-two-and-a-half-year timeline, margins will not be majorly hit.
• War impact subsiding: Challenges from the war were present in April–May of Q1 but have now subsided.
• Normalization promise: Current quarter (Q2 FY27) should be back on track; no major differences expected.
• Project economics: Healthy margins of ~20%–30% should be expected in every project, though each project has different economics depending on the redevelopment scheme used.
• Pipeline profitability: If 19%–20% margins are maintained, profitability on the ~₹800 crore GDV pipeline will be on those lines.

Mahek Modi: "A healthy margins of around 20% to 30% should be expected in every project."

Demand Environment

• Supply-side shift: Management acknowledged supply has increased somewhat due to government clarity on MHADA land and SRA lands, but demand remains intact; Bombay being the financial capital means demand won't dry up.
• Demand by segment: Demand exists for both luxury and economical flats; project positioning and marketing determine which segment of buyers is attracted.
• Historical lens: Demand in Bombay has never gone down historically; management is "very skeptical" it is going to go on a higher side rather than on a lower side, and sees no demand issue for the next few years.
• Outlook: Management expects demand trend to remain the same going forward; no issue seen in demand despite supply increase.

Mahek Modi: "Being Bombay a financial capital, I don't see the demand drying up."

Project Pipeline & Expansion

• New project in Q1: Undertook one new project in Q1 FY27: Neel Kiran Society in Santacruz West, marking expansion beyond the western zone into Santacruz and other sides of Bombay.
• Khar entry: Expanded into Khar through the redevelopment model; previously major portfolio was in Kandivali, Borivali, Malad, etc.
• Launch calendar: Rashmi Paradise starting this quarter (Q2 FY27); Rashmi Gold and Sheetal expected in Q3; Khar project in Q4; Rashmi Govind Dalvi on hold due to government stay on the entire 500-meter section area.
• New project intake: Evaluating and probably taking two to three more projects this year.
• Tender positions: Management is in "good positions" in two to three development stages where they are in the top three category, and expects to add these plus whatever more tenders come.
• Geographic scope: Staying around Bombay only for now; not expanding to other parts of Maharashtra; open to expanding into other cities of India eventually.
• Parle and Ghatkopar: In tender processes in Parle; discussions ongoing for Ghatkopar; nothing finalized as "all these takes time."

Mahek Modi: "We are not chasing the biggest land banks in Bombay. We are building the most trusted name in Mumbai redevelopment. One family, one society, one home at a time."

Business Model & Brand Strategy

• Asset-light redevelopment: The model keeps land cost low and puts capital into construction and families waiting for homes, not into land bank sitting idle on balance sheet for quarters-on-quarters.
• Brand-building initiatives: Started channel partner meets, broker meets, sales lounges, and digital presence efforts that were not previously followed.
• Word-of-mouth focus: Management prioritizes timely delivery and customer satisfaction over brand visibility; if a project is delivered on time, 200 families speak for the company.
• Capital planning gap: Management has not thought about capital employed per project, working capital increases, or leverage ceilings; says every project comes with different economics so nothing can be planned beforehand.

Mahek Modi: "We've still not thought anything because every project comes with a different economics. So, what happens is every project has a different economics, so you can't plan everything accordingly beforehand."

Guidance & Commitments

Key Metrics