Mahindra Lifespace Targets Up To 30% CAGR, 5x Expansion In Residential Segment

Bolstered by the rapidly growing residential segment, Mahindra Lifespace Developers Ltd. is looking at a 25-30% compounded annual growth rate (CAGR) over the next couple of years, according to its MD and CEO Amit Kumar Sinha.

Speaking to NDTV Profit on Thursday, Sinha shared the company’s long-term growth outlook for the residential business segment. The real estate arm of the Mahindra Group is expected to touch Rs 10,000 crore in sales revenue from sales in the residential business vertical with a five times growth in the next couple of years.

Speaking to NDTV Profit on Thursday, Sinha shared the company’s long-term growth outlook for the residential business segment. The real estate arm of the Mahindra Group is expected to touch Rs 10,000 crore in sales revenue from sales in the residential business vertical with a five times growth in the next couple of years.

“From the residential side, we're trying to grow the business five times in the next five years. So, between Rs 8,000 crore and Rs 10,000 crore (in sales),” the top executive said.

Mahindra Lifespace Developers operates in two segments. The company’s industrial segment focuses on providing plug-and-play infrastructure in parks, attracting multinational and manufacturing companies. The industrial vertical of the company ensures steady lease revenue for the firm.

Sinha explained, “We have roughly four hundred to five hundred crore of lease revenue annually for the next four or five years for sure,” he said.

In a recently released earnings report for the quarter ending December 2024, the company reported a 40% growth in pre-sales and collections over the first nine months of the current financial year. When asked about the outlook on realisations, Sinha related it to the “lumpiness” of the industry.

“You should get one approval; suddenly you have the ability to clock very high pre-sales in a month or in a quarter, to say the least… and we are trying to build a company for the long term. So, I would look at a five-year period,” he added.

The upcoming quarter is significant for the company with key project launches lined up, including Citadel in Pune, Ivy Lush, and RERA Kandivali Phase 2 in Mumbai. However, Sinha noted that delays in some launches were due to slow approval processes. .

“The approvals lately have been slow. We have done our part of the submissions, etc. We are hoping to receive approvals any day, which will allow us to launch the Bangalore part also,” he mentioned, referring to the Zen 2 project.

In Q3, its revenue fell by 56.1% to Rs 82 crore from Rs 186.9 crore in the same period last year. However, the company reported a 46.6% rise in consolidated net profit for the quarter at Rs 50 crore.

Mahindra Lifespace Developers shares closed 3.09% lower at Rs 330.4 apiece on the NSE compared to the benchmark Nifty50 settling flat at 22,545.05, down 2.5 points.