Mahindra Lifespace Developers, the real estate development arm of Mahindra Group, is looking to more than treble its sales to Rs 10,000 crore by FY30. In FY25, the company clocked sales of Rs 3,300 crore.
“We have 70-80% of land bank for our growth plans. We are not desperate for land deals, but we have scaled up GDV (gross development value) quite a lot,” managing director and CEO Amit Kumar Sinha told FE during an exclusive interaction.
GDV is the estimated revenue a property development project is expected to generate upon completion and sale or lease.
The company has grown its annual GDV from Rs 4,400 crore in FY24 to Rs 18,100 crore in FY25 and Rs 39,000 crore currently, which includes unlaunched GDV in Thane, Mulund and Jaipur, according to Sinha.
Its larger peers such as Godrej Properties have also scaled up the residential business. Godrej Properties crossed its sales booking target of Rs 27,000 crore in FY25 and is looking to clock bookings of Rs 32,500 crore in FY26.
Mahindra Lifespaces is also making a shift from affordable to premium housing due to the economics involved in it and lower customer pull in the budget housing, Sinha said.
The company has affordable housing projects in Kalyan, Palghar near Mumbai, Pune and Chennai, which the MD & CEO said the company would complete and deliver.
Earlier, Tata Housing had also exited low-cost housing. It is now looking to reduce its share of residential projects and majorly focus on commercial office projects.
Mahindra Lifespaces is looking to launch new projects in Whitefield, Bengaluru; Malad, Bhandup, Mahalaxmi in Mumbai and Pune, among others. “We are focusing on great design and great products at right prices for customer pull,” Sinha said.
He further said demand in residential is healthy and would continue. But he added that price growth in residential would be in single digits in coming years against 10-20% in the last few years. “Volume will be healthy but pricing will be subdued,” he said.
Sinha also said there is a customer shift from Grade B, C and D developers to Grade A developers due to factors such as quality and timely completion. “Wherever non-branded players are shutting down and exiting, Grade A players are benefiting,” he said.
In its integrated cities and industrial cluster (IC&IC) business, the, company has leased out 85.1 acre with a value of Rs 420 crore against 119.5 acre, with a value of Rs 370 crore in FY24.
The company has an IC&IC portfolio with a gross leasable area of ~5,737 acre. Of this, ~1,634 acre is available for leasing and set to be monetised over the next 8-10 years, generating revenues of Rs 6,000 crore and a PAT of Rs 1,500 crore-2,000 crore, the company said in its presentation. “Every year, we can generate a PAT of Rs 150 crore in this business,” he said.
The company is not scaling up in new locations but growing the business in existing clusters such as Mahindra World City, Chennai and Jaipur, according to Sinha.
Mahindra Lifespaces has also lined up a rights issue of Rs 1,500 crore.
“Mahindra Lifespaces has bolstered its business development pipeline over the past two years and is poised for strong growth with key project launches in near-to-medium term. The rights issue’s successful completion will reduce debt, unlocking further capacity for business development,” Equirus Capital said.