Max Estates Q2 FY26 Earnings Analysis

- Max Estates targets cumulative pre-sales of Rs. 21,000 crores by FY28, aiming for a 15%-20% CAGR growth. - Planned launches include Rs. 9,500 crores GDV in H2 FY26 across three projects in Gurgaon and Noida. - FY26 pre-sales guidance is Rs. 6,000 to 6,500 crores, representing 15%-20% growth over FY25. - Commercial portfolio aims to reach annuity rental income potential of over Rs. 700 crores within 5 years. - Residential sales focus is on diversified micro-markets with smaller unit sizes per project to reduce concentration risk. - Expected construction spend in FY26 is Rs. 450 to 500 crores with collections of approx. Rs. 2,500 to 2,600 crores. - EBITDA margins projected between 25%-45%, depending on project type (outright or joint development). - Growth plan includes adding 3 million sq. ft. of projects over next 1-2 years, with ongoing active business development.

- Max Estates targets strong growth in both residential and commercial sectors over the next 3-5 years. - Residential sales projected at Rs. 21,000 crores by FY28, growing at 15%-20% CAGR. - Commercial multi-income portfolio planned to reach Rs. 700 crores in annuity rental income within 4-5 years. - EBITDA margins range from 40%-45% in outright residential projects (Estate 128) and 20%-25% in JDAs (Estate 360). - Total collections anticipated at Rs. 2,500-2,600 crores in FY26, supported by Rs. 900 crores from Estate 360 tranche. - Construction spending expected at Rs. 450-500 crores in FY26. - Corporate overhead expenses maintained at Rs. 25-30 crores annually. - Confident of maintaining robust collections (96%-97%) and timely project delivery, supporting earnings growth. - No expected price drops due to strong balance sheets, fully funded RERA projects, and demand for quality developments.

- For FY26, Max Estates expects a business development (BD) spend in the range of Rs. 500 to 800 crores. (Page 9) - Total construction spend across all assets in the current year is projected to be Rs. 450 to 500 crores. (Page 17) - In Q1, the company spent approximately Rs. 150 crores on construction and Rs. 200 crores to acquire the Delhi One asset. (Page 16) - There is a capital call pending from partners, including New York Life, of about Rs. 100 crores for commercial projects, to be deployed in coming years as projects progress. (Page 6-7) - The company plans to launch projects worth Rs. 9,500 crores in H2 FY26, with sales guidance of Rs. 6,000 to 6,500 crores from these launches. (Page 11) - Strategic focus includes acquiring land parcels through outright acquisitions, insolvency code (NCLT), joint development agreements, and auctions. (Page 15) - Partnership with New York Life includes equity deployment (~Rs. 550 crores invested so far) and debt tied up for commercial assets. (Page 11)

- Currently, there is no explicit mention of immediate new fundraising through debt or equity in the August 11, 2025 call. - New York Life holds 49% in commercial projects, and a capital call of approximately Rs. 100 crores is expected later (2nd or 3rd year) for ongoing projects. - Construction finance and leased rental discounting debt exist for commercial assets; residential projects are self-funded through collections. - Financial closure achieved for commercial assets in partnership with New York Life, including debt tied up with leading banks. - No current plans for fresh equity or debt fundraising were explicitly disclosed; emphasis on utilizing available cash and operating cash flows for growth. - Future capital requirements, such as for ongoing or new projects, may trigger calls for additional equity or debt, but specifics aren't detailed. - The company aims to maintain a healthy balance sheet and generate strong cash flows to fund expansion without immediate fundraising needs.

- Max Estates has an ongoing and upcoming project pipeline valued at Rs. 7,589 crores. - Residential sales guidance for FY26 is Rs. 6,000 to 6,500 crores from launches worth Rs. 9,500 crores. - The company aims to grow residential sales to Rs. 21,000 crores over the next 3 years, with a secured pipeline of Rs. 14,000 to 15,000 crores. - Commercial portfolio targets rental income of Rs. 700 crores in 4-5 years, with total asset value around Rs. 725 crores. - They are working on adding 3 million square feet in new projects from a pipeline of 14-15 million square feet. - Sales and collections are strong, with 96%-97% collections reported and no inventory left currently. - Capital deployment includes Rs. 200 crores earmarked for land and pre-launch residential investments. - Financing for commercial assets is closed with partners like New York Life; Rs. 100 crores equity still to be called.