Mahindra Lifespace Developers Q2 FY27 results: net profit down 65.9% to ₹16.34 crore, revenue up 84.6%

How did Mahindra Lifespace Developers perform in Q2 FY27?

Mahindra Lifespace Developers reported consolidated revenue of ₹32.42 crore for Q2 FY27, against ₹17.56 crore in Q2 FY26 and ₹962.13 crore in Q1 FY27. Revenue was up 84.6% year on year but fell 96.6% sequentially. EBITDA was a loss of ₹55.02 crore, with a margin of -169.7%, compared with a loss of ₹52.47 crore and margin of -298.8% in Q2 FY26 and profit of ₹94.48 crore and margin of 9.8% in Q1 FY27.

Profit before tax was ₹6.61 crore in Q2 FY27, compared with a loss of ₹45.33 crore in Q2 FY26 and profit of ₹102.45 crore in Q1 FY27. Net profit was ₹16.34 crore, down 65.9% from ₹47.91 crore a year earlier and 80.9% from ₹85.55 crore in the previous quarter. Basic EPS was ₹0.77, compared with ₹2.47 in Q2 FY26 and ₹4.01 in Q1 FY27. On a standalone basis, revenue was ₹15.73 crore and profit was ₹127.43 crore.

Total income was ₹104.02 crore in Q2 FY27, up 214.6% from ₹33.06 crore in Q2 FY26 but down 89.4% from ₹977.54 crore in Q1 FY27. The company’s results were approved as unaudited standalone and consolidated financial statements for the quarter and half year ended 30 September 2026.

What changed in Mahindra Lifespace Developers' costs and profit?

Total expenses were ₹97.41 crore in Q2 FY27, up 24.3% from ₹78.39 crore in Q2 FY26 and down 88.9% from ₹875.09 crore in Q1 FY27. Cost of materials was ₹826.22 crore, up ₹550.88 crore or 200.1% from Q2 FY26, while employee cost rose ₹3.66 crore or 12.1% to ₹33.93 crore. Finance costs rose ₹3.58 crore or 193.5% to ₹5.43 crore, and other expenses rose ₹14.59 crore or 58.6% to ₹39.50 crore.

Other income was ₹71.60 crore in Q2 FY27, up ₹56.10 crore or 361.9% from ₹15.50 crore in Q2 FY26 and ₹56.19 crore or 364.6% from ₹15.41 crore in Q1 FY27. Depreciation fell ₹1.97 crore or 30.3% from Q2 FY26 to ₹4.54 crore. There was no exceptional item in the quarter.

Tax expense was ₹33.16 crore in Q2 FY27, up ₹30.33 crore or 1071.7% from ₹2.83 crore in Q2 FY26 and ₹7.71 crore or 30.3% from ₹25.45 crore in Q1 FY27. PBT moved from a loss of ₹45.33 crore in Q2 FY26 to profit of ₹6.61 crore, while net profit fell because the year-ago quarter included a higher profit base and the current quarter carried the higher tax expense.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹994.55 crore, compared with ₹49.53 crore in H1 FY26, a difference of ₹945.02 crore. Total income was ₹1,081.56 crore against ₹73.67 crore, a difference of ₹1,007.89 crore. PBT was ₹109.06 crore, compared with a loss of ₹101.75 crore in H1 FY26, while net profit was ₹101.89 crore against ₹99.17 crore.

H1 FY27 basic EPS was ₹4.77, compared with ₹5.11 in H1 FY26. Net profit therefore increased 2.7% from ₹99.17 crore to ₹101.89 crore, even as PBT moved from a loss of ₹101.75 crore to profit of ₹109.06 crore. The company’s investor presentation reported H1 FY27 consolidated residential and industrial and institutional sales of ₹2,101 crore and profit after tax of ₹102 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹8,451.61 crore, compared with ₹8,294.83 crore at 31 March 2026. Total equity was ₹3,659.58 crore against ₹3,626.98 crore, borrowings were ₹625.43 crore against ₹645.25 crore, and cash and cash equivalents were ₹57.71 crore against ₹79.34 crore. Inventories were ₹5,636.07 crore, compared with ₹5,175.36 crore, while trade receivables were ₹223.15 crore against ₹228.11 crore and trade payables were ₹498.47 crore against ₹483.96 crore.

H1 FY27 operating cash flow was a cash outflow of ₹175.58 crore, compared with an outflow of ₹245.39 crore in H1 FY26. Investing cash flow was an inflow of ₹273.37 crore, against an outflow of ₹129.74 crore, and financing cash flow was an outflow of ₹119.42 crore, compared with an inflow of ₹249.11 crore. Capital expenditure was ₹23.75 crore in H1 FY27 against ₹5.92 crore in H1 FY26.

How has Mahindra Lifespace Developers done over the last 8 quarters?

Revenue reached its highest level in the available series at ₹962.13 crore in Q1 FY27, compared with ₹32.42 crore in Q2 FY27 and ₹9.24 crore in Q4 FY25, when it was at its lowest. Profit after tax was highest at ₹108.88 crore in Q3 FY26 and fell to ₹16.34 crore in Q2 FY27; the lowest was a loss of ₹22.47 crore in Q3 FY25. Revenue rose year on year in each of the last five quarters.

The EBITDA margin reached its highest level at 9.8% in Q1 FY27 and fell to -169.7% in Q2 FY27. Its lowest level was -597.2% in Q4 FY25, compared with -298.8% in Q2 FY26. The latest quarter therefore shows a sharp fall in revenue and profit from Q1 FY27, while revenue remained higher than in Q2 FY26 and the EBITDA margin improved from Q2 FY26.

What else did the company announce?

On 22 October 2026, the board approved the unaudited standalone and consolidated financial results for the second quarter and half year ended 30 September 2026, subject to limited review by the statutory auditors. The filing included an unmodified limited-review report from Deloitte Haskins & Sells LLP, the results for the stock exchanges and the company website, and a newspaper publication extract.

The same-day filing also included an earnings presentation. On 26 October 2026, the company clarified that the name of a subsidiary had been inadvertently submitted as Mahindra Sakura Developers Limited instead of Mahindra Sakura Developers Private Limited in the review report and consolidated-results notes. The available filings do not announce a dividend, fund raise or appointment.

What did Mahindra Lifespace Developers' management say?

Management maintained FY27 residential pre-sales guidance of ₹4,500–₹5,000 crore, with a target of approximately ₹4,750 crore, after H1 residential pre-sales of ₹1,988 crore. It said H1 GDV additions were ₹7,100 crore and the portfolio was about ₹50,000 crore. FY27 GDV additions guidance remained ₹10,000–₹20,000 crore, with management expecting to fall within the range, ideally toward the higher side.

Management targeted four residential launches in H2 FY27: Rivenza, Borivali, Santacruz and Navrat. It said launches depended on PAAA approvals, with Rivenza’s net sale targeted for the first half of December. Management also expected residential collections to pick up in Q3 FY27 as stacked billing milestones and launch collections were realised.

Management said industrial leasing performance in H1 lagged, but committed pipeline closures were expected mainly in Q3 and H2 leasing was expected to catch up. It identified risks including weaker walk-ins and conversion, elevated land prices, industrial leasing delays, launch timing dependent on approvals, inventory overhang in Mumbai, Pune and Bengaluru, and higher construction and commodity costs.

The CFO said, “We were able to recognize the cost savings from those projects. And we waited for six months before we took it.” The MD and CEO said, “We don’t have a challenge of number of deals. It’s a question of picking the best deals, deploying our capital to those best deals, and making sure that we are able to launch them at the earliest.” He also said the company was reluctant to inflate velocity through higher discounts or more attractive payment terms and pricing.

How did Mahindra Lifespace Developers shares react?

The stock was down 2.0% five minutes after the filing appeared, then up 2.8% after 15 minutes and 3.4% after 30 minutes. By the reaction-day close, it was up 5.2% from the pre-results close of ₹339.50. The Residential Commercial Projects industry median was down 0.7%, giving Mahindra Lifespace Developers an excess-sector move of 5.9 percentage points; the Nifty Microcap 250 was down 1.0%.

By the next day’s close, the stock was down 0.7% from its pre-results close, while the industry median was down 3.6%. By the fifth session’s close, it was down 6.6%, against a 0.1% fall for the industry median and a 0.5% fall for the Nifty Microcap 250. Earlier results-day moves included gains of 0.7% on 23 July 2026, 4.0% on 28 April 2026, 1.6% on 2 February 2026 and 6.0% on 31 October 2025, and declines of 2.9% on 25 July 2025, 3.7% on 13 May 2025, 6.2% on 31 January 2025 and 1.6% on 25 October 2024.

How did other Residential Commercial Projects companies do?

Among 35 other Residential Commercial Projects companies that had filed for the quarter, the median revenue growth was 17.6%. Twenty-seven peers grew more slowly than Mahindra Lifespace Developers, while eight grew faster. Twenty-one peers reported higher profit, based on a comparison covering 35 peers.

Mahindra Lifespace Developers’ Q2 FY27 revenue growth of 84.6% was above the peer median revenue growth of 17.6%. The comparison covered 35 peers, with 27 growing more slowly than the company and eight growing faster; 21 of the 35 peers reported higher profit.