Mahindra Lifespaces: Record BD to help achieve 5x presales target. Maintain BUY
By HDFC SKY | Updated at: Oct 14, 2025 12:22 PM IST
Mahindra Lifespaces (MLDL) has demonstrated exceptional execution in its land acquisition/redevelopment strategy during H1FY26, securing new projects with a combined GDV of ~INR 95bn. This significantly surpasses our initial FY26 BD expectation of INR 80-100bn and represents a remarkable ~2-2.5x multiple of its recent annual averages. This performance is a clear testament to the company’s accelerated growth trajectory and its focused strategy in core markets. This BD achievement is not an isolated event but a continuation of a 5x presales strategy by FY29/30 to INR 100bn. Over the last 18 months, MLDL has now secured BD worth over INR 280bn, providing unparalleled visibility and solidifying the foundation for its ambitious growth plans. The company’s robust GDV pipeline now stands fortified at over INR 480bn, which is critical to achieving its target of scaling presales 5x by FY30 to INR 100bn. The strategy is clear; a disciplined focus on core markets (MMR, Pune, Bengaluru), fast project turnaround times, and stringent financial hurdles (20%+ IRR). This expanding pipeline, combined with a rights-issue-strengthened balance sheet (INR 15bn raised), positions MLDL to achieve this target over the coming years. MLDL’s primary focus on mid-premium homes ensures resilience in a more normalized market. Additionally, the IC&IC business is expected to generate INR 15 bn PAT over the next 10 years, offering an additional lever for long-term profitability and cash flows. Given the strong cash flows, robust launch pipeline, stable balance sheet, and likely growth funds through rights, we remain constructive with a BUY on MLDL and a TP of INR 700/sh.
Foundation set for muti-year presales with landmark BD: The recent acquisitions are strategically aligned and diverse in nature, reinforcing the company’s presence across its core markets. MLDL continues to deepen its footprint in the MMR through a strategic mix of society redevelopment projects in Mulund, Chembur, and Malad, complemented by a cluster development in Andheri, collectively adding a significant GDV of INR 49bn and in Pune with GDV of INR 35bn. Further diversifying its portfolio, with outright purchase near Bengaluru’s airport road, with a GDV of INR 11bn, reaffirms the MLDL’s commitment to this high-growth market. This calculated blend of asset-light models like society redevelopment alongside outright purchases optimally balances capital efficiency with the aggressive buildup of a deep and valuable land bank.
Well-poised for growth with launch heavy year ahead: MLDL has several levers to growth as 1. several projects are now in the final stages of design and approvals, primed for launch in FY26; 2. it has increasing focus on mid-premium and premium segments, where its brand and execution capabilities offer differentiation and 3. We believe cumulative launch GDV for FY26 stands at INR 60-70bn, with sales bookings estimated at INR 40.4bn, these phased launches reflect a balanced approach to growth and execution.
Consolidated Financial Summary
| YE March (INR mn) | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26E | FY27E |
| Net Sales | 6,109 | 1,663 | 3,936 | 6,066 | 2,121 | 3,723 | 6,050 | 8,214 |
| EBITDA | -568 | -935 | -895 | -1,101 | -1,711 | -1,699 | -645 | 343 |
| APAT | -588 | -717 | 1,545 | 1,014 | 984 | 613 | 1,256 | 2,204 |
| Diluted EPS (INR) | (9.8) | (4.6) | 3.7 | 6.5 | 6.3 | 4.0 | 5.9 | 10.3 |
| P/E (x) | (52.0) | (110.0) | 136.9 | 77.8 | 80.2 | 128.6 | 62.8 | 35.8 |
| EV / EBITDA (x) | (140.6) | (85.5) | (88.8) | (73.4) | (50.6) | (53.4) | (126.0) | 241.2 |
| RoE (%) | (3.3) | (4.3) | 9.5 | 5.7 | 5.4 | 3.3 | 4.6 | 6.1 |
Disclaimer : This content is only for informational purpose. Do not make any investment based solely on this recommendation as it is not based on your unique risk profile and investment goals.
To see full report and full disclaimer, click on: https://www.hdfcsec.com/hsl.docs/Mahindra%20Lifespace%20-%20Update%20-%20Oct25%20–%20HSIE-202510131116383264701.pdf?t=13102025111752489
Source: HDFC Securities Institutional Equities
