ICICI Securities has issued a buy rating on Mahindra Lifespace Developers with a revised target price of ₹478, down from the earlier target of ₹547. The brokerage's research report dated October 22, 2026, maintains its positive outlook despite the company's recent quarterly profit challenges. The revised target price factors in higher project costs and trims the premium to NAV to 20 percent from the earlier 25 percent. ICICI Securities expects the company to achieve its ambitious strategy of reaching ₹95-100 billion in annual residential sales bookings by FY30, representing a 4x increase in sales over five years from FY25-30.
Mahindra Lifespace Developers Ltd experienced a substantial 66 percent decline in consolidated net profit for the quarter ending September 2026, with profits falling to ₹16.34 crore compared to ₹47.91 crore in the same period last year. The profit decline was primarily attributed to a higher tax expense of approximately ₹33 crore in the quarter, as reported by Rediff Moneynews. However, the company achieved remarkable 66 percent growth in residential pre-sales, which reached ₹1,988 crore in the first half of FY27. According to Motilal Oswal's latest research, the company reported bookings of ₹10.6 billion (+41% YoY) in Q2FY27, driven by new launches at Beaconhill in MMR (₹2.8 billion; 26% share) and Citadel in Pune (₹2.0 billion; 19% share).
Despite the profit decline, the company demonstrated strong revenue growth with total income rising to ₹104.02 crore in the quarter from ₹33.06 crore a year ago. For the first half of FY27, consolidated sales across residential and industrial clusters and integrated cities (IC&IC) businesses rose 48 percent year-on-year to ₹2,101 crore. The company added ₹7,100 crore in gross development value (GDV) during the six-month period, compared with ₹5,200 crore in the first half of 2025-26. As reported by The Economic Times, residential pre-sales during the first half covered a saleable area of 1.29 million sq ft and RERA carpet area of 0.85 million sq ft. In H1FY27, the company added the K2 Kandivali, Mumbai land parcel having a GDV of ₹5,600 crore, significantly boosting its development pipeline.
For Q2 FY27 specifically, Mahindra Lifespace reported consolidated sales of ₹1,126 crore, registering a 32 percent year-on-year growth. Operating revenue jumped 85 percent to ₹32.42 crore from ₹33.06 crore in the year-ago period. Total expenses grew 24.3 percent Y-o-Y to ₹97.41 crore in Q2FY27, from ₹78.39 crore in the same period last year. The company made gross development value (GDV) additions of around ₹1,500 crore in the September quarter alone, significantly boosting its development pipeline. According to Business Standard, the company's net debt-to-equity ratio stood at -0.28 as of September 30, 2026, indicating a cash surplus position.
Looking ahead, Motilal Oswal maintains its presales CAGR estimate of 27 percent to reach approximately ₹54.6 billion during FY26-28. The company expects Project Lakewoods (Phases F&G) in Chennai, launched in Q2FY27, and the recently launched Mahalunge P-1 in Pune to meaningfully contribute to presales from Q3FY27. Additionally, three more projects are expected to be launched in FY27, with the company reiterating its FY27 presales guidance of ₹45-50 billion. In Q2FY27 specifically, Mahindra Vista in MMR was another major contributor, generating ₹2.1 billion in sales (20% share), while the IC&IC business revenue declined to ₹63 crore from ₹99 crore in the corresponding quarter last year. As noted by Amit Kumar Sinha, Managing Director & CEO of Mahindra Lifespace Developers, the company's IC&IC business has a strong pipeline expected to close in H2 FY27. For the remainder of FY27, the company has an incremental launch pipeline of four new projects: Mahalunge (Pune), Saibaba and Westera society redevelopments (Mumbai) and Navrat (Bengaluru).
