Mahindra Lifespace Developers reports record FY25 growth, quadruples GDV additions

How Did Mahindra Lifespaces Perform in FY25?

Mahindra Lifespace Developers Limited delivered a record-breaking performance for the financial year ended 31 March 2025, with a standout achievement in gross development value (GDV) additions and pre-sales growth. The company reported a quadrupling of GDV additions to ₹18,100 crore in FY25 compared to ₹4,400 crore in the previous fiscal year. This surge reflects Mahindra Lifespaces’ aggressive expansion strategy and strong demand response across its residential and integrated cities and industrial clusters (IC&IC) segments.

Residential pre-sales reached ₹2,804 crore in FY25, marking a 20.4% increase year-on-year. This figure corresponded to a saleable area of 3.18 million square feet and a RERA carpet area of 2.32 million square feet, indicating solid customer uptake across multiple project launches, including Vista Phase 2, IvyLush, Zen, and Green Estates. Consolidated revenues from the IC&IC business rose by 5% to ₹495 crore for the year, with the total leased area standing at 85.1 acres.

Total consolidated income, measured under INDAS accounting standards, jumped by 66% to ₹463.9 crore in FY25 from ₹279.1 crore in FY24, showcasing the company’s improved revenue recognition in line with the completion of contract projects.

What Were Mahindra Lifespaces’ Financial Highlights for FY25?

A strong focus on cash flow management and balance sheet health remained evident in Mahindra Lifespaces’ FY25 financials. Residential collections climbed to ₹1,831 crore, representing a healthy increase from ₹1,385 crore the previous year. The company reported its highest-ever consolidated operating cash flows, including joint ventures and associates, at ₹832 crore, reflecting a 30% rise over FY24.

Profitability metrics also remained robust. Profit before tax, after accounting for non-controlling interests, rose 30% to ₹70.5 crore in FY25 from ₹54.3 crore the year prior. However, consolidated profit after tax declined to ₹61.3 crore from ₹98.2 crore in FY24, indicating a recalibration in earnings dynamics despite stronger operational fundamentals. Importantly, the net debt-to-equity ratio remained stable at a healthy 0.39, reinforcing Mahindra Lifespaces’ conservative capital management approach.

How Did Mahindra Lifespaces Perform in Q4 FY25?

The final quarter of FY25 saw Mahindra Lifespaces maintain its momentum, recording consolidated sales across residential and IC&IC segments of ₹1,266 crore. The company achieved GDV additions of ₹3,650 crore during Q4 FY25, up 1.8 times from ₹2,040 crore in Q4 FY24.

Residential pre-sales during the quarter were ₹1,055 crore, corresponding to a saleable area of 1.03 million square feet and a RERA carpet area of 0.70 million square feet. Although slightly lower than the ₹1,086 crore recorded in Q4 FY24, the strong overall performance for the year overshadowed this minor sequential dip.

Revenue from the IC&IC business grew by 14% year-on-year to ₹211 crore for Q4 FY25, reflecting heightened leasing activity across Mahindra Lifespaces’ industrial clusters. The consolidated total income stood at ₹55.4 crore for Q4, broadly stable compared to ₹54.6 crore a year earlier.

Profit before tax surged 48% year-on-year to ₹86.5 crore in Q4 FY25, while profit after tax rose 19% to ₹85.1 crore, indicating sustained margin resilience and efficient cost controls during the final quarter.

What Did Mahindra Lifespaces’ Leadership Say About FY25 Performance?

Amit Kumar Sinha, Managing Director and Chief Executive Officer of Mahindra Lifespace Developers Limited, attributed the company’s robust FY25 performance to a combination of strategic launches, efficient cash flow management, and strong demand across both residential and industrial segments. He highlighted that GDV additions of ₹18,100 crore were nearly four times higher than FY24, reinforcing the company’s growth trajectory.

He further noted that the residential business saw significant growth driven by well-received projects, while the IC&IC vertical successfully closed marquee transactions during the year. Mr. Sinha emphasised that the healthy balance sheet, reflected in the record operating cash flows and a well-controlled net debt-to-equity ratio, positions Mahindra Lifespaces favourably to achieve its medium-term goal of ₹8,000 crore to ₹10,000 crore in annual sales within the next five years.

How Is Mahindra Lifespaces Positioned in the Indian Real Estate Sector?

Founded in 1994, Mahindra Lifespaces has consistently positioned itself at the forefront of India‘s real estate and infrastructure development. Its footprint spans over 41.11 million square feet of completed, ongoing, and upcoming residential projects across seven Indian cities. The company’s integrated cities and industrial clusters cover more than 5,000 acres across four strategic locations.

Mahindra Lifespaces’ diversified portfolio includes premium residential projects, affordable housing under the ‘Mahindra Happinest’ brand, and large-scale integrated business cities under the ‘Mahindra World City’ and ‘Origins by Mahindra’ brands. The developer has also led sustainability efforts in the sector, committing to build only Net Zero homes from 2030 onwards and launching India’s first three Net Zero residential developments.

With a fully green-certified portfolio since 2014 and a clear carbon neutrality target by 2040, Mahindra Lifespaces has not only earned customer trust but also positioned itself as a pioneer in environment-friendly urban development.

What Is the Latest Stock Performance and Sentiment Analysis for Mahindra Lifespaces?

As of 25 April 2025, Mahindra Lifespace Developers Limited’s stock closed at ₹338.40, reflecting a modest daily gain of 0.39%. Over the past two weeks, the stock has appreciated by 14.42%, driven by strong earnings momentum and positive market sentiment. However, technical analysis suggests a need for caution. Following a nine-day consecutive winning streak, analysts anticipate the potential for a short-term correction, with forecasts indicating a possible decline of up to 22.05% over the next three months.

Valuation metrics point towards a premium positioning, with a current price-to-earnings (P/E) ratio of 109.58 and a price-to-book (P/B) ratio of 2.79, implying the stock trades at relatively expensive levels compared to industry peers.

Institutional investor activity reveals a slight decline in stakeholding. Foreign Institutional Investors (FIIs) have reduced their holdings from 9.99% to 9.55% as of the March 2025 quarter, while Domestic Institutional Investors (DIIs) trimmed their stakes from 20.69% to 20.08%. Mutual funds similarly decreased their ownership from 19.06% to 18.54%, suggesting cautious profit-taking among large investors.

Analyst consensus currently categorises Mahindra Lifespace Developers as a ‘Hold’ or ‘Accumulate’. While the company’s operational performance and project pipeline provide significant long-term growth potential, the elevated valuation and near-term technical risks imply that investors may prefer to maintain current positions rather than aggressively adding at present levels. Monitoring price corrections for better entry opportunities could be a prudent strategy.

What Lies Ahead for Mahindra Lifespaces?

Looking ahead, Mahindra Lifespaces is focused on scaling up its project launches, expanding into new micro-markets, and intensifying its efforts towards sustainable development. Management’s strategic roadmap includes bolstering its presence in emerging urban centres, accelerating affordable housing initiatives under the Mahindra Happinest brand, and deepening its footprint in industrial clusters catering to new-age sectors such as electric vehicles and clean energy manufacturing.

Given the buoyant demand environment and strong fundamentals, Mahindra Lifespaces appears poised to capitalise on India’s growing urbanisation wave and sustainability-driven preferences in residential and industrial real estate. The company’s emphasis on cash flow-driven growth and disciplined financial management further solidifies its long-term investment appeal.

Mahindra Lifespaces’ FY25 performance not only sets new benchmarks for operational excellence but also lays a robust foundation for accelerated future growth, reaffirming its position as one of India’s most progressive real estate developers.