Marathon Nextgen says Monte South Q2 sales hit Rs 146 crore

Marathon Nextgen said Monte South generated about Rs 146 crore of sales in Q2 FY27 despite the monsoon, as around 800 of its planned 1,800 apartments had been sold and buyer referrals were supporting demand. The company’s disclosed 40% share of Monte South booking value rose to Rs 58 crore from Rs 50 crore in Q1 FY27.

Why did Monte South sales reach about Rs 146 crore in Q2 FY27?

Monte South reached about Rs 146 crore of sales in Q2 FY27 because management said buyer demand remained active during the rainy season, when sales usually decline. Kaivalya Shah described the result as exceptional and said the sales level was broadly similar to Q1 FY27, indicating that the monsoon did not interrupt the project’s sales momentum.

The Rs 146 crore figure refers to project-level sales cited during the question-and-answer session, while the company reported a Rs 58 crore booking value for its then 40% revenue share in Monte South. That share covered about 15,800 square feet sold and Rs 57 crore of collections in Q2 FY27. Ready-to-move-in inventory in Towers A and B was also supporting sales, according to management.

The Rs 8 crore quarter-on-quarter increase in Marathon Nextgen’s Monte South booking share came alongside growth across its existing portfolio. Total existing-portfolio booking value rose to Rs 154 crore in Q2 FY27 from Rs 86 crore in Q1 FY27, while area sold increased to 71,000 square feet from 38,000 square feet.

What is driving buyer demand at Monte South?

Management attributed demand to Monte South’s 12-acre layout, its amenity offering and its position as a new development rather than a redevelopment project. Chetan Shah cited the swimming pool on Tower A’s 65th floor as an example of the features intended for the luxury buyer segment.

The project’s buyer base is also becoming a source of referrals, management said. Around 800 of approximately 1,800 planned apartments had been sold by the time of the call, and Kaivalya Shah said friends and family of existing buyers were coming through references. Management did not disclose the number of transactions or booking value generated specifically through referrals.

Pricing also varied by the construction stage of the towers. Management said Tower A, which was ready, commanded a higher value than Tower B, which had completed reinforced cement concrete work to the terrace level, and Tower C, which was further from possession. Chetan Shah said prices across these segments had increased by 10% over the preceding 12 months.

Is redevelopment supply affecting Monte South sales?

Management said redevelopment supply was not directly competing with Monte South and that project sales were growing quarter on quarter. This was management’s assessment in response to an analyst’s question about additional redevelopment deals and potential supply in the market, rather than a disclosed market-wide measurement.

Monte South has about 25 lakh square feet of total development potential, of which approximately 10 lakh square feet had been sold, leaving around 15 lakh square feet unsold. Management said the remaining area represented about 60% of the portfolio by square footage and about 70% of its value, based on sales completed to date.

Management estimated gross development value, or GDV, for the full project at about Rs 10,000 crore, using an average value of Rs 40,000 per square foot. It said roughly Rs 3,000 crore of residential apartments had been sold, leaving about Rs 7,000 crore of future sales to be made. Tower D and the commercial component, neither launched at the time of the call, accounted for about 12 lakh square feet, while the ongoing launched portfolio had about 3 lakh square feet yet to be sold.

How will full ownership change Marathon Nextgen’s reported sales?

Full ownership is expected to change the way Marathon Nextgen reports Monte South from the next quarter after completion of the acquisition, while management said the project’s construction timeline would not change. The company said its Q2 FY27 operating figures reflected a 40% revenue share that would move to 100% after the transaction.

Chetan Shah said that as a minority stakeholder, Marathon Nextgen did not consolidate Monte South revenue in its top line, with profit instead appearing as a single line item. The moderator said full ownership would allow the company to consolidate 100% of project revenue. This is an accounting effect of ownership rather than a change in the project’s delivery schedule.

Marathon Nextgen said it ended September 2026 with a net debt-free balance sheet and positive net cash while pursuing the Monte South acquisition. Management put Tower B’s balance construction cost at around Rs 200 crore and cited typical project EBITDA, or earnings before interest, tax, depreciation and amortisation, margins of 30% to 35%.

What could determine Monte South’s next sales phase?

The next sales phase will depend on launches, construction progress and market absorption, with Monte South’s commercial development scheduled for launch in the next financial year. Management said the planned high-rise would have retail and parking on lower floors, followed by two office towers intended for smaller and larger office occupiers.

Chetan Shah said one commercial tower would normally take about four years to complete after launch, while the second could be deferred by one to one-and-a-half years depending on market absorption. He said Marathon Futurex, about 3 kilometres from Monte South, was seeing inventory absorption and could generate office-demand overflow for the proposed development.

Management said Tower D is planned for launch in FY29 with estimated GDV of about Rs 1,800 crore, while the commercial component has estimated GDV of about Rs 3,400 crore. Kaivalya Shah said that extrapolating approximately Rs 300 crore of Monte South sales achieved so far in FY27 would imply about Rs 600 crore for the year, but he explicitly described that as a forward-looking calculation rather than guidance.

Conclusion

Monte South’s approximately Rs 146 crore of Q2 FY27 sales shows that management saw continued buyer activity during the monsoon. The Rs 8 crore increase in Marathon Nextgen’s 40% booking share, the 800 apartments sold and management’s account of referrals point to a sales base that the company believes is supporting further demand.

The next developments to watch are completion of the move from 40% to 100% ownership and the resulting revenue consolidation, the commercial launch in the next financial year, and Tower D’s planned FY29 launch. Management has also left the timing of a second commercial office tower dependent on market absorption, making that an unresolved execution variable.