Max Estates September-quarter profit falls 40% on costs

Max Estates Limited reported consolidated profit of Rs 4.68 crore for the quarter ended September 30, 2026, down 40% from Rs 7.81 crore a year earlier, as total expenses rose 15% to Rs 72.17 crore while total income increased 6% to Rs 79.33 crore. The board approved the unaudited results on November 4, 2026.

Why did Max Estates’ September-quarter profit decline?

Max Estates’ profit before tax fell 39% year on year to Rs 7.15 crore in the September 2026 quarter from Rs 11.63 crore in the September 2025 quarter. Total expenses increased by Rs 9.17 crore, or 15%, to Rs 72.17 crore, exceeding the Rs 5.69 crore, or 6%, rise in total income to Rs 79.33 crore.

The largest year-on-year increase among disclosed expense lines was advertising and sales promotion, which rose 65% to Rs 19.83 crore from Rs 12.00 crore. Employee benefits expense increased 20% to Rs 8.46 crore from Rs 7.08 crore, while facility and management services rose 34% to Rs 10.52 crore from Rs 7.85 crore.

How did Max Estates’ income and expenses change from last year?

Max Estates’ revenue from operations grew 8% to Rs 52.77 crore in the September 2026 quarter from Rs 48.77 crore a year earlier. Other income increased 3% to Rs 26.56 crore from Rs 25.86 crore, taking total income to Rs 79.33 crore compared with Rs 74.63 crore in the previous-year quarter.

Finance costs were broadly stable at Rs 16.43 crore, compared with Rs 16.28 crore a year earlier, and depreciation and amortisation increased 2% to Rs 8.21 crore from Rs 8.04 crore. Other expenses declined 26% to Rs 8.73 crore from Rs 11.75 crore, partly offsetting higher promotion, employee and facility costs.

On a sequential basis, Max Estates’ total income was lower than Rs 80.08 crore in the June 2026 quarter, while total expenses increased from Rs 68.69 crore. Profit for the period consequently declined from Rs 8.35 crore in June to Rs 4.68 crore in September, while advertising and sales promotion was nearly unchanged at Rs 19.83 crore versus Rs 19.81 crore.

What do Max Estates’ half-year results show?

Max Estates reported profit for the half year ended September 30, 2026 of Rs 13.03 crore, down 34% from Rs 19.75 crore in the corresponding half year of 2025. Revenue from operations increased 4% to Rs 104.68 crore from Rs 100.25 crore, but total expenses rose 12% to Rs 140.86 crore from Rs 126.30 crore.

Advertising and sales promotion expense for the six months increased to Rs 39.64 crore from Rs 21.34 crore, an increase of Rs 18.30 crore. Employee benefits expense rose to Rs 19.47 crore from Rs 14.40 crore, while facility and management services increased to Rs 18.45 crore from Rs 15.40 crore; finance costs declined slightly to Rs 33.16 crore from Rs 33.60 crore.

What changed in Max Estates’ cash flow and balance sheet?

Max Estates generated net operating cash flow of Rs 72.61 crore in the half year ended September 30, 2026, compared with an operating cash outflow of Rs 304.48 crore in the comparable 2025 period. Cash generated from operations was Rs 84.90 crore, compared with an outflow of Rs 276.77 crore, despite a Rs 1,082.70 crore increase in inventories during the 2026 half year.

At September 30, 2026, total assets were Rs 14,043.55 crore, up from Rs 12,437.20 crore at March 31, 2026. Inventories increased to Rs 8,009.56 crore from Rs 6,888.06 crore, while total liabilities rose to Rs 10,833.31 crore from Rs 9,276.03 crore and total equity increased to Rs 3,210.24 crore from Rs 3,161.18 crore.

Cash and cash equivalents stood at Rs 147.78 crore on September 30, 2026, down from Rs 204.88 crore at March 31, 2026. The group used Rs 318.37 crore in investing activities, including Rs 171.10 crore for purchases of property, plant and equipment, investment property, intangible assets, capital work in progress and capital advances, while financing activities provided Rs 188.65 crore.

What did the filing say about Max Estates’ operations and review?

Max Estates said its business activities primarily comprise real estate and related activities, which management views as one reportable real-estate-development segment under Indian Accounting Standard 108. The group reported no geographical segments because its operations are domiciled in India, and the consolidated results include subsidiaries in which the holding company has direct or indirect stakes ranging from 51% to 100%.

S.R. Batliboi & Co. LLP issued a limited review report dated November 4, 2026, stating that nothing had come to its attention that caused it to believe the consolidated statement was not prepared in accordance with applicable requirements. The review included financial information for 12 subsidiaries with total assets of Rs 11,863.40 crore at September 30, 2026 and September-quarter revenue of Rs 28.51 crore.

Max Estates issued 82,596 shares against exercised options under its Max Estates Employee Stock Option Plan – 2023 during the September 2026 quarter, compared with 18,209 shares in the September 2025 quarter. Basic earnings per share, which was not annualised, declined to Rs 0.29 from Rs 0.49, while paid-up equity share capital rose to Rs 163.58 crore from Rs 161.05 crore.

Conclusion

The half-year figures extend the quarterly pattern: Rs 4.43 crore of additional revenue from operations was accompanied by a Rs 14.57 crore increase in total expenses, reducing half-year profit by Rs 6.71 crore to Rs 13.03 crore. At the same time, operating cash flow moved from a Rs 304.48 crore outflow to a Rs 72.61 crore inflow, while inventories increased by Rs 1,121.50 crore from March 31, 2026.

The filing does not disclose a forward target, project plan or scheduled future event. The unresolved matters for subsequent disclosures are whether advertising and sales-promotion expense remains near the first-half Rs 39.64 crore level, how the Rs 8,009.56 crore inventory balance develops, and whether cash and borrowing movements change from the September 30, 2026 position.