Modis Navnirman FY26: Revenue Jumps 84% as Redevelopment Execution Scales

Modis Navnirman closed FY26 with its strongest reported year to date, supported by handovers, steady construction progress, and an expanding redevelopment pipeline in Mumbai’s western suburbs. Revenue from operations rose to INR 189.31 crore, up 84% year on year. EBITDA increased to INR 38.46 crore, up 35%, and profit after tax grew 26% to INR 29.14 crore. The company also reported that FY26 marked its first-time adoption of Indian Accounting Standards (Ind AS), positioning its financial reporting on a more comparable footing.

Management framed FY26 as a year of record revenue, profitability, and project additions, driven by a redevelopment-led model and disciplined execution. That message is reinforced by the operating details across projects such as Rashmi Square, Rashmi Signature, Rashmi Delight, and Rashmi Manorath, alongside handovers of Rashmi Vasudeo and Rashmi Aesthesia during the year.

The operational context matters because Modis Navnirman’s business is shaped by project milestones. The year included completion progress across six ongoing projects and two handovers totaling 171 residential units, which helped convert execution into reported financial performance. At the same time, the company added to its medium-term opportunity set with new launches and early-stage projects such as Rashmi Icon and Rashmi Avenue.

FY26 performance in numbers and what changed

In Q4 FY26, revenue from operations rose sharply to INR 51.49 crore compared with INR 19.94 crore in Q4 FY25, a year on year increase of 158%. For the full year, the same line grew from INR 102.91 crore in FY25 to INR 189.31 crore in FY26. EBITDA for Q4 FY26 stood at INR 7.56 crore versus INR 3.92 crore in Q4 FY25, while FY26 EBITDA reached INR 38.46 crore compared with INR 28.47 crore in FY25.

Profitability expanded in absolute terms, but margin trends were mixed. The consolidated profit and loss shows FY26 gross profit margin of 24.09% compared with 31.71% in FY25. EBITDA margin including other income was 19.96% in FY26 versus 27.22% in FY25. PAT margin was 15.12% in FY26 compared with 22.10% in FY25. The numbers suggest that scale and delivery supported growth, while cost and inventory movements influenced reported margins.

A key line item in FY26 is changes in inventories at negative INR 42.90 crore compared with negative INR 31.19 crore in FY25, and raw material expenses rising to INR 147.08 crore from INR 71.94 crore. In Q4 FY26 specifically, total raw material expenses increased to INR 45.43 crore from INR 7.27 crore in Q4 FY25. Finance costs remained relatively contained in FY26 at INR 1.65 crore versus INR 0.72 crore in FY25. Basic EPS increased to INR 14.89 in FY26 from INR 11.80 in FY25.

The KPI set provided by the company points to the operational base behind the financial step-up. Area sold in FY26 was 53,000 sq. ft., up 23% year on year. Revenue growth at 84% outpaced the area-sold growth, which indicates that project mix, stage of completion, and revenue recognition across the portfolio likely played a significant role in the reported outcome.

Project execution as the main engine

Modis Navnirman’s development footprint is concentrated in Mumbai’s western suburbs, including Borivali, Kandivali, Malad, and Dahisar. The company describes an asset-light and capital-efficient approach, with a focus on redevelopment opportunities. In practice, the execution story in FY26 is visible in construction milestones and inventory metrics.

Across the ongoing projects in FY26, slab completion progress reached the 20th slab at Rashmi Square and 19th slab at Rashmi Signature. Rashmi Delight reached the 11th slab, and Rashmi Manorath completed the 10th slab. Two newer projects were at early construction stages, with Rashmi Icon and Rashmi Avenue at plinth stage.

The project till date synopsis gives more detail on carpet area, booking, inventory, and completion percentage across key projects:

Rashmi Square shows carpet area of 0.82 lakh sq. ft. with 0.60 lakh sq. ft. booked and 0.22 lakh sq. ft. inventory, with completion at 68.94%. Rashmi Signature has 1.43 lakh sq. ft. carpet area, 0.82 booked, 0.61 inventory, and 50% completion. Rashmi Delight is smaller at 0.36 lakh sq. ft. carpet area, with 0.26 booked and 44.55% completion. Rashmi Manorath stands at 0.49 lakh sq. ft. carpet area, with 0.30 booked and 36.37% completion.

Completed projects in the synopsis include Rashmi Celestia, Rashmi Enclave, and Rashmi Jewel, each at 100% completion. Rashmi Icon and Rashmi Avenue are large future contributors by area, with carpet areas of 1.45 lakh sq. ft. and 1.33 lakh sq. ft. respectively, but completion at 14.27% for Rashmi Icon and 0.60% for Rashmi Avenue at the time of the presentation.

In terms of delivered and pipeline scale, the company states 7.22+ lakh sq. ft. delivered, 12.11+ lakh sq. ft. ongoing, and 9.00+ lakh sq. ft. upcoming. It also states a portfolio of 24 premium residential projects across Mumbai and adjoining regions.

The handover milestones provide another execution datapoint. In H1, the company handed over Rashmi Vasudeo at Shimpoli, Borivali (West), comprising 90 residential units. In H2, it handed over Rashmi Aesthesia at L. T. Road, Borivali (West), comprising 81 residential units. These deliveries align with the company’s stated positioning around timely delivery and customer satisfaction.

Where FY26 revenue came from

The project-level metrics table explains the FY26 revenue and spends by project. Rashmi Celestia was the largest revenue contributor at INR 60.80 crore, with spends of INR 57.32 crore. Rashmi Square generated INR 49.44 crore revenue with spends of INR 36.36 crore. Rashmi Signature contributed INR 31.12 crore with spends of INR 14.48 crore. Rashmi Vasudeo added INR 13.92 crore with spends of INR 14.05 crore. Rashmi Delight recorded INR 11.16 crore revenue and INR 8.00 crore spends. Rashmi Manorath generated INR 6.93 crore revenue with spends of INR 3.64 crore. Old projects contributed INR 15.94 crore revenue with spends of INR 13.12 crore.

This mix helps explain why the year was defined by execution across multiple assets at different stages. Completed or near-completion projects can drive revenue recognition, while ongoing projects create a pipeline for future periods. It also shows that FY26 was not reliant on a single asset for performance, although Rashmi Celestia and Rashmi Square together accounted for a substantial share of total reported revenue.

Capital position, balance sheet shape, and discipline

The balance sheet shows total assets of INR 304.94 crore in FY26 compared with INR 282.17 crore in FY25. Shareholders’ funds include equity share capital of INR 19.59 crore and other equity of INR 137.07 crore, up from INR 107.93 crore in FY25.

On the liabilities side, borrowings are reported at INR 5.62 crore in FY26 compared with INR 3.34 crore in FY25. Trade payables rose to INR 48.33 crore from INR 22.73 crore. Other current liabilities declined to INR 87.91 crore from INR 124.56 crore.

On the asset side, inventories increased to INR 146.42 crore from INR 103.52 crore. Other current assets were INR 140.47 crore versus INR 167.87 crore. Cash and cash equivalents were INR 1.47 crore compared with INR 0.98 crore. Bank balance other than cash was INR 3.45 crore compared with INR 2.32 crore.

The company repeatedly emphasizes a low-leverage, capital-efficient approach, and the reported borrowing level remains modest relative to the balance sheet size. That said, the rise in trade payables and inventories points to an execution-heavy phase where working capital lines can move with construction cycles.

Strategy and market context: why redevelopment matters now

The presentation places Modis Navnirman in the context of a growing Indian real estate market, supported by urbanisation, infrastructure spending, and increasing premiumisation in housing demand. It cites a long-term opportunity where India’s real estate market size is expected to expand significantly by 2047, and highlights trends such as larger average home sizes and a higher share of INR 1 crore plus homes in the market.

Within that broad opportunity, Modis Navnirman’s stated positioning is more specific. The company concentrates on Mumbai’s high-demand western suburbs and describes redevelopment as a structural advantage. Redevelopment can offer access to land-constrained micro-markets with lower upfront land costs than greenfield acquisition, but it requires execution capability, stakeholder management, and consistency in project delivery.

The company’s growth drivers are anchored in this model. It highlights an asset-light, scalable approach through partnership-driven redevelopment, including MHADA, SRA, and society redevelopment. It also outlines a focus on mid-income and aspirational housing, with 14 to 18 storey residential towers tailored for urban buyers, and a pipeline that includes mixed-use elements.

The ongoing and newer projects illustrate how this strategy is being deployed. Rashmi Signature at S.V. Road, Malad (W) is described as an 18-storey building with 3 wings and 210 flats, with a project start of May 2024 and targeted completion in August 2027. Rashmi Square at Linking Road, Borivali (W) is described as a 21-storey building with 2 wings, 130 flats, and a commercial mix including 10 shops and 7 offices, with a project start of December 2023 and targeted completion in May 2027.

Rashmi Manorath at Datta Pada Road, Borivali (E) is described as a 17-storey building with 87 flats, project year January 2024, and targeted completion in May 2026. Rashmi Delight at Shantilal Modi Road, Kandivali (W) is described as a 17-storey building with 53 flats and 3 shops, project year January 2025, and targeted completion in August 2027. Rashmi Icon at Shankar Lane, Orlem, Malad (W) and Rashmi Avenue at Kandarpada, Dahisar (W) are larger projects with multi-wing configurations and residential plus commercial inventory, both started in early FY27 time frame as per project years in February and March 2026, with targeted completion in August 2029.

Governance milestones and investor-facing initiatives

FY26 also included corporate milestones that matter for market visibility. The company highlighted its planned migration from the BSE SME Platform to the BSE and NSE main boards. It also highlighted the merger of Shree Modis Navnirman Private Limited with Modis Navnirman Limited as a strategic consolidation intended to strengthen operational efficiency and brand value.

Separately, it announced the establishment of its CSR arm, Modis Navnirman Foundation, incorporated on January 20, 2026. While financial impacts are not quantified in the presentation, it signals an intent to formalize social initiatives alongside growth.

Takeaways for investors

The FY26 results show a company scaling up on the back of project execution. Revenue growth of 84% and PAT growth of 26% reflect a year where handovers and construction progress translated into reported performance. At the same time, margin compression in the financial statements suggests investors should track how costs, inventory movement, and project mix evolve as the pipeline shifts toward earlier-stage assets like Rashmi Icon and Rashmi Avenue.

The operational dashboard points to a clear near-term focus: deliver ongoing projects with high completion percentages, keep bookings moving, and convert under-construction inventory into revenue. With 12.11+ lakh sq. ft. ongoing and 9.00+ lakh sq. ft. upcoming, execution discipline becomes the key variable that can sustain growth.

Management’s stated priorities align with that: accelerate execution across ongoing projects, expand the redevelopment portfolio selectively in Mumbai’s western suburbs, maintain financial discipline, and create long-term value for stakeholders. If FY26 was defined by scale-up and delivery, the next phase will likely be defined by how efficiently the company carries larger, longer-duration projects through their construction cycle while preserving returns.