Modis Navnirman FY26: Revenue jumps to INR 189.31 crore as project completions drive a strong finish

Modis Navnirman Limited closed FY26 with its sharpest topline expansion in the disclosed period, supported by execution milestones and conversion of sales as projects neared completion. Revenue from operations rose to INR 189.31 crore in FY26, up 84 percent from INR 102.91 crore in FY25. EBITDA increased to INR 38.46 crore, up 35 percent, while profit after tax grew 26 percent to INR 29.14 crore.

Management described FY26 as a “landmark year” and also highlighted a governance and reporting milestone. FY26 marked the company’s first-time adoption of Indian Accounting Standards (Ind AS), which management positioned as a step toward improved transparency and comparability. Alongside financial performance, the year included corporate actions such as the proposed migration from the BSE SME platform to the BSE and NSE main boards and a merger of Shree Modis Navnirman Private Limited into Modis Navnirman Limited.

What drove growth in FY26

The company’s FY26 performance was closely linked to execution across a set of Mumbai-focused redevelopment projects. In the earnings call, management explained that Q4 FY26 revenue acceleration was influenced by project completion and handover-linked conversion of sales, specifically referencing Rashmi Vasudeo and Rashmi Celestia.

Project-wise disclosure in the investor presentation shows that FY26 revenue was spread across several projects. Rashmi Celestia contributed INR 60.80 crore, while Rashmi Square delivered INR 49.44 crore and Rashmi Signature INR 31.12 crore. Smaller contributions came from Rashmi Vasudeo, Rashmi Delight, Rashmi Manorath, and older projects.

A key operational highlight was the reported handovers during FY26. The presentation states the company handed over Rashmi Vasudeo (90 units) in H1 and Rashmi Aesthesia (81 units) in H2. Management framed timely delivery as a key brand differentiator in the redevelopment market.

Margins: strong profits, but some compression

Despite a strong jump in revenue, margins moderated in FY26 relative to FY25. The consolidated profit and loss table shows gross profit margin at 24.09 percent for FY26 compared with 31.71 percent in FY25. EBITDA margin (including other income) was 19.96 percent versus 27.22 percent in FY25. PAT margin was 15.12 percent versus 22.10 percent.

On the concall, management attributed margin pressure largely to construction input cost increases and the cost profile of projects at certain execution stages. They said raw material cost impact was mainly felt in Rashmi Square and Rashmi Signature, calling it a minor hit. Management also linked part of the margin impact to starting new projects late in FY26, where initial spends are incurred before revenue recognition ramps up.

Management’s stance was that margin softness was temporary and that margins would bounce back to previous levels, although no numeric margin target or timeframe was provided.

Project pipeline, bookings, and execution progress

Modis Navnirman positions itself as an asset-light, capital-efficient redevelopment-led developer with concentration in Mumbai’s western suburbs such as Borivali, Kandivali, Malad, and Dahisar. The company disclosed cumulative scale of 07.22+ lakh sq ft delivered, 12.11+ lakh sq ft ongoing, and 09.00+ lakh sq ft upcoming.

The investor presentation provides a slab completion snapshot across six ongoing projects. Rashmi Square and Rashmi Signature were disclosed as having reached around the 19th to 20th slab stage, while Rashmi Delight and Rashmi Manorath were mid-way, and newer projects Rashmi Icon and Rashmi Avenue were at plinth stage.

A separate “Project till date synopsis” table details carpet area, booking and inventory position. Across listed development properties, total carpet area is 7.35 lakh sq ft, with 4.92 lakh sq ft booked and 2.43 lakh sq ft inventory as on date. Rashmi Square shows 0.82 lakh sq ft carpet area with 0.60 lakh sq ft booked and 68.94 percent project completion. Rashmi Signature shows 1.43 lakh sq ft carpet area with 0.82 lakh sq ft booked and 50 percent project completion.

Sales momentum and conversion were discussed directly in the concall. Management cited blended realizations around INR 25,000 to 27,000 per sq ft and stated that this was a base, with expectations of moving upward. For Rashmi Square, management discussed targeting INR 27,000 to 28,000 per sq ft as completion nears.

The company also discussed changes made to improve sales conversion in Rashmi Signature. Management stated that they created sample flats in the third and fourth quarters to improve conversion after observing lower traction earlier.

Balance sheet posture and corporate actions

The FY26 balance sheet shows borrowings at INR 5.62 crore and trade payables at INR 48.33 crore. Management repeatedly emphasised its low-leverage approach and described the business as debt-free in operating philosophy, stating it does not foresee structured debt for larger projects because it expects internal funding through execution and sales traction.

On capital allocation, management said it has not planned specific new land additions for FY27 but may consider opportunities if they meet internal criteria. The company also indicated it is exploring opportunities in higher-priced micro-markets. When asked about a potential Khar project, management stated a target sale rate of around INR 45,000 to 50,000 per sq ft for that market.

In addition, the company highlighted corporate milestones in FY26. These included:

• Proposed migration from BSE SME to the BSE and NSE main boards, positioned as a credibility milestone in the capital markets
• Merger of Shree Modis Navnirman Private Limited into the listed entity, described as operational consolidation
• Incorporation of Modis Navnirman Foundation on January 20, 2026 as a CSR arm

Takeaways for investors

FY26 demonstrated Modis Navnirman’s ability to scale revenues sharply when execution and completion milestones align. The year’s growth was supported by multiple projects, with large contributions from Rashmi Celestia, Rashmi Square, and Rashmi Signature.

At the same time, FY26 highlighted the sensitivity of profitability to project mix, construction input costs, and the early-stage spend profile of newly started projects. Management expects margins to bounce back, but the documents do not provide quantified guidance.

For FY27, management’s stated focus is accelerating execution on ongoing projects, maintaining financial discipline, and selectively expanding the redevelopment pipeline. The primary proof points to track remain progress toward targeted handovers, booking traction in under-penetrated projects, and whether margin normalisation follows as newer projects move from cost-heavy early stages to revenue-generating phases.