Modis Navnirman Q1 FY27: Growth Holds Up, Margins Dip on Cost Shock

Modis Navnirman reported a strong start to FY27, with Q1 FY27 revenue from operations rising to 58.26 crore, up 27.92 percent year on year. EBITDA grew 14.25 percent to 11.65 crore, while profit after tax increased 25.81 percent to 8.54 crore. The company also disclosed a sharp jump in area sold to 44,000 sq ft, up 780 percent year on year.

The quarter’s message was clear. Execution continued across multiple redevelopment sites in Mumbai’s western suburbs, sales improved, and the project pipeline expanded. At the same time, margins softened, and management linked this to a temporary spike in input costs and disruptions during a war period that impacted material procurement and availability.

What drove the quarter

A key feature of Modis Navnirman’s model is redevelopment-led growth, where the company positions itself as partnering with housing societies rather than buying land in the open market. In the Q1 FY27 concall, management reiterated that this approach keeps land cost low and focuses capital on construction and delivery.

Operationally, construction progress was highlighted across major ongoing projects. The investor presentation reported slab completion milestones for Rashmi Square (22nd slab completed), Rashmi Signature (20th slab completed), Rashmi Delight (14th slab completed), and Rashmi Manorath (13th slab completed). Rashmi Icon and Rashmi Avenue were reported at plinth stage.

Revenue in Q1 FY27 was also explained through a project-wise split disclosed in the investor deck. Rashmi Square and Rashmi Signature were the largest contributors to the quarter, together forming a majority of the reported revenue. Rashmi Celestia also contributed meaningfully.

Mix and margins: why EBITDA growth lagged revenue

Even with strong revenue growth, EBITDA growth was relatively slower, and the EBITDA margin including other income declined to 19.83 percent from 22.33 percent in Q1 FY26. During the concall, management attributed this to the impact of a war situation that caused material costs to rise and led to short-term disruption such as panic buying, material shortages, and labour shortages.

Management also indicated that two large projects were in advanced stages of completion, which meant procurement had to be done during the period of elevated costs. It described the impact as a temporary hit, suggesting the next quarter should return closer to prior trends as conditions have stabilized.

From a reported P&L standpoint, Q1 FY27 showed cost of projects at 44.92 crore and total raw material expenses at 44.88 crore, while gross profit rose to 13.88 crore. Finance costs were reported at 0.02 crore for the quarter.

Portfolio scale, booking position, and pipeline conversion

The company’s scale in the investor deck is presented in square footage terms. It reported 7.22 lakh sq ft delivered, 12.11 lakh sq ft under construction, and 10.50 lakh sq ft upcoming, across a portfolio of 25 premium residential projects in Mumbai and adjoining regions.

On the concall, management shared project booking percentages for key ongoing projects. It stated Rashmi Square was nearly 80 percent sold. Rashmi Signature was discussed in the 63 to 70 percent range in one response, and 50 percent in an earlier response to another participant, indicating that booking updates were provided qualitatively rather than through a single reconciled metric in the transcript. Rashmi Delight was stated at around 40 percent sold, and Rashmi Manorath at around 20 to 25 percent. Rashmi Icon and Rashmi Avenue were described as newly started with limited sales so far.

A central investor focus was the redevelopment pipeline. Management stated that the company undertook one new project in Q1 FY27, Neel Kiran Society in Santacruz West, aligning with its stated expansion into Santacruz and other parts of Mumbai. It also referenced being in tender processes in additional areas such as Parle and having discussions for Ghatkopar, while noting that redevelopment additions cannot be guaranteed due to the tender-based selection process.

Importantly, management stated that four pipeline opportunities together have a GDV nearly upwards of 800 crore and gave a tentative schedule: Rashmi Paradise to start in the current quarter, Rashmi Gold and Rashmi Sheetal likely in the third quarter, and the Khar project likely in the fourth quarter. It also stated that Govind Dalvi Nagar faced government stay issues in the area, creating uncertainty for that project’s near-term start.

Takeaways from Q1 FY27

Modis Navnirman’s Q1 FY27 update is a combination of strong reported growth and a candid explanation for a margin dip. The quarter’s performance was supported by construction progress across multiple sites and higher sales throughput as indicated by the sharp rise in area sold.

On forward visibility, management’s most concrete datapoint was the stated GDV of nearly upwards of 800 crore across four pipeline projects, with an indicative timeline for when some of these projects may commence. At the same time, the tender-driven nature of redevelopment and regulatory issues around at least one pipeline project were acknowledged, which keeps timelines inherently less predictable.

Overall, Q1 FY27 reinforces the company’s positioning as a Mumbai redevelopment-focused developer with an asset-light approach, a visible under-construction base, and a growing pipeline. The next few quarters will likely be judged on whether margin normalization follows management’s claim of cost stabilization and whether the pipeline converts into active execution on the timelines discussed.