Max Estates Shares Zoom Over 3% Post Release of Q2 FY25 Results

Max Estates Limited, the real estate division of the Max Group, has released its unaudited financial results for Q2 and H1 FY25. 

During Q2 FY25, Max Estates secured NCLAT approval for the ‘Delhi One’ project in Sector 16B, Noida. This project spans 34,697 sq. meters and has the potential for 2.5 million sq. ft. of mixed-use development, with a Gross Development Value (GDV) exceeding ₹1,500 crores. It is projected to launch in FY26, offering annuity income potential of approximately ₹120 crores from 1.2 million sq. ft. of leased inventory, alongside receivables of around ₹500 crores from sold inventory. 

Additionally, the Joint Development Agreement for an 18.23-acre residential project in Gurugram and the fourth tower at Estate 128 positions us to capture 7 million sq. ft. of development opportunities valued at about ₹11,300 crores in H1 FY25—more than double its annual guidance of 3 million sq. ft.

Commercial Office Performance

The company achieved 100% occupancy at Max House – Phase 2 in Delhi within a year of completion and 93% occupancy at Max Square in Noida, highlighted by a significant lease of approximately 150,000 sq. ft. to a US-based company for its Global Capability Centre. Both properties command a premium of over 30% compared to the micro-market, illustrating a clear trend of ‘flight to quality.’

Residential Launches

Max Estates’ first residential offering, Estate 360 in Gurugram, has recorded pre-sales of ₹4,100 crores, with 85% sold within 30 days of launch—one of the most successful launches in the Delhi NCR region. The company has also secured an enhanced Floor Area Ratio (FAR) for the fourth tower at Estate 128 (Noida), projected to have a GDV of approximately ₹800 crores, set to launch in Q3 FY25 post-approval. Given the success of Estate 360 and the anticipated fourth tower launch, Max Estates has revised its FY25 booking value guidance to ₹4,800-5,200 crores, up from the previous ₹4,000 crores.

Capital Raise

Max Estates has established a corpus of ₹1,300 crores through a Qualified Institutional Placement (QIP), convertible warrants, and strategic investment from New York Life Insurance in two core assets—Max Towers and Max House. This capital will be strategically deployed to accelerate its development and growth pipeline across Delhi NCR.

Financial Highlights for 1H FY25  

In H1 FY25, Max Estates Limited reported consolidated revenue of ₹80.7 crores and consolidated EBITDA of ₹23.6 crores. The company faced a consolidated loss before tax (PBT) of ₹ 4.1 crores and a loss after tax (PAT) of ₹3.4 crores, primarily due to increased advertising and sales promotion expenses of ₹20.9 crores related to its residential portfolio. Notably, total lease rental income surged by 96% year-over-year, reaching ₹53 crores, while Max Asset Services generated revenue of ₹19 crores for the period.

On October 28, 2024, Max Estates’ share price opened at ₹558.65 and touched the day high of ₹576.75 at 10:30 AM, reflecting a rise of ~5.30% from the previous close.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.