Max Estates Q1 FY27 Results (NSE: MAXESTATES)
Signal: Growth decelerated
The read
The quarter is an operating-quality setback rather than a growth inflection: consolidated revenue grew only 0.9% YoY to ₹5,191.13 lakh, EBITDA fell 14.8% and margin contracted to 69.9%, while PAT declined 27.1% and remained supported by other income equal to 247.3% of PBT; this follows the prior four-quarter OPM contraction from 27.03% in Q1FY26 to -6.47% in Q4FY26, although the current consolidated EBITDA margin is not directly comparable with that historical OPM series.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹51.91 Cr | 0.9% | N/A |
| EBIT | ₹28.12 Cr | -17.7% | |
| Net profit | ₹8.35 Cr | -27.1% | |
| EPS | ₹0.51 | -31.1% | |
| EBIT margin | 69.9% |
P&L walk
Consolidated revenue rose 0.9% YoY to ₹5,191.13 lakh, but EBITDA declined 14.8% to ₹3,629 lakh and EBITDA margin contracted to 69.9%; PAT fell 27.1% to ₹835.32 lakh despite ₹2,816.53 lakh of other income, which represented 247.3% of PBT.
Segments
The group is reported as a single real-estate segment, but subsidiaries materially lift consolidated earnings: 12 subsidiaries contributed ₹2,636.98 lakh of revenue and ₹532.94 lakh of PAT, while standalone PAT was ₹1,213.34 lakh versus consolidated PAT of ₹835.32 lakh after consolidation and non-controlling interests.
Key positives
- Standalone revenue increased 37.3% YoY to ₹1,884.25 lakh, materially ahead of consolidated revenue growth of 0.9%.
- Finance costs declined 3.4% YoY on a consolidated basis to ₹1,672.81 lakh despite flat revenue, limiting below-EBITDA pressure.
- Subsidiary operations contributed ₹532.94 lakh of PAT in the quarter, demonstrating that earnings are being generated within the development platform rather than solely at the parent level.
Key concerns
- Consolidated EBITDA declined 14.8% YoY to ₹3,629 lakh despite 0.9% revenue growth, while EBITDA margin fell to 69.9%.
- Advertisement and sales promotion expense rose 112.2% YoY to ₹1,981.30 lakh and employee benefits expense rose 50.4% to ₹1,101.20 lakh, outpacing revenue growth.
- Standalone PAT fell 58.5% YoY to ₹1,213.34 lakh despite 37.3% revenue growth, showing the parent result is highly dependent on non-operating income.
- EPS declined 31.1% versus a 27.1% PAT decline, indicating dilution from the larger equity base.
Earnings quality: includes non-operating other income
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