ICRA highlighted that the steady rise in operational cash flows, along with stronger leverage metrics, contributed to the upgraded rating. The agency expects this positive trend to continue in the near term, backed by Macrotech’s project pipeline and liquidity position.
According to ICRA, Macrotech’s leadership in the Mumbai and Thane residential markets, combined with its track record of delivering over 100 million square feet by March 2025, supports its credit profile. The company’s ongoing and planned developments include a pipeline of 85 million square feet across residential, office, retail, and warehousing segments.
The rating agency noted that, while residential real estate remains a cyclical segment, MDL’s efforts to diversify into warehousing and retail will bring greater stability to its cash flows. These segments are expected to contribute more significantly over the medium to long term.
ICRA also acknowledged the company’s strategy to maintain a strong cash surplus and liquidity buffer, which will help mitigate risks tied to market fluctuations. “The ratings positively factor in the management’s guidance to maintain healthy cash surplus/liquidity cushion, which, along with the expected increase in the share of rental inflows from the warehouse and retail segments, will mitigate some impact of the cyclicality in the residential segment,” the agency said.
At the same time, ICRA flagged execution and market risks associated with MDL’s large-scale expansion. The success of upcoming launches, both in terms of sales and collections, will be critical to maintaining the company’s operational performance and cash flow generation.
While MDL is gradually expanding into new geographies like Pune and Bengaluru, the Mumbai Metropolitan Region (MMR) will continue to contribute 60–70% of its business in the medium term. The company also manages one of the largest land banks in the country, with over 4,080 acres as of March 2025. The rating upgrade marks a positive signal for Macrotech Developers, as it prepares for greater expansion and diversification.
