Speaking during the Q4 FY25 investor call, CEO Amit Sinha said the company will pause affordable housing projects and focus on premium homes, in line with Mahindra’s strategy of premium SUV cars.
Mahindra Lifespaces, the real estate arm of the Mahindra Group, plans to exit from the affordable housing segment for the time being, and will have zero affordable housing projects on its books by FY30.
The company plans to align its real estate strategy with the broader Mahindra brand, which focuses on premium SUVs rather than affordable or luxury vehicles. Similarly, Mahindra Lifespaces will concentrate on offering premium homes that are positioned between the affordable and luxury segments.
Sinha said, "We have our focus on premium. Premium is defined as more than Rs 1 crore to Rs 10 crores in NCR and Mumbai, above which the 10-crore market is a threshold for luxury. But in other markets like Pune and Bengaluru, Rs 1 to Rs 5 crores is mid-premium and premium. So, that is what we want to focus on. Affordable has not done well for us, and that is something we want to sunset over a period of time. We have to fulfil our customer commitments, which we will do over time. By FY28-29, all of those commitments would be over. So, our mix in FY30 will have zero affordable (housing projects). And we do not have plans to participate in the affordable (housing projects) for the time being," Sinha said.
The company currently has affordable housing projects under the Mahindra Happinest brand in Palghar and Kalyan near Mumbai, as well as in Chennai.
The company's profit for Q4FY25 grew by 19.02% year-on-year (Y-o-Y) to Rs85.1 crore, and revenue from operations dipped by 35.4% Y-o-Y to Rs9.24 crore. Its total expenses stood at Rs 72.04 crore, down by 3.72% Y-o-Y.
In the pre-sales segment, the company closed sales worth Rs1,055 crore, down by 2.9% year-on-year. On the business development end, the company added projects with a gross development value (GDV) of Rs 3,650 crore in Q4FY25 as against Rs 2,040 crore in Q4FY24.
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