HOMESFY - Homesfy Realty

📊 NSE: HOMESFY 🏢 Construction 📅 Last Updated: 12/14/2025 7:47

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 was INR 58.67 Cr, a marginal decline from INR 60.9 Cr in FY24. In H1FY26, revenue was INR 19.53 Cr, down 35.31% YoY from INR 30.19 Cr. The core direct broking segment saw a 9% decline in Gross Transaction Value (GTV) in FY25, while the broker aggregator platform (mymagnet.io) grew GTV by 60% YoY to INR 569 Cr. Home loan disbursements grew 12% YoY to INR 271 Cr.

Geographic Revenue Split

The company operates primarily in MMR (Mumbai Metropolitan Region), Pune, Bengaluru, and Hyderabad. FY25 performance was adversely impacted by delayed launches in Bengaluru and Navi Mumbai. The company is expanding into Western Mumbai, Harbour, South Mumbai, and has established an international presence via Homesfy Global Realty LLC in Dubai, which received an investment of INR 34.03 Lakhs.

Profitability Margins

Net profit margin declined significantly; FY25 PAT was INR 1.37 Cr (2.3% margin) compared to INR 2.71 Cr in FY24, a 49% decline. H1FY26 reported a net loss of INR 8.54 Cr compared to a profit of INR 1.42 Cr in H1FY25. Return on Equity (ROE) fell from 7.17% in FY24 to 3.07% in FY25 due to lower operating leverage and higher tech investments.

EBITDA Margin

EBITDA for FY25 was INR 1.55 Cr (2.6% margin) vs INR 3.33 Cr in FY24. In H1FY26, EBITDA margin collapsed to -44% (Loss of INR 8.65 Cr) from 7% in H1FY25, representing a 536.41% YoY decline in EBITDA value.

Capital Expenditure

The company invested INR 34.03 Lakhs for 150 equity shares in its Dubai subsidiary, Homesfy Global Realty LLC. Significant internal capital is being diverted toward technology infrastructure, CRM systems, and process automation to improve lead-to-sale conversions.

Credit Rating & Borrowing

The company maintains a Debt-Equity Ratio of 0.00 as of March 2025, indicating a debt-free balance sheet. Finance costs for H1FY26 were minimal at INR 0.89 Lakhs, down from INR 18.55 Lakhs in H1FY25.

⚙️ Operational Drivers

Raw Materials

As a service-based brokerage, the primary 'raw materials' are human capital (452 employees) and digital leads. Employee benefit expenses and technology infrastructure costs are the primary operational drivers.

Import Sources

Not applicable for a real estate brokerage firm.

Key Suppliers

Key partners include real estate developers such as Lodha, Godrej, Prestige, Dosti, Runwal, Hiranandani, Piramal, Raymond, and Mahindra, who provide the inventory for sale.

Capacity Expansion

The company currently employs 452 individuals (69% men, 31% women). It has set a long-term target to facilitate 5,000 home sales annually by FY29, up from current levels (GTV of INR 2,280 Cr in FY25).

Raw Material Costs

Not applicable; however, salesforce expansion and technology investments led to a 77% decline in EBIT in FY25 as the company prioritized long-term capability building over near-term margins.

Manufacturing Efficiency

Operational efficiency is measured by 'closures per agent' and 'lead-to-sale conversions' through CRM optimization. Average ticket size increased 22% YoY to INR 1.3 Cr per unit in FY25.

Logistics & Distribution

Distribution is digital-led. The company is deepening its digital-led distribution network to reach micro-markets at a lower cost per acquisition.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth will be driven by a three-pronged strategy: direct broking, channel aggregation via mymagnet.io, and exclusive mandates. The company is targeting 5,000 annual sales by FY29 by expanding in high-demand micro-markets in Mumbai and scaling its home loan vertical (INR 271 Cr disbursed in FY25).

Products & Services

Real estate brokerage services for residential and commercial spaces, plotting projects, home loan facilitation, and exclusive project marketing mandates.

Brand Portfolio

Homesfy, mymagnet.io.

New Products/Services

Mandate-based business (exclusive project sales) and expansion of the 'Be Your Own Boss' scheme for employee-led professional pathways.

Market Expansion

Expansion into Dubai via Homesfy Global Realty LLC and deepening presence in Tier 2/3 markets through the broker aggregator model.

Market Share & Ranking

First real estate brokerage firm listed on NSE Emerge; aims to formalize the fragmented brokerage industry in India.

Strategic Alliances

Preferred channel partnerships with major developers like Lodha, Godrej, and Prestige. Strategic investment in the Dubai subsidiary to capture NRI demand.

🌍 External Factors

Industry Trends

The Indian real estate market is expected to reach USD 1.04 Trillion, contributing 15.5% to GDP. The industry is shifting toward organized, tech-enabled brokerage platforms to address fragmentation.

Competitive Landscape

Competes with unorganized local brokers and emerging digital platforms. Fragmentation and low awareness of co-broking models in Tier 2/3 cities remain challenges.

Competitive Moat

Moat is built on being the first listed player, providing transparency and scale. The 'mymagnet.io' platform creates a network effect by aggregating smaller brokers into a unified tech ecosystem.

Macro Economic Sensitivity

Highly sensitive to the real estate cycle and interest rates. A 22% increase in ticket sizes helped offset a 9% decline in transaction volumes in FY25.

Consumer Behavior

Shift toward higher-priced properties; 34% of Mumbai transactions in 2024 were for properties priced above INR 10 million.

Geopolitical Risks

Indo-Pakistan war tensions in early 2025 were explicitly cited as a reason for a temporary INR 4-5 Cr revenue shortfall.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and Accounting Standard 9 (Revenue Recognition). The company must comply with RERA (Real Estate Regulatory Authority) norms for brokerage activities.

Environmental Compliance

Not disclosed as a material cost for the brokerage industry.

Taxation Policy Impact

The company reported a tax credit/provision of INR -0.78 Lakhs in H1FY26 due to operating losses. FY25 tax provision was INR 48.47 Lakhs.

Legal Contingencies

No specific pending court cases or values in INR were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Market recovery speed and external geopolitical stability. The H1FY26 loss of INR 8.54 Cr highlights the risk of high fixed costs (tech/staff) during revenue soft patches.