MARATHON - Marathon Nextgen

📊 NSE: MARATHON 🏢 Construction 📅 Last Updated: 12/14/2025 9:36

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations declined by 18% YoY to INR 580.13 Cr in FY25, primarily due to the reclassification of inventory at Marathon Futurex as investment property. However, other income surged 134% to INR 96.27 Cr, driven by profits from the sale of these investment properties. Residential and commercial sales in Q2 FY26 showed strong momentum with booking values reaching INR 166 Cr, a 29% YoY increase.

Geographic Revenue Split

100% of revenue is generated from the Mumbai Metropolitan Region (MMR), specifically across micro-markets including South Mumbai (Monte South), Panvel (Nexzone), Bhandup (Neo Valley), and Mulund (Millennium).

Profitability Margins

The company maintains high profitability with a PAT margin of 28% in FY25. Profit After Tax reached INR 190.53 Cr, up 12.9% from INR 168.78 Cr in FY24. This was achieved through disciplined overhead management and efficient conversion of project execution into financial returns.

EBITDA Margin

EBITDA margin improved to 40% in FY25 from 37% in FY24. Absolute EBITDA stood at INR 269 Cr. The 300 bps margin expansion reflects operational efficiency and higher realizations from premium projects like Marathon Futurex and Monte South.

Capital Expenditure

While specific future CAPEX figures are not disclosed, the company significantly strengthened its balance sheet with a net worth of INR 1,187 Cr and total assets of INR 2,097 Cr as of March 31, 2025. A recent INR 900 Cr institutional fundraise provides liquidity for construction acceleration and land acquisitions.

Credit Rating & Borrowing

The credit rating was upgraded to IVR BBB/Stable in September 2024, later placed on 'Rating Watch with Developing Implications' in April 2025 due to merger announcements. The average cost of debt declined to 12.3% in FY25, reflecting improved creditworthiness.

⚙️ Operational Drivers

Raw Materials

Key construction materials include steel, cement, and finishing materials. While specific percentages are not disclosed, these typically constitute 60-70% of project construction costs in the MMR region.

Import Sources

Sourced primarily from domestic suppliers within Maharashtra and neighboring states to optimize logistics for Mumbai-based projects.

Key Suppliers

Not specifically disclosed in the provided documents, though the company maintains established relationships with Grade A contractors and material vendors.

Capacity Expansion

The company is executing a portfolio of 65 lakh sq. ft. across multiple projects. A proposed merger will unify over 400 acres of land bank in Panvel, Bhandup, and Dombivli, significantly expanding future development potential.

Raw Material Costs

Construction expenses are managed through a centralized procurement system. Total collections of INR 3,769 Cr against sold units (76% of sales value) are projected to be sufficient to cover all remaining construction costs for ongoing projects.

Manufacturing Efficiency

Project execution efficiency is high, with 76% of the 65 lakh sq. ft. saleable area already sold as of March 31, 2024. Tower A of Monte South received OC up to the 64th floor, demonstrating high-rise execution capability.

Logistics & Distribution

Distribution costs are minimal as the product is immovable real estate; however, marketing and sales commissions are part of the disciplined overhead management that supported the 28% PAT margin.

📈 Strategic Growth

Expected Growth Rate

18-29%

Growth Strategy

The primary strategy is the structural consolidation of promoter-held land parcels (400+ acres) into the listed entity. This will unify development under a single platform, enabling multi-phase developments in high-growth corridors like Panvel and Dombivli, supported by a recent INR 900 Cr fundraise.

Products & Services

Residential apartments (luxury and mid-income), Grade A commercial office spaces, retail shops, and leased commercial units.

Brand Portfolio

Marathon, Marathon Nexzone, Marathon Futurex, Monte South, Marathon Millennium, Marathon NeoValley, Marathon NeoSquare.

New Products/Services

Expansion into mixed-use formats and institutional-grade commercial developments following the merger of 400 acres of land bank.

Market Expansion

Deepening presence in the Mumbai Metropolitan Region (MMR), specifically targeting the Navi Mumbai growth corridor (Panvel) to capitalize on the upcoming International Airport.

Market Share & Ranking

Positioned as a leading developer in the MMR with a 50-year track record and over 8.4 million sq. ft. developed to date.

Strategic Alliances

Maintains JVs such as Swayam Realtors & Traders LLP (40%) and Columbia Chrome (I) Private Limited (40%) for specific project developments.

🌍 External Factors

Industry Trends

The industry is undergoing formalization and institutionalization. MMR new supply recovered to 1.43 lakh units in FY25, while absorption remains strong at 1.57 lakh units, indicating a healthy demand-supply gap that favors established developers like Marathon.

Competitive Landscape

Competes with other large Mumbai-based developers; however, its focus on specific micro-markets like Panvel and Bhandup provides a localized competitive advantage.

Competitive Moat

The company's moat is built on its 50-year brand legacy, a massive 400-acre strategically located land bank, and expertise in complex Mumbai redevelopments, which are difficult for new entrants to replicate.

Macro Economic Sensitivity

Highly sensitive to Mumbai's economic fundamentals; per capita income exceeding INR 4.6 lakhs in the region supports demand for the company's premium residential offerings.

Consumer Behavior

Shift toward 'well-located Grade A commercial spaces' and residential projects with comprehensive amenities (gyms, clubhouses) which now contribute to higher operating income.

Geopolitical Risks

Limited direct impact, though global supply chain disruptions could indirectly increase the cost of imported fit-outs for Grade A commercial projects.

⚖️ Regulatory & Governance

Industry Regulations

Operations are strictly governed by RERA (Real Estate Regulatory Authority) and the Unified Development Control and Promotion Regulations (UDCPR) of Maharashtra.

Environmental Compliance

The company adheres to RERA and local municipal norms for high-rise constructions, though specific ESG costs are not itemized.

Taxation Policy Impact

Effective tax expense was INR 45.42 Cr in FY25 on a consolidated basis.

Legal Contingencies

The company is currently seeking regulatory approvals for its major merger of promoter entities, a process expected to take 12-15 months.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing of regulatory approval for the proposed merger, which is critical for unlocking the 400-acre land bank's value.

Geographic Concentration Risk

100% of projects are located in Mumbai/MMR, making the company highly vulnerable to regional economic downturns or local regulatory changes.

Third Party Dependencies

Dependency on lease renewals for Marathon Futurex; non-renewal or lower-rate tie-ups could reduce cash surplus.

Technology Obsolescence Risk

Low risk in core real estate, but the company must continuously upgrade commercial building specs to maintain 'Grade A' status against newer completions.