MASON - Mason

📊 NSE: MASON 🏢 Construction 📅 Last Updated: 12/14/2025 9:40

💰 Financial Performance

Revenue Growth by Segment

Revenue grew 39.85% YoY in H1 FY26 to INR 51.81 Cr from INR 37.05 Cr. The order book is segmented into Full Labour Oriented (FLO) at 75%, Lock & Key at 15%, and Part Material Full Labour (PMFL) at 10%.

Geographic Revenue Split

100% of revenue is derived from the Mumbai Metropolitan Region (MMR), specifically Mumbai and Thane, Maharashtra.

Profitability Margins

Net Profit Margin improved to 15.07% in H1 FY26 from 12.71% in H1 FY25. FY24 margins were 22.48% for Operating Profit and 15.24% for Net Profit, up from 17.17% and 12.42% respectively in FY23.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was INR 14.08 Cr, representing a margin of 27.18%, compared to INR 28.02 Cr for the full year FY25.

Capital Expenditure

Property, Plant and Equipment increased by INR 2.52 Cr to INR 14.05 Cr as of September 30, 2025, from INR 11.53 Cr in March 2025.

Credit Rating & Borrowing

Not disclosed in available documents. Finance costs for H1 FY26 were INR 2.39 Cr on total borrowings of INR 49.20 Cr, suggesting an approximate annualized borrowing cost of 9.7%.

⚙️ Operational Drivers

Raw Materials

Steel, Cement, Bricks, and Sand; material costs consumed were INR 10.07 Cr in H1 FY26, representing 19.4% of total revenue.

Import Sources

Primarily sourced from within Maharashtra and neighboring states to support projects in Mumbai and Thane.

Capacity Expansion

Current capacity allows for >1.6 Lac sq.ft of construction completion annually. The company is executing the Foresta project (3.15 lakh sq.ft) and recently completed a 42-storey building.

Raw Material Costs

Raw material costs were 19.4% of revenue in H1 FY26 (INR 10.07 Cr). Procurement strategies focus on managing fluctuating material costs which are a key industry risk.

Manufacturing Efficiency

Efficiency is measured by the ability to complete high-rise structures (e.g., 42 storeys) and large-scale projects like Foresta within 30-month timelines.

📈 Strategic Growth

Expected Growth Rate

40%

Growth Strategy

Growth will be achieved by transitioning from a contractor to a developer through a 50% stake in Megastone Projects (3.74 lakh sq.ft area), targeting the Mumbai SRA/Redevelopment market, and utilizing INR 91.36 Cr raised via preferential issue for expansion.

Products & Services

High-rise residential buildings, commercial structures, Slum Rehabilitation Authority (SRA) projects, and redevelopment contracting services.

Brand Portfolio

Mason Infratech

New Products/Services

Transitioning into real estate development via Megastone Projects, which is expected to provide 50% profit sharing and 15% profit on EPC contracts.

Market Expansion

Expanding presence in the Thane geography due to government-backed infrastructure pushes and industrial growth.

Strategic Alliances

Megastone Projects (50% stake), Milestone Projects (30% stake), Ekkam Infra Build LLP (30% stake), and Magicmind Infratech LLP (27.5% stake).

🌍 External Factors

Industry Trends

The Mumbai redevelopment market is growing at a high rate due to land constraints. Regulatory changes in DCPR-2034 have reduced SRA consent requirements from 70% to 51%, accelerating project timelines.

Competitive Landscape

Competes with other mid-sized construction firms in the MMR region; market dynamics are driven by developer relationships and execution track records.

Competitive Moat

Moat is based on specialized expertise in high-rise construction and strategic positioning in the Mumbai SRA market. Sustainability is driven by the transition to a developer model which captures higher value.

Macro Economic Sensitivity

Highly sensitive to Mumbai real estate demand, interest rates, and urban redevelopment policies.

Consumer Behavior

Shift toward modern amenities and safety in redevelopment projects is driving demand for upgraded residential buildings.

Geopolitical Risks

Minimal direct impact; primarily affected by domestic economic conditions and material supply chains.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Real Estate (Regulation and Development) Act (RERA) and the Development Control and Promotion Regulation (DCPR-2034) for Mumbai.