MODIS - Modi's Navnirman

📊 NSE: MODIS 🏢 Residential, Commercial Projects 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of Real Estate Development. Revenue from operations grew 49.7% YoY from INR 57.78 Cr in FY24 to INR 86.54 Cr in FY25. In H1 FY26, revenue surged 127.72% YoY to INR 83.39 Cr compared to INR 36.62 Cr in H1 FY25.

Geographic Revenue Split

100% of revenue is derived from the Mumbai region, specifically focused on redevelopment projects in the Western Suburbs such as Kandivali.

Profitability Margins

Net Profit Margin improved from 11.58% in FY24 to 14.15% in FY25. In H1 FY26, PAT margin stood at 14.33%, up from 12.12% in H1 FY25, driven by higher execution efficiency in projects like Rashmi Celestia and Rashmi Signature.

EBITDA Margin

EBITDA margin for H1 FY26 was 19.15%, representing a significant improvement from 16.22% in H1 FY25. Core profitability is rising due to the strategic focus on high-margin redevelopment mandates.

Capital Expenditure

The company follows an asset-light model; however, project-specific spends for H1 FY26 totaled INR 67.34 Cr. Planned CAPEX is focused on the pipeline of redevelopment projects rather than heavy fixed asset investment.

Credit Rating & Borrowing

The company is effectively debt-free as of H1 FY26. Long-term borrowings were reduced by 42% from INR 5.79 Cr in FY24 to INR 3.34 Cr in FY25, and further reduced to INR 1.00 Cr by September 2025. Interest costs are negligible at INR 0.01 Cr.

⚙️ Operational Drivers

Raw Materials

Construction materials including Steel, Cement, and Labor, which collectively represent approximately 77% of the total revenue as per H1 FY26 raw material expenses of INR 64.47 Cr.

Import Sources

Sourced locally within Maharashtra and India to support Mumbai-based construction projects.

Capacity Expansion

Current project portfolio includes 6 active projects (Rashmi Vasudeo, Celestia, Square, Signature, Delight, Manorath). Expansion includes a new INR 250 Cr redevelopment mandate in Mumbai won in January 2026.

Raw Material Costs

Raw material expenses (including inventory changes) were INR 64.47 Cr in H1 FY26, representing 77.3% of revenue. Costs increased 124.71% YoY in line with the 127% revenue growth, indicating stable procurement pricing.

Manufacturing Efficiency

Project execution efficiency is high, with the company achieving its entire FY25 profit (INR 12.25 Cr) within the first six months of FY26 (INR 12.01 Cr).

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

Growth will be achieved through the migration from BSE SME to the Main Board of BSE/NSE to attract institutional capital, a strategic merger with Shree Modis Navnirman Pvt. Ltd. to enhance scale, and a focus on the Mumbai redevelopment market, evidenced by the recent INR 250 Cr mandate win. The company plans to deliver one major project (Rashmi Celestia) in H2 FY26 to boost sales.

Products & Services

Residential apartments and commercial spaces primarily through the redevelopment of old housing societies.

Brand Portfolio

Modis Navnirman, Rashmi Heights, Rashmi Vasudeo, Rashmi Celestia, Rashmi Square, Rashmi Signature, Rashmi Delight, Rashmi Manorath.

New Products/Services

New redevelopment projects in Mumbai's western suburbs with an expected mandate value of INR 250 Cr.

Market Expansion

Migration to the Main Board to increase visibility and liquidity for future expansion across the Mumbai Metropolitan Region.

Strategic Alliances

Merger with Shree Modis Navnirman Private Limited to consolidate operations and brand value.

🌍 External Factors

Industry Trends

Shift toward organized and transparent developers due to RERA; Mumbai redevelopment is a high-growth niche due to land scarcity. Urbanization in India is expected to rise from 37% to 53% by 2050.

Competitive Landscape

Competes with other Mumbai-based developers in the redevelopment space; positioning is strengthened by the recent Main Board migration.

Competitive Moat

Moat is built on a debt-free balance sheet, specialized expertise in Mumbai's complex redevelopment regulations (BMC/RERA), and a strong track record of timely delivery which builds trust with housing societies.

Macro Economic Sensitivity

Highly sensitive to Indian real estate cycles and urbanization trends; sector expected to grow to USD 5-10 trillion by 2047.

Consumer Behavior

Increasing demand for premium housing and trusted developer brands in the post-pandemic Mumbai market.

Geopolitical Risks

Low direct impact; however, global commodity price fluctuations (steel/oil) indirectly affect construction costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RERA (Real Estate Regulatory Authority) and BMC (Brihanmumbai Corporation) building codes and approval processes.

Environmental Compliance

Establishing the Modi's Navnirman Foundation for sustainability and community development.

Taxation Policy Impact

Effective tax rate of approximately 25.1% in H1 FY26 (INR 4.03 Cr tax on INR 16.04 Cr PBT).

Legal Contingencies

The company has disclosed the impact of pending litigations in its financial statements as of March 31, 2025, though specific case values were not disclosed in the provided summary.