💰 Financial Performance

Revenue Growth by Segment

The company operates in a single primary segment: 'Rental/leasing/sale of Immovable Property'. Consolidated revenue from sale of services grew 12.38% YoY to INR 697.17 lakhs in FY25 from INR 620.36 lakhs in FY24. Standalone revenue for H1 FY26 was INR 346.65 lakhs, a slight decrease of 0.55% compared to INR 348.58 lakhs in H1 FY25.

Geographic Revenue Split

Not disclosed in available documents, though the company is headquartered in New Delhi and holds significant property assets in the Delhi/NCR region, including Mohan Co-operative Industrial Estate.

Profitability Margins

Consolidated Net Profit Margin for FY25 was 8.02% (INR 79.66 lakhs profit on INR 992.74 lakhs total income). Standalone operations for H1 FY26 reported a net loss of INR 180.83 lakhs, primarily due to a 111.8% spike in 'Other Expenses' to INR 511.65 lakhs compared to INR 241.54 lakhs in H1 FY25.

EBITDA Margin

Consolidated Profit before Exceptional Items and Tax was INR 83.33 lakhs in FY25, a 31.04% decrease from INR 120.84 lakhs in FY24. Standalone H1 FY26 EBITDA was negative due to the reported loss before tax of INR 180.83 lakhs.

Capital Expenditure

Not disclosed in available documents; however, the company maintains significant Investment Property valued at INR 11,356.16 lakhs and Property, Plant & Equipment (PPE) at INR 6,174.53 lakhs as of September 30, 2025.

Credit Rating & Borrowing

Consolidated finance costs decreased by 52.3% YoY to INR 19.91 lakhs in FY25 from INR 41.72 lakhs in FY24, indicating a reduction in debt or lower borrowing costs. Standalone borrowings as of September 30, 2025, totaled INR 233.49 lakhs (INR 229.23 lakhs current and INR 4.26 lakhs non-current).

⚙️ Operational Drivers

Raw Materials

Not applicable as the company is engaged in real estate rental and leasing. Major operational costs include Employee Benefits (INR 246.84 lakhs in FY25, representing 24.8% of total income) and Depreciation (INR 112.61 lakhs in FY25).

Import Sources

Not applicable for the service-based rental/leasing business model.

Capacity Expansion

The company is currently focused on asset monetization rather than expansion, having approved the execution of an Agreement to Sell for its Land and Building at A-30, Mohan Co-operative Industrial Estate, New Delhi, to Haldiram Marketing Private Limited in November 2025.

Raw Material Costs

Not applicable. Operational focus is on property maintenance and administrative overheads.

Manufacturing Efficiency

Not applicable. Efficiency is measured by property utilization and rental yields.

Logistics & Distribution

Not applicable for the real estate leasing business.

📈 Strategic Growth

Expected Growth Rate

12.40%

Growth Strategy

The company is pursuing a strategy of asset monetization and optimization of its rental portfolio. A key milestone is the sale of the Mohan Co-operative Industrial Estate property to Haldiram Marketing Private Limited, which will provide a significant cash influx. Growth is also supported by its associate company, Jayabharat Credit Limited, which contributed INR 3.67 lakhs to consolidated profits in FY25.

Products & Services

Rental services, leasing of commercial and industrial buildings, and sale of immovable property.

Brand Portfolio

MGF (Motor & General Finance Limited).

Market Expansion

The company is focused on the Delhi/NCR real estate market, with no specific plans for geographic expansion disclosed.

Market Share & Ranking

Not disclosed in available documents; however, it is noted as one of the oldest finance companies in India, incorporated in 1930.

Strategic Alliances

Maintains a significant associate relationship with Jayabharat Credit Limited.

🌍 External Factors

Industry Trends

The real estate leasing industry is seeing a shift toward asset monetization and consolidation. MGF is positioning itself by liquidating large industrial assets to potentially pivot or strengthen its balance sheet.

Competitive Landscape

Competes with other commercial real estate developers and leasing firms in the Delhi/NCR region.

Competitive Moat

The company's moat is built on its long-standing history (since 1930) and ownership of prime real estate assets in established industrial hubs. This cost-leadership in asset acquisition (historical cost) provides a sustainable advantage in rental yields.

Macro Economic Sensitivity

Highly sensitive to real estate market cycles, interest rate fluctuations affecting property valuations, and commercial demand in the Delhi/NCR region.

Consumer Behavior

Demand for industrial and commercial space is driven by the expansion of retail and marketing firms, as evidenced by the sale to Haldiram Marketing.

Geopolitical Risks

Low direct impact as operations are localized to Indian real estate.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act, 2013 and Indian Accounting Standards (Ind AS). Property transactions are subject to local land use and industrial estate regulations.

Taxation Policy Impact

The company reported no current tax expense for H1 FY26 due to standalone losses. Deferred tax assets stood at INR 0.84 lakhs as of September 2025.

Legal Contingencies

The company stated it had no long-term contracts, including derivative contracts, with material foreseeable losses as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of large-scale asset sales on long-term recurring revenue. The 111.8% increase in standalone expenses in H1 FY26 also presents a risk to short-term profitability.

Geographic Concentration Risk

High concentration in the Delhi/NCR region, making revenue highly dependent on the local economic climate.

Third Party Dependencies

Dependency on major lessees and buyers like Haldiram Marketing Private Limited for significant cash flow events.

Technology Obsolescence Risk

Low risk given the nature of the real estate business, though digital transformation in property management is an ongoing industry trend.

Credit & Counterparty Risk

Standalone trade receivables were INR 35.09 lakhs as of September 30, 2025, representing a small fraction (0.2%) of total assets, indicating low immediate credit risk.