OMAXE - Omaxe

📊 NSE: OMAXE 🏢 Construction 📅 Last Updated: 12/14/2025 10:41

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations decreased by 3.3% YoY to INR 1,560.99 Cr in FY25 from INR 1,614.32 Cr. Standalone revenue saw a sharper decline of 44.7% YoY, falling to INR 389.85 Cr from INR 705.35 Cr, primarily due to the timing of project handovers and revenue recognition cycles.

Geographic Revenue Split

The company operates across 8 states including Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Rajasthan, Delhi, Uttarakhand, and Himachal Pradesh, with a significant focus on North and Central India across 31 cities.

Profitability Margins

The company reported a consolidated net loss of INR 685.40 Cr in FY25, widening by 68.8% from a loss of INR 405.91 Cr in FY24. Standalone net loss also increased to INR 217.03 Cr from INR 140.32 Cr, driven by high finance costs and lower revenue recognition relative to incurred expenses.

EBITDA Margin

Core profitability remains negative with a consolidated loss before tax of INR 764.02 Cr in FY25 compared to INR 507.07 Cr in FY24. This 50.7% increase in losses is attributed to a 49.8% spike in finance costs and a 12.4% rise in operating expenditures.

Capital Expenditure

Landmark capital allocations include a INR 1,500 Cr investment in 'The Omaxe State' in Dwarka, Delhi, and a INR 600 Cr investment in the 'New Amritsar' project. The group has a massive upcoming project pipeline totaling over INR 20,000 Cr.

Credit Rating & Borrowing

CARE Ratings reaffirmed 'CARE BB+; Stable' for long-term bank facilities. Borrowing costs are high, ranging between 14% and 15%, which the company is actively working to reduce through long-term debt restructuring.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include steel, cement, bricks, and sand, which constitute the bulk of construction costs. Specific percentage breakdowns for each material were not disclosed.

Import Sources

Materials are primarily sourced domestically within India, specifically from states where projects are located such as Haryana, Punjab, and Uttar Pradesh to optimize logistics.

Capacity Expansion

The company has delivered 140.17 million sq. ft. to date. Current expansion includes launching projects with a total value exceeding INR 20,000 Cr, including the 127-acre Omaxe New Amritsar Integrated Township.

Raw Material Costs

Operating expenditure, which includes raw material and construction costs, rose 12.4% YoY to INR 2,010.84 Cr on a consolidated basis, reflecting increased construction activity despite lower recognized revenue.

Manufacturing Efficiency

At a standalone level, ~70% of projects by cost were completed as of December 2024. Consolidated sold status stands at 56% by value, with 73% of the sold value already collected.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth is targeted through a strategic pivot toward high-value commercial and retail infrastructure in Tier 1 cities, exemplified by the Dwarka project (projected INR 2,500 Cr retail revenue) and Omaxe Chowk (INR 2,500 Cr potential). The company is also deleveraging, having repaid INR 700+ Cr to Samman Capital and fully settling SWAMIH Fund obligations to strengthen the balance sheet.

Products & Services

Integrated townships, residential apartments, commercial offices, retail hubs, hospitality spaces, and multi-sports stadiums.

Brand Portfolio

Omaxe, World Street (Faridabad), Omaxe Chowk (Delhi), The Omaxe State (Dwarka), Royal Residency (Ludhiana).

New Products/Services

India’s first integrated multi-sports stadium and retail hub in Dwarka, and the Omaxe New Amritsar Integrated Township.

Market Expansion

Expansion is focused on under-served regions in Tier 2/3 cities and premium commercial hubs in Metro/Tier 1 cities like Delhi and Chandigarh.

Strategic Alliances

Joint ventures include Giant Dragon Mart Private Limited (50% stake) and various project-specific subsidiaries like Omaxe Be Together for busport developments.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated living and mixed-use destinations. Omaxe is positioning itself by moving from pure residential to large-scale retail and hospitality hubs to diversify revenue streams.

Competitive Landscape

Operates in a highly fragmented and regulated market with competition from both national developers and local players in Tier 2 cities.

Competitive Moat

Moat is built on a 38-year track record, a massive delivery of 140 million sq. ft., and significant land holdings in high-growth corridors. This is sustainable due to the high entry barriers and regulatory complexities (RERA) of the Indian real estate market.

Macro Economic Sensitivity

Highly sensitive to interest rate fluctuations and GDP growth, as these directly impact consumer credit availability and demand for real estate.

Consumer Behavior

Increasing consumer preference for 'all-in-one' environments (live-work-play) is driving the company's township and mixed-use strategy.

Geopolitical Risks

Minimal direct impact due to domestic focus, though global commodity price spikes (steel/cement) affect construction costs.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to RERA (Real Estate Regulatory Authority) is required; for example, the Faridabad project is registered under HRERA-PKL-FBD-791-2025.

Taxation Policy Impact

The company faces a fresh tax demand notice of INR 298.31 Cr. Total tax-related contingent liabilities stand at INR 351.29 Cr.

Legal Contingencies

Total contingent liabilities are INR 685.61 Cr. This includes an arbitration case with Patiala Urban Planning & Development Authority (PUDA) with an estimated liability of ~INR 85 Cr, for which INR 145 Cr has been placed in escrow.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing of revenue recognition, which depends on project completion and possession. Adverse outcomes in ongoing litigations could impact liquidity by up to INR 685 Cr.