š At a Glance
Mahindra Lifespace, once the torchbearer of Mahindra Groupās real estate ambitions, is now caught between premium branding and tragic profit margins. Over the last 5 years, its operating profit has vanished faster than demand in a ghost mall, while the stock P/E is now a Himalayan 126. And yes, most of the PAT is driven byother income. Is it value creation or valuation illusion?
š§± 1. What Exactly Does Mahindra Lifespace Do?
- A Mahindra Group company in the real estate + SEZ space.
- Core business = Residential real estate (under āMahindraā and āHappinestā brands).
- Also developsindustrial clusters and integrated cities(e.g., Mahindra World City Chennai & Jaipur, ORIGINS by Mahindra in Tamil Nadu and Gujarat).
- Claims āgreen developmentā and āsustainability
- focus,ā but cash flows say otherwise.
š 2. The Financial Freeze Frame (FY21āFY25)
| š° Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (ā¹ Cr) | 166 | 394 | 607 | 212 | 372 |
| EBITDA (ā¹ Cr) | -94 | -88 | -110 | -171 | -170 |
| EBITDA Margin | -56% | -22% | -18% | -81% | -46% |
| Net Profit (ā¹ Cr) | -71 | 162 | 103 | 98 | 61 |
| Other Income (ā¹ Cr) | 34 | 200 | 239 | 246 | 278 |
| Operating Cash Flow (ā¹ Cr) | -68 | -52 | -148 | -661 | -542 |
š§ Translation:
- Core business is loss-making. Like,ā-ā¹170 Cr EBITDAāloss-making.
- Net profit is thanks to other income. Read:Interest/dividends from parked funds, not homebuyers.
- Operating cash flow is bleeding worse than a mid-2000s real estate scam.
šļø 3. Segment Reality Check
šļø Residential (Happinest, premium homes):
- Faces stiff competition fromDLF,
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