Marathon Nextgen Realty Q4 FY26: 206 Crore Profit, Zero Debt, One Question Mark
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1. At a Glance
Marathon Nextgen posted a net profit of ₹206 Cr in FY26—the highest in company history. EBITDA of ₹261 Cr (41% margin) landed on consolidated revenue of ₹639 Cr. The PAT number sits atop a decade of wobble: the company was worth ₹39 Cr in FY22, then ₹206 Cr in FY26—a 428% climb in four years.
But the climb rests entirely on one asset: ₹140 Cr of other income in FY26, mostly from a capital gain on Futurex inventory sales. Strip that out, and operating profit ₹121 Cr is respectable but not transformative.
The balance sheet told a relief story. Borrowings fell from ₹561 Cr (FY25) to ₹99 Cr (FY26). After the ₹900 Cr QIP in June 2025 (announced late, so not fully in FY26), the company claims net-cash-positive status. Interest expense collapsed from ₹59 Cr (FY25) to ₹13 Cr (FY26)—the company is no longer being strangled.
Working capital ballooned to 857 days. Collections ₹781 Cr and presales ₹576 Cr (existing portfolio) mark steady project momentum, but that number masks inventory turnover stretched thin—waiting for towers to top out.
One number looms: does a company that was debt-crippled two years ago now have the muscle to grow? Or does it inherit the drag of low returns (ROCE 12.5%, ROE 11.8%)?
2. Introduction
Marathon Nextgen Realty Ltd was born in 1978 as a textile mill acquirer—the company bought a Piramal spinning mill through the BIFR insolvency process and sat on land for decades. By the 2010s, real estate became the play. In 2023, it acquired Nexzone Fiscal Services, folding a 14-acre Bhandup holding into the listed entity. In March 2026, it acquired controlling stakes in three Kanjurmarg developers for ₹70 Cr (GDV ₹840 Cr target). By May 2026, it acquired 90% of Sunset Spaces for ₹8.1 Cr, adding redevelopment rights.
The group raised capital in a big way: ₹900 Cr via QIP in June 2025, allotted at ₹555/share. The offering marked investor confidence in the debt-reduction story. Management used ₹340 Cr to repay bank facilities, freeing up cash flow for project execution and acquisitions.
The NCLT stage is upon it. In March 2026, the company received “no adverse observations” from both BSE and NSE for a composite scheme of amalgamation and arrangement. The scheme would fold Marathon Realty Private Limited (the promoter holding entity, with 418 acres and several live projects) into MNRL. Management has not given a timeline for the hearing, but the stage is set for a material land-base uplift.
3. Business Model: WTF Do They Even Do?
Marathon builds residential towers, commercial offices, and townships across the Mumbai Metropolitan Region. The portfolio spans six geographies: Lower Parel (Futurex commercial), Byculla (Monte South luxury, 40% stake), Panvel (Nexzone affordable + township, 91% stake), Bhandup (Neo series, 100%), Mulund (Millennium commercial, 100%), and Kanjurmarg (six projects acquired in FY26, 34% economic interest).
Revenue splits into presales (primary), collections (cash in), and two smaller tricles: Futurex leasing (old offices rented out) and other income (capital gains, interest on project advances). FY26 saw presales of ₹576 Cr (existing portfolio) and collections of ₹781 Cr—the second outpaced the first, a sign of execution catch-up on older projects.
The macro trend is PMC (percentage-of-completion) accounting. Revenue lands when construction hits milestones. That means lumpy cash and presales figures; a tower topping out can deliver ₹50+ Cr in revenue a quarter.
Futurex (Lower Parel commercial) is a juggernaut. FY26 presales ₹466 Cr (+15% YoY), built on Grade A office absorption and a client list (Nykaa, Zee, L’Oréal, SBI, HDFC) that keeps the pricing power alive. Management claims 12–15 months of runway left, then they hunt for a commercial replenishment.
Monte South (Byculla luxury) is a slog. 55% complete across residential towers, with Tower D yet to launch. Commercial addition (₹3,400 Cr GDV announced as a JV with Adani Realty) hangs pending for 12–18 months. The portfolio is presold but collection-heavy—owners moving into completed towers and paying the balance.
Nexzone (Panvel) and the Neo series (Bhandup) are the affordable/mid-market bets. Panvel enjoys Atal Setu, the NAINA airport corridor, and rail links; Bhandup sits on the Goregaon-Mulund Link Road (GMLR), an infra catalyst cleared by the BMC in FY26. Both move units steadily; presales FY26 came to ₹104 Cr (Nexzone) and ₹69 Cr (Neo series combined).
The Kanjurmarg acquisition brings six projects (aggregate GDV ₹840 Cr, MNRL share 34%) into the pipeline. One is already under construction (at 10% GDV value). Two launches are flagged for the next 12 months. The trio are pursued with 34% economic interest and 50% controlling stake—not full ownership, but the ability to drive launch and execution decisions.
