Marathon Nextgen Q2: Consol PAT Falls 32% YoY to ₹45 Cr Despite 10% Revenue Growth

Marathon Nextgen Realty's consolidated Q2 FY27 (quarter ended September 30, 2026) net profit fell 32.1% year-on-year to ₹45.19 Cr from ₹66.54 Cr, even as consolidated revenue from operations grew 10.4% YoY to ₹128.95 Cr from ₹116.85 Cr — a profit decline despite topline growth is the primary signal this quarter. Sequentially both lines were down from Q1 FY27 (revenue -34.7%, PAT -13.8%), but that comparison is a base-effect artifact: Q1's ₹197.50 Cr revenue was itself a multi-quarter high, not a run-rate. No external sell-side consensus exists for this stock (web search found price-target commentary but no Q2 estimate); against our own pre-result preview range (revenue ₹180-220 Cr, PAT ₹40-55 Cr, EBITDA margin 28-32%), the quarter missed on revenue, landed within range on PAT, and beat on margin — netting out to a miss given revenue is the larger shortfall.

The YoY squeeze sits mainly on net margin: NPM compressed to 31.2% of total income from 42.9% a year ago (-11.7pp), while operating margin held comparatively steady at 34.97% versus 35.96% YoY. That gap implies the erosion is less about the core property-development cost mix and more about items below operating profit and a tough prior-year comparison base (Q2 FY26's 42.9% NPM was unusually high). Standalone entity profitability (₹47.79 Cr PAT, EPS ₹7.09) was actually higher than the consolidated figure and nearly flat YoY (-1.1% revenue), underscoring that consolidated YoY growth comes from subsidiaries and the joint-venture share (₹3.53 Cr), not the parent — an 11-point-plus divergence between standalone and consolidated revenue growth worth flagging since readers will see both numbers.

The stock went into the print at ₹353.25, down 14.3% over the past month of trading.

Management gave no explicit FY27 revenue or PAT target on the last call, so there is no formal topline/bottom-line guidance to grade; the firmer commitment was to deploy ₹200 Cr of capital at a 30-35% EBITDA hurdle and launch new redevelopment projects (Versova/Sewri, ~₹900 Cr GDV) selectively. This quarter's ~35% OPM clears that margin hurdle, but the Board's own outcome letter states the agenda item for new investments in Projects/SPVs 'was deferred' — the capital-deployment decision flagged for this quarter did not happen, a miss on that specific timeline. Separately, merger integration advanced: the Company Scheme Petition (second motion) was filed with the NCLT on September 24, 2026, following the September 8 shareholder approval of the five-entity amalgamation. QIP proceeds of ₹899.99 Cr are now ~77% utilized (₹695.40 Cr), with the ₹203.79 Cr balance parked in mutual funds, debentures and bonds. No separate management press release was available in the record to check messaging against the numbers.