Max India Ltd (MAXIND) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '27 earnings conference call hosted by Max India Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference
Moderator: pressing * and 0 on your touchtone phone. I now hand the conference over to Mr. Rajit Rajit Mehta, MD and CEO from Max India Limited. Thank you and over to you, sir.
Rajit Mehta (Max India Limited): Thank you. Namaste, everybody, and a very good evening to all of you. On behalf of Max India Limited, a very warm welcome to all of you on the Q2 FY '27 earnings call. Once again, sincerely appreciate your continued interest, your trust, and confidence, and your support. It's invaluable for us as we progress our journey to strengthen our businesses and remain focused on creating long-term value for our stakeholders. Also appreciate the time you're taking out today to join us. With me are my colleagues, Ishaan Khanna, the CEO for Antara Assisted Care Services; Ajay Agarwal, who's the Deputy CEO, CFO Antara Senior Living, and Head of Investor Relations; Sandeep Pathak, the CFO for Max India and Legal Head for Max India; and Ankit, who is the CFO for Antara Assisted Care; Abhishek Kumar Singh, part of our IR team; and from SGA, we have Rahul and Debraj. We uploaded the deck a little while ago. I'm sure some of you may had a chance to glance through it. It's actually been quite a hectic quarter, in fact, hectic six months. We have been very focused on execution, and we have been able to overcome some of the challenges. And now, you can see the positive results across all the business verticals. There is clarity on future expansion, and some of this will become clearer as we make announcements over the next few months. On a consolidated basis, a very healthy growth on Y-o-Y and on quarter-on-quarter basis on on top line, and also the the losses have substantially reduced. We are successfully handed over possession to more than 200 residents in the Noida community, which is the second community which is now becoming operational out of 340 residents. So very positive you know development, a very important milestone for the company. Residents have been waiting for quite some time, and we're very happy finally we've been able to welcome them to the Antara family. The entire facilities entirely you know is all operational now, and we're making every effort to ensure that the residents have a seamless and pleasant experience. Both Estate 360 and 361, which were intergenerational projects, are also progressing you know as per plan with very good sales velocity coming through on 361. 360 was sold out already. And I will discuss some of these details as we go forward. With the completion of Antara, Noida and a stable Gurgaon sales, we are now actively pursuing growth in other geographies. For Bengaluru, diligence is about to conclude, and we've already started discussions around the definitive agreements. This is a 6.5 lakh square feet development with a potential sales value of approximately INR 900 crores. This is a pure DM arrangement, where in Antara provides know-how on design, will also handle sales, marketing, and also become the operator for the community and we own effort fee based on top line of the project. As stated in last quarter, we have been pursuing other opportunity in Dehradun, again, estimated sales potential of INR 850-INR 900 crores. Relatively small in scale, but quite boutique, and we are leveraging the existing brand we already have, and there's a long wait list of people wanting units, you know, in Dehradun. And we'll make formal announcement as and when we formalize all the arrangements. There are few more projects in Delhi NCR and one more location in South India, for which disclosures will be made as we close the commercials. But our commitment of 1800 gross sales value every year will be more than met for the next few years depending on how we close the commercial discussions. The expansion of our Care Home and AGEasy business is progressing as planned. On a Q-o-Q basis, the business delivered a 55% growth in top line. Occupancy across 485 beds in Care Homes is gradually increasing, and the consistent quarter-on-quarter growth in revenue gives us confidence now to explore other growth opportunities in the latter part of the year. The contribution margin for the same capacity in Care Homes has improved from -86% to -19%. AGEasy is also witnessing a significant growth with revenue and all key financial metrics improving significantly compared to previous years across all channels. The CM2 trajectory for AGEasy, which is very important since we made a commitment that we will be EBITDA breakeven in the last quarter of this year is also progressing well. Is now steadily down down to below -20 in Q2 versus -48 in Q1. Our focus remains, you know, on making sure that we meet our promise on this one. Now let me share some numbers to substantiate what I have said so far. First on a consolidated basis. Coming to financial performance, all of financial metrics are showing upward trend. The consol revenue is up to INR 95.5 crores in Q2 FY '27 as compared to INR 50 crores in Q2 FY '26.
Rajit Mehta (Max India Limited): representing a Y-o-Y growth of 19.4%. As compared to quarter, it's a 40% growth. The revenue is 68.6 versus the revenue in Q1 FY '27. The EBITDA loss for Q2 FY '27 stood at 11.4 crores, which is half of what it stood in Q2 FY '26, which was 25.3, and 24.9 in Q1 FY '27, reflecting a 55 reduction Y-o-Y and 54% on Q-o-Q basis. The reduction in EBITDA loss alongside revenue growth demonstrate our continued, continued progress towards profitability. The improvement has primarily been driven by higher revenues and cost cost optimization across all verticals. But as you know, the ASL business, which we have said many times, is lumpy in nature, depends on the construction-linked payments. So that could go up and down depending on when the milestones are crossed. Though our focus remains on improving gross margins, optimizing costs and driving overall profitability. As on September 30th, 2026, the treasury assets at Max India stood at 52 crores with a consol net worth of 395 crores. Now coming to residences business. Starting with Dehradun, which is a very stable community now, steady profits, steady revenue. Our focus is entirely on making sure that the resident engagement experience, you know, is just top-class while maintaining consistent profitability. The operating revenue was 6.5 crores in Q2, up 13.4% Y-o-Y basis and 5.6% Q-o-Q basis. The operating profit was INR0.94 up 25% Y-o-Y and 1.8% quarter-on-quarter. There were three units which were re-leased during the quarter, which gave us additional revenue of approximately INR2 crores as marketing fee. And the satisfaction index also was 89%, very stable over the last few quarters. As regards Noida, in Q2 FY '27, we collected 113.8 crores. If you recall, we had to collect totally about 169 crores. As we speak of that, about 163 crores already being collected. There are two or three customers who are awaiting bank approvals, so that should also be in in the next month or so. We earned a management fee of about roughly 10 crores from this project in FY '27. And now we're eagerly awaiting the acceptance of the resolution plan which has been submitted by a lead developer on the sports sector because once that gets, you know, on record by Noida Authority, we can then apply for our revalidation of building plans for Phase 2. Just to remind you, during COVID, when we had started to sell this this community and all sales were clocked in the first, you know, two years or so. And therefore Phase 1, you know, didn't see much profits. However, in view of the robust market, just to recall the numbers, we had started selling Phase 1 at about 6,500, 7,000 rupees. The market price today is about 18,000 rupees for Phase 2. So that should be a decent profit for us. And therefore, overall project IRRs we will achieve 15% to 17%. Coming to Gurgaon, which was our first intergenerational project, Estate 360, inventory is already sold out, collections continues to be strong, 28.5 crores for the quarter, YTD 51 crores and ITD 585 crores you know, on this project. We earned about 2.6 crores DM fee in this quarter, and in H1, we earned 4.72 crores DM fee. ITD DM fee earned is 50.3 crores. The second project, which is Estate 360-1, which is adjacent to 360, we launched, if you recall, 180 units in December '25 and 180 balance in June. In a very short period, we've been able to sell, you know, about 263 units, as we expect as we stand today. 127 were sold in FY '26. So about 97 units to go. The first 180 are totally gone and only 97 left in the second launch. The total collections for the quarter has been 69.2 crores, and ITD 177.4 crores. And we earned a management fee of about 4.9. Overall, ITD earning is 12.8 crores. We have a very healthy sales velocity in the last quarter. About 31 is the average that we clocked. Totally earned management management fees of 17 crores in Q2 FY '27 and 23 crores in H1 from the combined 360, 360-1 and Noida Sector 150 projects. So that's the story on residences. On Care Homes and services, the Care Homes Services revenues were up by 12.28 crores, up by 40% Y-o-Y and 6% in Q-o-Q basis.
Rajit Mehta (Max India Limited): in the care home, and if I add the September exit, we are now witnessing in some care homes occupancies of 52, 55, 48, 47% respectively. Four of the eight care homes are aligned with or better than the plan, which makes 80% of our capacity not performing closer to plan. We are confident in the next few months, the remaining care homes will also get traction. Occupancy for all the beds in Q1, Q2 FY '27 is 29% compared to 26% in the previous quarter. The occupancy for old beds has moved up from 21 to 36% from the last few quarters. Sector 41, Gurugram, 37% in Q2 and 29 in Q1. Chennai OMR, 21 versus 12 same period, Noida, 31 versus 27, and DLF Care Home, 45% within 3 months of launch. Our care homes and services have served over 2,700 patients so far, during Q2 FY '27, and about 55,000 since inception. The overall customer voice stood at about 92% in Q2 FY '27, again, reflecting consistency and quality of care and service we are delivering. Overall, the CM2 improved a lot from -107 to 63% Y-on-Y and marginally dropped from -62 to 63 on Q-on-Q basis. Coming now to the ARPOB in Q2 FY '27 was about 6,900 with average ARPOB increasing steadily over the last six quarters from INR 5,800 to INR 6,900 with a peak ARPOB of about 8,400 for all fresh moving in September '26 exit. This reflects the increasing appreciation of the quality of our services and the willingness by customers to pay a premium for the same. On Ageasy, we achieved a net revenue of 35 crores in Q2 FY '27, showing a 1.7x Y-on-Y growth and a 1.9x Q-on-Q growth, primarily driven by market places and offline channels. Ageasy recorded its highest ever monthly revenue of INR 14.9 crores in September '26, which makes the exit ARR more towards 180 crores. The overall ROAS, which is return on ad spend, a measure of efficiency and of customer, you know, brand pull for us, in Q2 FY '27 improved to 4.7 versus Q1 FY '27 exit of 2, which is a 135% growth in marketing efficiencies as compared to previous quarter. Overall, CM2 Y-on-Y from -44 to 29 and from Q-on-Q from 48 to 18.5% with a further improvement to 11% in September, so the more it extends towards zero and then eventually positive, is when we start seeing EBITDA break even. So, we're on its path to meet the commitment we had made to all of you. The gross margin remained under pressure due to the geopolitical situation in Middle East, which is impacting logistic costs. Yet we are able to maintain the online D2C and marketplaces at 45% in Q2 FY '27 exit. And increase the satisfaction index remains stable at 8 to 82% unchanged from Q1 FY '27. We are also pleased that products, which is one of our biggest differentiators, the portfolio now has 10 patents, 8 designer, 2 utility. We used to have 6 earlier, now it is become 10, covering our senior focused innovative products of which four have been granted and six have been filed, including one international filing. This reinforces our commitment to continuous innovation and developing seniors specific differentiated solutions for seniors. This will also serve as a very strong competitive moat, strengthening our market positioning and creating a sustainable competitive advantage. Ageasy so far has touched about 1. 11.7 lakh lives with 1.14 lakh repeat customers served since inception and achieved an NPS of 49 in H1 FY '27, again reflecting, improving customer stickiness as usage depend, you know, deepens over time. Ageasy continued to strengthen its brand presence by leveraging the Anupam Kher campaign, which achieved a reach of 25 million during Q2 FY '27 alongside regional campaigns and influencer-led initiatives.
Rajit Mehta (Max India Limited): strong endorsement by customers and by by by by customers and and everybody else on the brand. We are pleased to share Ageasy was recognized as Service Provider of the Year: Medical Devices & Equipment at the 6th Edition of the ETHealthworld Healthcare Awards 2026. Additionally, we have four care homes now which have been certified by NABH and our Care at Home services in Chennai and in NCR have been certified by the Healthcare Sector Skill Council. These recognitions reaffirm our commitment to quality, service excellence and delivering trusted senior care solutions. With that, I'll stop here and welcome any questions.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harsh Gadhani from Emkay Global, please go ahead.
Harsh Gadhani (Emkay Global): Hi. Congrats on a good set of numbers. And just a couple of questions from my end. Firstly, just double clicking on Ageasy. Excellent monthly run rate, you know. How much of this would you attribute to seasonality versus, you know, something that you see as sustainable increase whether or not, you know, product level or otherwise. And also there was a sharp bump up in the offline revenue in the Ageasy part. So, any reason for that? Are you in- increasing your SKUs out there or increasing your reach? How how to read into it?
Ishaan Khanna (Antara Assisted Care Services): Hi Harsh, Ishaan here. How are you?
Harsh Gadhani (Emkay Global): All good.
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