Max India Limited (MAXIND) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Max India Limited Q4 F526 earnings conference call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will then be listened only more, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance in the conference call, please signal an operator pressing star and zero on your tax zone form. Please note that this conference is being recorded. I now hand the conference over to Mr. Bridget Mehta, Managing Director from Max India Limited. Thank you, and over to you, Mr. Mehta.

Thank you. Namaste, everybody, and a very, very good morning to all of you. On behalf of Max India Limited, I extend a very warm welcome to all of you for the Q4 FY26 Earnings Score. My deep gratitude to all of you for your patience, for your support. It's not that easy when you're building a new category in a brand new sector. India has gone through a tough phase. Given the geopolitical environment, we have not been immune. We have seen some slowdown in some areas, and now the impact of the labor code on wages also is coming apparent to all of us. So clearly, we're not isolated in this situation compared to the globe. In some shape and form, we have also been impacted, but we are focused, and I'll share the results with you. We have grown. We are focused on making sure we are building our business with the right fundamentals, with the right focus, and we continue to expand our presence strategically across important aging markets in India. So once again, deeply appreciate the support and patience you have showed us so far. I have with me my colleagues, Ishaan Kanna, the CEO for Antara Assisted Care Services, Ajay Agarwal, who is a Deputy CEO, CFO, and Head of Investor Relations, Sundeep Parthak, the CFO and Head of Legal for Max India, Ankit, who is a CFO for Antara Assisted Care, Abhishek Kumar Singh, who has just joined us in our IR team, and the Devaraj from our IR advisors. We uploaded the deck yesterday. I'm sure all of you have had a chance to go through it. On performance, I would like to start on the good news that finally, after a long effort, NADA authorities issued us a partial occupancy certificate for the three towers developed by content builders, RSPV. Very welcome step and thank God for that. Finally, our customers who have been eagerly waiting for a long time will get to enjoy their new homes and antara services. This event also has the potential to unlock receivables of upwards of Rs.150 cross, and also gives us... You know, an opportunity now to refile for approval of phase two, which also is a big unlock, given the way the market has now matured. The price points are 2x, 3x of what we sold last time. And as you know, we still have about 220 units, about 0.44, you know, lakhs, million square feet yet to develop. So both from a receivable standpoint, as well as unlocking future values, this is a welcome stack. And we do thank the authorities in the Supreme Court, you know, for this gesture. During the quarter and year, we saw encouraging traction across all business verticals, actually, supported by the rising acceptance of organized senior care solutions. I think more and more, if you follow the news, you will find, given India's changing demographic, India's social transition, there is more and more acceptability of the need of senior care solutions. And we remain very committed. We will deploy our capital quite prudently. We understand in the current circumstances the importance of path to profitability, and we'll find that all our, you know, initiatives and our intention is to make sure that we are able to achieve the same as planned. Coming down to numbers, the FY26 consolidated revenue closed at 213.4 crores, which is 30% higher to the revenue of FY25, which was 164 crores. The EBITDA loss by F526 showed an improvement, 83 crores versus 99 crores last year. The company reported a quarterly revenue of INR 72 crores in Q4, reflecting a Q1Q growth of 45% against a revenue of 49.8 in Q3 F526, and a year-on-year growth of 58% against a revenue of 45.5 in Q4 F525. Very happy to inform that the consolidated loss of the company has sharply reduced as per our commitment. So in the quarter ended March 26, we closed a loss of INR 6.8 crores as compared to a loss of 27.8 crores in the previous quarter, and 35.5 crores in the quarter ended March 25. We expect these numbers to further improve in the financial year. This will be a testimony to our commitment to demonstrate power to profitability in all our businesses. As of March 31, 2026, the treasury assets at Max India stood at 58 crores, with a consolidated net worth of about 408 crores. Coming to the business performance of each vertical, starting with the residences in Dehradun, the operations at Dehradun continues to be stable, has been giving us consistent profits. The operating revenue from Dehradun closed at 6.7 crores for Q4 FY26. The total revenue and profit for the whole year was 24.2 and 2.3 crores respectively. There were 5 releases during the year which gave us some additional revenue of approximately 1.7 crores as marketing fee. The project is cash-positive and profitable, and we expect this trajectory will continue for years to come. While the community is fully occupied, the growth will be more linear in the future, and the team will make all efforts to identify new opportunities to maximize revenue and profits. Coming to Gurvang, the intergenerational project in Gurvang Estate 360 was fully sold out last year. Collection continues to be strong at an ITD level of 534 crores, with collection efficiency of 87% from inception till March 26. As a result, Antara earned 45.6 crores as management fee till 31st March 26, out of which INR 26 crores have accrued in the current financial year. The success at 8th, Straight 360 gave us the courage to launch Straight 361. That's about 1.04 million square feet 360 units. Of that, we launched the first phase of 180 in December 25. As of March end, we have secured 127 bookings. Of course, there have been some more sales in April and May as well. And received a collection of INR 69 cross. As of date, we have sold 141 units. And because of this phenomenon this month, once again, we are encouraged to launch the balanced 180 units very, very soon. We are committed to 1.5 million square feet, and we will demonstrate that to you. We are in advance talk for some opportunities in North and South, and also for one more intergenerational community at Noida with Max Estates. An appropriate disclosures announcement will be made as and when we sign the agreements. Coming to Antara's district care services, finally, we have a total bed capacity of 485 beds in 8 care homes across NCR, Bengaluru, and Chennai. All centers are operational except for one in Bourbon of 28 beds under renovation currently. It should be live very, very soon. Just to remind all our investors, the majority of these beds were added in the last quarter of the financial year, and happy to report that seven of the operational care homes, five are truing up to the model which we have shared with the investors at different points of time. While the average occupancy has shown a decline, it is only because of the addition of new care homes in last quarter F526. Otherwise, if you look at the beds which are already operational, they have shown a growth of 10% on quarter-on-quarter basis. For example, in sector 41, from 26%, the occupancy went up to 34%. In Noida, from 13% to 38%. From Bannad Ghatta, in 10% to 37%, and so on and so forth. Our care homes and services have served about 3,400 patients so far during Q4 FY26 and about 50,000 patients in inception. Revenue in this segment rose to INR 11.4 crores, which is 1.1x on a Q1Q basis, while the whole year revenue grew 1.6 times year on year to be 38.8 crores. Q4, the AACSL customer voice for was 90.21%, broadly similar to Q3. And similarly, if you look at the entire year, we were 90 to 93% as voice of customer, which is again a testimony to what we are, the quality we are building. For care homes, we have often said that the most important matrix is the contribution margin. Happy to, you know, inform that across all care homes, they have shown significant improvement. Noida from minus 19 to plus 6% on QNQ basis. Gurgaon sector 41 from minus 43 to minus 17 on Q-on-Q basis, Gurgaon sector 24 from minus 13 to minus 5 percent, so on and so forth. Such results have given us the confidence the model is finally working and now to achieve cost efficiency synergies we have merged the care at home and care home business so the same infrastructure and staff can be utilized to provide those select services at the home of seniors. For AGZ, we achieved a net revenue of INR 23 crores in Q4 FY26, showing a 1.4x Y&Y growth and 1.2x on quarter basis. The FY26 revenue stands at INR approximately 77 crores, marking a 100% Y&Y growth over last year. The ROAS, which is return on ad spend for online channels, has improved to 1.8, marking a 50% growth. And the March 26th exit was a healthy 2.9, signifying marketing efficiency and improved conversion. On AGZ, the customers continued to be quite satisfied. The satisfaction index was 87% versus 83% of Q3 and 84% for the whole year compared to 82%. During the year, AGZ launched one new condition, gut health, with four new products developed in collaboration with Wellbeing Nutrition. We now offer approximately 91 products in 159 SKUs. Also pleased to inform the investors that three patents have been granted to us for products innovated by us, and patents for another three have been filed reflecting our commitment to continued innovation. This is really the biggest mode we will have. The more differentiated products we have, the more patents we have, the stronger our modes will be compared to markets. We also launched 90 new product agencies by 26, out of which 65% are delivering a gross margin of 50% and above. We have a healthy mix of domestic 70% and import 30% over sourcing, which is mainly from China. AGC so far has touched about 7 lakh lives with 44,000 repeat customers served since inception and achieved an NPS of 45, reflecting improving customer stickiness as usage deepens over time. Gross margins for D2C and marketplaces online channels improved from 38% at the start of the year to 46% in Q4 FY26. Overall, AGC continues to operate as an asset-light model, a scalable platform, and remains a strategic engagement channel within the broader Antara ecosystem. We've also piloted the concept of integrated wellness at one of our care homes. As you know, I'm in the senior age. There are multiple issues related to overall wellness, to frailty, to muscle loss, and risk of falls. Therefore, an integrated model which combines modern medicine for emergency care with Ayurveda, acupuncture, etc. is quite useful. We have now done that so that we are able to pilot, and if this pilot is successful, we will implement this, you know, integrated wellness clinic in all the residences that we have so that we further differentiate from other competitors. We have remained very active, working with the government and ministries to look at advocacy. We submitted two papers to ETIO, one on insurance, one on sanitization. We continue to work with Star Union Diagee Life Insurance to adopt an integrated approach. To senior wellness and financial literacy. Recently, Antara Senior Care set a national benchmark by becoming the first assisted living provider in India to secure the prestigious NABH care home. A tradition means we have now two care homes which are certified by NABH. We have worked with NABH for these standards. This certification ensures that the facilities which focus heavily on memory care or assisted care or transition care follow the strict standardized benchmarks for resident safety, clinical governance, and emergency preparedness. They are reflecting our ongoing commitment to compliance, quality, and leadership in India's evolving senior care ecosystem. I'll stop here and welcome any questions.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 comes from the line of Harsh Kundrani with Ioneos Alpha. Please go ahead.

Yeah, hi. Thanks a lot for this and congratulations on, you know, for that number. Couple of questions from my end. Firstly, on the residential business. How should we think about the timeline for estate 361? When should we expect the launch of phase 2, the rest of the, you know, 180 units? And for phase 1, is it fair to assume that collections, you know, like 360 and the other projects will be lumpy? Because right now, I think my back calculation suggests that we are only collecting the booking phase. Is that correct?

Yeah, so Hush on the launch of phase 2 of E61 is around the corner. You will find in the next few days we will make that announcement because as I said 140 of the 180 have been sold and we don't have inventory yet for a certain type that is demand still. So that you will find very soon. Yes, the collections are lumpy. You are absolutely right. And therefore most of the collections we have done now are the booking fee.

And this booking thing will continue. Hi Harish, this is Ajay. So this booking will continue till the time we do the sale. To our understanding, it will be 20% collection which will come as a time bound matter. So a booking fee of 25 lakhs, then 10% on application and then one more 10%. Then the collection based on construction takes approximately three quarters and then it becomes very periodic. So, it will be lumpy in the first year, which is 26-27, and then from 28-29 onwards, it will be more regular in nature.

Understood. Thanks for this. Secondly, small question for Rishan. On AGZ, since we are sourcing a bit of material from China, is there any delays, difficulty, or is it more expensive to import materials? And just how are we looking for growth in AGZ for the next three to four quarters?

Hi, Harsh. I hope I'm audible. Yes, you're right. I think, as Rajit mentioned at the beginning of his speech also, the raw material costs and logistic costs have been impacted because of the current geopolitical situation. However, we've taken a few steps from our end to ensure that the impact of it is as minimized as possible. So one is we've been looking at alternative vendors in India for some of the products that we get from China. Second, we've placed slightly larger orders earlier this year for some of the key products that are high selling for us, so that we lock in the prices and the suppliers in short. And we are also looking at alternative logistic arrangements as well to make sure that we as much as possible buffer up the logistics cost. However, for certain products, we have seen the cogs go up and we've made small price adjustments to that effect as well. So, as of now, at least, the last quarter and the current quarter, we've not seen a significant impact on our margins. And we obviously continue to monitor this very, very closely to ensure that either the pricing, cost, and logistics is managed and monitored very closely. From a growth perspective, we expect this year again to be a high growth year, like Rajit has also been mentioning this business. In its inherent nature, it is expected to grow very fast, and the growth trajectory is supposed to be sharp. So we expect that this should continue in this year as well, hoping that the exit monthly revenue run rates for this year should be somewhere in the range of 14 to 16 crops.

Understood. This is helpful. I have a few more questions, but I'll just come back with you. Thanks a lot, Jay.

Thank you. A reminder to all the participants, Natima Press star and one to ask a question. Next question comes from the line of Ulha's Paymaster, an individual investor. Please go ahead.

Good morning. Can you give us the management fees, the estimates? From the three projects we have, 360, 361, and NOIDA. And what kind of direct expenses do we incur for earning those management fees?

So, sir, 360, while this is a little forward-spreading, but with the estimate what we have in time, 360, we will have a management fee approximately 130 crores spread over the… Am I audible, sir?

Yeah, yeah.

Yeah, so 360, we have a management fee approximately 130 crores since inception till the end of the project, end of the project sale cycle. 361, we will have the total management fee approximately 200 crores. That is dependent on the price what we are seeing. So this is all estimates because 361, unlike 360, 361, the sale is yet to happen. So, but with the estimate, what we have in mind, we should be earning around 200 crore rupees in the whole project cycle. As far as the cost is concerned, sir, approximately 15% is the variable cost which comes as a direct variable cost for such management fee, which is our payroll cost, which is our additional manpower and additional expenses what we do for each project. As regards Noida is concerned, sir, we have received practically all the management fee what we have to receive, only now the possession link payments are remaining, for which we are expected to earn approximately 14 crore rupees, whenever that collection comes in from phase 1. Phase 2, we have not launched yet, hence I will not be able to comment on the quantum of the management fee from phase 2.

Okay, my second question is, what is the return on capital on these care home projects we have? And the EBITDA margin.

Hi, Ulasi. The ROSI is expected to be in the range of 25-26% for care homes. And as per our model, which we have also discussed and shared with investors, at a post-HO, all-inclusive post, the care homes at scale should deliver an EBITDA of 18-20%.

And my last question is regarding, sir, to Mr. Mehta. Regarding, we seem to be very conservative for the last 10 years in whatever we have done so far. Because if you look at the numbers, when Antara Doon was operationalized in, say, around 2017, the project cost was around 400 crores. And now today, after 10 years, we are sitting on an asset base of 670 crores. So that's only any addition. And if you take into account the right issue of 120 crores and the warrant issue of 80 crores, so if you take out 200 crores from the asset base of 670 crores, that leaves us the asset base of only about 470 crores against 370 crores 10 years ago. I think we are very conservative, and even after 10 years of operation, we continue to be a very small-cap company, and it doesn't justify the brand name and the reputation of Max Roof. How do you propose to now increase the size of the company's assets and the profits over the next three to five years?

Rajji, you are partially right. It's a matter of perspective. Yes, absolutely. From 2017 till 2019, we were only operationalizing, you know, Dehradun. Then came the Norda project. Unfortunately, it got along with its COVID as well. So while we did diversify and look at care homes, you know, about two years got lost, you know, in that sense. But thereafter, you'll find that we've accelerated. In fact, if you look at our market cap, if I recall correct, when I joined the company in 2019 and 2020, when we got listed again, it's about 300 crores. Now, that's about 1,000 crores, give or take 50 crores on that side. So in that way, we have now built all the fundamentals. As you can see, we are tracking along a 1.5 million square feet. So besides Noida, there are two communities in Gurgaon. Noida phase 2 will come. We are about to announce, you know, two more as well. The care homes finally have 485 crores. AGC was never part of a plan, right? And now that's a business which clocked about 70 crores, 76, 77 crores of revenue, you know, last year. And if you want to do a sum of parts, you will find that currently I still feel you are absolutely right that our market cap is not reflective of our true value. In the next 9 to 12 months, you'll find this growth, you know, becoming apparent as we demonstrate power to profitability. And as we continue to operationalize, you know, our communities, Noida itself will bring a decent annual income to us in the first year. So you're right, for years being muted, but next 9 to 12 months, we are hoping and making sure that we're able to, you know, walk a little more aggressively.

Okay, and last question, what kind of management revenue do we expect after the projects are commissioned, 360, 361, the annual recurring revenue?

Yeah, see, the model that we state is that for any community of 250 units, we are expected to earn about 10 to 12 crores of annuity income. 60% of it is what we commonly understand, common area maintenance, 40% is discretionary spend that seniors do on healthcare, wellness, cuisine, laundry, housekeeping. That's the model that we have. So that's the ballpark. So if you want to do a very high level estimate and you take, let's say, we'll eventually make, you know, 10 communities, right, let's say with about 10 billion square feet and you do a ballpark number of 12 rupees, right, you can get to the annuity number very easily.

But sir, just to answer your question, apart from the annuity income, we will not have any other management fee as such post-completion. The management fee stops when the completion takes place.

Yes, I understand. That figure you gave 130 and 230 crore for the earlier two projects, but after the projects are commissioned, we can expect about 10 to 15 crore per project. Am I right? Correct. For 250 units, as a model. 250 units. Okay, thank you.

Thank you. A reminder to all the participants at UMFS star and one to ask a question. Next question comes from the line of Nikhil Kupter. It's YV Capital. Please go.

Hi, thank you for the opportunity. Can you please talk about NOIDA Phase 2? I'm not sure. Actually, there was a lot of confusion with respect to Phase 1 as well. So, my understanding is that the development still has not been happened because of the Phase 1 headwinds. So, once we get the approval, we will move forward for bookings and the construction side. Please correct me if I'm wrong. And then adding to it, I think in the financial year 26, we have not completed our target of 1.5 million square feet. So, can you talk about that more and further which locations are we targeting after Noida, Gurgaon to expand? Because I think for Max India, this residence is vertical is very, very important in the sense that once seniors start living, we have multiple revenue sources, we can expand anything. So I think this vertical is, to investors' point of view, is very, very important to track.

Yeah. So, Nikhil, NOIDA phase 2 will happen like this. First, we will, you know, complete our obligations for giving the possession. Then we will approach NOIDA authorities for, you know, recertification of our revised, you know, building plans. We will get great approval and then the sale starts. So sometime during this FY27 we expect that we should be talking about this. As I indicated to you, that's about 440,000 square feet are yet to be built. And the market has gone up phenomenally. It's about two to three times of the last sale that we did in NOIDA phase one. So that's one. You are right, we need about 1.1 million square feet in FY26. We are short by 0.4. If you recall, there was a Chandigarh project which unfortunately, after Operation Sindur, didn't get a height clearance set back for us. Having said that, we have worked on three new opportunities. All three will culminate in the next few months. There is another 1.1 million square feet of intergenerational project in sector 105 Moida, which we are working on, and there are two more opportunities in Bangalore, and one is Kamar Vain Dehradun that we are working on. If all three, you know, get materialized, we should be close to about 2 million. So we'll catch up on the deficit that we had of 0.4 should be done this year. So that's what we're working on. But we'll announce as and when the agreements happen, you know, adequate disclosures will be made to all of you.

So just to confirm, so we are tracking Moida intergenerational additional project, two in Bangalore, one in Dehradun, right?

One in Bangalore, one in Dehradun, and one intergenerational project, all three put together, go to Millenster.

Right. The next question would be, can you give a tentative timeline on when we are planning to have our additional fundraise? And also spoke about the 36 crore tax on the Antara Purukul side.

Okay, on fundraise, you know, as I said, we have been in dialogue with several people. As of now, we are quite comfortable for the next two, three to four months in terms of our, or six months in terms of our cash situation. But we are waiting for the market sentiment to improve. You know, it's no point trying to dilute at a value which is not conducive. So we are waiting and watching as the market, you know, starts to move. We will then intensify the effort. But sometimes this year you will hear from us on what's happening, you know, on the fundraise side.

On the tax? So, this is something which is a peculiar situation where when the faceless assessment takes place, the officers tend to not understand. So, very frivolous additions have been done challenging the market value and the whole calculation for the lease accounting what we do at Doom, thus resulting in a very high addition and the demand of 32 crores. Unfortunately, there is a very time-offensive mistake on record done by the Incub Tax, wherein they have not given the credit of the broad-forward losses to us. We have already filed a rectification application. Last year also, this has happened that they have done some addition, but later we have requested for rectification, and the rectification was done. And last year, the demand was 11 crores, which got down to 1.62 crores. This year, if our rectification application is accepted, then the 32 crores will practically become zero. And my tax consultants and along with my tax team is actively pursuing this with the department, and we should have the order very soon. So that demand would not be there as far as the ongoing assessments.

Thank you. That's quite helpful. Maybe I can squeeze one more quick one. So I was listening to Ishan's podcast a few days back. I think it was, it's quite hard to know that the time ahead is very large, we can even extend to technology for seniors and then travel requirements for seniors. So are we strategically thinking in that direction? If yes, what all steps are we taking?

Hi, I think AGZ is where all of our expanded offerings beyond the residences and care homes comes live, and we've expanded already to a very vast range of products for seniors, and a lot of technology that we wanted that seniors should be able to avail either through wearables. or through some of the patented products that we have launched and are launching is where we immediately see the positive impact. We want to contain ourselves within the realm of health and health-related technology and products because we feel that is where we can add a lot of value. So we will continue to innovate a lot there because we see that itself has a lot of scope that is still untouched and uncapped. Does that answer your question?

Yeah, thank you so much.

Thank you. A reminder to all the participants, we may press star and one to ask questions. Next question comes from the line of Ranadeep S. with MassCapital, please.

Yeah, thank you for the opportunity. Good to see the scaling up in the existential services case with 485 beds. My question is respect to a given Hyderabad's strong demographic tailwinds, particularly it has a large NRI base driven by IT professionals in this world, which leads to a lot of significant NRIB parents living independently in Hyderabad. And several of the established there, like OTR, TIDE, have already have had a big presence in this case. So any perspective on the management on why Antara has chosen not to enter this market, or is there a strategic choice or any specific like in regulatory issues, anything you would like to share some thoughts on that?

So I think we've looked at Hyderabad very closely. It is definitely on our list. On the residency side, the issue is the unlimited FSI, right, which is now getting solved. And if you have unlimited FSI, then the land developer always wants to maximize. And we had felt that perhaps our, you know, kind of development where we need certain kind of quality and aesthetics may get compromised. That was one reason. It is now picking up as an assisted living transition care market. It's not the case three, four years earlier. So definitely on the list. But we've been waiting for the right opportunity on residencies. If the FSI issue gets solved, we'll certainly look at it. But we'll examine it later part of the year for the assisted living stroke transition care opportunity.

Sure, sure. Any specific thoughts in terms of the partnership? I think over the last 12 to 18 months, we've spoken about partnerships with Go, Taxes, IIT Delhi, one other company in the well-being space. Is there any material development in terms of revenue recognition? Any thoughts you'd like to share upon these partnerships?

I think as far as well-being is concerned, they are… Yeah, these are all, you know, different kinds of partnerships. Wellbeing is more in terms of the back end for all product development. It does a nutraceuticals or supplements. That's where the partnership is. We just started that a few months back. We already launched four gut nutraceuticals. We'll work with them. Boat was specifically for the watches, but that product has not taken off as we expected.

And we are working on more technology solutions with Boat. So most of our partnerships that you mentioned are partnerships that we seek for product development or innovation. And like Rajesh mentioned, Wellbeing, we've already launched the Ford Gut Nutriciticals board, we launched the watch, and now we are working with them on other solutions, again, tech-based for seniors in the wearable space, which hopefully we should launch soon. IIT was also a very specific innovation partnership for VJS, which is again a very big revenue contributor today. So because we want to continuously innovate for seniors, most of these partnerships are directed towards how do we develop innovative products. And we are pretty happy with how each of the partnerships have delivered till now with respect to the product outputs, and we hope to continue doing that. And these are some of the things that help us build that innovation in-house and the three patents hence.

Sure, sure, appreciate that. And just think positive, are we on track to commit to the 500 crore revenue guidance for AGV, say, circa FI 28, 29? 29.

29. Yes, we would commit to a good growth is what we can currently say year on year, like you've seen in the past two years. We should continue to deliver very, very high growth for EGZ going forward as well.

Sure, sure. Appreciate that. It's been a long week, but very thoughtful and aware that it's an industry which is coming up and a lot of people are looking at the space. So, we'll continue to be patient and look forward to the growth trajectory. Thank you. Thank you. Appreciate that.

Thank you. A reminder to all the participants, I'd be my best star and one to ask a question. Next question comes from the line of Priyanka Laroia with Value Prolific. Please go ahead.

Priya, hi. So, my question is regarding to profitability of the company. In this financial year of the quarter, the losses have significantly reduced, but what guidance the management is giving, then when will we be seeing the company as EBITDA positive and FAT positive? Thank you.

So, difficult for me to make a forward-looking statement, but the intention is to demonstrate that during this year. So we are hoping that one or two verticals will show that path to a later part of FY27, that's our intention. Can't comment on any impact that the current geopolitical situation will have, that we have to wait and watch. As you know, there has also been movement on significant revision in minimum wages, you know, across a few states. So, all that we are watching, but our commitment is that we will demonstrate path to profitability, and sometime, maybe, with everything going all right, later part of the year, we should see the numbers.

Thank you. Thank you so much.

Thank you. A reminder to all the participants that you have a star and want to ask a question. Next question comes from the line of Chetan Tackle with M3 Investments Private Limited. Please come back.

Good morning, sir. Good morning. Sir, just wanted to understand the ad spend for ADV this year and at the exit as well, how has that moved given ROAS has improved? Excellent.

Adspend, you meant? Adspend.

Okay, got it.

Adspend, yes. You are asking the exit for this year, and what does the exit for the next FI look like? Is that the question?

So, the question is for the full year, what was the ad spend for AGZ, and how had that changed by the time we exited, given our ROAS has improved?

So, marketplaces, when we started the year, we were at a ROAS of close to 1, which we exited at 2. For D2C, which is our own website, we were actually less than one. We were at 0.7.8, which we exited the year at 1.7, 1.8. So we almost doubled our efficiency of marketing on both the verticals.

I understood. And we believe this trend should continue in F527 as we scale up.

Yes, absolutely. Especially because now this year, we are ramping up our brand initiatives. We are over-indexing on our organic reach and traffic, and we are hoping that that should only make this even better. We are seeing that trends already in the first two months of the year are indicating towards that.

I understood. And what we were picking up is that, especially given that now Gemini pops up when we do a Google search as well, so the understanding we got from a lot of players was that ROAS has actually gone down and cost of acquisition has gone up. What is your take on that in particular?

So, for our category, luckily the... As they call the GEO and the SEO space is still relatively unexplored. So for us, we actually see that as an opportunity more than a deterrent to improve ROAS because all of these SEO engines tend to pick up AGZ as the preferred product for seniors. So in our two months, three months rather, that we started our SEO initiatives, we've seen a significantly positive update. For us, actually, it's one of the levers to help improve our return on advertising spend. I understood. I understood. Shaz, thank you so much.

All the time. Thank you. A reminder to all the participants that in the press star and want to ask a question. Next question comes from the line of Nitin Bablal Gandhi. In a quest, it addresses private limited. Please go ahead.

Yeah.

Thanks for taking my question.

How is it likely to 27 spend and bad addition and when do we see like this maybe 250 bad which was there at 2226 start contributing significantly. How much time does it take? Does it take 2 years plus? And what's the revenue model for that? Typically, how much is it on at peak of the time?

Yeah. So as you shared earlier, the model is followed that facility of 50 beds takes about 4 to 6 quarters to break even at about a 40-45% occupancy and takes about 8 to 10 quarters to reach about 65-70 when it starts producing a contribution margin at unit level of 30% plus and in a beta margin of 16 to 18%. That's how the model works. So, if you look at our last four quarters, Growth, you'll find that we grew from 3, 4, 5, 6 to about 11 crores.

That's how the growth has been.

As the beds came in and as the old beds started maturing, they started producing more and more. Therefore, if you notice in my speech, I had indicated to you how the occupancy has moved in different care homes. For example, in sector 41, it went from 26%. So, you'll find that, you know, as the bed matures, obviously, you'll find the impact on revenue and occupancy both, and that's what we have seen so far, right? Most of the beds will mature sometime during the latter part of this year, because some of them came in the last six to nine months, and therefore, in the last part of FY27 and beginning FY28, the full impact, you know, will be visible. It will be actually visible from the end of this quarter itself.

And bed addition, as Ajit mentioned, we will explore in the latter half of the year on new geographies and even addition of beds in the current geographies that we will explore in the second half or the latter half of the year.

And what is the target value of that? What is the target? Determine investment or whatever parameter is true.

As you mentioned, we target a ROC of around 25-26% for this business.

And it starts materializing from third year after operation, right?

Correct.

Okay. Thank you. And just no idea, Bayes' assumption is like 4.4 lakhs square feet, even if I assume 27,000 to 1,300 crore potential, right?

No, the market as I said is 2 to 3 times of what we sold last, so the market is not 27,000, the market will be around 16,000 to 18,000 rupees.

Okay, 16 to 18,000, okay. So still at somewhere around 700 crore plus potential?

Yes, that's right.

And when do you target to launch? Approximately it will be towards the end of this year or it will be next year?

Hopefully by the end of this year.

We are actively pursuing with the government. It all depends on the approvals. We will be very ready with the construction, you know, targets and all that. But the first step is that the government should approve the, re-validate the building plan. That's the first step.

Okay. And to complete existing, how much construction spend yet to be done?

The bleeding is missing? Hardly? Yes.

We have approximately, we have to pay, do approximately 70 cent 5 pros of construction spent what we have to do. So there were a lot of outstanding amount which are there to be paid and all that. But practically construction as well, as a construction work, it's all complete. All finishing now, nothing much.

These are pending bills only. Only finishing is left now.

Okay. Thank you and all the rest.

Thank you.

Thank you. A reminder to all the participants that you may press star and want to ask a question. Next question comes from the line of Sampoosh from Fundveta. Please go by it.

Hi. Thank you for the opportunity. Now that Noida Phase 1 handovers has started, please tell us what is the timeline for summarizing this revenue on the P&L and how much of it did the books in Q&A and Title X7?

Sir, the NOIDA project is in an SPV, hence the top line is not getting merged as a line item at this stage. As per the standards for consolidation, we are only consolidating the net P&L, and we have been doing this since inception. Phase 1, as we explained earlier also that it will be because of the cost escalations, it is now actually in two reds. The real money would come from phase 1, and once both the things happen, then it will be an overall profit. But yearly basis, we have been recognizing the net profit loss as a percentage to our consolidation, not the top line.

We have receivables of about 150 plus crores that will come in. But that will be in the SEC.

That's not the name.

Okay. Coming to the AGG, you mentioned that the revenue was around 70 crores. So is it like, is it a positive or net profit? Like, is it break-even right now or is it profitable? Is it the AGG for the company?

As Rajiv mentioned before, I will repeat, that since most of the bets came up in the last quarter only, and the model indicates four quarters age-easy,

by end of this year,

last quarter, we should look at EBITDA break-even. So we are looking at that trajectory within this year.

Thank you. A reminder to all the participants, we have a star and one to ask a question. Next question comes from the line of Kesari and Agarwal, an individual investor. Please go ahead.

Thank you for the opportunity. So, I have a couple of questions. So, some of the participants had asked a question around break events. So, on ADV, if I understand, you have mentioned that it will be towards the end of the financial year, it will be break events. And how about, you know, I understand that it will take about four quarters for care homes. To break-even. So what do we mean? So do we mean that, you know, since most of the bets have come in the last quarter, so it will take about a year to break-even for care homes?

No, what we meant was that at a unit level, it takes four to six quarters for a break-even at a contribution margin level, and a beta break-even happens, you know, after six to eight to nine quarters. So, since most of the beds came in the last six or nine months, that break-even on a consolidated basis for care homes is about F528-ish.

H1 of F528.

But again, these are based on our expectation of performance.

So, we are not expecting to add more beds in care homes, right, because we would first like to set the current assets and then expand.

Yeah, so later part of the year, we will look at our performance and start exploring. Well, it does take six to nine months from start to putting a care home together. So sometime during October, November is when we start looking around after we have made sure that the ones that we have are tracking to the model that we expect.

Why should I look at the, you know, real estate business, you know, because it's lumpy, and, you know, only once all the 10 projects, and all the projects are getting live and handed over, then you're expecting 10 to 15 crores of top line from that as annuity income. But let's say, how do, how should I look at it in terms of profitability mix? After three years, because let's say AGG will have a lot of revenue, but profitable margin will be a little bit lesser than that. So in terms of real estate versus non-real estate business, say let's after three years, how do you see the mix in terms of cash flows and generation and profitability?

So there are three revenue streams that come from the real estate business. One is during the project, there is a DM fee, which Ajay gave the numbers as well for the existing projects. So you should look at if you are doing 1.5 million square feet, what's the DMP coming through? That's one. Second, you should look at wherever we invested into a small bit of equity that gets returned back to us after four years at 1.5, 1.6x. The annuity income is a simple calculation of number of million square feet under operations into an average of 12 rupees, right, let's say, right. So that number is projected basis number of million square feet we have under operations. So we have looked at, you know, various calculations and that number is only relevant to look at by 20, 30 or so. So that's when most projects will be simultaneously coming under operations. To give you one example, Dehradun today does an Ops income of 24 crores a year at a 2.31 crore profitability for last year. That's one indication to you. Once Noda gets operationalized, that will also produce. So you look at annuity income after 3-4 years once we have substantial projects under operations. So the EBITDA break, but the fiscal number is lumpy as you rightly said. We might break it in the next few months, but then again we start a new project.

So EBITDA, we have broken even. So EBITDA, sir, we have already broken even for this year. We have closed the residences in EBITDA positive, but now what happens in the next year when there will be a lumpy income, there might be an EBITDA loss, but then the next year it will be a very, very high EBITDA profit. So, the nature of the business is as such, wherein we are dependent on connections, but the overall EBITDA at a project level with an IRR is a very healthy way we have to calculate.

Yeah, understood. Thanks. And how should we look at, let's say, three years down the line when you have starting, you know, the real estate business will also become a little bit less lumpy. Let us say, effort is what you are saying. It will start stabilizing. But let's say three years down the line in terms of profitability, how do you see the mix between real estate and non-real estate?

Real estate would be more profitable. I can't give you forward-looking statements as in to numbers, but if you see three years later, then we'll be working on practically approximately 6 million square foot construction. In which 1.5 million will be at a very start stage and 4.5 million will be there where we are going to work at a very steady pace. Against that, as I explained, the variable cost is only 15% and the rest is all profit cost. So there, it will have a higher profit margins, a higher turnover as compared to other businesses. But other businesses, by the nature, AGZ will have a much higher turnover from a top line perspective.

And therefore there's a market multiples in e-commerce business much higher. Much higher.

So both have to be seen separately. You will have to see the segment reporting what we are doing in a consolidated business and then take your view.

Yeah, thanks. Just the problem is that, you know, I'm not able to understand, you know, the three business, how their profitability individually stacks up. So I was trying to understand. But anyway, if we are able to report that, that will be helpful. But, you know, it's fine. I mean, if you don't want to report, then we can understand on the call. But that is the thing, you know, if you're able to understand what the contribution margin at least from each of the business, then it's easy to understand the business becomes better. And for you, one last question which I have is, two last questions. When you are leaving equity, where do you think, where are we going to invest that equity in a plan? And the second and the last question is care at home services business. What is the differentiation? Because there are a lot of, you know, care have come. And, you know, small players are also there, large players are also there. In fact, max health care, you know, they have, for example, in Delhi, they have a very large team. So, I was just trying to understand what is the difference here from there?

Yeah. So, in terms of your equity utilization, most of the investments will go into growing the care homes and some for projects in Tarasina living. Also, to answer your previous question, we have been quite transparent about contribution margins. If you look at our Chile living business, right, the IRAs from project are minimum 20%, and we work on a path of 10 to 12%, you know, per project. On the care home side, we have always said that it is a 32% plus contribution margin per care home at maturity and a 16 to 18% EBITDA margin at maturity for each care home. AGZ as a business is also a 16 to 18% EBITDA margin another two or three years. So that we have always made ourselves clear on that side. Right. On the care at home, you are right. It is a very cluttered, fragmented market, but actually there is much more business done by small vendors as compared to Max, Apollo or other people. That's why we have contained that business and combined it with the care home business. So the same infrastructure, the same nurses, the same physiotherapies are going to be utilized for providing service around the care homes. So sometimes when the patients get discharged from the care home, they want continuity of service at home. So we'll provide that. Therefore, we are containing that number, focusing on the contribution margin is more important on that side. So that business is, we don't market it too much, we just do it as a completion of service. You are right, there is not much differentiation apart from trained certified staff, nothing much you can do. Therefore, we are containing that business and kind of controlling the growth on that side. We are focusing more on making sure that each service is contribution margin positive.

Thank you. Mr. Agarwal, please rejoin the queue for more questions. A reminder to all the participants, in the interest of time, please restrict yourself for two questions. Next question comes from the line of Ulha's paymaster and individual master. Please go ahead.

Yeah, I think you mentioned about labor laws. Can you tell us what is the impact of the new labor laws on our balance sheet? Secondly, whether have you accounted for this additional liability in our financial statements for 25-26? And my third question would be that basically our staff costs are very high, around 80 to 90 crores, on a turnover of about 200 crores. So with these kinds of staff costs, how are we going to really make big profit for the shareholders?

On the labor code impact, it just came during March, so this year in F527, we have accounted for it, you know, in our P&L. It's about 3 to 4 crores, you know, is the impact across all entities, you know, most of it is in statutory provisioning, actually, right, so that's the notion, you know, entry as you understand. On as far as the total cost of HO is concerned, I think we are summing up that to 80-90 clause, total payroll cost, right? But if you look at the turnover, it's a little bit of mutate number because there's some turnover, for example, which we can't report in the SPV. Even 360, 361, the sales, you know, remnant doesn't belong to us. The collections get reported under Max Estates. So while this is a project that we are doing, therefore, you might find that the top line is muted, right? And some of the businesses are not linear in growth. If you look at AGE particularly, the growth is 2x. It will be probably that number as we end F527 as well. So, some of the investments we have made on the fundamentals, you'll start seeing some benefits right now, but also, as I said, the revenue is muted because the sales number is not reported under Antara entities. That's the reason we find, but we are supporting, we are, so we are doing all the sales for 360, 361 senior living, in partnership with Massive States.

And last question would be, have you any plans to go further down the road of putting up nursing home for people who require more assistance as junior citizens?

So our transition care homes, you know, are more or less like step-down nursing homes only, where we have, you know, people who have rehab experience, nurses, critical care nurses, etc. But a full-fledged nursing home doing surgical treatment, no, that's not part of our plan. It's a different healthcare business, that's not part of our plan.

No, I mean, senior citizens who are completely immobile. So, I am sure there is a big demand for these kind of services, and there are very few agencies who provide these services.

That we are doing already. So, in our transition care home, assisted living home, there are many people who come to us for end-of-life care, palliative care, long-term care. We have many patients staying with us for the last three years now, you know, with us. So, that we already do. But when you say nursing home, I understood to be emergency care of, you know, surgeries, that we will not.

No, no, not surgery, but those who are completely immobile and they either need some assistance all 24 hours or they are immobile. And even for bathing or eating, they require some support. We do it already. You are giving light? Yes, yes. Okay.

Okay.

Okay.

Thank you. Bye.

Thank you. The last question comes from the line of Nikhil Gupta, with Vayu Capital, please.

Yeah, very quick follow-up. So, this year we are tracking four new projects on the residency side, right? One is Bangalore, Dehradu, and then two in NOIDA, one is Intergeneration, and one is KSU. That's correct? Correct. Okay, thank you so much.

Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to management for closing comments.

Thank you very much. Really appreciate these questions. They help us clarify, you know, lots of things are not apparent to the investor deck. So really appreciate that. Again, gratitude for your support. To conclude, the sector really continues to evolve rapidly. You may have found in the news people are entering with different models. Some are attempting tech-based play, some are attempting now, you know, fractional ownership of senior living, you know, as well. It's seeing a lot of focus. We had one deal that happened, about 20-25 million dollars, you know, on care homes. Recently, Kerala launched a Ministry of Seniors, which is, you know, what the demographic demands. That's an interesting, you know, movement on that side. F526 has been a year of growth, you know, for us. As we look ahead, our strategic priorities are very clear. We have to accelerate the sale of residential units and sign more projects and residences to be able to meet our commitment. We continue to focus on making sure that the care homes track to the model and we are out looking, you know, therefore growth after that. Ensuring AGZ to reach the EBITDA break-even is the commitment we are making by last quarter, and continue the investment that we have to do as we scale up the fundamentals of brand, technology, and talent. So thank you very much for all your support, and good day to all you. Have a nice weekend.

Thank you. On behalf of Max India Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.