Marathon Nextgen Realty Limited (503101) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Marathon Nextgen Realty Limited Q3 and 9 Months FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand over the conference to Ms. [ Mahalaxmi ] from EY. Thank you, and over to you, ma'am.

Thanks, Pari. Good afternoon to all the participants on the call, and thank you for joining the Q3 and 9 Months FY '26 Earnings Call of Marathon Nextgen Realty Limited. Please note that we have mailed out the results to everyone and you can also see this on our website, and it's also been uploaded on the stock exchanges. In case if you have not received the same, you can write it to us, we'll be happy to send it over. Now before we proceed to the call, let me remind you that the discussion may contain some forward-looking statements and may involve known and unknown risks, uncertainties and factors. It must be viewed in conjunction with our business that could cause the future results, performance or its achievement to differ significantly from what we have expressed or implied. To take us through the results for the quarter and answer to all our questions, we have the management of Marathon Nextgen Realty Limited, represented by Mr. Chetan Shah, Chairman and Managing Director; Mr. Mayur Shah, Vice Chairman; Mr. Kaivalya Shah, Director; and Mr. Samyag Shah, Director. We will be starting the call with a brief overview for the quarter and the 9 months gone past, and then we can follow it up with questions-and-answers. And with this being said, I will transfer the call to the management. Over to you, sir.

Thank you. Good afternoon, everyone, and thank you for joining Marathon Nextgen Realty's Quarter 3 and 9 Months FY '26 earnings call. We have delivered a strong performance in 9 months FY '26, reporting our highest ever 9-month profit after tax of INR 161 crores. This growth has been driven by the robust performance of our Commercial portfolio, complemented by steady contributions from our Residential business. It reflects our disciplined execution and the inherent strength of our diversified portfolio mix. Friends, during the 9-month period, our area square feet sales stood at approximately 1.8 lakh square feet, booking value at INR 421 crores and collections at INR 578 crores, with Commercial assets contributing meaningfully alongside stable Residential traction. Total revenue for the 9 months stood at INR 487 crores. On a post-merger basis -- friends you know that merger procedure is ongoing. On a post-merger basis, area sales increased to 2.46 lakh square feet, booking value to INR 628 crores and collection at INR 798 crores. This performance underscores the strength of our net debt-free balance sheet and our strategic presence in high-demand micro markets. The recent union budget, friends, have provided a significant boost to India's infrastructure pipeline with several large-scale projects underway in and around Mumbai, the real estate sector is set to benefit materially. Major benefits coming to peripheral geographies in MMR, where we will have significant presence post-merger, like Panvel and Dombivali. Stable interest rates and a clear shift in buyer preference towards quality developments further strengthened the outlook for both Residential and Commercial segments, particularly for a listed player like us. Mumbai also witnessed multiple high-value land transactions over the past year, reinforcing confidence in its commercial real estate market. A notable transaction is the acquisition of property, approximately 1.3 lakh -- 1.3 acres in Lower Parel, for INR 448 crores for Grade A commercial project, reaffirming the continued focus on CBD. In this context, Marathon is strongly positioned with nearly 224,000 square feet of post-merger-ready inventory in Marathon Futurex Complex, our Grade A commercial asset in Lower Parel. The project continues to attract high-quality buyers and lessees, supporting healthy realization. We remain firmly bullish on the commercial sector and expect sustained momentum through FY '26 and beyond. Marathon Millennium, our commercial project in Mulund, has also witnessed encouraging traction from small and medium enterprises. Friends, on our premium residential development in South Mumbai, Monte South at Byculla, is progressing decisively. We have delivered marquee amenities including the swimming pool on the 65th floor, which will be enjoyed by more than 350 families in Tower A. Tower B has secured occupation certificate approval up to 45th floor during the December quarter, with other work already advancing to 62nd floor. Tower C is also moving at a strong pace with RCC work completed through the 17th floor. Overall, execution across all towers remains robust and on track. Additionally, Bhandup has witnessed multiple line transaction in the range of INR 41 crores to INR 43 crores per acre in close proximity to our land holdings, highlighting growing development -- developer confidence in Bhandup as a key emerging residential and mixed-use hub. Our projects, NeoValley Kaveri, Narmada and NeoPark Ashoka are progressing strongly. NeoValley Kaveri is over 90% sold, Narmada is over 45% sold and Ashoka is over 70% sold. Construction is advancing in line with our plan. Kaveri's 22nd floor RCC is nearing completion, Narmada has reached plinth stage and Ashoka is finishing works for 22 stories at an advanced stage with RCC complete and finishing happening. It is going to have OC in coming months. Panvel, widely regarded as Mumbai 3.0, has seen a sharp surge in land acquisition and large-scale development announcements across the Residential, Commercial, data centers, plotted developments and integrated townships, backed by strong foreign direct investment interest. The commencement of Commercial operations at the Navi Mumbai International Airport in December '25 and its recent transition to 24/7 operations and the fully operational Mumbai Trans Harbour Link that is Atal Setu have significantly enhanced connectivity to South Mumbai and the airport belt. With this scale of infrastructure plan development, Panvel is clearly emerging as the next major growth hub for the MMR region. With respect to Marathon Nexzone in Panvel, Phase 1, comprising of 12 towers of 30 storey is fully completed with full occupation certificate received and nearly 2,700 families already residing there and enjoying the project amenities. Phase 2 consisting of 4 towers of 30 storeys each is nearing completion with occupation certificate applications underway for select towers. We have also announced the launch of Phase 3, comprising approximately 4.9 lakh square feet across 428 storeys premium towers with a gross development value of about INR 600 crores. The outlook for India's real estate sector, friends, and Mumbai, in particular, remain highly promising. Continued infrastructure-led growth, redevelopment-driven supply and sustained economic momentum are expected to support healthy demand across segments while maintaining market stability. Building on this favorable backdrop, our company is well positioned to capitalize on emerging opportunities. Our diversified portfolio anchored by high-performing commercial assets and resilient residential pipeline places us in a strong position to drive consistent growth and long-term value creation. Thank you very much, friends. We can open the floor for questions now.

[Operator Instructions] The first question is from the line of Rahul Sharma from SB Invest.

Sir, I have a few questions. I wanted to know whether you plan to expand beyond Mumbai MMR and -- or do you intend to remain focused on your core markets for the foreseeable future?

Yes. Is that the only question or you have other questions, also?

Yes, I have other, but once...

Okay. So for -- to answer your first question, yes, we are MMR-focused company, and we intend to largely focus in MMR. We don't have immediate intention of going to other towns. All our projects and future projects are also planned in MMR. There is a lot of opportunities in redevelopments here, there is a lot of opportunities in terms of peripheral areas where townships can be developed and even plotted development can happen. So we are trying to encash on these opportunities currently.

Okay. Okay, sir. And how do you think about the booking momentum in Q4? Do you expect it to sustain or was Q3 aided by any one-off or bulk bookings? Also, which projects do you expect will be the largest contributors to the bookings and, let's say, collection in FY '27?

So the booking momentums are steady. If I have to give an example of one of our largest projects, which is Monte South. So we've been doing a steady sales over there of close to INR 100 crores a quarter and that has been consistently happening for the last 6 to 8 quarters. And going forward also, the kind of demand is consistent, and we'll be selling at that same velocity. On the question -- another question which you had on which project acquisition, another...

So regarding contribution of which projects of sales from next year? Futurex, our commercial ready-to-move-in asset, is actually going to get us a lot of the revenue from that, because it is ready-to-move-in and also 0 cost is required to complete it. So maximum revenue will be from there. In addition to it, Monte South as a residential will also be getting us a good revenue. In addition, we have announced the launches of Marathon Nexzone in Panvel as well as Bhandup, Neo series. So these are the 2 projects, which in terms of presales, you will be seeing good traction.

Understood. Sir, and there is -- so you are seeing quite good growth in inquiry to booking conversion, right, at maybe current levels -- current price levels?

Yes, yes. The inquiries have been very good and consistent inquiries have been there and conversion is also very good. In fact in a few places we are seeing rise in realization also, mainly Futurex.

That is good to hear. And just last question that I have right now. Sir, if you could share the breakup of, let's say, unsold inventory across the premium and luxury mid-income and, let's say, affordable segments that we give?

Are you talking about ready-to-move-in or what are you talking about? So in terms of ready inventory, in Futurex and Futurex campus, we have around 2.25 lakh square feet. And this is a post-merger number, as announced by Chetan Shah in the opening speech. Regarding Monte South, we have around 1 lakh square feet in Tower A. And in Tower B, we recently got OC, so the sales are happening fast in terms of ready-to-move-in. And Tower C, the progress is not ready yet, so construction has happening there. In Bhandup, as Chetan-bhai mentioned in the opening speech, a lot of inventory gets sold in the prelaunches and 90%, for example, is almost sold in the ready-to-move-in project that is getting OC. So Bhandup inventory is a fast-moving inventory.

So Bhandup, we don't have any inventory at the time of occupancy certificate. It's very negligible.

The next question is from the line of [ Mihir Desai ] from [ Desai Investments ].

Sir, firstly, some generic questions on the project. Sir, if you can walk us through the revised launch and execution plan for NeoValley project, including key milestones which have been completed.

Yes. So NeoValley, just to give you a brief understanding of Neo Series, we have NeoValley Narmada, NeoValley Kaveri, these are the 2 projects, and the third project is a NeoPark Ashoka. NeoValley is in totality a 14-acre layout where we have launched around 3-odd acres, which is what the Narmada and Kaveri are. And NeoPark is a 6.5-acre layout, where we've already executed a NeoSquare as a project, which is ready and OC and the project is over and NeoPark is around 1 acre of project. In terms of update of those projects. NeoValley Narmada, we have recently received environment clearance, so we have already announced the launch of Tower C -- Wing C of that tower. In terms of construction, we have reached plinth of that tower. Regarding Kaveri. Kaveri, we have topped out in terms of RCC. And in terms of sales, we are beyond 90% of sales. Regarding NeoPark Ashoka. The 2 wings, A and B, we have -- we are applying for OC in the next quarter. And Wing C is what under construction is on the 11th floor today.

Okay. Sir, next on the Nexzone Phase 2. What is the completed project status and also the OC time line, if you can share?

Sure. Samyag here. So as you may know already, Nexzone Phase 2 has 4 towers, out of which we have already completed finishing work on 3 towers and 1 tower RCC is completed. We are going to get occupation certificate of 2 of the 4 towers in the next -- hopefully, by end of this financial year; at the most, it could miss by 1 month-or-so; and the balance 2 towers, before Q2 of FY '27.

Okay. Sir, now I have a few questions on the strategical front. So you have mentioned in the presentation regarding the amalgamation arrangement. So I just wanted your -- if you can throw some light on how it will help in terms of GDV expansion for the company and how it will be a greater turnaround for the company? Just wanted to -- if you can throw some light, it would help.

So this amalgamation is under progress and we have already shared all the data and GDV value on the website. But just to briefly tell you that as infrastructure is progressing for the whole of MMR region, like in my speech, I mentioned that the infrastructure is going to help people move easily from Point A to Point B. So it is going to help the peripheral area to grow much faster than it was happening. Earlier, city from Ford to Panvel, X amount of time was being taken, now it is less than 1 hour. So it is like going from BT station to, say, Badlapur and BT station to Panvel, almost the same time will be taken. So that way, all the peripheral area is coming closer to the city and the price differential that we see in the city and the peripheral area is huge. So it is bound to -- the peripheral area is bound to improve in prices. Having said that, we already have 2 big parcels that is coming in the merger. One is in Panvel land and another is in Dombivali. And third major parcel of land is coming is in Bhandup slums. So these are the 3 major acreages that we will get about 400 acres of land, which is a huge potential for years to come that is going to get in the amalgamation when everything is done within the next 9 months-or-so.

Okay. And sir, in this 400 acres, what kind of projects are you eyeing? Like it will be a super premium, premium or...

The peripheral areas, it is never a super premium project. Super premium projects are in city of Mumbai. But having said that, these are also premium projects. If you have visited our Nexzone Panvel site, where 13 towers are completed, it is no less than any premium project in city of Mumbai. But because of the location, it would not attract premium prices like, say, BKC or Ghatkopar or Mulund area, but then all these areas are catching up.

Sure, sir. Sir, and in terms of QIP, you have mentioned that some bit of the money would be utilized for the debt reduction part. So then how are we looking at our debt position now?

We have reduced debt to almost 0. So in fact, it is a negative debt we have current balances. So if you say net debt, we are negative. But currently, some car loans or equipment loans and other things are about INR 20-odd crore worth of loan is there. This is major reduction from what we had about 2 years ago.

Okay. Sure, sir. Sir, lastly, if you can throw some light on how has been the ground environment in the industry? And going ahead, how we are looking at the demand if on the ground level, if you are looking at any slowdown or it's still strong. So just wanted the idea on your end.

There is no slowdown as such because the growth is tremendous, but Mayur will answer in detail.

See, if you look at the annual data of last year, the Mumbai MMR region is contributing roughly 30% to 40% of the real estate market. And if you look at Maharashtra government, plan of integrating entire Mumbai MMR region like Mumbai 3.0, and there is one plan of creating one more airport near Vadhavan. So these -- all these infrastructure projects are at a very, very fast pace, and it's quite visible now and people are experiencing those advantages. And in that, if you look at that perspective, Mumbai MMR, I think, will continue to grow. We have -- if you look at even the very high-end premium markets where INR 100 crore-plus properties also booked very quickly and INR 5 crores to INR 7 crores type of units which we are doing in Monte South projects are getting a good velocity. So across the segment whether INR 1 crore or up to INR 100 crores and Mumbai MMR is really going with great guns with all the infrastructure projects like airport, Sea Link and new 3.2 announcement, I think really, we have seen very good times at least for Mumbai MMR.

Quickly, I just wanted to add on that as well, there is also a trend on consolidation in the industry itself. So even, however, the -- obviously, the aggregate demand is increasing, but we are seeing very good instances where a lot of the new proposals that are coming to us are from sort of other developers, and there is a huge consolidation thing which is also playing out and we are benefiting from that trend. And -- so both these things put together, I see things are going to be optimistic going forward.

The next question is from the line of [ Deepak Kumar ], an individual investor.

I would like to touch base on one of the financial question here. So can you break down the 9 months PAT contribution between Commercial and Residential segment? And what will be the mix we should assume for FY '26, FY '27 going ahead?

Yes. We'll just collate the data and give you answer in 5 minutes. Before that, we'll take our next question.

Okay. No issues. So on Monte South, can you provide a clearer time line for the OC time completion for Tower B and C?

So Tower B right now is actually topped out. So the entire INR 65 crores RCC is completed. And as our -- we have already taken last 2 months ago, occupancy certificate, up to 45 floor. So Tower B 45 floor occupancy is already done. The full Tower OC is expected by December '26. And Tower C, the work is already progressing. So in the next 1.5 years, we will be getting OC of up to 30 floors and another, say, total in 3 years, we'll be taking OC up to 65 floors.

Okay. Okay. Got it. And on the Futurex side, can you share the current price trend and how strong is the demand visibility? I think you answered it a little bit. I just wanted to check on the price trend for the next few quarters.

Samyag will answer that. Samyag has been looking at the marketing and sales of the project. Yes, Samyag.

So Futurex demand has been extremely strong on both sort of segments, the leasing segment as well as the [indiscernible] selling segment. If I were to just give you some perspective compared to last year, the project as a whole versus what we may complete this financial year with, we've -- if all the transactions that we have in the Q4 gets completed, obviously, subject to that, we are seeing about at least a 10% increase in sales value. Coming to the sales price. While the project has different pricing depending on the floors that you sort of select or choose across the project, we have seen, from a financial year comparison, close to 10% increase in realizations. So overall, quite good, and we continue to see good demand, especially also from our existing clients who are coming back and leasing again and again multiple spaces. So that always shows that things will remain steady and positive going forward.

The next question is from the line of [ Isha Shah ], an individual investor.

Sir, which projects do you expect will be the largest contributors to bookings and collection in FY '27?

So yes, we did answer that. But that being said, I'll still repeat. In all -- like I mentioned in the previous answer that Bhandup and Panvel, we've announced recent launches. Panvel around 4.9 lakh square feet will be launched. The GDV of that is around INR 600 crores. And in Bhandup, it's around -- of the announcement, we have already launched INR 170 crores of GDV. So these are the 2 major presales numbers, which will be contributing in terms of the numbers of next year. And we have around -- in terms of Futurex, we have around 2 lakh square feet, which is ready and ready-to-move-in, so there will be a huge number coming from that. And Monte South in terms of residential, yes, so around INR 400 crores of presales will be at least anticipated next year.

Okay. And sir, could you share the breakup of unsold inventory across premium, mid-income and affordable segments?

Unsold -- sorry, if you could repeat your question, please?

Sir, could you please share the breakup of unsold inventory across premium, mid-income and affordable segments?

So in terms of premium, like I mentioned earlier, around 1 lakh square feet is unsold in Monte South Tower A, which is a premium project. In terms of affordable, Bhandup, like I mentioned, is, when it comes to OCs, nearly sold out. In Panvel, some of the Phase 1 inventory on higher floors is pending, which will be around 1 lakh square feet.

Value-wise, it would be around INR 40 crores to INR 50 crores.

Okay, sir. And sir, do you plan to expand beyond Mumbai MMR or do you intend to remain focused on your core market for the foreseeable future?

So we see enough and more demand in MMR, like it was answered before. There are many micro markets where we are already expanding our depth and breadth, which are already the mark-to-markets we are in, and there is lots of potential in many other micro markets where we have very little presence so far. So for example, the Western suburbs, there are aspects in Thane, and many other, Navi Mumbai redevelopment is also happening in a very good pace. So we continue to evaluate across geographies and across asset classes in MMR, that's our plan for the next few years.

The next question is from the line of [ Dev Ajmera ], an individual investor. Sir, as there is no response from this participant, can we move further with the next question?

Yes.

The next question is from the line of [ Vansh ], an individual investor.

Sir, my question is to the management. Like this is like one thing that I got to know like we are focused on in the MMR region only. And before the QIP, during the QIP process and even after the QIP in many calls, one thing that you have been iterating along is that you are focusing on redevelopment, right? But -- I mean, I haven't seen any sort of any launches or announcements in the redevelopment circles. I mean, given the market size -- I mean how big we are and how much potential we have in this region, even the local builders sort of are continuously launching redevelopment projects. And we are sort of like -- I mean, my sort of a disappointment, I would say, from my end is that I expected a lot of redevelopment sort of actions. I mean what I can -- I mean, there is no sort of any announcement from the company's end given the sort of trend that's happening in Mumbai, particularly. So one, my question -- I mean, to put in brief, why is that we are not announcing any sort of concrete either a division separately or any project launches in the redevelopment division? Second, my question would be on the QIP side. We have raised somewhere around INR 900 crores from the QIP. It was raised, I guess, in July or June-July, right? And after the QIP, I mean, there was some -- during your presentation in the QIP as well, the projects that we have seen, and -- I mean, these are not something neither sort of very big projects or that sort of expectations of momentum or aggression from the management that as an investor is generally expected. Even that we launched now the NeoHomes Bhandup or Nexzone Panvel, these are around 5 lakhs and 15 lakhs of square feet. And given the land bank we have in Panvel and Bhandup or Dombivali, we have sort of development area potential of more than 1 crores, correct? So -- I mean, why is it that even after 2 or 3 quarters or sort of 6 to 9 months, why is that there is no any sort of new project launches or sort of aggression that I'm missing?

Yes. The first thing that we would like to mention is out of the QIP process, big chunk has gone towards repayment of debt. And as for the redevelopment and why no announcement on redevelopment, this is not a switch on-off kind of a process. The due diligence of land-related initial stage projects take very long time. If we try to get into a project which is already running by a builder, then there are other issues that we need to see. So the due diligence itself is a very long process. So it's not that we have not looked at it. We have looked at many projects, more than 45, 50 projects that we have looked at. And there are projects in which we are moving forward, but till the definitive announcements are made, we will not be able to -- till the definitive agreements are made, we will not be able to make any announcement on those. However, I would like Mayur to add on to this scenario.

Yes. So see, redevelopment, I think you talked about. We refrain, as Chetan said about it, that we refrain from announcing until we really are at a final development level. However, just to give you an idea, there are almost 2 clusters where we are almost at a very finality level. However, as I told you that it takes time, redevelopment goes through very, very stringent processes. And recently, a small redevelopment project, we've also done an acquisition of a company, SSPL, which is going to bring almost close to INR 1,000 crore of project, which is there also as they have -- as a preferred developer level. So these processes are going on and at appropriate time, we will announce all these projects, which we have been looking at for the last 3 to 4 months.

Also to add on to it, you mentioned the land that we have acquired or will be acquiring in neighboring, Dombivali, Panvel through the merger process. Typically, to launch a large scale in any of these areas, you require multiple permissions, so which is in the agenda of this year where environment clearance, approvals and all of that will be happening, and hence, the launches will be coming in the forthcoming year. So the ground work has already started in all these areas.

No, no, I get completely. I mean, there are sort of challenges when it comes to redevelopment also and including given the size of land bank that we have, we need to get certain commissions. But my only concern is that do we have a separate redevelopment sort of division? Because given the pace of -- I mean, we generally cover a lot of companies -- other companies as well in real estate. But given even the small local developer continuously, they're going to expand and get and target some new redevelopment projects. If you talk about Mumbai specifically, if you see from the North Dahisar, Borivali to your down South Mumbai. So all sort of local builders or even prime listed large companies in stock exchange, even they are aggressively launching the redevelopment projects. The expectation is generally that it does not take sort of 9 or 10 months sort of time line, that is with in our case. So do we have a separate division or sort of any action or road map that we have [Foreign Language] in the next 1 year, we are sort of targeting this much of redevelopment projects? We cannot now go on in past and then again change something, but in future, in coming times, are we looking at something sort of internal targets that you would like to share with us?

No, we already have a team specifically for redevelopment projects. We have a team of 12 people that are working on it. Almost every tender, if you see you'll have a Marathon participation either in taking the tender and then doing the due diligence. And then we have one internal metrics within which if the project fits into that, then we proceed further into that project.

How much of the tenders is that we have participated and sort of we've converted...

Yes, but these are future-looking statements, sir. We have to announce it only when we have a definitive agreement with the society. There are places where we are preferred developers, there are places where we are in top 3. So all these announcements are not necessary right now till we have a reversible or binding agreement with the societies.

So I mean, the last on the QIP round. Could you please tell me how much -- what was the amount of debt repayment of INR 900 crores?

Around INR 340 crores.

So the balance amount, I mean, are we sort of in Panvel, Dombivali and Bhandup again, given the land bank that we have also the sort of investments driven by the government and the local bodies, are we launching something aggressively in the next coming times?

Yes. So announcement of launches have already been made in terms of Panvel, Bhandup and Byculla. And also from our QIP proceeds, some of the investments we are actually putting in the existing projects and making sure they run fast. So that is also where we have invested. And balance like you right said, in terms of redevelopment projects and newer acquisition is what we are pumping in. Yes, so if that answers your question.

[Operator Instructions]. The next question is from the line of [ Dev Ajmera ], an individual investor.

Sir, what's the update of the NCLT?

Sorry, what? I couldn't hear you. NCLT?

What's the update of the merger and acquisition in the NCLT?

Yes. So regarding the merger amalgamation arrangement that you are talking about. The process is, first, it gets cleared by SEBI and then it goes to NCLT. Currently, NSE, BSE both the exchanges, where we are listed, they have cleared and the SEBI is doing the due diligence. [indiscernible] rounds of question-answers have already happened with SEBI also. So we are at the final stage of SEBI approval. And then once that is done, that will go to NCLT. And that is after NCLT is receiving the application, there would be about 6 to 7 months period.

The next question is from the line of [ Vansh ], an individual investor.

Again, just one question that I have. Again, so there are sort of 3 projects where we are continuously again in every presentation that I'm hearing is Monte South, Nexzone and Futurex. Sir, I've been across all of these projects and what I can say some of these are ready and some of them are like good to complete or I would say, I can expect they are about to complete in a very good time, in a very -- short span of time. So how -- like in the coming time, let's say, in the next year, FY '27, how many sort of like, say, 3 or 4 or 5, whatever be the number sort of projects you can name or tell us these are going to be our cash cows or these are going to be sort of revenue or cash flow generation sort of projects? The Monte South -- no, other than these 3, other than Monte South, Futurex and Nexzone, so what are the new projects that are going to contribute to our cash collections and revenue?

See, all our ongoing projects are so huge that there are 4 or 5 projects within one project. If we just talk about Monte South, there are 4 residential towers and 1 commercial tower plan. Total square feet is about 4 million square feet. So when we talk about such huge project, it is going to be ongoing for a longer period of time. However, having said that, what new projects are going to be added, [indiscernible] will add to that.

Yes. So from the post-merger scenario, we have a project called Marathon Nextown, which is in Dombivali. We are applying -- we have already applied for environment clearance. So in that project, we have around 7, 8 lakh square feet in terms of presales that will be coming in the forthcoming year. And in Nexworld is another project, again, that is in Dombivali. So these are the projects in Dombivali in the post merger is what I'm talking about. Over there also, significant presales will be coming in. And talking about Bhandup, we have a yearly target of specific launches and specific approvals. So year-on-year, at least we have an internal target where we have assumed a good chunk of inventory coming from Bhandup.

Could you please tell us the around the total -- in terms of the square feet, 1 crores in -- more than INR 1 crores of square feet in Dombivali, Panvel and Bhandup, how much of the square feet...

So primarily, it's based on demand. I mean 1 crore square feet is too much in that specific geography. But that being said, we are trying to hit our maximum limit. And just to give you an idea that in every place why we are developing in terms of monetization plan, we're open to do some kind of a joint venture with a larger developer who can take a larger chunk of our land and do a joint venture with us, something of that sort that will augment our presales. And there are many other methods like selling B2B to other developers, like say, PTC sales, I mean, there are different, different models of sales, where in one shot, we can do like INR 100 crores, INR 200 crores transactions. And these are transactions that are very live and happening in and around Bhandup. So these are some of the methods in terms of monetizing our land.

Okay. I mean, are we -- is there any builder that we have already in talks with for joint venture, sort of any large...

It's too early to say anything, frankly.

The next question is from the line of [ Visweswara Rao Kasturi ], an individual investor.

So if I remember correctly, I saw one update that you have acquired a related party company for INR 8 crores, where there is no revenue for the last 3 years. I just wanted to get the details of that.

Yes. This is Sunset Spaces Private Limited. This is a company that we are acquiring 90% stake in the company. The company is valued at INR 90 lakh. And we will be -- this is a pre-money investment of 90%, which is roughly about INR 8.10 crores. So post-money, the company's valuation is about INR 9 crores. In this, we already have 2 ongoing projects and those -- that company has been following the project completion method. So there has not been any revenue recognized for the last 2 years. And they -- once they come into the fold of subsidiary of our company, the process is going to be in sync with Marathon's project completion -- percentage completion accounting process. So from this March itself, the revenue will start getting recognized in that company. So that company has 2 projects in Dombivali, roughly about 75,000 square feet each. So that is immediately under acquisition. And that company also is sort of a preferred developer for one of the redevelopment process. So all these things will be announced once we have all the equity acquisition completed.

As there are no further questions from the participants, I now hand over the conference to management for closing comments. Over to you, sir.

Thank you. One question probably remain unanswered was regarding Residential-Commercial mix. So currently, the 9 months has roughly 60% Residential and 40% Commercial in the top line of 9 months, that was one of the questions. Other than that, thank you very much for participating and asking questions and being involved in company's affairs. We really appreciate all your input and we look forward to such participation in future. Thank you very much.

On behalf of Marathon Nextgen Realty Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.