Mahindra World City Jaipur Sees Strong FY26 Leasing Growth

Mahindra Lifespaces has closed FY26 with one of its strongest years yet for its Industrial Clusters & Integrated Cities (IC&IC) business, and Jaipur has emerged as a standout performer. The company's Mahindra World City, Jaipur, a 3,000-acre integrated business city developed jointly with the Rajasthan State Industrial Development and Investment Corporation (RIICO), has seen sustained leasing activity through the year, contributing meaningfully to the developer's overall industrial growth story.

According to Mahindra Lifespaces' Q4 FY26 and full-year results, the company's Managing Director and CEO, Amit Kumar Sinha, noted that the company had a great FY26, with 25% sales growth across its Resi and IC&IC businesses, GDV additions of 18K Cr, significant growth in PAT and healthy operating cash flows, while the IC&IC side saw strong leasing activity and higher realization in Jaipur and Chennai. This is a clear signal that the company's two flagship integrated business cities are driving industrial demand ahead of other markets in its portfolio.

The numbers back up the commentary. IC&ICI business revenue grew 26% YoY to INR3.6b in 4QFY26 on the back of nine deals during the quarter, with total leased area in the quarter at 84.9 acres, while the overall segment witnessed 44% YoY growth in revenue to INR7.1b in FY26. For the full year, consolidated IC&IC revenues came in at Rs 713 crore in FY26 as against Rs 495 crore in FY25, with total leased area of 138.4 acres in FY26. This is a sharp jump from the previous year and underscores robust corporate demand for industrial and commercial land within Mahindra's integrated cities.

Jaipur's contribution to this growth has been particularly strong through the year. Even in the September quarter, management flagged the trend early, with Sinha stating that year-to-date GDV additions of Rs 9,500 crore were supported by the IC&IC business seeing healthy traction across Jaipur and Chennai, suggesting growing interest from industrial clients. This traction continued into the final quarter, with the Q4 FY26 results reiterating that the IC&IC business contributed robust revenues of ₹360 crore, further supported by strategic leasing activity and increased realizations in key markets like Jaipur and Chennai.

Mahindra World City, Jaipur is well-positioned to capture this demand. The township consists of a Multi-Sector Special Economic Zone (SEZ) spread across 1,500 acres and a Domestic Tariff Area (DTA) spread across 1,000 acres. It has built a diversified occupier base over nearly two decades of operations. Leading companies from auto-component, manufacturing, services, and warehousing & logistics like Amazon, Flipkart, Ball Corporation, Deutsche Bank, Fackelmann, Infosys, JCB, KnitPro International, Metlife, Mahindra & Mahindra, Perto, SHV, Ratan Textiles, ReNew Power, Kerakoll Sigma Electrical are part of the growing ecosystem. This established tenant mix, spanning IT/ITeS, engineering, logistics and manufacturing, gives the project resilience even as broader industrial real estate cycles fluctuate.

The leasing momentum is not without its complexities. Land approval timelines remain a factor developers and partners must navigate; for instance, a residential land parcel agreement with another developer in the Social Infrastructure Zone was mutually terminated in mid-2026 due to the non-visibility of approvals required to be obtained by Mahindra World City (Jaipur) Limited. Such episodes are a reminder that large integrated townships involve multiple regulatory layers, even as the core industrial leasing engine continues to perform strongly.

For homebuyers and investors tracking the Jaipur real estate market, this leasing growth carries direct relevance. Business cities that attract sustained corporate occupancy tend to generate employment clusters, which in turn support demand for nearby housing, plotted developments, and social infrastructure. With Mahindra World City, Jaipur located along the Jaipur-Ajmer highway (NH8) and positioned near the Delhi-Mumbai Industrial Corridor, the steady inflow of companies strengthens the long-term investment case for residential and plotted options in the surrounding micro-market. As Mahindra Lifespaces looks to FY27 with plans to replenish its project pipeline, Jaipur is likely to remain one of the company's key growth engines on the industrial side.