Lodha Developers reported strong Q3 FY26 results with record pre-sales of INR 56.2 bn, a 25% year-over-year increase. Business development reached INR 588bn, exceeding guidance. The company maintains a conservative leverage with net debt at 0.28x equity. Lodha is targeting consistent 20% growth in housing and is expanding into new markets like NCR while also focusing on recurring income streams.
Key Performance Highlights
Lodha Developers announced its unaudited financial results, including key performance indicators for Q3 FY26:
- Pre-sales: Reached INR 56.2 bn, up 25% year-over-year, marking the best-ever quarterly performance.
- Embedded EBITDA Margin: Approximately 32% for Q3 and 33% for the first nine months (9M).
- New Projects Added: Five projects were added across MMR, NCR, and Bengaluru, with a GDV of INR 338 bn in Q3.
- Business Development: 9MFY26 business development reached INR 588bn, 2.35x of the annual guidance.
Other Operating Highlights
- Average YTD price growth: 4%.
- Launches of 1.9 msf with GDV of approximately INR 96bn.
- Handovers: 1,931 units.
- Net debt at INR 61.7 bn, with net debt to equity at 0.28x. Average cost of debt decreased to 7.9%.
Financial Guidance
The company provided the following guidance for FY26:
- Revised full year pre-sales projection: INR 170bn (+/- 5%)
- Operating cash flow: INR 77bn
- Business Development (GDV of New Projects): INR 250bn
- Net Debt/Equity: Less than 0.5x
Growth Drivers & Strategic Initiatives
- Targeting consistent 20% growth in housing, driven by consolidation and expansion in MMR, Pune, Bengaluru, and NCR.
- Data center opportunity to unlock significant value, with 3 GW of shovel-ready DC land.
- Building recurring/annuity income targeting INR ~15bn by FY31.
NCR Expansion
Lodha is initiating a pilot phase in NCR, citing it as the second largest real estate market in India. The company has signed two projects with a GDV of INR 33 bn and is creating a dedicated team for the region.
Palava Development
Palava is positioned as a large-scale data center opportunity. Two MOUs were signed with the Government of Maharashtra for investment in the data center park. Budding digital ecosystem has scaled up land value at Palava.
Annuity Income Growth
The company aims to build a steady annuity income pool by focusing on developing premium high street retail, selecting high-quality offices, and expanding its warehousing and industrial assets. They target net annual income of INR ~15bn by FY31.
Source: BSE
