LODHANSEQ1FY26August 1, 2025

Lodha Developers Limited

8,635words

64turns

9analyst exchanges

4executives

Download PDF ↗LODHA stock page →

Management on call

Abhishek Lodha

MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, LODHA DEVELOPERS LIMITED

Sushil Kumar Modi

EXECUTIVE DIRECTOR, FINANCE, LODHA DEVELOPERS LIMITED

Sanjay Chauhan

CHIEF FINANCIAL OFFICER, LODHA DEVELOPERS LIMITED

Rajendra Joshi

CHIEF EXECUTIVE OFFICER, BENGALURU, LODHA DEVELOPERS LIMITED

Key numbers — 40 extracted

6.5%

t the RBI has undertaken, the GDP forecast for the year continues to remain resilient at around 6.5%. Inflation remains within our comfort zone, and we hope that it will further improve given the qu

Rs. 25 lakh

er with the taxation benefits that have been given for the middle-income households earning up to Rs. 25 lakhs per annum, this will further boost the purchasing power of these households and spur home demand

rs,

real estate sector is in the early stages of a long up cycle with favorable macroeconomic indicators, strong urbanization and improving affordability. At Lodha, our focus continues to rem

Rs. 275 crore

a very strong month given the monsoon and other factors, we continue to see weekly sales, around Rs. 275 crores, Rs. 280 crores per week, which is much higher than the same period last year and tells us that

Rs. 280 crore

onth given the monsoon and other factors, we continue to see weekly sales, around Rs. 275 crores, Rs. 280 crores per week, which is much higher than the same period last year and tells us that there is good, s

10%

ghted earlier. Coming to the highlights of this quarter. The 1st Quarter presales grew by about 10%, which was in line with our business plan, but moderately affected by the two weeks of geopolitic

40%

2025. However, this does not affect our growth outlook for the year, and we expect H1 to be about 40% to 45% with an upward bias towards the 45% number of the AOP and the balance in H2, driven by the

45%

owever, this does not affect our growth outlook for the year, and we expect H1 to be about 40% to 45% with an upward bias towards the 45% number of the AOP and the balance in H2, driven by the signif

0.5x

oderations from time to time. But at all times, we will remain substantially below our ceiling of 0.5x net debt to equity. As I have mentioned earlier, we continue to see improvement in our non-launch

Rs. 300 crore

ntinue to see improvement in our non-launch weekly sales rate, and we expect this number to touch Rs. 300 crores a year by the end of this FY from Rs. 250 crores a year in FY '25. This sort of continued regula

Rs. 250 crore

y sales rate, and we expect this number to touch Rs. 300 crores a year by the end of this FY from Rs. 250 crores a year in FY '25. This sort of continued regular sales makes our business very, very different f

Rs. 1 million

is being that real estate sales are driven largely by households with annual income greater than Rs. 1 million per annum. The strength of job and wealth creation for the upper middle class and higher income s

Guidance — 20 items

Abhishek Lodha

opening

“On the back of the increase in government CapEx spending as well as the monetary easing that the RBI has undertaken, the GDP forecast for the year continues to remain resilient at around 6.5%.”

Abhishek Lodha

opening

“However, this does not affect our growth outlook for the year, and we expect H1 to be about 40% to 45% with an upward bias towards the 45% number of the AOP and the balance in H2, driven by the significant launches planned for H2, including from the business development added in Q1, the benefit of the interest rate cuts and income tax cuts stimulating mid-income demand, and the clearing of the approval bottlenecks.”

Abhishek Lodha

opening

“The matter is now expected to be decided by the Supreme Court in this quarter, and that will further enable us to scale up our supply and comfortably achieve our overall presales as well as operating cash flow guidance.”

Abhishek Lodha

opening

“As I have mentioned earlier, we continue to see improvement in our non-launch weekly sales rate, and we expect this number to touch Rs.”

Abhishek Lodha

opening

“We expect to enter Delhi NCR in the next 12 months and hope to launch in fiscal 2027.”

Abhishek Lodha

opening

“As you are aware, this will be a pilot stage where we will focus on gradually growing while we build our local team and strengthen our operating and sales capability.”

Abhishek Lodha

opening

“With this entry, we will be operating in four of the largest real estate markets in the country, covering about two-third of the total residential sales.”

Abhishek Lodha

opening

“We will, of course, provide more details once the overall entry strategy and the first project land acquisition is completed.”

Abhishek Lodha

opening

“And as this retraces, we expect it to provide a positive fillip to demand.”

Abhishek Lodha

opening

“Lastly, we believe that the real estate growth will lead the demand revival in urban India, and this cycle will be visible in the next 12 months.”

Risks & concerns — 9 flagged

So, there are some news with respect to IT slowdown.

— Akash Gupta

But do you think this IT slowdown story playing out and then impacting your Bangalore sales?

— Akash Gupta

And vice versa, if some particular sector, for example, IT is going to have a slowdown for whatever reason, we are not experts in that field.

— Abhishek Lodha

While you are seeing some slowdown in the IT companies, the GCCs are now probably employing 2 million or more people and that's only growing.

— Abhishek Lodha

So obviously, whatever negative drag that has had on supply will get addressed.

— Abhishek Lodha

But I think the broader point is that we had a slowdown last year, the factors you all understand better than we do.

— Abhishek Lodha

And we are coming out of that slowdown through, we have had improvement in fiscal spend, we are getting more supportive monetary policy.

— Abhishek Lodha

I will reemphasize this point that the sales of the top five developers are supply constrained, not demand constrained due to various factors, including the fact that consumers really want to upgrade their quality of life in a low-risk manner, and that's what the top five developers offer.

— Abhishek Lodha

Our business model is not this heavy launch, let's sell everything in one go model, which puts a lot of pressure on profitability.

— Abhishek Lodha

Q&A — 9 exchanges

Yes. Hi. Good afternoon. My first question is, if you can comment a bit more on the pricing front in the current market. What kind of growth are you seeing? You talked about a 2% like- for-like here, are you likely to see similar growth as last year? Or do you think the pricing trajectory has changed a bit?

Abhishek Lodha

Hi. Puneet. We shared our outlook for price growth at the end of the last fiscal, and we continue to maintain that our price growth will be in that range of 5% to 6%, which is somewhat higher than last year. Understood. And secondly, on the land sales pipeline, do you have a decent pipeline for you to ensure that land sales continue on a year-on-year basis? Or you think it can be very, very one- off kind? Puneet, we think that the land that we are selling for specific users, including data centers as well as industrial, is a recurring and predictable part of our business. The land which is acq

Hi. Thanks for taking my questions. A couple of them. So one on the sales growth, I understand that second half is going to be much stronger. So, which are the markets where you see this contributing, because we think Bangalore already off to a very strong start? So that's one. And second question is on Bangalore. Within that, how you are differentiating on product because we already see a lot of strong developers out there?

Abhishek Lodha

Abhinav, thank you for your question. So across the different micro markets within Mumbai, Pune and Bangalore that we operate in, we believe that the sales growth is spread quite well across the board. There is not any one particular launch or one particular project that we are dependent on delivering our overall growth to about Rs. 210 billion, and that's how we like it. We see good demand as well as the availability of our supply in South Central Mumbai. We see, as we have discussed earlier in this call, a significant scale up in Bangalore. And we see continuation of the positive momentum in

Hi, sir. Thank you for taking my question. Sir, my first question was in respect with your strategy in Delhi. So, could you give us some understanding as to what kind of business developments are you planning to do there? And are you planning to do any launch there?

Abhishek Lodha

The Delhi NCR is an important market for us to get into. We obviously, as we have done in Pune and Bangalore, will only enter in a gradual manner. We will be starting off with a pilot phase with a moderate number of projects and a moderate level of investment with a view to understand better how the market operates and how we build out the supply chain for operations as well as sales. Our focus in this period is, first and foremost, on building our local operating team. We expect that we will conclude one or more land transactions either on a joint development basis or otherwise in the course

Hi. Thank you. Abhishek, I wanted to follow up or better understand a couple of your opening comments. The first one was, you were talking about revival in urban growth being led by real estate as we look forward into next year. So, is this sort of more predicated on your view that supply was facing bottlenecks and that should sort of normalize from here? Or was it more to do with the fact that as the benefits of lower rates and inflation start to percolate down, that would boost sales?

Abhishek Lodha

Kunal, I think that environmental bottleneck which we are seeing is highly likely to get resolved this quarter. So obviously, whatever negative drag that has had on supply will get addressed. But I think the broader point is that we had a slowdown last year, the factors you all understand better than we do. And we are coming out of that slowdown through, we have had improvement in fiscal spend, we are getting more supportive monetary policy. And in this kind of rate reduction environment, typically real estate demand picks up, and that's what we are starting to see initial signs of in the mid-

Hi. Good afternoon. And thanks for taking my question. So my question is regarding your comment about you seeing an improvement in demand in the mid-income segment. It would be great if you could provide some color. I mean, by what do you measure in terms of improving demand, is it in terms of improving footfalls or conversion rate, etc.? And the second part of the question is, I mean, let's say, over the next one to two years as we see more rate cuts, do we see the proportion of mid-income segment in our overall presales increasing? And will there be any impact on our profitability margins be

Abhishek Lodha

Hi, Parvez. Thank you for your questions. What I mentioned was that we are seeing the initial signs of a pickup in mid-income demand, obviously, it's very early and it will more be in H2 that we will get more real data. But what we are seeing so far is that we have seen higher conversion rates, particularly in June and July, starting to come through as the mortgage rates have settled down. Still very early days, so I cannot give you a huge amount of color beyond that, but we are starting to see that. In terms of what it does to our margins, I think our margins overall across the company tend t

Thanks for the opportunity. Firstly, on the BD. So we have almost completed our full year target, it obviously shows some confidence on the market. What's driving your confidence on demand? Is it market itself growing? Because since last one year we have seen volumes at the industry level mostly flattening out, so are you hoping that this will now grow? Or as you said, because of supply constraint its ability of top five, 10 brands to create enough supply and take a share of that demand that is driving confidence, yes?

Abhishek Lodha

So, I think there are a few questions within your question. Do we remain confident about the overall nature of the demand? The answer is yes. As you can see from the performance of the key developers last year, it's a very strong year. If you look at the numbers for this quarter, very strong. So there is no reason why there should be any concerns about demand, especially for the top five developers. I will reemphasize this point that the sales of the top five developers are supply constrained, not demand constrained due to various factors, including the fact that consumers really want to upgra

Partly, the question is answered regarding Delhi NCR market, but have you zeroed down on the micro market which you see opportunity in? And any particular ticket sizes that you are targeting?

Abhishek Lodha

Ashish, no, we do not have that level of detail right now. I think we are looking across the Delhi NCR to make sure that locations which fit with our brand's premium positioning. And at the same time, have attractive dynamics when it comes to supply-demand and also profitability for us. So, we are looking across the board, and we will be able to provide a little bit more specific detail once the first land transaction is concluded. I think at this stage it's just a directional thing that, yes, we expect to be entering in the NCR in the next 12 months. Okay. Understood. Thank you.

Yes, hi Abhishek. My first question is on the launch pipeline for the rest of the year. So if I see total Rs. 13,300 crores is there on the new launches. And out of this, Rs. 10,000 crores is from MMR and Pune. So, in terms of NGT issue, so how will this get impacted if there is a delay in the judgment from the courts?

Abhishek Lodha

Yes. Pune is unaffected by the environmental clearance. Pimpri-Chinchwad and Pune were affected, but that has already been clarified and those approvals are now progressing without any hitch since the last, I think, about six to eight weeks. In Mumbai, I think the total value, which is affected potentially by these environmental constraints is at about Rs. 3,000 crores to Rs. 4,000 crores of launches for the year. So that's the value which we expect will get unlocked for being open to launch in the second half of the year, but that's the one which is currently impacted by these. Okay. The seco

Thank you, everyone, for joining the call today. I hope we have been able to answer all your questions. If you have any further questions or need any information, you may connect with the investor relations team. Once again, thank you all for joining the call today.

Management

Speaking time

Abhishek Lodha

Moderator

Abhinav Sinha

Akash Gupta

Pritesh Sheth

Puneet Gulati

Kunal Tayal

Parikshit Kandpal

Chintan Parikh

Sushil Kumar Modi

Opening remarks

Chintan Parikh

Thank you, Avirat. And good afternoon, everyone. Welcome to Lodha Developers Q1 FY '26 Conference Call. Today, we have with us Mr. Abhishek Lodha, MD and CEO; Mr. Sushil Kumar Modi, Executive Director, Finance; Mr. Sanjay Chauhan, Chief Financial Officer; Mr. Rajendra Joshi, CEO, Bengaluru. I would now like to invite Abhishek to make his opening remarks. Over to you, Abhishek.

Abhishek Lodha

Thank you, Chintan. Good afternoon, everyone. And welcome to our Q1 earnings call. Before we dive into the business update, I want to take a moment to pay tribute to the brave Indian soldiers who served the country during the recent war with Pakistan. Their courage, commitment and sacrifice in protecting our nation's sovereignty and ensuring the safety of millions is something we deeply honor and respect. On behalf of the entire leadership team and the company, we salute their service and stand in solidarity with their families. The Lodha Foundation is working with the families of these martyrs to strengthen their future and ensure that they feel that the rest of the nation is completely behind them. Let me begin with a brief overview of the overall macroeconomic and industry situation. On the back of the increase in government CapEx spending as well as the monetary easing that the RBI has undertaken, the GDP forecast for the year continues to remain resilient at around 6.5%. Inflation

Rajendra Joshi

Thank you, sir. Good afternoon, everyone. I would spend a few minutes talking about the Bangalore market. The total residential real estate market in Bangalore is estimated to be about Rs. 80,000 crores to Rs. 85,000 crores, growing at about 19% to 20% CAGR since 2021. The growth has been driven both by volume and price, with prices increasing by 10% to 15% in the recent past. Supply, however, has not kept pace. And as a result, the inventory overhang is declining, is currently at about 12 months, and it has been at the same level for the last three years. This growth has been driven largely by the salaries of customers essentially from three sectors. First, the IT where the Bangalore has been a base for large MNCs and Indian companies like the likes of Google, Microsoft, Wipro, Infosys, etc. Second, startups, both late-stage and well-funded early Stage 1s and those in consumer tech like the Swiggy, Ola, Razorpay, etc. Many of these startups also have gone the IPO route, and that benef

← All transcripts LODHA stock page →

Lodha Developers Limited

Market Movers