LODHANSEQ2FY26November 4, 2025

Lodha Developers Limited

8,540words
52turns
7analyst exchanges
6executives
Management on call
Abhishek Lodha
MANAGING DIRECTOR AND CHIEF EXECUTIVE
Sushil Kumar Modi
EXECUTIVE DIRECTOR, FINANCE – LODHA DEVELOPERS LIMITED
Sanjay Chauhan
CHIEF FINANCIAL OFFICER – LODHA DEVELOPERS LIMITED
Tikam Jain
CHIEF EXECUTIVE OFFICER, PUNE – LODHA DEVELOPERS LIMITED
Chintan Parikh
CO-HEAD OF INVESTOR RELATIONS – LODHA DEVELOPERS LIMITED
Aayush Raghuvanshi
CO-HEAD OF INVESTOR RELATIONS – LODHA DEVELOPERS LIMITED
Key numbers — 40 extracted
50 bps
nsumer sentiment in the country. On the monetary side, the Central Bank has already delivered a 50 bps rate cut earlier this year. And with the Federal Reserve having commenced its rate cut cycle an
6.8%
ic growth. In this context, RBI has already revised its GDP growth forecast to about 6.8% from 6.5% earlier, which is noteworthy. We still believe that India's medium- term aspirations o
6.5%
In this context, RBI has already revised its GDP growth forecast to about 6.8% from 6.5% earlier, which is noteworthy. We still believe that India's medium- term aspirations on GDP growth
6%
l believe that India's medium- term aspirations on GDP growth is to be higher than these levels of 6% to 7% and our sector, the real estate sector -- we expect that the real estate sector will play
7%
eve that India's medium- term aspirations on GDP growth is to be higher than these levels of 6% to 7% and our sector, the real estate sector -- we expect that the real estate sector will play a pos
INR45.7 billion
s of our business performance, we achieved our best ever second quarter presales with presales of INR45.7 billion, which was up 7% year-on- year. With this, our H1 sales stand at about INR90 billion, which is 43%
INR90 billion
presales of INR45.7 billion, which was up 7% year-on- year. With this, our H1 sales stand at about INR90 billion, which is 43% of our full year guidance. and that keeps us on track to deliver our full year pres
43%
ion, which was up 7% year-on- year. With this, our H1 sales stand at about INR90 billion, which is 43% of our full year guidance. and that keeps us on track to deliver our full year presales guidanc
INR210 Billion
ur full year guidance. and that keeps us on track to deliver our full year presales guidance of INR210 Billion. Having delivered more than INR40 billion of presales consecutively for the last 7 quarters, we
INR40 billion
track to deliver our full year presales guidance of INR210 Billion. Having delivered more than INR40 billion of presales consecutively for the last 7 quarters, we are now expected to move up towards the run
rs,
illion. Having delivered more than INR40 billion of presales consecutively for the last 7 quarters, we are now expected to move up towards the run rate in the high 50s or low 60s and that would be a
32%
last 12 months were cleared in August. The embedded EBITDA margins for this quarter were at about 32%. This is with the JDA contributing just under 50% of presales, which is higher than our targete
Guidance — 20 items
Abhishek Lodha
opening
“We expect that we will have further benefits of reduced interest rates in the country and thereby incentivize the consumer on to further go ahead with their demand.”
Abhishek Lodha
opening
“We now expect that, that will be resolved in the near term as has been indicated by the leaders of the various countries, and that would provide an additional fillip to domestic growth.”
Abhishek Lodha
opening
“In this context, RBI has already revised its GDP growth forecast to about 6.8% from 6.5% earlier, which is noteworthy.”
Abhishek Lodha
opening
“We still believe that India's medium- term aspirations on GDP growth is to be higher than these levels of 6% to 7% and our sector, the real estate sector -- we expect that the real estate sector will play a positive contribution to the further scale-up of economic growth in the country.”
Abhishek Lodha
opening
“With this, our H1 sales stand at about INR90 billion, which is 43% of our full year guidance.”
Abhishek Lodha
opening
“and that keeps us on track to deliver our full year presales guidance of INR210 Billion.”
Abhishek Lodha
opening
“On the price growth, in line with our guidance at the start of the year, we've delivered about 3% price growth for the first half of the year, which puts us on track to deliver about 5% to 6% price growth for the full year, in line with our strategy to keep price growth at below the wage growth and make sure that affordability keeps improving, and therefore, we keep seeing a strengthening of the cycle.”
Abhishek Lodha
opening
“With this, in the first half itself, we delivered our full year business development guidance of INR250 billion.”
Abhishek Lodha
opening
“And therefore, it is quite likely that we will outperform on our full year BD guidance given the significant number of attractive opportunities, which are in the pipeline.”
Abhishek Lodha
opening
“In the course of the last quarter, we entered into an MOU with the government of Maharashtra under the Green Digital Infrastructure policy on the basis of which the government of Maharashtra is giving significant incentives to those companies or operators who will be setting up their data centers in this park.”
Risks & concerns — 2 flagged
One factor to, of course, mention is the artificial intelligence revolution, which, over the last 12 to 18 months has gotten increasingly bigger and now one sees a much bigger impact of it starting to play through across the world.
— Abhishek Lodha
And then make sure that the investment risk is aligned with the overall demand, but we hope to give you a more specific insight when we speak again in the next quarter.
— Abhishek Lodha
Q&A — 7 exchanges
Q
Congrats on good performance. My first question is on your data center plan. Would you be building speculative products there? Or would you largely build after it is leased out? Or is there an identified data center player.
Abhishek Lodha
Puneet, thank you for the question. As I mentioned in the remarks, we are very enthused by the scale of the opportunity in data centers, given the compelling cost economics as well as the scalability that we see. Having said that, as I mentioned to you, we now have a dedicated team working to make sure that we put together a business plan to capitalize on this opportunity beyond the land sales and that business plan is currently underway. I hope that when we have our next quarterly update in January, we would be able to give you a much deeper dive into the business plan in this respect. At thi
Q
Seasons greeting to you and everyone on your team. First question is on the weekly sales number that you have put out, roughly INR30 million, if I'm not wrong, per week. How do you see this number trending in second half of this year or later part of the second half whether we generally see improving trend? Or it likely remains similar. Do we expect the bulk of the heavy lifting apart from the non-launch sales will happen from launches that we have lined up in second half? So, your thoughts on that?
Abhishek Lodha
Pritesh, thank you for your question. Just to correct the numbers, its INR3 billion of non-launch sales. This number is something which we put out because we think it gives a good sense of the run rate and how things are progressing through the year. If you were to take this number and do a multiplication basically last year's full sales, would more or less now come this year from non-launch sales. This number was obviously lower at the start of the year. It's trending upwards, and we expect it to further trend upwards in the course of the balance part of this fiscal, which really is just a se
Q
My question is again on Palava monetization, especially for the residential bit. So I get it, some of these infrastructure development projects will obviously drive the demand. But on a long-term strategy basis, right, some of the developments that we're doing in terms of, say, data centers, industrial parks and warehousing. I'm not sure whether employment in these segments would be driving the demand for Palava, especially the fact that we are making it more premium as well as luxury kind of development, data center anyway, it's less human- intensive as such? So just wanted to understand your
Abhishek Lodha
So Kunal, thank you for that question. We see Palava as a location which benefits significantly from its proximity to Mumbai's critical job hubs. In spite of the lack of connectivity so far, the Mahape job hub has played a key role in addition to the Kalyan, Dombivli area in terms of the demand and the scale-up in Palava so far, where we are now close to 250,000 individuals living, just under 50,000 families, which is an amazingly large scale up over the course of the last few years. The connectivity to Airoli and Mulund will further make -- the way we look at it is what are the jobs within a
Q
Abhishek, so 2 questions. Firstly, on the Palava data center land transaction side. So, you mentioned that we're looking at the land pricing move up to about INR300 million per acre. So, this will be like the follow-on phases for the current 2 anchors or are you expecting the new anchors to pay this amount?
Abhishek Lodha
We expect fresh transactions to be closer to the INR0.3 billion or INR300 million per acre number. So what's already agreed or what's already finalized will obviously be at the levels that they have already been finalized. And my second question actually is on the sales velocity and it appears that we are a little more launch dependent now or maybe it's perhaps just how this year is pacing out to be. But do you think we go back to being much more even and less launch dependent like we were, say, in the previous 2 years? Abhinav, last year, our contribution to sales from newly launched projects
Q
Sir, just one question from my side. Just your thought on the real estate cycle. The real estate demand has been, I think, quite resilient. And I think better than what many investors were thinking. So where do you think where we are in the cycle right now? And then what are you thinking about on the footfalls and conversions side? And now that we're also reaching like INR3 billion weekly non-launch sales, and that's higher than the INR2.5 billion to INR2.7 billion numbers that we saw like roughly 3 to 6 months back. So do you think that this cycle right now is a lot more resilient than the pr
Abhishek Lodha
Akash, it's a big question. One question, of course, we can have a long conversation over. But in summary, our view which we've been expressing for a few years is that the Indian housing side, India is going through a once in a lifetime transition from low income to mid income. And such transitions, wherever they've happened in large economies in the world, have always we have always witnessed a very long real estate cycle when this transition happens typically in the order of 15 to 20 years. We think India is also going to have a cycle which is that long. We are only in the year 4 or 5 out of
Q
I wanted to understand the embedded EBITDA margins better. So when you think in terms of new projects, what is the calculation for embedded EBITDA margins on your own project versus compared to JDA project? That's the first part. And then the second part is, eventually over time, if we diversify away from MMR, will these embedded EBITDA margins start to come down? Those are my questions.
Abhishek Lodha
First let me explain how embedded EBITDA is calculated each quarter. It is the actual sales price of that quarter. So, there is no projection in that number. And then taking into account the actual land cost, which is known, the actual approval costs, which are known the sales and marketing cost, which are pretty steady as a percentage of sales for us. And the only projection in that is the construction cost. And the construction costs, we have a fair amount of contingency built into our construction cost estimates. And therefore, the actual EBITDA in our P&L tends to be higher than the embedd
Q
So, I have just one question. How do you view the residential prospects of Palava city once full-scale infrastructure, including, say, bullet train and all the upcoming road infra becomes operational? Given significant supply concentration in Palava, do you think that this demand for Palava will be coming from the shift of demand from Thane, Mumbai, Navi Mumbai or will it primarily capture peripheral demand? I mean I'm just wondering, like is it a family contemplating to buy an apartment in Thane and Ghatkopar or South Mumbai would find Palava at 30 mins or say people in Kalyan, Boisar or Panv
Abhishek Lodha
Thanks, Biplab, for your question. Our view is that Palava and Upper Thane will attract demand from across the larger Mumbai Metro region as these connectivity points come in as I described in response to an earlier question, consumers are most comfortable traveling about 30 minutes from their place of work to home. And that gives a huge opportunity for Palava as this connectivity brings more and more places within that travel distance. We expect that we will see in the near term a buyer from the Airoli, Mulund belt gravitate towards Palava and from Thane gravitates towards upper Thane as the
Speaking time
Abhishek Lodha
21
Moderator
10
Pritesh Sheth
7
Puneet
4
Kunal Lakhan
2
Abhinav Sinha
2
Akash Gupta
2
Chintan Parikh
1
Tikam Jain
1
Gaurav Khandelwal
1
Opening remarks
Chintan Parikh
Thank you, Renju, and good afternoon, everyone. Welcome to Lodha Developers Q2 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, CFO; and Mr. Tikam Jain, CEO, Pune. I would now like to invite Abhishek to make his opening remarks. Over to you, Abhishek.
Abhishek Lodha
Good afternoon, everyone. Thank you for joining us for our Q2 earnings call. I hope all of you had a great Diwali celebration and wishing you all the very best for the upcoming festivities and the new year. Before we dive into company-specific updates, I would like to start with a few comments on the larger macroeconomic environment. In the last quarter, the Indian government took the proactive step of GST rationalization, which, in our view, has already started benefiting the larger consumer sentiment in the country. On the monetary side, the Central Bank has already delivered a 50 bps rate cut earlier this year. And with the Federal Reserve having commenced its rate cut cycle and rate cut earlier this week. We expect that we will have further benefits of reduced interest rates in the country and thereby incentivize the consumer on to further go ahead with their demand. Overall, in the country today, we see a positive mood and a direction of travel towards an economy which is resilien
Tikam Jain
Thank you, Abhishekji, and good afternoon, everyone. Pune continues to be one of the most resilient and balanced residential market in India. While IT remains an important driver, the city's demand base today is as far more diversified with automobile manufacturing, defense, education and GCC sectors all contributing strongly. This diversification has helped the market grow steadily in recent years. And now estimated at more than INR60,000 crores. Inventory level is also healthy in the market at about a year. The market is becoming more selective with demand gravitating towards larger, well-planned homes and branded developers like us. Over the past 3 years, we have scaled up meaningfully in Pune from about INR200 crores of presales in financial year '21 to nearly INR2,500 crores in financial year '25. In the first half of financial '26 alone, we have achieved about INR1,400 crores, keeping us on track for our annual targets. Our footprint has expanded to 11 operating projects across a
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