LODHANSEQ4FY26April 30, 2026

Lodha Developers Limited

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Management on call

Abhishek Lodha

Managing Director and Chief Executive

Sushil Kumar Modi

Executive Director, Finance

Sanjay Chauhan

Chief Financial Officer

Akshat Gupta

Deputy CEO – South & Central Mumbai

Nishant Bhasin

Deputy CEO – Luxury

Anand Kumar

Head of Investor Relations

Chintan Parikh

Co-Head of Investor Relations

Key numbers — 40 extracted

00 high skill positions in India in 2025 alone. Wage growth across the broader economy has run at 9% to 10% for many years now, and the same trend is expected even this year. And the supply side con

10%

h skill positions in India in 2025 alone. Wage growth across the broader economy has run at 9% to 10% for many years now, and the same trend is expected even this year. And the supply side continues

INR60 billion

ut reflecting on what the business has become. In fiscal '21, which was the peak of COVID, we did INR60 billion of presales. In FY '26, we did INR205 billion, a 28% CAGR. More importantly, PAT has grown more t

INR205 billion

. In fiscal '21, which was the peak of COVID, we did INR60 billion of presales. In FY '26, we did INR205 billion, a 28% CAGR. More importantly, PAT has grown more than 6x over the same period, touching INR34.3

28%

hich was the peak of COVID, we did INR60 billion of presales. In FY '26, we did INR205 billion, a 28% CAGR. More importantly, PAT has grown more than 6x over the same period, touching INR34.3 billion

presales. In FY '26, we did INR205 billion, a 28% CAGR. More importantly, PAT has grown more than 6x over the same period, touching INR34.3 billion this year with a 20% margin. Net debt, which sto

INR34.3 billion

billion, a 28% CAGR. More importantly, PAT has grown more than 6x over the same period, touching INR34.3 billion this year with a 20% margin. Net debt, which stood at 3.5x equity at IPO, is now at 0.23x. We hav

20%

antly, PAT has grown more than 6x over the same period, touching INR34.3 billion this year with a 20% margin. Net debt, which stood at 3.5x equity at IPO, is now at 0.23x. We have grown at scale whil

3.5x

the same period, touching INR34.3 billion this year with a 20% margin. Net debt, which stood at 3.5x equity at IPO, is now at 0.23x. We have grown at scale while simultaneously deleveraging. That co

0.23x

R34.3 billion this year with a 20% margin. Net debt, which stood at 3.5x equity at IPO, is now at 0.23x. We have grown at scale while simultaneously deleveraging. That combination, we believe, is genui

rs,

ength of our brand and the discipline of our capital allocation. I must also thank all the investors, who have believed in us and stood by us during these 5 years and enabled us to create the value an

3.5%

nt to highlight is market share. Despite all the growth that we've had, we are currently at about 3.5% of primary housing sales in the top 6 cities. This is the clearest statement I can make about the

Guidance — 20 items

Abhishek Lodha

opening

“The growth forecast for the fiscal year has been moderately trimmed down, but India's fundamentals are meaningfully stronger than in previous external shock episodes.”

Abhishek Lodha

opening

“And we believe that going forward, housing on the whole will be a net beneficiary of the situation in the Middle East, particularly as Indians remit less money out to the Middle East and Indians across the world look at India as a place where they would like to establish a permanent home or establishment.”

Abhishek Lodha

opening

“In FY '26, we did INR205 billion, a 28% CAGR.”

Abhishek Lodha

opening

“We added 12 projects with INR600 billion of GDV, 2.4x, our own guidance.”

Abhishek Lodha

opening

“The team is now slowly and gradually building out, and we expect to start operations in fiscal '27.”

Abhishek Lodha

opening

“As that connectivity gap closes, we expect price appreciation to accelerate and with it, our EBITDA margins on this land holding, which we expect to gradually move up to approximately 50%.”

Abhishek Lodha

opening

“We are now planning to develop about 1 gigawatt of powered shell capacity on a build-to-suit basis, on about 100 acres out of these 400 acres of land with incremental cost in 2026 terms of about INR100 billion to INR110 billion, largely self-funded from the ongoing land sales in the park, which we expect value to reach INR0.7 billion per acre over the next few years and total to generate over INR120 billion from fiscal '27 and onwards in land sales value.”

Abhishek Lodha

opening

“The estimated annual rental income from these existing assets will be about INR10 billion by fiscal '31, excluding any data center contribution.”

Abhishek Lodha

opening

“Thus, we target reaching 10x of the fiscal '26 rental number in the next 6 years.”

Abhishek Lodha

opening

“Our DevCo is on track to become debt-free over the next few years and any future debt in the business will be against rental income that the RentCo generates.”

Risks & concerns — 9 flagged

And unless there are some extraneous factors, for example, that environmental clearance issue, which affected last year, we don't see any risk to these launches.

— Abhishek Lodha

So Abhinav, difficult for us to predict how this whole Middle East thing will pan out, etcetera.

— Abhishek Lodha

We don't expect any persistent sort of single segment impact of this war, and we think it was just the shock of the event, and we expect things to normalize unless there is a persistent energy shock.

— Abhishek Lodha

Our assessment of the impact of construction cost increases has been currently running at approximately 3% to 5% of overall construction cost.

— Abhishek Lodha

This impact of 3% to 5% on construction cost, if it was to persist through the entire construction cycle of 3 years, it would give an impact on margin of about 1.7%.

— Abhishek Lodha

If it was to run for 6 months, which is, I would say, probably the more conservative view right now, you are talking about a very modest impact of roughly 0.35% of the sales value for those given projects.

— Abhishek Lodha

So right now, our assessment of the impact of the Middle East crisis on construction cost is that, yes, there has been some impact in select categories, but the overall impact on margin is very, very nominal.

— Abhishek Lodha

And I do understand that's about the reason why you're also saying that the pressure on business development next couple of years will be low, and therefore, they should moderate.

— Kunal Tayal

At the current time, we find that in spite of all the narrative around the impact of AI on job creation in the country, we are going to end up with white-collar jobs incomes growing at 9% to 10% per annum.

— Abhishek Lodha

Q&A — 10 exchanges

I just wanted to better understand this guidance on moving to gross debt zero and prioritizing free cash flows. Is it going to be more operating cash flow driven? Or we will be pulling back on capex to an extent because we've already done a lot of BDs and hence, the capex need in the incremental years in FY '27, '28 will be lower and hence, we see positive FCF. So, what's the kind of combination on OCF and capex on how we get to a positive FCF at some point? And my second question is, I don't see a guidance for OCF for FY '27. Is there a specific reason for that?

Abhishek Lodha

Gaurav, thank you for your question. The focus of the business is obviously to deliver sustainable, predictable growth on account of the significant success in business development in fiscal '26 on the back of some stronger years previously. We now have sufficient visibility on our supply side for quite some time and therefore, can afford to be a lot more choosier in terms of the new business development that we do. As a consequence of that, we expect that the investment into new business development will be muted over the next 2 years. And as a consequence, we expect the FCF to be therefore,

Just on the launch pipeline of FY '27, INR218 billion, 5 new projects, about 14 new phases for existing projects. If you could give some colour on how ready this pipeline is in terms of being able to launch? Which are the key projects which would make for a chunky part of the contribution? Where are we in terms of RERA approvals, et cetera? So just some colour on how sales ready is this launch pipeline? And which are the key projects which would contribute?

Abhishek Lodha

Murtuza, in terms of the launch pipeline for fiscal '27, the first thing to note is that last year, our new launches contributed around 1/3 of sales. And this year, that number will become even slightly lower than that. What it's really telling you is that the inherent predictability of our sales is increasing and improving each year and the dependence on new launches is becoming lower, which is really where we find ourselves as more predictably placed internally as a business. In terms of the new launches for the year, these are all launches where the land acquisition was completed in the las

A couple of questions. So firstly, on data center, can you give us some milestones to expect such as when do we see the first announcements on the build-to-suit? And when do you start seeing lease income from that? So that's the first question.

Abhishek Lodha

Abhinav, it's a question which I would love to give you a very precise answer to, but I can tell you is that we have good and strong advanced discussions on the first set of BTS boxes. Things we expect definitely for the announcements to happen this fiscal. We are hoping sooner rather than later. And income from these, we expect to start coming in fiscal '29, which is about 2 years after the sign-up. Okay. Sir, secondly, on the guidance that you have given of 17% growth this time. So, I understand that there's a Middle East conflict likely impact. Can you tell us how, say, April is shaping up

A couple of questions. First one, just trying to understand which segment would have been impacted most by this Middle East. We had a INR500 crores shortfall from our guidance last year. And again, if I assume ideal guidance would have been 20%, we are at 17%, again, a INR500 crores shortfall. So which segment was impacted and which one has remained kind of immune to this conflict? Yes, that's my first question.

Abhishek Lodha

Pritesh, we'd like to say that March, obviously, was more driven at individual level. We had some shortfall in sales from NRIs, who are based in the Middle East. We had some shortfall in closures in the luxury segment because everybody was just grappling with what had suddenly happened. We don't expect any persistent sort of single segment impact of this war, and we think it was just the shock of the event, and we expect things to normalize unless there is a persistent energy shock. So that's really our view on the Middle East crisis. In terms of the pre-sales guidance question and its linkage

A couple of questions from me. First one, Abhishek, given the accretion that you are expecting in value of the data center park land, just curious as to what were the puts and takes you were looking at in terms of developing your own data center as opposed to just monetizing it by way of selling the land. From the outside, it seems like it's a strategic call of creating an asset versus maximizing profitability. So, is that the right read?

Abhishek Lodha

Thanks. It's a key question. We've, of course, thought of it in multiple ways. We do think that the creation of the long-term compounding steady annuity stream is a strategic gap in our business. We have been working on improving on that front through our warehousing, industrial, retail and offices. And the data center opportunity gives us a significant step-up in the scale of our annuity business, which we think is strategically valuable. Having said that, out of the 400 acres of land which is currently earmarked in our green data center park, about 100 acres will be used for building our own

So, one question from my side. I wanted to get your views on 2 parameters. How was our performance on these parameters in FY '26? And what is the outlook going ahead? The first one is on sales volumes and the second one is on price appreciation? Thank you.

Abhishek Lodha

Thank you. Price growth last year came in at about 5%, and we expect a similar trend for fiscal '27. It, of course, therefore, implies that the rest of the growth is coming from volume. Last year's volume growth came in, in square foot terms, at about the 11%, 12% mark, and we expect a similar number for this fiscal too.

To start with, let me give my sincere appreciation of the Lodha Foundation for the work in theoretical physics and mathematical sciences. And since it's part of your presentation, I thought I'll say that. But the questions which I have are more in line with what people had asked. In terms of the sales that you see, let's say, in the Mumbai area, is it linked to something specific like the stock market prices going up and down? And are you seeing any delays in collections for even projects that have been sold? Or for example, in Bangalore, would it be linked to the tech sector and tech sector h

Abhishek Lodha

Vivek, thank you for your call-out on the Lodha Foundation. We appreciate it, and we hope that the foundation will continue to make some positive and significant contribution to both learning innovation and India's growth. In terms of your questions about how the real estate demand is linked to various factors like the stock market, we don't see any direct linkages between the real estate demand and the stock market. Obviously, for individuals that can vary, but on average, that is not the case. Really, real estate demand is a function of future confidence in one's earning capability. And that

Congratulations, sir, on a great performance. Just my question on the Extended Eastern suburbs. For the past 4 years, our sales value from Extended Eastern suburbs has been kind of flattish at INR20 billion to INR25 billion. I think we have a guidance of doing INR80 billion by FY '30. Are we still holding on to that number? And when do we see that pickup happening? Would it be this year likely to reach to that INR80 billion mark by FY '30? That's my first question.

Abhishek Lodha

It's a very relevant question. We expect that this year, sales in the Extended Eastern suburbs will significantly benefit from the completion of the long-delayed infrastructure projects. That delay in infrastructure projects has definitely impacted sales in fiscal '26. We had expected sales to be stronger than these levels on the basis of the fact that these infrastructure projects should have been completed about 12 months ago. But be as it may, as there's a saying better late than never. So, we look forward to the completion of these infrastructure connectivity pieces now very, very soon. An

Sir, partially, you would have answered my question. So mostly on the launches. So just to understand our logic for having higher existing project launches over limited new project launches. We see Mumbai, I mean, in Western suburbs, there is a new project launch. With the environmental clearances, one would have expected much more launches to come from Mumbai. So just to understand the logic for increasing phase launches over the new launches in MMR specifically?

Abhishek Lodha

Thanks, Murali, for your question. I think this question goes to the root of how we think about as a business and our focus on cash flow and profitability over any headline sales number. Having established a large set of operating projects where the land cost has already been incurred and where construction is partly underway, that is the most ROE accretive part of our business, and that's the one where we focus most on to monetize and generate both cash flow as well as profitability. The new launches are really a function of where we see gaps in the existing markets in terms of supply, and th

Thank you, Iqra. Thanks for joining the call. If you have any queries, reach out to the Investor Relations team. Over to you, Iqra.

Management

Speaking time

Abhishek Lodha

Moderator

Chintan Parikh

Pritesh Sheth

Murtuza Arsiwalla

Abhinav Sinha

Kunal Tayal

Vivek Ramakrishnan

Akash Gupta

Akshat Gupta

Opening remarks

Chintan Parikh

Thank you, Iqra, and good morning everyone. Welcome to Lodha Developers Q4 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; Mr. Akshat Gupta, Deputy CEO, South & Central Mumbai; Mr. Nishant Bhasin, Deputy CEO, Luxury; Mr. Anand Kumar, Head, Investor Relations. Now I would like to invite Abhishek to make his opening remarks. Over to you, Abhishek.

Abhishek Lodha

Thank you, Chintan. Good morning, everyone. Thank you for joining us today. I'm sure you've had the opportunity to look at our investor presentation, and hence, I will not go through the detailed numbers. I will keep my remarks focused on what we think is strategically most important. And I'll use this time to give an overview of where the business stands, what we got right this year, our learnings and improvement areas and how we are thinking about the period going ahead. Starting with the macro backdrop. The global environment was particularly challenging last year. We started off with the India-Pakistan situation, followed by the U.S. tariffs and thereafter, the Middle East tensions. The current escalations in the Middle East have definitely injected uncertainty into global trade, financial conditions and particularly the energy markets. India is not immune. The growth forecast for the fiscal year has been moderately trimmed down, but India's fundamentals are meaningfully stronger t

Akshat Gupta

Thank you, Chintan. Thank you, Abhishek. Good morning, everyone. Let me now take you through Mumbai's South & Central market, especially how the market is shaping and the underlying demand trends that we are seeing in this market. This market continues to present a large and structurally growing opportunity for us with an estimated yearly size of over INR 400bn primary market and a healthy 15% CAGR since financial year 2022, driven by both volume and price growth. At the same time, as Abhishek suggested, the market is witnessing a shift towards branded developers with their share increasing from roughly 30% to about 40% over similar time period, underscoring rising consumer preference for trust, quality and execution. If we especially talk about our current position, we have been growing at a strong pace of 25%- plus CAGR in the South & Central Mumbai, primarily led by our residential portfolio, maintaining our market leadership with expanding market share. Our growth is anchored on fo

Nishant Bhasin

Thank you, Akshat. Good morning, everyone. Let me quickly take you through the luxury portfolio, how the segment is evolving and key drivers shaping performance. The share of INR50 crores plus residences has nearly doubled since financial year '24, increasing from 7% to 13% of the overall market. At the same time, supply remains highly constrained with Grade A developers contributing to 75% of the INR50 crores plus category and 100% of the INR100 crores plus category. What this essentially indicates is a clear consolidation and consumer preference towards branded, trusted developers at the top end. Against this background, we have made significant strides in South & Central market over the past few years, scaling from a relatively limited presence in INR100 crores plus segment to becoming the leading player by sales in the region with a growth trajectory of 30% CAGR since financial year '23. This has been driven by strong adoption across marquee micro markets such as Malabar Hill and W

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