Any current/future new fundraising through debt or equity?

No explicit mention of current or future fundraising through debt or equity was made in the transcript. Net debt stood at Rs. 50.8 billion with a low net debt-to-equity ratio of 0.24x, well below the ceiling of 0.5x. Debt levels are expected to increase moderately in the first half of FY26 due to business development activities and then moderate in the second half. The average cost of debt funds has decreased by about 40 basis points to 8.3%. The company plans to maintain debt well below the ceiling of 0.5x net debt-to-equity at all times. No mention of equity fundraising or planned capital ra

Future growth expectations in sales/revenue/volumes?

Expect overall sales growth with presales guidance for the full year on track, targeting around Rs. 250 billion in launches for FY '26, with heavier emphasis in H2. Non-launch weekly sales expected to increase from Rs. 275-280 crores in July to Rs. 300 crores by year-end, implying strong steady demand. Mid-income segment demand is beginning to pick up, with higher conversion rates noted in recent months, expected to strengthen in H2. Strong growth anticipated in Bangalore with a shift from pilot to growth phase, aiming for significant scale in the premium segment. Sales growth is broad

Future growth expectations in earnings/operating earnings/profits/EPS?

Lodha Developers expects price growth of 5%-6% this fiscal, higher than last year, supporting margin expansion. Embedded EBITDA margins held steady at ~33% with potential yearly upside due to operational efficiencies and improved mix, especially from Palava. Pro forma PAT margin around 21% on presales, with Q1 PAT growing 42% YoY to Rs. 6.8 billion. Operating cash flow grew ~50% YoY to Rs. 9.5 billion, reflecting strong cash generation. Business development adding ~Rs. 227 billion GDV in Q1, with continued launches planned, mostly in H2, driving revenue growth. Bangalore market entering rapid

Current/ Expected Orderbook/ Pending Orders?

The company has a new launch pipeline of Rs. 13,300 crores for the rest of the year. Out of this, Rs. 10,000 crores of launches are expected from Mumbai Metropolitan Region (MMR) and Pune. Environmental clearance issues are impacting about Rs. 3,000-4,000 crores worth of launches in Mumbai, which may be unlocked in the second half of the year. In Bangalore, the company is transitioning from a pilot phase with Rs. 1,900 crores cumulative sales over two years to a growth phase focusing on premium segment developments. Weekly non-launch sales are strong, averaging around Rs. 275 crores in July 20

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Lodha Developers LtdQ2 FY25Realty

Lodha Developers Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹947P/E: 24.8Market Cap: ₹84.9K CrSector: Realty

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Expect overall sales growth with presales guidance for the full year on track, targeting around Rs. 250 billion in launches for FY '26, with heavier emphasis in H2.
→Non-launch weekly sales expected to increase from Rs. 275-280 crores in July to Rs. 300 crores by year-end, implying strong steady demand.
→Mid-income segment demand is beginning to pick up, with higher conversion rates noted in recent months, expected to strengthen in H2.
→Strong growth anticipated in Bangalore with a shift from pilot to growth phase, aiming for significant scale in the premium segment.
→Sales growth is broad-based across Mumbai, Pune, and Bangalore, with no single project dominating growth.
→Stable price growth forecasted at 5-6% annually, supporting revenue increases.
→Infrastructure developments (e.g., Palava freeway, Navi Mumbai airport, bullet train) expected to further boost demand and valuation.
→Demand for the top developers remains supply-constrained, not demand-limited, indicating potential for further volume expansion.

Margin guidance

Category 2

→Lodha Developers expects price growth of 5%-6% this fiscal, higher than last year, supporting margin expansion.
→Embedded EBITDA margins held steady at ~33% with potential yearly upside due to operational efficiencies and improved mix, especially from Palava.
→Pro forma PAT margin around 21% on presales, with Q1 PAT growing 42% YoY to Rs. 6.8 billion.
→Operating cash flow grew ~50% YoY to Rs. 9.5 billion, reflecting strong cash generation.
→Business development adding ~Rs. 227 billion GDV in Q1, with continued launches planned, mostly in H2, driving revenue growth.
→Bangalore market entering rapid growth phase, adding to earnings.
→Mid-income segment demand improving due to rate cuts and tax incentives, expected to contribute to sales and margins.
→Net debt remains conservative (0.24x net debt to equity), supporting sustainable growth.
→Overall, Lodha anticipates a strong earnings growth trajectory supported by price increases, volume growth, margin expansion, and efficient capital management.

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Fundraise plans

→No explicit mention of current or future fundraising through debt or equity was made in the transcript.
→Net debt stood at Rs. 50.8 billion with a low net debt-to-equity ratio of 0.24x, well below the ceiling of 0.5x.
→Debt levels are expected to increase moderately in the first half of FY26 due to business development activities and then moderate in the second half.
→The average cost of debt funds has decreased by about 40 basis points to 8.3%.
→The company plans to maintain debt well below the ceiling of 0.5x net debt-to-equity at all times.
→No mention of equity fundraising or planned capital raises during this period.

Order book

Yes

→The company has a new launch pipeline of Rs. 13,300 crores for the rest of the year.
→Out of this, Rs. 10,000 crores of launches are expected from Mumbai Metropolitan Region (MMR) and Pune.
→Environmental clearance issues are impacting about Rs. 3,000-4,000 crores worth of launches in Mumbai, which may be unlocked in the second half of the year.
→In Bangalore, the company is transitioning from a pilot phase with Rs. 1,900 crores cumulative sales over two years to a growth phase focusing on premium segment developments.
→Weekly non-launch sales are strong, averaging around Rs. 275 crores in July 2025, expected to increase to Rs. 300 crores per week by year-end.
→The company plans to enter the Delhi NCR market within 12 months and start launches in fiscal 2027.
→Sales growth and launch pipeline are in line with the company's business model of steady sell-through over time rather than heavy one-time launches.

Capex plans

Yes

- Lodha plans gradual entry into the Delhi NCR market with pilot projects and moderate investments, aiming for launches in fiscal 2027 after securing land deals. - Significant business development addition in Bangalore with five new projects totaling Rs. 84 billion in the last quarter, showing strong land acquisition momentum. - Bangalore growth phase supported by building a high-caliber core team and establishing Lodha as a premium brand with emphasis on quality product and customer experience. - Continued focus on premium and luxury developments across key markets (Mumbai, Pune, Bangalore). - Emphasis on infrastructure and township developments, like Palava with upcoming highway operational towards fiscal year-end. - Scalability supported by internal systems, process-driven growth, and expansion of functional expert teams. - Sustained investments expected in business development with net debt levels moderately rising in first half, then stabilizing but maintaining a low net debt-to-equity ratio below 0.5x. These reflect ongoing and planned capital/strategic investments aligned with expansion and operational scale-up.

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