Lodha Developers (LODHA) Q1 25/26 earnings summary

Executive summary

• Achieved best-ever Q1 pre-sales at INR 44.5 billion, up 10% year-on-year, with strong demand across Mumbai, Pune, and Bangalore, despite a two-week slowdown from geopolitical tensions.

• Embedded EBITDA margin at 33%, PAT at INR 9.5 billion (21% PAT margin), and revenue from operations at INR 35 billion, up 23% year-on-year.

• Added five new projects in key markets with GDV of INR 227 billion, surpassing 90% of full-year guidance, especially in Bangalore.

• Net debt at INR 50.8 billion (0.24x net debt-to-equity), with average cost of funds at 8.3%, down 40 bps.

• Expansion into Delhi NCR planned as a pilot in the next 12 months, aiming for launch in FY27.

• Board approved unaudited consolidated and standalone financial results for the quarter ended June 30, 2025, with limited review by auditors and unmodified conclusions issued.

Financial highlights

• Revenue from operations at INR 34.9 billion, up 22.7% year-on-year; adjusted EBITDA at INR 12 billion, up 25.3%; adjusted EBITDA margin at 34.4%.

• PAT at INR 6.8 billion, up 41.9% year-on-year; operating cash flow at INR 9.5 billion, up 50% year-on-year.

• Dividend for FY25 increased 90% year-on-year to INR 4.25/share.

• Basic EPS (consolidated) for Q1 FY26 was ₹6.76, compared to ₹4.78 in Q1 FY25.

• Price growth of 2% in Q1FY26; full-year price growth guidance at 5-6%.

Outlook and guidance

• FY26 pre-sales guidance at INR 210 billion, with Q1FY26 already achieving INR 44.5 billion.

• H1 pre-sales expected at 40-45% of annual operating plan, with H2 driven by significant launches and regulatory clearance.

• Operating cash flow guidance for FY26 is INR 77 billion; new project additions targeted at INR 250 billion GDV.

• Margins expected to trend higher due to operational efficiency and premiumization.

• The company remains focused on real estate development as its primary business segment.