Lodha Developers (LODHA) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly pre-sales of INR 4,507 crore (INR 45.1bn), up 32% YoY, and nine-month pre-sales of INR 12,800 crore (INR 128.2bn), up 25% YoY, positioning well for full-year guidance of INR 17,500 crore (INR 175bn).

• Embedded EBITDA margin for the quarter at ~35%, with pro forma PAT margin at 23% and PAT growth of nearly 70% YoY, reflecting strong operating and financial leverage.

• Net debt at INR 43.1bn (reduced by INR 600 crore in the quarter), with net debt to equity at 0.22x, well below the 0.5x ceiling.

• Added projects with GDV of INR 195bn in 9MFY25, achieving over 90% of full-year guidance, and continued expansion in Bangalore and NCR.

• Maintained strong ESG credentials, ranking in the Dow Jones Sustainability Index and recognized by the World Benchmarking Alliance.

Financial highlights

• Revenue from operations for the quarter at INR 4,084 crore (INR 40.8bn), up 39% YoY; 9MFY25 revenue up 52% to INR 95.6bn.

• Adjusted EBITDA for the quarter at INR 1,587 crore (INR 15.9bn), up 48% YoY, with margins just under 39%.

• Quarterly PAT at INR 946 crore (INR 9.4bn), up 66% YoY; 9MFY25 PAT at INR 18.4bn, up 95%.

• Collections for the quarter just under INR 4,300 crore, up 65% YoY; nine-month collections crossed INR 10,000 crore, up 30% YoY.

• Average cost of funds at 8.8%, down 10 bps sequentially.

Outlook and guidance

• Confident in achieving full-year pre-sales guidance of INR 17,500 crore (INR 175bn), requiring Q4 sales in line with Q3.

• Operating cash flow guidance for FY25 at INR 65bn; 9MFY25 at INR 42.6bn.

• Expecting FY25 GDP growth around 6.5%, with potential monetary easing in FY26 and policy support for mid-income consumption.

• Anticipate Bangalore to contribute meaningfully to pre-sales from next fiscal.

• Guidance for price growth of 5%-7% for the year, with current YTD price growth at 4%.