Lodha Developers (LODHA) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1FY26 pre-sales of 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 for Q1FY26 at 33%, with PAT at INR 6.8 billion, up 42% year-on-year, and robust cash flow.

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

• Five new projects with GDV of INR 227 billion added in Q1FY26, surpassing 90% of full-year guidance.

• Maintained top ESG ratings and recognized as a top workplace in India.

Financial highlights

• Revenue from operations for Q1FY26 at INR 34.9 billion, up 22.7% year-on-year.

• Adjusted EBITDA for the quarter at INR 12 billion, up 25% year-on-year, with margin at 34.4% (vs 33.7% last year).

• Adjusted PAT for Q1FY26 rose 41.9% year-on-year to INR 6.8 billion, with margin expanding to 18.6%.

• 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.

Outlook and guidance

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

• H1 pre-sales expected to be 40-45% of AOP, with a bias towards 45%, and significant launches planned for H2.

• Launch pipeline for the year at INR 250 billion, with heavier emphasis on H2.

• Net debt/equity expected to remain below 0.5x; robust launch pipeline planned for H2 FY26 and FY27.

• Targeting consistent ~20% annual growth in housing and recurring income of INR 15 billion by FY31.