Release Date: October 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lodha Developers Ltd (BOM:543287) achieved its best-ever second quarter pre-sales with a 7% year‑on‑year increase, reaching 45.7 billion.
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The company was recognized as one of the top 1,000 most trustworthy companies globally by Newsweek, highlighting its strong stakeholder relations.
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Lodha Developers Ltd (BOM:543287) reported an embedded EBITDA margin of 32%, demonstrating resilience despite a higher contribution from joint development agreements.
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The company has made significant progress in its data center park at Palava, securing anchor customers like Amazon Web Services and STT.
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Lodha Developers Ltd (BOM:543287) has expanded its footprint in Pune, becoming the second‑largest developer in the city with plans to become the largest within two years.
Negative Points
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The company’s average revision trend has been trending down over the last few quarters, indicating a potential shift towards mid‑income products.
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Environmental clearance issues in Mumbai delayed project launches, resulting in a bunching of sales in the second half of the fiscal year.
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The real estate market in Mumbai, while profitable, faces challenges due to stalled environmental clearance processes impacting project timelines.
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Lodha Developers Ltd (BOM:543287) faces competition in the data center space, with the need to finalize a business plan for speculative or built‑to‑suit projects.
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The company’s expansion into new markets like NCR is still in the pilot phase, with initial focus likely on Gurugram, indicating potential risks in market entry.
Q & A Highlights
Q: Can you provide more details on your data center plans? Will you build speculative products or only after leasing? A: We are enthusiastic about the data center opportunity due to its cost‑effectiveness and scalability. We are currently developing a business plan to capitalize on this opportunity beyond land sales. We hope to provide more details in our next quarterly update. At this stage, we haven’t decided whether to build on a speculative basis or after leasing, but we will align investment risk with market demand.
Q: Between the data center opportunity and residential projects in Palava, which offers better ROI? A: These are not mutually exclusive opportunities. We have strategic land with significant infrastructure, allowing us to scale both residential and data center projects. The residential growth is ongoing, and the data center opportunity is additive. We estimate that even a small portion of our data center capacity could generate significant returns.
Q: Your average realization trend seems to be declining. Is there a shift towards mid‑income products? A: We maintain a diversified sales mix, with about 50% from mid‑income, 12-15% from luxury, and the rest from premium segments. The mid‑income segment is gaining traction due to government support, which may affect the average realization this year. However, our like‑to‑like product price growth remains at 3%.
Q: Could you outline your NCR strategy? Are you focusing on Gurugram or Noida? A: Our initial focus is likely to be on Gurugram, but we are open to exploring other parts of NCR. We aim to start operations in Gurugram as part of our expansion strategy.
Q: How do you view the real estate cycle in India, and where do you think we are currently? A: We believe India is in a long‑term real estate cycle due to its transition from low to middle income. This cycle could last 15-20 years, and we are only in the early stages. The demand for housing will continue to outpace supply, and we expect the cycle to gain momentum as GDP per capita increases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.