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Informist, Tuesday, Oct. 28, 2025

By Rajesh Gajra

NEW DELHI - Real estate major Lodha Developers Ltd. will likely report a steady growth in its bottom line, operating profit, and revenue for the September quarter, with growth rates almost similar to those in the trailing quarter. However, the company may not report high growth in its pre-sales for the reporting quarter, according to analysts.

Lodha Developers is expected to report a 35% on-year rise and a 15% on-quarter decline in its consolidated net profit at INR 5.7 billion for the September quarter, according to an average of estimates by five brokerages. In the trailing quarter, the company had reported a 42% year-on-year rise in its consolidated net profit to INR 6.8 billion. The September quarter net profit estimates range from a low of INR 4.6 billion by Kotak Securities to a high of INR 7.7 billion by Nuvama Wealth Management.

The company's consolidated revenue will likely be INR 31.3 billion for the September quarter, up 19% on year and down 10% on quarter. In the June quarter, the company had reported a 23% on-year rise in its consolidated revenue to INR 34.9 billion. The lowest revenue estimate for the September quarter is INR 28.1 billion by Kotak Securities, while the highest revenue estimate is INR 36.3 billion by Nuvama.

The residential sales by units in the real estate industry would likely have fallen 9% on year in the September quarter "due to affordability concerns," Nuvama said in a report. Kotak Securities, however, said industry data suggested there was a "healthy sales traction" in residential real estate in the September quarter, "with an improvement in Bengaluru and Mumbai."

Lodha Developers' performance for the September quarter "would be supported by sustenance sales in the absence of any large project launches," according to Kotak Securities. The brokerage expects the company's pre-sales to be up 17% on year at INR 50 billion, "aided by the liquidation of extant inventory and land sales at Palava." The company has around six own projects lined up for the rest of 2025-26 (Apr-Mar).

Other brokerages are not that optimistic. Brokerage Motilal Oswal expects Lodha Developers' bookings to have grown 9% on year to INR 46.7 billion in the September quarter, while HDFC Securities estimates the pre-sales will grow 8% on year to INR 45.7 billion.

The company is seen posting earnings before interest, tax, depreciation, and amortisation of INR 8.9 billion for the September quarter. While brokerage Motilal Oswal expects the company to post a 32% on-year rise in EBITDA, Kotak Securities has a much lower EBITDA growth expectation of 9.3%. HDFC Securities expects Lodha Developers to post an EBITDA growth of 9% on year for the September quarter.

The company's bottom line growth will largely mirror the EBITDA growth. In addition, depreciation and interest expenses are expected to decline on year, which will help the net profit growth, according to Motilal Oswal. The depreciation expenses are estimated at INR 579 million for the September quarter, down from INR 665 million from the year-ago quarter, while the interest costs are seen falling to INR 593 million from INR 1.4 billion. The brokerage, however, expects other income to also fall year-on-year to INR 326 million from INR 589 million, which will partly offset the benefit from the lower depreciation and interest costs.

Lodha Developers will detail its September quarter earnings on Thursday. Investors will keep an eye on the company's cash flows and movement in debt, according to Nuvama.

At 1312 IST, shares of Lodha Developers were trading at INR 1,174.40 on the National Stock Exchange, down 0.2%. The stock is down over 2.2% after the company's June quarter earnings announcement on Jul. 30. Of the 10 brokerage reports on the company available with Informist, eight have a 'buy' call at an average target price of INR 1,510, one has a 'hold' recommendation, and one has a 'sell' call at a target price of INR 950.

In the June quarter, the company had reported a 42% year-on-year jump in its consolidated net profit to INR 6.8 billion on the back of a 23% rise in its consolidated revenue to INR 34.9 billion.

Following are the September quarter earnings estimates for Lodha Developers five broking firms in the descending order of estimate of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vandana Hingorani

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