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Informist, Friday, Oct. 31, 2025

 

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--Lodha Developers: See around 5% average price growth for FY26 
--CONTEXT: Comments by Lodha Developers' mgmt in post earnings analyst call 
--Lodha Developers: Average price growth 3% in Apr-Sept 
--Lodha Developers: See opportunities increasing in data centres 
--Lodha Developers: Aim to be largest real estate developer in Pune in 2 yrs 
--Lodha Developers: Business plan for data centres currently underway 
--Lodha Developers: Demand for mid-income residential segment picking up 
--Lodha Developers:See small dip in avg price growth amid mid-income pick-up 

 

By Rajesh Gajra and Arya S. Biju

 

NEW DELHI/MUMBAI – Lodha Developers Ltd. expects an average price growth of 5-6% in its real estate business for the financial year 2025-26 (Apr-Mar), having recorded an average price growth of 3% in Apr-Sept, the company's management said Friday in a post-earnings conference call with investors and analysts. The management said this is largely due to the current demand pick-up in the mid-income residential segment where the dynamics tend to moderate pricing growth.

 

There may be a slight dip in the sales realisation or price growth in the near term because of the pick-up in the mid-income residential segment, the management said. This is also the main reason for the forecast of a 5-6% average price growth for FY26 in the company's real estate business, it said. The management clarified that about half of its current total sales in residential projects are coming from the mid-income segment.

 

"We have about 12% to 15% coming from the luxury segment and the balance from the basic segment," the management said. The company holds no view that only the luxury segment will perform or only the mid-income segment will perform, it said. "What we are seeing this year is that mid-income has started picking up on the back of the support from the government, whether it comes to, for example, interest rate cuts or income tax cuts and so on. Therefore, perhaps, the average length may shift this year slightly compared to last year," the management said. Since the company is the only large developer that operates across these three segments, it "may have periodic variations in the average price" growth, the management said.

 

On contribution to total sales from newly launched projects, the management said it was in the mid-30s in FY25, and in FY26 too it will be around the same level. In the 12 months ended September, Lodha had "very specific circumstances" where it did not get environmental approvals for new projects on time, because of which the contribution of new projects did not rise, it said. "More sales (from newly launched projects) will happen in H2 (Oct-Mar) because more of the launches have gotten to H2," the management said.

 

The company's scaling up in Bangalore and Pune is continuing strongly. This year, it expects to have about 30% or more of its pre-sales coming from the two cities, Lodha Developers said. "The Pune team has grown both in size as well as capacity, and we have built depth across sales, design, construction, business development, and customer service," the management said. "As a result, we are now the second-largest developer in Pune and are confident of becoming the largest within the next two years." The management added that it has planned new launches in Pune east and Pune west along with the subsequent phases of its existing projects.

 

On the real estate developer's entry into the data centre business, the company said it sees significant opportunity in the sector and the larger artificial intelligence space. With the growth of cloud computing, artificial intelligence, and digital services, the company expects demand for data centres to increase, the company had said in a filing last month. Lodha Developers had started work about two years ago on putting up a data centre park and has two anchor customers already, including Amazon Web Services, the management said.

 

During the September quarter, the company signed a memorandum of understanding with the Maharashtra government to set up a data centre park. A combined investment of over INR 300 billion is expected from the company and various data centre players in this park, the company had said in a filing made to the stock exchanges in September. The park will have a planned capacity of 2 gigawatts and the utility requirements will be met through green and alternative energy sources. As part of the agreement, the government of Maharashtra is giving significant incentives to those trustees or operators who will be setting up their data centres in this park, the company's management told investors on the call.

 

"...we now have a dedicated team working to make sure we put together a business plan to capitalise on this opportunity (in the data centre business) beyond the land shares. And that business plan is currently underway," the management said. The company said it will provide more updates on the business plan in the upcoming quarter. 

 

After market hours Thursday, Lodha Developers reported a consolidated net profit of INR 7.89 billion, up nearly 87% on year and 17% on quarter. Its consolidated revenue for the quarter grew nearly 45% on year and nearly 9% on quarter to INR 37.99 billion. Friday, shares of the company closed over 2% higher at INR 1,197.90 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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