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Informist, Monday, Jul. 27, 2026

 

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--Lodha Developers:  New launches to pick up pace from the September quarter
--CONTEXT: Comments by Lodha Developers mgmt in post earnings investor call
--Lodha Developers: Moderate demand impact due to West Asia war
--Lodha Developers: 130 acres land in co's data centre park monetised so far
--Lodha Developers: Reiterate 20% PAT growth guidance for medium term
--Lodha Developers: Premium, luxury segment made up 60% of sales in Q1
--Lodha Developers: Aiming 65-70% business from existing projects
--Lodha Developers: Aiming 30-35% business from new launches
--Lodha Developers: Embedded margin in presales, excluding land, 30-33% Q1
--Lodha Developers: Will launch NCR project in second half of FY27

 

By Rajesh Gajra and Ruchira Kagita

 

MUMBAI – The sentiment of West Asia-based non-resident Indian buyers of residential property in India "remains subdued" amid the war in that region, according to Lodha Developers Ltd.'s Managing Director and Chief Executive Officer Abhishek Lodha. Speaking with investors and analysts in a conference call Monday after the company detailed its June quarter earnings Friday, Lodha said the demand impact on the company's business has, however, been "quite moderate" so far.

 

The conflict in West Asia "has not resolved by the end of Q1 (June quarter), as we had assumed", he said. According to Lodha, NRI buyers from the region represent 4-5% of the company's sales, and one-third of total sales to NRIs.

 

An offsetting dynamic that the company was hoping would play out from the war's impact has not yet fully played out, he said. The company expects uncertainty abroad to cause NRIs to want to secure a home base in India, according to Lodha.

 

A prolonged conflict in West Asia will increase uncertainty for NRI buyers, he said. The war has not impacted the company's project construction costs so far, given that its supply chain is about 95% domestic, Lodha said.

 

However, energy-intensive input costs have risen, and if the situation persists for a full year the company's project construction costs will rise by 1-1.5%, according to Lodha. "For context, our overall construction cost inflation since April 2022 has run at approximately 3% per annum," he said.

 

On the premium and luxury segment, a senior official said the June quarter was no different for the company with almost 60% of sales coming from these segments, a senior official said. The company aims to continue with its objective of balanced growth with 65-70% of sales from existing projects and the balance from new launches, he said.

 

On its data centre park around Navi Mumbai with land area of a little over 650 acres, the company has sold 132 acres as of Jun. 30. In the June quarter, the company's presales of INR 1.3 billion included presales of land from the data centre park, a senior official said.

The embedded operating margin, after excluding land sales, for the June quarter was in the "low 30s", according to the management. This implies a range of 30-33% for the margin, after excluding land sales. The EBITDA margin of Lodha Developers jumped up to 43% in the June quarter from 34% in the year-ago quarter.

 

On the outlook front, the management reiterated its guidance of pre-sales worth INR 240 billion for FY27 with 40% of the guidance to be met in the first half of the year. For the full year, the top brass is targeting 20% growth in the company's net profit to around INR 41 billion.

 

The company is on the path to launch its first project in the National Capital Region in the second half of 2026-27 (Apr-Mar), according to the management. Overall, the company plans to have 21 launches in Jul-Mar. "Most of the launches are planned in the second half of the current financial year and they are expected to coincide with the festive season," a senior official said.

 

The Mumbai Metropolitan Region continues to be the company's dominant market, but the management was confident of growth in Bengaluru and NCR as well. Four cities will contribute to the company's pre-sales this year, according to the management.

 

The real estate major's consolidated net profit doubled on year to INR 13.72 billion while its revenue rose 43% on year to INR 49.97 billion. Monday, shares of the company closed almost 5% higher at INR 1,198.70 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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