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Thu, 10 Sept 2026
02:42:16 pm
Thu, 10 Sept 2026
02:42:16 pm
Rudransh Sangwan
Published at: July 27, 2026, 8:33 AM
Synopsis
A real estate stock surged nearly 5% after reporting ₹1,372 crore Q1 profit, ₹4,997 crore revenue and 102% earnings growth. A global brokerage retained its Buy rating with a ₹1,250 target, citing strong cash flows, FY27 growth visibility and a major long term expansion strategy.
A leading real estate developer surprised the Street with a strong June quarter, reporting a two fold jump in net profit and over 43% revenue growth while reaffirming its ambitious FY27 sales guidance. The better than expected performance lifted the stock nearly 5% during Monday's trading session, with global brokerage Nomura maintaining its Buy rating and ₹1,250 target price.
Despite a relatively slow quarter for new project launches, the company benefited from healthy sustenance sales, strong collections and higher revenue recognition from land transactions. Management also expressed confidence in achieving its full year pre sales target, backed by a robust project pipeline and sizeable inventory.
Shares of Lodha Developers climbed nearly 5% after the company announced its Q1FY27 earnings. The stock touched an intraday high of ₹1,202.50 and was trading around ₹1,198, up more than 4.7% during morning trade.
Following the results, Nomura retained its Buy rating with an unchanged target price of ₹1,250, citing confidence in the company's long term growth outlook.
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| Metric | Value |
|---|---|
| Current Price | ₹1,198 |
| Intraday High | ₹1,202.50 |
| Intraday Gain | Up to 5% |
| Brokerage | Nomura |
| Rating | Buy |
| Target Price | ₹1,250 |
Lodha Developers reported consolidated net profit of ₹1,372.1 crore, more than double the ₹674.7 crore reported in the corresponding quarter last year. Revenue from operations increased 43.1% to ₹4,997 crore, compared with ₹3,492 crore a year earlier.
According to Nomura, the company's revenue, EBITDA and profit after tax increased 43%, 95% and 102% year on year, primarily due to revenue recognition from Digital Core (DC) land sales.
| Particulars | Q1FY27 | Q1FY26 | Growth |
|---|---|---|---|
| Revenue | ₹4,997 Cr | ₹3,492 Cr | 43.1% |
| Net Profit | ₹1,372.1 Cr | ₹674.7 Cr | 103% |
| EBITDA Growth | - | - | 95% |
| PAT Growth | - | - | 102% |
The company reported Q1FY27 pre sales of ₹46.3 billion, representing 3% year on year growth, broadly in line with Nomura's estimate.
According to the brokerage, sales during the quarter were mainly supported by inventory sales and land transactions worth ₹10 billion to ₹12 billion, as the company deliberately avoided launching major projects due to geopolitical uncertainties.
Management said the company currently has nearly ₹2 lakh crore worth of inventory, allowing it to focus on existing projects rather than introducing new launches every quarter.
| Metric | Value |
|---|---|
| Q1FY27 Pre Sales | ₹46.3 Billion |
| Year on Year Growth | 3% |
| Nomura Estimate | ₹46 Billion |
Management reiterated its FY27 pre sales guidance of ₹240 billion, despite the slower first quarter.
Nomura believes the guidance remains achievable as the company has ₹413 billion of ready inventory and an additional ₹240 billion worth of launches in the pipeline, taking the total available supply for the remaining nine months of FY27 to approximately ₹653 billion.
According to the brokerage, Lodha needs to generate ₹193 billion of pre sales during the remaining three quarters, requiring the company to sell around 30% of its available inventory, which Nomura considers achievable.
The company also delivered strong collections and operating cash flow during the quarter.
Collections increased 48% year on year to ₹42 billion, while operating cash flow nearly doubled to ₹18.9 billion, supported largely by proceeds from land sales.
| Metric | Q1FY27 | Growth |
|---|---|---|
| Collections | ₹42 Billion | 48% |
| Operating Cash Flow | ₹18.9 Billion | 97% |
Nomura also highlighted the significant value creation from Lodha Developers' data centre land portfolio.
Management disclosed that Digital Edge acquired land at ₹425 million per acre, compared with around ₹26 million per acre in 2021, representing a 16 fold increase in land value over five years.
The company has increased land allocated for data centre development from 400 acres to 660 acres. Of this, 132 acres have already been sold, while another 143 acres are expected to be monetised at around ₹600 million per acre, potentially generating ₹90 billion over the next three to four years.
The proceeds are expected to largely self fund a 1 GW data centre platform, which management estimates could generate approximately ₹20 billion in annual rental income once operational.
| Metric | Value |
|---|---|
| Total DC Land | 660 Acres |
| Land Already Sold | 132 Acres |
| Planned Monetisation | 143 Acres |
| Expected Proceeds | ₹90 Billion |
| Target Rental Income | ₹20 Billion Annually |
Lodha Developers delivered a strong Q1FY27 with net profit more than doubling, 43% revenue growth, healthy cash flows and stable pre sales despite limited project launches. The company has maintained its ₹240 billion FY27 pre sales guidance, supported by a large inventory base and a strong launch pipeline.
In addition, the rapid appreciation in the value of its data centre land portfolio and the planned development of a 1 GW data centre platform provide another long term growth avenue. With these factors in place, Nomura has maintained its Buy rating and ₹1,250 target price, reflecting continued confidence in the company's growth prospects.
The stock gained nearly 5% after reporting strong Q1FY27 earnings, including a two fold increase in net profit and reaffirming its FY27 pre sales guidance.
The company reported net profit of ₹1,372.1 crore, compared with ₹674.7 crore in the same quarter last year.
Revenue from operations increased 43.1% year on year to ₹4,997 crore during Q1FY27.
Management maintained its FY27 pre sales guidance of ₹240 billion, supported by a large inventory base and upcoming project launches.
The company is expanding its data centre land portfolio, with planned monetisation expected to generate ₹90 billion and help fund a 1 GW data centre platform capable of generating around ₹20 billion in annual rental income.
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