Lodha Developers Q2 FY27 Earnings Call: Record H1 PAT Up 63%, Holds Rs. 24,000 Cr Pre-Sales Guidance

Lodha Developers Ltd held its Q2 FY27 earnings call on October 30, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record H1 With All Three Headline Metrics at All-Time Highs

• Record H1 FY 2026-2027 — PAT of Rs.2,386 crores (+63% YoY), revenue of Rs.9,460 crores (+30% YoY) and pre-sales of Rs.96 billion (+7% YoY) were all the highest-ever in Lodha's history.
• Net debt reduced to ~Rs.52 billion (~0.2x equity) as of Q2 FY 2026-2027; management reiterated DevCo is expected to become net debt free over the next 2-3 years, in line with previous guidance.
• H1 FY 2026-2027 collections of ~Rs.76 billion (+19% YoY), of which Q2 was ~Rs.35 billion (Q1 was higher due to a land transaction); H1 operating cash flow was ~Rs.27 billion, with FY 2026-2027 operating cash flow expected around Rs.85 billion.
• Q2 EBITDA and PAT reflect DevCo only — there were no land sales in the quarter, so the reported numbers represent underlying development profitability.
• Launch/sustenance mix — a little less than ~1/3 of Q2 FY 2026-2027 sales came from projects launched in the quarter; the typical ~1/3 launches / ~2/3 sustenance mix is likely to sustain in Q3-Q4 FY 2026-2027, maybe slightly higher, given heavier H2 launch volume.

FY27 Pre-sales Held at Rs.24,000 Cr Despite Launch Trim; PAT to Beat 20% Growth

• ~Rs.24,000 crores FY 2026-2027 pre-sales guidance — H1 came in at 40.3% of the full year (vs. guided 40-42%); H2 includes Rs.6,000-7,000 crores of DevCo pre-sales in each of Q3 and Q4 plus one data center land transaction of ~Rs.1,500 crores in Q4 FY 2026-2027.
• Launch guidance trimmed to Rs.23,100 crore for FY 2026-2027, down from ~Rs.25,000 crore guided in July; management said launch timing shifts — including one project moving from Q4 FY27 to Q1 FY 2027-2028 — do not change the pre-sales outlook.
• Just under Rs.20,000 crores GDV of H2 FY 2026-2027 launches planned — one or two launches may move by a month or two, but the program is solid and dispersed across geographies.
• FY 2026-2027 PAT to "easily beat" the 20%-growth guidance over FY 2025-2026 PAT of Rs.34 billion (~Rs.3,400 crore), i.e., >~Rs.4,080 crore; H1 PAT of ~Rs.2,400 crores already supports this.
• No FY 2027-2028 guidance yet — Pritesh Sheth (Axis Capital) cited ~Rs.5,000 crore as the FY 2027-2028 PAT number; management does not see the higher profitability as a one-off limited to FY 2026-2027 and said FY 2027-2028 guidance will take into account the FY 2026-2027 profitability level achieved.
• Medium-term margin algorithm — management expects price growth contained within 5-7% per annum (period unspecified) against cost growth of ~4% per annum (period unspecified), adding 100-200 bps to margin each year (period unspecified); this blended outlook already accounts for expansion into newer cities and applies to the development business only, not the mix with land sales.

Bengaluru Scaling, Gurugram Entry, Palava Connectivity Catalyst

• Bengaluru pre-sales guidance of ~Rs.3,000 crore for FY 2026-2027 — up from ~Rs.2,300 crore with four operating projects in FY26 (FY 2025-2026) and ~Rs.700 crore with two projects in FY25; six operating projects expected by end of FY27.
• Beaumont Estate (launched Q2 FY 2026-2027) — the 70-acre North Bangalore development crossed Rs.1,500+ crore in sales within three months; homes priced above Rs.3 crore (some at Rs.13-14 crore) vs. competitor supply at ~Rs.2 crore, with larger premium typologies seeing the strongest demand.
• Bengaluru market context — the residential market crossed Rs.1 lakh crore in FY26, with Rs.2 crore+ homes rising from 40% of the market in FY24 to 50% in FY26; H1 FY 2026-2027 absorption was ~Rs.52,500 crore, up 10% YoY vs H1 FY26.
• Gurugram (NCR) entry in pilot phase — pre-sales commenced for the first project with a "constructive" start; Lodha Pantheon (office) launched on Gulf Coast Road in Q3 FY 2026-2027 with a "quite encouraging" initial response, with a detailed update promised at the Q3 FY 2026-2027 results call.
• Palava connectivity catalyst — the Mulund-Airoli-Palava freeway is physically complete and expected to open within a few weeks (Q3 FY 2026-2027); management expects a significant uptick in Palava pre-sales in calendar 2027, with the bullet train (scheduled 2029) seen moving Palava from a secondary to a primary suburb.
• Bengaluru team scaled to 350+ employees as of Q2 FY 2026-2027 (from the 2023 entry); headcount expected to grow significantly in FY 2027-2028, especially in operations. Lodha aspires to a mid-teen market share in Bengaluru (period unspecified).

5 GW Power Approved; BTS Deal and Recurring Land Monetization Take Shape

• Power availability raised to 5 GW (from 3 GW) as of Q2 FY 2026-2027, reflecting approvals from the concerned authorities; the 5 GW translates into a little over ~4 GW of IT output. Lodha is building substations at its own cost to tap the transmission network.
• Three marquee tenants — AWS, STT and Digital Edge — already building on the site; their capacity is getting taken up quickly by the world's largest companies, with existing tenants seeking additional land and new companies looking to buy in.
• BTS deal advancing — definitive documents expected to be signed and construction to commence in FY 2026-2027, with delivery to the client and rent commencing in FY29; the deal is sized in multi-hundred megawatts, with specifics withheld as the transaction remains confidential.
• Recurring land monetization — at least one data center land transaction expected in Q4 FY 2026-2027 at about Rs.15 billion (~Rs.1,500 crore), followed by one transaction every 6 months thereafter.
• Land pricing step-up — guided fair market value of ~Rs.65 crore per acre expected over an 18-month period; the current transaction (flagged around end of FY 2026-2027) is likely to price in the high Rs.50s crore per acre vs. the last transaction at Rs.42 crore per acre.
• Rental guidance unchanged — despite the 3 GW to 5 GW move, rental guidance stays at Rs.20-23 billion per annum for the first GW of BTS (period unspecified), with the ~Rs.20 billion level viewed as conservative; further articulation expected only after the first BTS signing.
• Sustainability design — data centers will use almost entirely recycled water, sourced from Bombay's ~4,000 MLD of wastewater that municipal authorities historically discharge almost entirely into the sea; management has an undertaking that at least 51% of power used will be renewable (period unspecified).

Rate Hike Absorbed; Brand Flight to Quality Intensifies

• RBI's 25 bps repo rate hike in October 2026 — management sees no change in outlook: ~50% of sales by value are in the Rs.1-5 crores segment (average LTV high-40s/low-50s) and the balance above Rs.5 crores, where mortgage impact is negligible; entry-level homes below Rs.1 crore, a segment Lodha does not really sell, face the biggest impact.
• Middle East conflict impact limited to Gulf NRI demand — ~4-5% of sales currently (FY 2026-2027), concentrated in Rs.1-3 crore entry-level homes; management cited India's 7.8% GDP growth in Q1 FY 2026-2027 (June 2026 quarter) and over 6.7% industrial production growth in September 2026.
• YTD FY 2026-2027 price growth of ~4% — attributed partly to stronger pricing power; management's industry-wide observation is that pricing power is concentrating in top brands, with less traction for commoditized supply.
• Luxury demand intact in South/Central Mumbai — the micro-market, which did ~Rs.8,000 crore of Lodha sales in FY26, continues to see strong demand; ~Rs.100 billion of GDV sits in the MMR launch pipeline, of which ~Rs.40 billion from South/Central Mumbai.
• Office absorption as a residential lead indicator (per management) — India saw ~60 million sq ft of office absorption in the first nine months of calendar 2026, ~40% by global capability centers; Bengaluru recorded ~17 million sq ft net office absorption in CY2025 (city's highest ever) and 8.3 million sq ft in H1 CY2026.
• AI-disruption view — management sees AI-led disruption concentrated in entry-level roles paying Rs.5-6 lakh p.a. (not Lodha's buyer base), while target buyers with ~Rs.50 lakh household income are net gainers; it cited the PwC US–PwC India large-scale consulting venture as an example of AI being positive for Indian jobs and, by extension, housing.
• Construction cost inflation contained — the Middle East crisis has pushed up costs only in select energy-intensive categories such as tiles, a very modest share of the cost mix; underwriting carries a 10% construction cost contingency plus a 3% project revenue contingency on every launch. Maharashtra government's air-quality guidelines for construction, implemented in calendar 2025, continue through calendar 2026; management is hopeful of no negative construction impact over the next 3-4 months (Q3 FY 2026-2027 onward).

Misinformation Risk on Data Center; Supply Gap Supports Outlook

• Data center misinformation risk flagged — management flagged the risk of misinformation and vested interests sharing incorrect information about the data center, and aims to articulate its operations, job creation, economic impact and national strategic importance.
• Government support for the campus — management said the campus is receiving strong support because "the government recognizes how important this is for India's future strength"; management said the investment India will get will be in the range of $150 billion or more (period unspecified), making the location one of the largest, if not the very largest, FDI locations in the country.
• Oversupply thesis reiterated — management repeated its 3-year-old Mumbai redevelopment thesis: the market increasingly favors large, organized, branded developers, whose grade A/A+ supply is dealt with differently from the rest; tier-1 developers are seeing demand that is more solid, resilient and able to convert.
• Completed unsold inventory of 3.9 million sq ft unchanged vs Q1 — management said completed inventory is the fastest-moving and "almost no completed inventory actually stays," with annual deliveries of ~10-12 million sq ft depending on the year (period unspecified); the flat figure is coincidental rather than the same unsold units.
• Construction spend accelerating — H1 FY 2026-2027 construction expense ran at ~Rs.13-13.5 billion per quarter, with a further pickup expected in H2 FY 2026-2027 as the monsoon quarter (Q2) is seasonally slower.