Lodha Developers posted record FY26 profit of Rs 3,431 crore and pre-sales of Rs 20,530 crore. It now targets a 10x increase in annuity income through a new Green Data Centre Park and plans to reduce business development spend for better cash flow.
Lodha Developers is doubling down on annuity income and a lighter balance sheet as it looks to sustain momentum after posting record profitability and pre-sales in FY26, even as geopolitical headwinds tested housing demand. The company expects its new Green Data Centre Park at Palava to drive a 10x increase in recurring income over the next six years, while a strong pipeline of 12 projects and reduced business development spend should bolster free cash flow.
Speaking on the outlook, MD & CEO Abhishek Lodha said the company's strategy of "profitable growth with low leverage" has enabled it to scale significantly despite multiple global disruptions over the last year. He noted that Lodha's current market share is only ~3.5 per cent of primary housing sales in value terms across India's Top 6 cities, indicating a long runway for expansion.
"What is heartening is that this performance has come through despite multiple geopolitical headwinds in last 12 months, reaffirming the resilience of housing demand from the top brands," he said.
Record FY26 Performance
The company reported a record post-tax profit of Rs 3,431 crore for FY26, up 24 per cent year-on-year, with PAT margin touching 20 per cent for the first time compared to 19.5 per cent in FY25.
Pre-sales also hit an all-time high of Rs 20,530 crore, crossing the Rs 20,000 crore mark for the first time in a financial year.
New Growth Drivers: Data Centres and Diversification
A key pillar of Lodha's future growth is its entry into the data centre segment. The company has signed an MoU with the Maharashtra government to set up a Green Data Centre Park spread across 400 acres at Palava.
Lodha plans to develop 1 GW of data centre capacity on a built-to-suit basis over 100 acres within the park, which is expected to generate sizeable rental income. Combined with retail, warehousing and select office developments, the initiative is projected to grow Lodha's annuity income tenfold over the next six years and diversify its revenue mix.
The value of its 4,000-acre landholding at Palava is also expected to rise with the opening of new infrastructure improving connectivity to the rest of Mumbai.
Residential Pipeline and Cash Flow Strategy
On the residential front, Lodha added 12 projects with a gross development value of Rs 60,000 crore during FY26 across Mumbai Metropolitan Region, Pune, Bengaluru and the National Capital Region -- 2.4 times its annual guidance. Its foray into NCR, India's second-largest housing market, is expected to open additional growth avenues.
As of April 1, 2026, the company has a GDV of Rs 2,00,000 crore available for sale, excluding land bank in townships earmarked for use beyond five years. With this pipeline in place, Lodha plans to cut business development investments over the next 24 months and focus on enhancing free cash flow.
Strengthened Balance Sheet
The company said its net debt fell by Rs 800 crore to Rs 5,377 crore during the March quarter, supported by strong collections and operational efficiencies. Net debt-to-equity now stands at 0.23x, well below the company's ceiling of 0.5x.
Exit cost of debt for Q4FY26 stood at 7.8 per cent, down 10 basis points for the quarter and among the lowest in the sector. (ANI)
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