Mumbai-based real estate firm Lodha Developers Ltd recorded a 28.3% year-on-year increase in consolidated net profit to ₹1,013 crore in Q2FY27, as reported by Business Standard. The company's revenue from operations also increased by 17.6% to ₹4,468 crore compared with ₹3,798 crore in the corresponding quarter last year. In the first half of the financial year, the company's profit after tax rose 63% YoY to ₹2,386 crore compared with the corresponding period last year. The company's operating margin improved to 36.1% from 34.4% in the previous year, while net profit margin expanded to 22.1% from 20.4% in Q2FY26. However, profit after tax was lower sequentially, falling from ₹1,373 crore in the June quarter to ₹1,013 crore.
Commenting on the results, Abhishek Lodha, managing director of Lodha, said the strong performance in H1 sets the company up to easily exceed its profit guidance for the year. According to The Economic Times, he noted that pre-sales stood at ₹5,037 crore, taking cumulative first-half pre-sales to more than 40% of the company's original full-year guidance. The company successfully launched a project in Bengaluru's northern part during the quarter, with plans to launch a project in the National Capital Region during the festive season. Lodha expressed satisfaction with the company's performance, stating that "We have delivered continued strong operating and financial performance in Q2 FY27, building on the momentum we have sustained since our IPO in 2021." The company expects to easily exceed its profit guidance for the year, with pre-sales as of the first half reaching ₹9,670 crore, which is 40% of the company's full-year guidance of ₹24,000 crore.
The company's net debt stood at ₹5,279 crore as of September 30, 2026, while its net debt-to-equity ratio remained largely stable at 0.2x, well below its ceiling of 0.5x, as reported by The Economic Times. Lodha highlighted the company's rental business potential, stating that the company sees the possibility of a 10-fold increase in its annuity income, from ₹300 crore currently to ₹3,000 crore by FY32 through construction of data centres and AI infrastructure. The company's exit cost of debt for Q2FY27 was stable at 7.8%, which the company said was among the lowest in the industry. The company remains concerned about the continuing conflict in the Middle East and is tracking its geopolitical and macroeconomic implications carefully, while also monitoring the impact of recent rise in domestic interest rates.
The developer is banking on a stronger launch pipeline and expansion into newer markets to sustain its sales momentum in the second half. According to The Economic Times, the company's Bengaluru business is gaining traction following another launch in North Bengaluru during the quarter, with the response reaffirming demand for established real estate brands amid concerns about AI-led disruption. The company is also preparing for a launch in the National Capital Region during the festive season, alongside further launches across new locations. Beyond residential development, the company is looking to build a second growth engine through its rental assets business, with a particular focus on data centres. Lodha expects annuity income to increase tenfold from ₹300 crore in FY26 to ₹3,000 crore by FY32, with plans to begin executing its self-funded data centre annuity strategy over the next six months.
