Lodha Developers Ltd shares surged as much as 8.3% to ₹1,298.40 on Tuesday following the company's robust June quarter earnings. The real estate developer reported a more than two-fold increase in net profit to ₹1,373 crore for the quarter ended June, while revenue from operations increased 43% year-on-year to ₹4,996.7 crore. The quarter also saw pre-sales rise 4% year-on-year to ₹4,629 crore despite the absence of fresh residential launches, with net debt falling by ₹446 crore from the previous quarter to ₹4,931 crore. Investors responded positively to the company's plans to unlock value from its Green Data Centre Park at Palava, which was viewed as another significant growth driver.
Lodha Developers has outlined plans to raise approximately ₹9,000 crore by monetising 150 acres of its data centre land in suburban Mumbai's Palava project. Managing Director Abhishek Lodha said the company has already monetised about 130 acres at the park and plans to monetise another 150 acres over the next three to four years at an average of about ₹600 million per acre. The company expects these transactions to generate approximately ₹9,000 crore in sales, which will help fund the construction of about 1 gigawatt of powered-shell data centre capacity. The planned data centre development is expected to generate more than ₹2,000 crore in annual rental income by FY32.
According to Nomura, Lodha has increased the land earmarked for data centres to 660 acres from 400 acres earlier, with around 143 acres planned to be monetised at approximately ₹600 million per acre, which is expected to generate around ₹90 billion over the next three to four years. The brokerage noted that data centre land values have increased sixteen-fold between CY21 and CY26, from ₹26 million per acre to ₹425 million per acre. The company currently has 3,700 acres in Palava and Upper Thane in the Mumbai Metropolitan Region, with infrastructure projects including bullet train connectivity expected to further increase land demand and value. Beyond the current 150 acres, Lodha has an additional 300 acres of land monetisation optionality at its data centre park.
The company has maintained its guidance of ₹24,000 crore in residential pre-sales for FY27, compared with ₹20,530 crore in the previous financial year. During the earnings call, management said residential launches have resumed in the second quarter and reiterated its expectation of delivering the full-year target. Nomura estimates that the company has inventory worth ₹413 billion and launches worth ₹240 billion in the pipeline, with total available supply of ₹653 billion during the remaining nine months of FY27. The brokerage expects the company can achieve its guidance by selling around 30% of this inventory. The data centre build is largely self-funded from land sales within the same park and does not add to group leverage, with the company expecting to incur a capital expenditure of ₹500-700 crore over the period of land monetisation via data centres.
The company plans to deploy most of the land sale proceeds to develop 1 gigawatt (GW) of build-to-suit data centre power shell capacity across around 90 acres. Nomura expects this to generate annual rental income of more than ₹20 billion. The company's rental income, which stood at ₹300 crore at the end of 2025-26, is expected to grow significantly to around ₹3,000 crore in six years, with a bulk generated from the data centre business. This target includes over ₹2,000 crore from data centres, ₹600 crore from retail and offices, and about ₹400 crore from warehousing and industrial. The brokerage also expects annuity income to increase tenfold by FY32, driven by growth in office, warehousing and data centre assets.
