Lodha FY25 Results Breakdown: Revenue Up 33%, Net Profit Soars 72%

Lodha (Macrotech Developers) Q4 FY25: Key Highlights and Full-Year Review

Lodha, also known as Macrotech Developers, ended FY25 on a strong note. The company delivered solid sales, healthy profits, and continued expanding in key cities like Mumbai, Pune, and Bangalore. It also maintained a strong balance sheet and kept its debt low.

Here’s a simple, clear look at Lodha’s performance, strategies, and what’s ahead in FY26.

---

The Bigger Picture – Industry and Economy

Lodha’s management talked about the global uncertainties, including conflicts and inflation. But they believe India is doing better than most countries. Inflation is under control, and the Reserve Bank of India (RBI) has helped by cutting interest rates by 50 basis points. More rate cuts could happen soon.

The upcoming Union Budget is expected to help the housing sector, especially for middle-income buyers. This could boost demand for affordable homes.

India’s GDP is expected to grow at 6.5% in FY25. This is slightly lower than last year but still strong when compared to other countries. Lodha believes this growth, along with supportive policies, will help mid-income housing grow further.

---

Operational and Financial Performance

Record Sales in FY25

Lodha hit new records in sales (also called presales). Here’s how it looks:

Period	Presales
Q4 FY25	₹4,810 crore
Full FY25	₹17,600 crore
Growth YoY	+21%

This was the fifth quarter in a row where Lodha crossed ₹4,000 crore in sales. That shows consistency and demand across their projects.

Collections Remain Strong

Period	Collections
Q4 FY25	₹4,440 crore
Full FY25	₹14,490 crore
Growth YoY	+29%

Collections are the money actually received from customers. Lodha has improved cash flow, which is a sign of strong project delivery and trust.

Margins and Pricing

• EBITDA margin for Q4 FY25 was about 32%.
• Full-year margin was 33%, better than the 30% target.
• Pricing grew 4% in FY25 (compared to the expected 5–6%).

Even though 40% of Lodha’s sales came from joint development agreements (JDAs), which usually bring lower margins, they still managed high profitability.

---

Revenue and Profit

Lodha reported strong growth in revenue and profit for the year:

Metric	FY25	Growth YoY
Revenue	₹13,768 cr	+33%
EBITDA (Adjusted)	₹4,970 cr	+35%
Net Profit (PAT)	₹2,774 cr	+72%

The sharp rise in profit shows better efficiency and stronger operating performance.

---

Strong Balance Sheet

Lodha has kept its debt low, which is a big positive in real estate.

• Net debt: ₹3,990 crore
• Net debt-to-equity: 0.2x (much lower than 0.5x benchmark)
• Credit rating was upgraded to AA
• Cost of funds: 8.7%

This shows Lodha’s financial position is strong, giving them more room to grow.

---

New Projects and Land Deals

Lodha added new projects worth ₹23,700 crore in gross development value (GDV) during FY25. This beats their own guidance of ₹21,000 crore.

Period	New Projects (GDV)
Q4 FY25	₹4,300 crore
Full FY25	₹23,700 crore

Apart from homes, they also expanded into industrial and warehousing space under their digital infrastructure business.

---

How Lodha Sells: Their Strategy

Mix of New and Ongoing Projects

Only 30% of Lodha’s sales in FY25 came from new launches. The rest came from ongoing and ready-to-move projects. This gives better predictability and control over margins.

City-Wise Growth

City	FY25 Sales	Growth YoY
Mumbai Suburbs	₹2,500 cr	+140%
Pune	₹2,500 cr	+40%

Lodha completed a pilot in Bangalore and plans to launch 5 or more projects there in FY26. They’re also looking to enter one more new city next year.

---

Sales Channels and Customer Data

Lodha works with over 3,000 channel partners. In FY25, 1,800 were active. They aim to grow this network in Pune and Bangalore from 500+ to 750–1,000 in the next two years.

Here’s how customers responded in FY25:

• 88,000 walk-ins
• 7,000 bookings (8% conversion rate, up from 7.5% last year)
• Average booking value: ₹2.3 crore (₹1.7 crore in FY24)

For FY26, Lodha is targeting:

• 93,000 walk-ins
• 8.5% conversion rate
• 6% price increase

---

Project Mix and Risk Control

Lodha’s homes cater to a mix of buyers:

Segment	Share in Portfolio
Affordable	20%
Aspirational	40–50%
Premium	20%
Luxury	10%

No single zone contributes more than ₹2,500 crore, which spreads the risk across locations and customer types.

---

Focus on Townships and Land Bank

Lodha has large townships like Palava and Upper Thane. They have a huge land bank:

• 4,000+ acres
• 600 million sq. ft. potential development area

Upcoming Infrastructure

Several transport projects will improve access:

• Mulund–Airoli Freeway
• Navi Mumbai Airport
• Metro lines and Multimodal Corridor
• Bullet Train station nearby

These upgrades are expected to boost property prices and sales.

• Data center land is now priced at ₹21 crore per acre.
• New launches in Palava and Upper Thane show 10–40% price growth.

Lodha plans to increase premium offerings in these areas. Homes priced above ₹2.5 crore are gaining popularity.

Targets by FY30

• Sales: ₹8,000 crore from Palava and Upper Thane
• EBITDA Margin: ~50%
• Upper-mid and premium homes to form 50% of sales (currently 20%)

---

Growth in Rental Income and Warehousing

Lodha has leased out 2.1 million sq. ft. to top tenants. They also bought more land:

• 33 acres in NCR
• 45 acres in Chennai

Annuity Income (Recurring Income from Leasing)

Year	Income Run-Rate
FY25 Exit	₹250 crore
FY26	₹400 crore
FY31	₹1,500 crore

This gives Lodha a stable income stream outside home sales.

---

Revenue Accounting Update

From April 2023, Lodha started recognizing revenue as construction progresses (instead of waiting until project completion). This makes their financials more reflective of real-time performance, though there’s a small lag of one quarter.

By FY27, this transition will be complete.

---

FY26 Targets

Lodha has set clear goals for the coming year:

Metric	FY26 Target
Presales	₹21,000 crore (+20%)
EBITDA Margin	33%
EBITDA (Absolute)	₹6,500+ crore
Operating Cash Flow	₹7,500+ crore
Net Debt/Equity Ratio	Stay below 0.5x
New Projects (GDV)	₹25,000 crore

---

Key Updates from Management

Margins and Mix

Margins are steady at 30% across locations. Sales mix in FY25:

• 25–30% from new launches
• 50% from under-construction projects
• 20% from ready inventory

Collections usually follow sales with a one-year lag, which is normal in real estate.

City-Wise Growth Outlook for FY26

Expected extra sales of ₹3,500 crore:

• ₹1,000–1,500 crore from Mumbai
• Rest from Pune and Bangalore

Pune has unsold inventory worth ₹4,500 crore, plus new supply of ₹7,000 crore expected.

---

Township Outlook

Palava is expected to grow 20%+ in FY26. Growth may rise even more in FY27 as infrastructure projects finish.

---

Industry View

Lodha believes that large, organized players will benefit as the market consolidates. Their diverse project locations and types help reduce risk.

---

Quotes from Lodha Management

“This was the fifth straight quarter with ₹4,000 crore or more in sales. It shows how stable our business has become.”

“Our EBITDA margin for FY25 was 33%, better than expected.”

“We aim to get ₹8,000 crore sales from Palava and Upper Thane by FY30, with 50% margins.”

“No single location gives more than 10% of our sales—our 40+ projects help avoid ups and downs.”

“Big developers like us are in a good position as the real estate market consolidates.”

---

Final Thoughts

Lodha (Macrotech Developers) delivered a strong performance in FY25. They grew sales, improved margins, and kept debt under control. The company has a wide presence across cities, strong township projects, and growing income from rentals.

For FY26, Lodha expects 20% growth in sales, stable margins, and more launches in new markets. With a supportive policy environment and good economic conditions in India, the outlook is positive.

The only major concern is global geopolitical risks, but Lodha’s diversified strategy helps reduce such impacts.

Read More at sharepricenews.com