Shares of realty player Lodha Developers slipped in trade on Wednesday, October 8, after the firm shared its business update for the September quarter.
Lodha Developers reported quarterly pre-sales of Rs 4,570 crore, up 7 percent year-on-year and 3 percent sequentially. Collections for the second quarter of FY26 stood at Rs 3,480 crore, marking a 13 percent increase from a year earlier.
The company expects launches to pick up pace in the second half and has reaffirmed its full-year bookings guidance of Rs 21,000 crore. Net debt stood at Rs 5,370 crore in Q2FY26, rising by Rs 300 crore sequentially due to record business development in the first half and ongoing project approval expenses.
At 10.15 a.m., shares of the firm were quoting Rs 1,131.4 per share, down 1.2 percent on the NSE.
Nuvama Institutional Equities maintained its 'buy' call, but trimmed its target price to Rs 1,580, down from Rs 1,619 earlier. The brokerage noted that Lodha needs 29 percent YoY pre-sales growth in H2FY26 to meet the Rs 21,000 crore booking guidance.
"This might prove challenging given housing sales in its core markets of the MMR and Pune are witnessing moderation," noted the brokerage. The system-level pre-sales growth has started tapering; the twelve month trailing sales volumes in the MMR and Pune regions have declined
11 percent YoY and 14 percent YoY, respectively.
According to management, there were some transactions related to land sales in Q2FY25, vs no land sales transactions recorded in 2QFY26. As such, 2QFY25 was a high base quarter, noted Japan-bsed brokerage Nomura.
In addition, the quarter logged fewer walkins on account of the monsoon and inauspicious “Shradh” period and was relatively a slow quarter for new launches. However, the brokerage maintained its 'buy' call on the real estate firm, with a price target of Rs 1,450 per share.
Jefferies has a ‘Buy’ rating on Lodha Developers with a target price of Rs 1,625, citing it as a key beneficiary of Mumbai’s massive infrastructure upgrade. The opening of the city’s second international airport is part of an ongoing $80 billion-plus transformation that is expected to boost real estate values. Lodha’s extensive 4,500-acre land bank on the city’s outskirts positions it well to benefit, with land values already rising nearly eightfold over the past four years.
Jefferies expects Mumbai’s performance, along with Lodha’s geographic expansion, to drive a 20 percent CAGR in presales. The brokerage added that recent concerns over a soft first half have made the stock’s ex-Palava business attractive, currently trading at around 2x EV/sales.
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