Lodha Developers shares are likely to remain in focus during trading sessions after the real estate major reported strong operational performance for Q3FY26. The company announced record quarterly achievements and significant expansion activities, demonstrating robust market demand and execution capabilities despite a challenging macroeconomic environment.

Record Pre-sales Performance

The company achieved record quarterly pre-sales of ₹56.20 billion in Q3FY26, marking a significant 25% year-on-year growth from ₹45.10 billion in Q3FY25. The strong pre-sales performance was driven by steady sustenance sales and momentum across key markets, reflecting continued demand for residential housing. On a sequential basis, pre-sales grew 23% from ₹45.70 billion in Q2FY26, demonstrating consistent quarterly momentum. Management highlighted that sustained sales momentum and a strong pipeline of launches in the March quarter are expected to help the company meet its full-year pre-sales guidance of ₹210.00 billion.

Collections and Financial Position

Collections for Q3FY26 stood at ₹35.60 billion, which was lower compared to Q3FY25 that benefited from one-off inflows from large land and office sales. The decline in collections year-on-year was primarily due to these one-off inflows in the corresponding period of the previous year, mainly from large land and office transactions. However, the company expects collections to increase meaningfully in the coming quarters. On a sequential basis, collections showed marginal improvement of 2%, signalling stabilisation in cash inflows. Despite substantial investments in business development, net debt remained at ₹61.70 billion, well below the company's ceiling of 0.5x Net debt/Equity ratio.

Significant Business Development Activities

The company demonstrated exceptional business development performance during Q3FY26, adding five projects with a combined gross development value of ₹338.00 billion across Mumbai Metropolitan Region, National Capital Region, and Bengaluru. This achievement brings the nine-month FY26 business development total to ₹588.00 billion, representing 2.35 times the annual guidance of ₹250.00 billion, improving visibility for future growth and profitability.

Strategic Expansion and Market Entry

Lodha Developers initiated its pilot operations in the National Capital Region through two projects on a joint development basis, reflecting a risk-calibrated approach to capital deployment. The company identified NCR as the second-largest housing market in India, characterized by a shortage of trusted quality developers. This strategic expansion adopts a calibrated and low-risk capital deployment strategy while maintaining the company's healthy balance sheet position.

Stock Performance and Market Outlook

Despite the strong operational performance, Lodha Developers shares closed 0.71% lower at ₹1,112.10, valuing the company at a market capitalisation of approximately ₹1.11 lakh crore. The stock's 14-day Relative Strength Index stands at 54.30, indicating neutral momentum. For the nine-month period ending Q3FY26, pre-sales reached ₹146.40 billion compared to ₹128.20 billion in the corresponding period of the previous year, marking 14% year-on-year growth.

Lodha Developers subsidiary G Corp Homes Private Limited has announced its decision to challenge a ruling by the Karnataka Real Estate Regulatory Authority (RERA) Appellate Tribunal. The company received an order directing the Karnataka RERA to seek further compliance from G Corp regarding a development project in Bengaluru.

Background and Acquisition Details

Lodha Developers acquired a 100% stake in G Corp Homes Private Limited in June 2022 for the development of remaining phases of a project in Bengaluru. The company launched the said phases after obtaining all necessary approvals from concerned authorities, including RERA.

RERA Compliance History

Initially, RERA authorities had upheld G Corp's compliances and rejected a complaint filed in relation to the development project. However, the Karnataka Real Estate Appellate Tribunal has now passed an order directing the Karnataka RERA to seek further compliance from G Corp.

Legal Challenge Strategy

G Corp Homes intends to challenge the appellate tribunal's order before the appropriate forum. The company has expressed confidence in obtaining suitable remedies against the order and remains optimistic about achieving a favorable outcome in the legal proceedings.

Regulatory Disclosure

Lodha Developers has informed stock exchanges about this development under Regulation 30 of the SEBI Listing Regulations. The company continues to maintain transparency with stakeholders regarding significant developments affecting its subsidiaries and project operations.