Lodha Developers , one of India's prominent real estate firms, has set ambitious growth targets for its Bengaluru operations while reporting strong financial performance in the first quarter of the fiscal year.

Bengaluru Expansion Plans

Lodha Developers aims to more than double its pre-sales in Bengaluru to over ₹2,000.00 crore by FY26, up from under ₹1,000.00 crore in the previous year. The company's Executive Director, Sushil Kumar Modi, confirmed that Lodha currently has three active projects in Bengaluru and has added three land parcels in the last financial year, plus one more in the current quarter.

Strong Q1 Performance

The company reported a significant 42% increase in consolidated net profit to ₹675.10 crore for the first quarter. This robust performance has contributed to Lodha's current market capitalization of ₹1,24,670.54 crore.

FY26 Outlook and Strategy

Lodha remains confident about achieving its ₹21,000.00 crore pre-sales guidance for the full year. The company expects 55-60% of its business to come in the second half, coinciding with the festive season. To support this growth, Lodha plans to launch ₹17,000.00-18,000.00 crore worth of inventory in the remaining nine months, following the ₹8,000.00 crore launch in the first quarter.

Geographical Expansion

As part of its long-term strategy, Lodha is evaluating the National Capital Region (NCR) as its next market entry. The company has set an ambitious target of ₹50,000.00 crore in sales by 2030, with over 40% expected to come from outside Mumbai.

Market Performance

Despite the positive outlook and strong quarterly results, Lodha's shares have declined over 8% in the past year, indicating potential market skepticism or broader sector challenges.

Financial Transparency

In compliance with regulatory requirements, Lodha Developers has submitted its unaudited financial results for the quarter ended June 30 to the stock exchanges. The company has also provided a Security Cover Certificate for its listed, secured, redeemable, non-convertible debentures, demonstrating its commitment to financial transparency and adherence to regulatory standards.

Lodha's strategic focus on geographical diversification, coupled with its strong financial performance, positions the company for potential growth in the coming years. However, the real estate market's inherent volatility and broader economic factors may continue to influence investor sentiment and the company's stock performance.

Lodha Developers , a prominent real estate company, witnessed a significant drop in its share price despite reporting robust quarterly results. The stock fell to its lowest level in over three months, declining 6.94% to Rs 1,190.60 on the trading day.

Strong Q1 Performance

Despite the share price decline, Lodha Developers reported impressive financial results for the first quarter:

The company's EBITDA margin expanded from 26.6% to 28.2%, showcasing improved operational efficiency.

Stock Performance and Market Sentiment

The stock extended its losses for the fifth consecutive trading session, emerging as the top loser on the NSE Nifty Realty index. Notably, the real estate sector index became the worst-performing sector during the day.

Key stock performance indicators include:

• 9.16% decline over the past 12 months
• 10.98% decrease year-to-date

Future Outlook

Despite the current stock performance, Lodha Developers maintains an optimistic outlook:

• Projected 19% pre-sales growth for the financial year 2026
• Forecasted 17% increase in operating cash flow to Rs 7,700.00 crore

Analyst Recommendations

Out of 18 analysts tracking Lodha Developers:

• 13 maintain 'Buy' ratings
• 4 recommend 'Hold'
• 1 suggests 'Sell'

The average price targets imply an 18% upside potential from the current trading price.

While Lodha Developers' strong quarterly results and positive future guidance present a contrasting picture to its current stock performance, investors and market watchers will be keen to observe how this disconnect resolves in the coming trading sessions.