Lodha Developers has reported strong performance in the third quarter with a notable 25% year-over-year growth in pre-sales. This achievement reflects the company's robust market position and effective sales execution in the competitive real estate sector.

Q3 Pre-Sales Performance

The company's pre-sales growth of 25% year-over-year represents a significant milestone, demonstrating strong customer demand and successful project execution. This performance indicates the effectiveness of Lodha Developers' sales strategies and market positioning during the quarter.

Market Position and Growth

The substantial growth in pre-sales reflects Lodha Developers' ability to capitalize on market opportunities and maintain strong customer engagement. This performance demonstrates the company's continued focus on delivering value to customers while expanding its market presence.

The 25% year-over-year increase in Q3 pre-sales showcases the company's operational efficiency and market responsiveness. This growth trajectory indicates positive momentum in the real estate sector and validates the company's strategic approach to business development.

Business Outlook

The strong pre-sales performance positions Lodha Developers favorably in the real estate market, reflecting both market demand and the company's execution capabilities. This achievement underscores the effectiveness of the company's sales and marketing initiatives during the quarter.

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.