Real estate developer Lodha Developers is firmly positioned on a strong growth trajectory, underpinned by an aggressive launch pipeline, expanding geographic footprint and rising annuity income, according to Mirae Asset Sharekhan.
The brokerage remains positive on the stock, on the back of robust execution, infrastructure-led demand tailwinds and improving cash flow visibility, and sees an upside potential of about 43 per cent from current levels.
“We stay Positive on Lodha Developers, expecting an upside of ~43 per cent, driven by sustained momentum in housing demand and a strong execution track record,” Mirae Asset Sharekhan said, in a note dated December 24, 2025.
On the bourses, meanwhile, Lodha Developers share price was trading 0.09 per cent lower at ₹1,078.40 per share around 10:50 AM. By comparison, BSE Sensex was trading 0.21 per cent lower at 85,226.75 levels.
A key highlight of the current fiscal has been Lodha’s sharp acceleration in project additions, analysts said. The company achieved its full-year FY26 guidance of ₹25,000 crore in gross development value (GDV) additions entirely within the first half, adding six projects across regions. This early achievement has prompted management to signal the possibility of bettering its full-year guidance. With most new launches and phase additions scheduled for the second half, Lodha remains on track to meet its FY26 pre-sales target of ₹21,000 crore.
Strong launch pipeline to drive FY26 pre-sales
Mirae Asset Sharekhan analysts noted that Lodha has already achieved 43 per cent of its full-year pre-sales target in H1FY26. For the second half, the company expects pre-sales of ₹4,000-4,500 crore from new launches and ₹7,000-7,500 crore from ongoing projects. The launch pipeline for H2FY26 is particularly strong across the Mumbai Metropolitan Region (MMR), Pune and Bengaluru, with an estimated GDV of around ₹14,000 crore, which is expected to drive sequential acceleration in sales.
Palava township and data centre platform emerge as key value drivers
One of the most major long-term value drivers highlighted in the note is the Palava township and its integrated data centre platform. Lodha’s 400-acre data centre park at Palava has a planned power capacity of 3 GW, with all key approvals in place. The company has already secured Amazon Web Services and STT GDC as anchor clients. In addition, an MoU with the Maharashtra government under the green digital infrastructure policy is expected to provide benefits exceeding $1 billion for the project. Reflecting strong demand, land values for data centres at Palava have risen from about ₹21 crore to ₹30 crore per acre, implying residual land value of nearly ₹10,000 crore and boosting long-term value visibility.
Beyond data centres, analysts believe, Palava is expected to emerge as a major residential growth engine. Lodha is targeting annual residential sales of around ₹8,000 crore from the township by the end of the decade, with Ebitda margins of about 50 per cent. Premium products are expected to account for nearly half of sales, up from around 20 per cent currently, supported by infrastructure-led premiumisation.
Annuity income, multi-city expansion strengthen earnings visibility
The company is also steadily scaling its annuity income portfolio, which Mirae Asset Sharekhan sees as a key stabiliser for earnings. Lodha is targeting ₹1,500 crore of rental and service income by FY31 from retail, office, warehousing and facilities management, a six-fold increase from around ₹250 crore in FY25. This annuity stream is expected to cover almost the entire interest and employee cost base, considerably improving earnings stability.
Geographically, Lodha continues to widen its footprint. In Pune, pre-sales have grown from ₹200 crore in FY21 to about ₹2,500 crore in FY25, with ₹1,400 crore already achieved in H1FY26. The company is currently the second-largest developer in Pune and is targeting the top position within two years. In Bengaluru, Lodha plans to add more locations and aims for a 15 per cent market share over the medium term. Entry into the NCR market is planned through a measured pilot phase, with launches targeted for FY27.
Management has reaffirmed its FY26 guidance, including pre-sales of ₹21,000 crore, embedded Ebitda margins of around 33 per cent, operating cash flow of ₹7,700 crore, price growth of 5-6 per cent and net debt-to-equity below 0.5x.
Mirae Asset Sharekhan analysts said Lodha’s dominant position in MMR, expansion into other high-growth cities, improving product mix and monetisation of its large land bank mark a transition from expansion-led growth to an execution- and cash flow-driven phase.
While risks remain from a potential slowdown in real estate demand or adverse macroeconomic conditions, the brokerage remains constructive on the stock, citing strong structural demand and a consistent execution track record.
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