Jefferies Sees 48% Upside in Lodha Developers After Impressive Q3 Results
Lodha Developers, a leading real estate developer in India with a robust presence in major cities like MMR, Pune, and Bengaluru, has reported impressive Q3 FY26 results. The company's shares have been on an upward trajectory, driven by strong pre-sales and a solid project pipeline. With a market capitalization of Rs 1,08,750 crore, the shares of Lodha Developers Ltd closed at Rs 1,089, trading at a PE ratio of 32.7, slightly below the industry average of 34.1. Since its listing in April 2021, the stock has delivered a remarkable return of over 300%.
The Lodha Developers Q3 FY26 updates are truly stellar, as they have logged their highest-ever quarter of pre-sales at Rs 56.2 billion, marking a significant 25% YoY growth and a 23% QoQ increase. Notably, the company has already achieved nearly 70% of its FY26 pre-sales guidance in Q3, setting a robust foundation for H2 FY26.
One of the major positives in the quarter came through the quality of growth, aided by sustained sales and a robust product launch pipeline in Q4. Despite collections being lower at Rs 35.6 billion in YoY terms due to last year's special income, the management is optimistic that collections will scale up significantly in the coming quarters.
Another significant highlight was business development, with the addition of five new projects in Q3, bringing a GDV of Rs 338 billion in MMR, NCR, and Bengaluru. This has propelled 9MFY26 business development to Rs 588 billion, surpassing the full-year guidance by 2.3 times, thereby enhancing revenue visibility. However, the company's net debt remains within constraints at Rs 61.7 billion.
Jefferies has issued a 'Buy' recommendation on Lodha Developers with a price target of Rs 1,650, indicating an upside potential of around 48% from the current level of Rs 1,111.7. The broking house has highlighted record pre-sales in Q3, solid additions to projects, and a positive outlook on preserving pre-sales growth, which may further help improve margins in the medium term.
Nomura has also maintained a 'Buy' recommendation with a target price of Rs 1,450, suggesting an upside of around 30% from the current price of Rs 1,111.7. Nomura's positive view is inspired by Lodha's highest quarterly pre-sales, rapid achievement of a significant part of FY26 guidance, and solid business growth momentum, providing a basis for growth clarity through FY27.
Financially, Lodha Developers reported a revenue from operations of Rs 3,798 crores in Q2 FY26, a 45% increase from Rs 2,626 crores in Q2 FY25. The net profit for Q2 FY26 stood at Rs 790 crore, up from Rs 423 crore in Q2 FY25. Lodha is a well-established realty player in India, known for developing high-quality residential and commercial projects with a focus on design and liveability. The company is committed to well-planned projects, customer-friendly delivery, and sustainable building practices, often collaborating with renowned architects to create iconic projects.
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