Lodha Developers: Mid-Income Housing Demand Surges, Price Growth to Moderate
Lodha Developers, a leading real estate developer, expects a 5-6% average price growth in FY26. The company is witnessing a significant demand pick-up in the mid-income residential segment, leading to a slight dip in sales realisation. Lodha also has ambitious plans to become the largest developer in Pune within the next two years and is expanding into the data centre business.
Real EstateLodha DevelopersMidincome HousingData CentresPuneReal Estate PuneNov 01, 2025
There may be a slight dip in sales realisation or price growth in the near term due to the pick-up in the mid-income residential segment. The management attributes this to the current dynamics in the market, where the mid-income segment is seeing a surge in demand. This segment now accounts for about half of the company's total sales in residential projects.
"We have about 12% to 15% coming from the luxury segment and the balance from the basic segment," the management explained. The company does not hold the view that only the luxury or mid-income segments will perform. Instead, they are witnessing a shift in demand this year, driven by government support such as interest rate cuts and income tax cuts. This has led to a moderate average price growth, which the management expects to continue in FY26.
The contribution from newly launched projects to total sales was in the mid-30s in FY25, and the company expects this trend to continue in FY26. In the 12 months ending September, Lodha faced specific challenges, including delays in environmental approvals for new projects. However, the management is confident that more sales from newly launched projects will occur in the second half of the fiscal year (October to March) as more launches are scheduled for this period.
Lodha Developers is also scaling up its operations in Bangalore and Pune. The company expects about 30% or more of its pre-sales to come from these two cities in the current fiscal year. The Pune team has grown in size and capacity across various functions, including sales, design, construction, business development, and customer service. The management is confident of becoming the largest developer in Pune within the next two years and has planned new launches in Pune East and West, along with subsequent phases of existing projects.
In addition to its core real estate business, Lodha Developers is exploring opportunities in the data centre sector. The company sees significant potential in this area, particularly with the growth of cloud computing, artificial intelligence, and digital services. Lodha has already started work on a data centre park and has secured two anchor customers, including Amazon Web Services. The company signed a memorandum of understanding with the Maharashtra government to set up a data centre park, which is expected to have a planned capacity of 2 gigawatts. The park will be powered by green and alternative energy sources, and the government is offering significant incentives to operators setting up data centres in the park.
"We now have a dedicated team working to put together a business plan to capitalize on this opportunity in the data centre business beyond the land shares. And that business plan is currently underway," the management said. The company will provide more updates on the business plan in the upcoming quarter.
Lodha Developers reported a consolidated net profit of INR 7.89 billion in the September quarter, up nearly 87% year-over-year and 17% quarter-over-quarter. Its consolidated revenue for the quarter grew nearly 45% year-over-year and 9% quarter-over-quarter to INR 37.99 billion. Shares of the company closed over 2% higher at INR 1,197.90 on the National Stock Exchange on Friday.
Lodha Developers is a leading real estate developer in India, known for its high-quality residential and commercial projects. The company operates across various segments, including luxury, mid-income, and basic residential properties. With a strong presence in major cities like Mumbai, Pune, and Bangalore, Lodha continues to expand its footprint and diversify its portfolio to meet the evolving needs of the market.
Frequently Asked Questions
What is Lodha Developers' expected average price growth for FY26?
Lodha Developers expects an average price growth of 5-6% in its real estate business for the financial year 2025-26.
Why is there a slight dip in sales realisation or price growth?
The slight dip in sales realisation or price growth is due to the pick-up in the mid-income residential segment, which tends to moderate pricing growth.
What is Lodha Developers' plan for Pune?
Lodha Developers aims to become the largest real estate developer in Pune within the next two years and has planned new launches in Pune East and West.
What is Lodha Developers' entry into the data centre business?
Lodha Developers is exploring significant opportunities in the data centre sector and has started work on a data centre park with two anchor customers, including Amazon Web Services.
What was Lodha Developers' financial performance in the September quarter?
Lodha Developers reported a consolidated net profit of INR 7.89 billion, up nearly 87% year-over-year and 17% quarter-over-quarter, and a consolidated revenue of INR 37.99 billion, growing nearly 45% year-over-year and 9% quarter-over-quarter.
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