Lodha Developers to Raise ₹5,000 Crore via NCDs for Expansion
Lodha Developers, a leading real estate firm, has approved a plan to raise ₹5,000 crore through non-convertible debentures (NCDs) to diversify its debt pool and reduce the cost of funds. This move is part of the company's strategy to expand its business further in Mumbai, Pune, and Bengaluru.
Real EstateNcdsLodha DevelopersExpansionFundraisingReal Estate MumbaiAug 11, 2025
The company will raise the amount from time to time, in one or more tranches, on a private placement basis. It has approved an enhancement of the borrowing limit from Rs 3,000 crore to a maximum outstanding amount of Rs 5,000 crore.
The fundraising is aimed at diversifying the debt pool, enabling a continued reduction in the cost of funds on targeted debt capital, Lodha said.
As of the first quarter of the financial year 2026 (Q1 FY26), the company’s net debt stood at Rs 5,080 crore, with a net debt-to-equity ratio of 0.24x, below its target ceiling of 0.5x. Net debt in Q1 FY26 rose by about Rs 1,100 crore due to investment in business development.
In Q1 FY26, Lodha added five new projects across the Mumbai metropolitan region, Pune, and Bengaluru, with a gross development value (GDV) of Rs 22,700 crore, achieving more than 90 per cent of its FY26 business development guidance.
Since its initial public offering in April 2021, the company has added 48 projects with a GDV of over Rs 1 trillion to its portfolio.
“Our exit cost of debt for Q1 FY26 stands at 8.3 per cent, down 40 basis points for the quarter — among the lowest in the industry,” Abhishek Lodha, managing director and chief executive officer, had said while announcing the company’s financial results last month.
The company’s profit attributable to owners for Q1 FY26 grew about 42 per cent year-on-year (YoY) to Rs 674.7 crore. Lodha attributed the rise to revenue growth, significant operating leverage, and financial leverage.
Revenue from operations in Q1 FY26 increased 22.66 per cent YoY to Rs 3,491.7 crore, supported by “industry tailwinds”. The firm also reported its best-ever Q1 pre-sales performance, with Rs 4,450 crore in pre-sales, up 10 per cent YoY.
The company’s shares closed at Rs 1,224.40 on the Bombay Stock Exchange on Monday.
Frequently Asked Questions
What is the main purpose of Lodha Developers raising ₹5,000 crore through NCDs?
The main purpose of raising ₹5,000 crore through NCDs is to diversify the debt pool and reduce the cost of funds, enabling the company to expand its business further in Mumbai, Pune, and Bengaluru.
How much has Lodha Developers' net debt increased in Q1 FY26?
Lodha Developers' net debt in Q1 FY26 rose by about Rs 1,100 crore due to investment in business development.
What is the current net debt-to-equity ratio of Lodha Developers?
The current net debt-to-equity ratio of Lodha Developers is 0.24x, which is below its target ceiling of 0.5x.
How many new projects did Lodha Developers add in Q1 FY26, and what is their total GDV?
In Q1 FY26, Lodha Developers added five new projects with a gross development value (GDV) of Rs 22,700 crore.
What was the percentage increase in Lodha Developers' profit attributable to owners in Q1 FY26?
Lodha Developers' profit attributable to owners for Q1 FY26 grew about 42 per cent year-on-year (YoY) to Rs 674.7 crore.
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