Lodha Share Price in Focus: Reports Strong Q1 FY26 Financial and Operational Performance

On July 28, Lodha share price fell by over 3%, reaching a day low of ₹1,191.35 at 12:55 PM, after opening at ₹1,279.25 on BSE. The fall in Lodha share price came after the release of Q1FY26 results. Lodha marked its strongest Q1 pre-sales performance to date. The company achieved a robust Embedded EBITDA margin of 33%, underscoring its operational efficiency.

The company attributes its strong performance to favourable structural industry trends, including low home-ownership rates, rising household incomes, strong affordability, and historically low mortgage rates. These factors, coupled with increasing consumer preference for high-quality homes from reputed developers like Lodha, form the foundation of its strategy to sustain 20% topline growth in the coming years.

Strategic Growth and Business Development

Benefiting from recent interest rate and income tax cuts, Lodha has witnessed a rise in mid-income segment demand, with expectations for further strengthening in the second half of FY26. Impressively, the company has already achieved over 90% of its FY26 business development target in just the first quarter.

During Q1, Lodha launched five new projects across prime locations in Mumbai Metropolitan Region (MMR), Pune, and Bengaluru, with a combined Gross Development Value (GDV) potential of ₹227 billion. This addition brings the total GDV secured since the company’s IPO to over ₹1 trillion across 48 projects. This milestone highlights Lodha’s strong brand appeal among landowners and the effective execution of its ‘super market’ land acquisition strategy in key micro-markets.

Strong Financial Discipline and Capital Efficiency

Despite substantial investments in business development during the quarter, Lodha’s net debt remains conservative at ₹50.8 billion, reflecting a Net Debt to Equity ratio of 0.24x—well below the company’s threshold of 0.5x. Additionally, the company’s exit cost of debt for Q1 FY26 has declined by 40 basis points to 8.3%, positioning it among the lowest cost lenders in the sector.

Also Read: CDSL Q1FY26 Results: Revenue Up 3%, While NPAT Slipped 24% Due to Operational Challenges 

Outlook

Lodha’s impressive 42% year-on-year PAT growth, supported by a 23% revenue increase and significant operational and financial leverage, reinforces the company’s outlook for sustained, predictable growth driven by strong fundamentals and disciplined execution.

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