Lodha margin jumps 10.78 points as Q1 revenue rises 43.10% YoY
Costs grew slower than revenue, while a 2.57-point fall in the tax rate also supported the 103.39% increase in net profit.
Filed 24 Jul 2026, 18:36 IST · after market close · Lodha Developers Ltd (LODHA)
Key takeaways
- Consolidated net profit rose +103.39% YoY as revenue grew +43.10% while expenses increased only +22.16%.
- Operating margin expanded 10.78 percentage points YoY to 37.09%, reversing the dip to 27.62% in Q4FY26.
- Management reported Q1FY27 pre-sales of INR 46.3 billion, up 4.00% YoY, while collections rose 46.00% to INR 42.1 billion.
Price around the results
Revenue momentum lifted Q1FY27 profit growth
Lodha Developers' consolidated revenue rose +43.10% YoY, while operating profit increased +101.76% and net profit advanced +103.39%. Sequentially, revenue grew +6.01%, but operating profit rose +42.33% as expenses fell -7.86%. The results were filed after market close.
Lower cost growth drove the margin rebound
Expenses grew +22.16% YoY against revenue growth of +43.10%, widening operating margin by 10.78 percentage points; sequentially, the margin expanded 9.47 percentage points. Other income contributed 5.64% of profit before tax, so it was not the main source of earnings growth. The 2.57-percentage-point YoY fall in the tax rate also aided net profit, while interest expense rose +21.18%.
Margin recovered sharply after the Q4FY26 dip
Operating margin moved from 26.31% in Q1FY26 to 27.31% in Q2FY26, 28.20% in Q3FY26 and 27.62% in Q4FY26 before rising to 37.09% in Q1FY27. Lodha's margin was 20.95 percentage points above the 16.14% median among 22 Consumer Discretionary peers that had reported the quarter. This was a sharp rebound, not a continuation of the prior quarter's decline.
Collections outpaced pre-sales in management's Q1 update
Management reported Q1FY27 pre-sales of INR 46.3 billion, up 4.00% YoY, and collections of INR 42.1 billion, up 46.00% YoY. The company said its FY27 pre-sales guidance is INR 240 billion and that H1 sales are expected to be in the low 40s percentage range, with the balance in H2. Management also said it has 660 acres of approved, shovel-ready land around Navi Mumbai for a data centre park, with 3 GW of power availability.
A market reaction is still pending
The results were filed after close, so there is no post-results market reaction to assess yet. After the last eight results, the stock rose five times and fell three times, with a median absolute move of 2.39%. That history provides the reference range for the eventual response to this quarter.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,997 cr | ₹4,714 cr | +6.01% | +43.10% |
| Other income | ₹100 cr | ₹127 cr | -21.26% | -24.81% |
| Expenses | ₹3,144 cr | ₹3,412 cr | -7.86% | +22.16% |
| Operating profit | ₹1,853 cr | ₹1,302 cr | +42.33% | +101.76% |
| Operating margin (%) | 37.09% | 27.62% | — | — |
| Interest | ₹179 cr | ₹167 cr | +6.99% | +21.18% |
| Depreciation | ₹69 cr | ₹111 cr | -37.43% | +5.01% |
| Profit before tax | ₹1,774 cr | ₹1,262 cr | +40.62% | +96.32% |
| Tax | ₹403 cr | ₹256 cr | +57.47% | +76.36% |
| Net profit | ₹1,373 cr | ₹1,008 cr | +36.21% | +103.39% |
| EPS (₹) | ₹13.73 | ₹10.09 | +36.08% | +103.11% |
Operating margin of 37.09% compares with a Consumer Discretionary sector median of 16.14% across 22 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q1FY27 pre-sales were INR 46.3 billion, up 4% year on year.
- Q1FY27 collections were INR 42.1 billion, up 46% year on year.
Guidance & outlook
- FY27 pre-sales guidance is INR 240 billion.
- The company expects H1 sales to be in the low 40s percentage range, with the balance in H2.
Expansion
- The company has 660 acres of shovel-ready land around Navi Mumbai with approvals for its data centre park.
- The Navi Mumbai data centre park has 3 GW of power availability, with further augmentation planned.
- The company plans to monetize about 143 acres over the next three to four years, generating approximately INR 90 billion.
- The data centre land monetization will fund a 1 GW power-shell buildout expected to generate over INR 20 billion of annual rental income.
- The company has tied up INR 999 billion of GDV and development potential of about 36 msf across 35 MMR projects.
New initiatives
- The company has about 10 MW of renewable electricity PPAs and an additional 15 MW in the pipeline.
- The company pioneered LC3 concrete in road infrastructure as a sustainable construction initiative.
- The company piloted IoT sensors for real-time concrete-strength monitoring and easier incorporation of new SCM.
- The company initiated a Dombivli flood-risk and mitigation study with planning and technology partners.
What to watch
- Whether consolidated operating margin remains above 37.09% after the Q1FY27 rebound.
- Whether collections stay close to the Q1FY27 level of INR 42.1 billion as pre-sales were up 4.00% YoY.
- How reported H1 sales track management's stated low 40s percentage share of the year.