Lodha's margin slips 5.16 points QoQ despite 17.61% YoY revenue growth
Costs fell less than revenue sequentially, while a higher tax rate limited the conversion of 39.68% YoY pre-tax profit growth into net profit.
Filed 30 Oct 2026, 17:50 IST · after market close · Lodha Developers Ltd (LODHA)
Key takeaways
- Lodha's consolidated operating margin fell 5.16 percentage points QoQ to 33.31% as revenue declined faster than expenses.
- Revenue grew 17.61% YoY while expenses rose 10.76%, lifting operating margin by 4.12 percentage points.
- Net profit rose 28.32% YoY, but the tax rate increased 6.68 percentage points and other income contributed 9.08% of pre-tax profit.
Price around the results
Sequential slowdown reverses the recent margin climb
Lodha reported consolidated revenue growth of 17.61% YoY, but revenue fell 10.59% QoQ in Q2FY27. Sequentially, expenses declined only 3.10%, so costs grew faster than revenue on a relative basis and operating margin narrowed by 5.16 percentage points to 33.31%. This was the first margin decline after four quarters of improvement from Q1FY26 through Q1FY27.
YoY operating leverage remains visible, but tax rose
On a YoY basis, revenue grew faster than expenses, which expanded operating margin by 4.12 percentage points. Profit before tax rose 39.68%, ahead of the 28.32% increase in net profit, as the tax rate increased by 6.68 percentage points to 24.48%. Other income accounted for 9.08% of pre-tax profit, making it a meaningful but not dominant contributor to reported earnings.
Margin remains well above the reporting peer median
Lodha's 33.31% operating margin was 20.81 percentage points above the 12.50% median for the 115 Consumer Discretionary peers that had reported the quarter. This keeps the company's margin among the higher readings in the sector despite the sequential contraction.
Management outlines data-centre and land monetisation plans
Management said it plans to monetise another 143 acres over the next three to four years for about Rs 90bn, with the proceeds expected to support a 1 GW power shell generating more than Rs 20bn of annual rental income. The presentation said Phase 1 of the Navi Mumbai data-centre park will cover 3.5 GW across 365 acres, with 132 acres sold as of September 30, 2026. Management also said it maintains a net debt-to-equity ceiling of 0.5x.
No immediate market reaction after the after-close filing
The results were filed after market close, so the stock has not yet had a market response. After its previous eight results, the stock rose six times and fell twice, with a median absolute move of 2.40%, providing the relevant historical context for the eventual reaction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,467 cr | ₹4,997 cr | -10.59% | +17.61% |
| Other income | ₹122 cr | ₹102 cr | +19.74% | +52.57% |
| Expenses | ₹2,979 cr | ₹3,074 cr | -3.10% | +10.76% |
| Operating profit | ₹1,488 cr | ₹1,922 cr | -22.58% | +34.23% |
| Operating margin (%) | 33.31% | 38.47% | — | — |
| Interest | ₹185 cr | ₹179 cr | +3.46% | +18.40% |
| Depreciation | ₹83 cr | ₹69 cr | +19.80% | +16.11% |
| Profit before tax | ₹1,342 cr | ₹1,776 cr | -24.43% | +39.68% |
| Tax | ₹329 cr | ₹403 cr | -18.45% | +92.11% |
| Net profit | ₹1,014 cr | ₹1,373 cr | -26.19% | +28.32% |
| EPS (₹) | ₹10.14 | ₹13.73 | -26.15% | +28.35% |
Operating margin of 33.31% compares with a Consumer Discretionary sector median of 12.50% across 115 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company states a net debt-to-equity ceiling of 0.5x.
- The company plans to monetize another 143 acres over the next three to four years for about INR 90bn.
- The monetization plan is expected to support 1 GW of power shell and generate more than INR 20bn of annual rental income.
- The company says it is on track to achieve its SBTi target covering Scope 1, 2 and 3.
Expansion
- Phase 1 of the Navi Mumbai data centre park will cover 3.5 GW on 365 acres, with 132 acres already sold by September 30, 2026.
- The company has tied up more than INR 1tn of GDV and about 37msf of development potential across 36 MMR projects.
New initiatives
- The Lodha Genius Programme identifies and nurtures India's brightest young minds with partner institutions.
- The Lodha Community Development Programme focuses on healthcare access, awareness, upskilling and livelihood enablement.
What to watch
- Whether consolidated operating margin holds above 33.31% after the 5.16 percentage-point sequential decline.
- Whether the tax rate moves below or above 24.48% in the next quarter.
- Progress from the 132 acres already sold in the Navi Mumbai data-centre park and against management's stated 143-acre monetisation plan.