Lodha reports record FY25 earnings with 71% profit growth and robust pre-sales

Why Did Lodha’s FY25 Results Set a New Benchmark in India’s Real Estate Industry?

Macrotech Developers Limited, operating under the Lodha brand, delivered its strongest financial performance to date for the financial year ending March 31, 2025. The company reported an impressive 71% surge in profit after tax (PAT) to ₹27.7 billion compared to ₹16.2 billion in FY24. Lodha’s revenue expanded by 34%, reaching ₹137.8 billion, driven by resilient demand for premium real estate offerings. The PAT margin strengthened to 20%, compared to 15% in the previous year, underscoring the company’s focus on margin enhancement and profitable growth.

Pre-sales performance reached historic highs, crossing ₹176.3 billion, marking a 21% year-on-year increase. Strong consumer demand across Mumbai Metropolitan Region (MMR), Pune, and Bengaluru supported this surge. Importantly, Lodha added 10 new projects in FY25 with a Gross Development Value (GDV) of ₹237 billion, surpassing its full-year guidance and setting the foundation for continued expansion.

What Propelled Lodha’s Q4 FY25 to Deliver Its Best Ever Quarterly Results?

During the fourth quarter, Lodha achieved pre-sales of ₹48.1 billion, a 14% increase year-on-year. Collections rose to ₹44.4 billion, reflecting a 26% surge. Revenues from operations for the quarter reached ₹42.2 billion, up by 5% year-on-year. The adjusted EBITDA grew 9% to ₹14.6 billion, while PAT expanded by 38% to ₹9.2 billion, illustrating operational resilience and efficient margin management.

The embedded EBITDA margin in Q4 stood at an impressive 32%, highlighting the company’s profitable project portfolio. Notably, FY25 marked the fifth consecutive quarter of pre-sales exceeding ₹40 billion, strengthening Lodha’s position as one of India’s most consistent real estate performers.

How Is Lodha Strengthening Its Presence in Key Markets Like Pune and Bengaluru?

Lodha’s strategic focus on expanding in high-growth cities like Pune and Bengaluru yielded impressive results. In Pune, Lodha secured over ₹25 billion in pre-sales for FY25, and expanded to nine operational locations after onboarding two additional projects contributing ₹43 billion in GDV. This aggressive expansion positions Lodha as a contender to become the leading developer in Pune’s dynamic real estate market.

In Bengaluru, Lodha entered FY26 with five strategically located projects, laying the groundwork for its next phase of growth. The company’s micro-market led “super market” strategy, tailored to target high-demand locations within cities, continues to deliver substantial growth opportunities.

How Is Lodha Managing Its Financials Amid Expansion?

Despite significant investments in business development, Lodha demonstrated strong financial discipline by reducing its net debt by ₹3.1 billion to ₹39.9 billion. This reduction brought the company’s Net Debt to Equity ratio down to a sector-leading 0.2x, well below its internal ceiling of 0.5x. Lodha’s operating cash flow generation during the quarter stood at ₹23.4 billion, enabling liquidity improvements and further deleveraging.

Moreover, India Ratings upgraded Macrotech Developers Limited’s credit rating to AA/Stable, reflecting strengthened balance sheet quality and credit profile. The company’s exit cost of debt reduced by approximately 10 basis points to 8.7%, one of the lowest in the Indian real estate industry.

How Is Lodha Driving Sustainability and Corporate Social Responsibility?

Following its “Do Good, Do Well” philosophy, Lodha remains committed to sustainable development and nation-building. Recognised by global benchmarks such as the Dow Jones Sustainability Index (DJSI), MSCI, and FTSE4Good, Lodha is contributing towards India’s 2047 vision of achieving a per capita income of US$15,000 and global leadership in environmental and social indices.

Lodha’s initiatives include maintaining over 60 million square feet of green-certified real estate and securing renewable energy through power purchase agreements exceeding 10 MW, aligned with SBTi targets. Innovations such as nature-based cooling at Palava and the “UrjaAnk” energy analysis tool further reinforce Lodha’s environmental stewardship.

Through the Lodha Foundation, the company invests in education, environment, innovation, and culture. Programs like the Lodha Genius Program, conducted in collaboration with Ashoka University, drew around 8,000 applicants this year, with 300 students selected for an advanced development experience.

Sentiment Analysis: What Are Investors and Analysts Saying About Lodha’s Stock?

Macrotech Developers Limited (NSE: LODHA) has seen its stock gain notable traction following its strong FY25 performance. As of April 25, 2025, Lodha’s stock was trading at ₹1,305.10, reflecting a 7.88% increase over the past month and an 18.69% gain over the previous three months. The stock has maintained levels above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a firmly positive trend.

Lodha’s current Price-to-Earnings (P/E) ratio stands at 47.00x, significantly lower than the industry average of 121.65x, suggesting that the stock remains attractively valued relative to peers. Institutional sentiment has been bullish, with Foreign Institutional Investors (FIIs) marginally increasing their stake from 24.45% to 24.64% and mutual funds raising their holdings from 0.71% to 0.74% during the March 2025 quarter.

Given the company’s robust financial fundamentals, sustained pre-sales momentum, sector leadership in premium residential offerings, and strengthened ESG initiatives, investment analysts are leaning towards a “Buy” recommendation. Lodha’s low net debt, reduced cost of capital, and operational expansions into fast-growing urban centres reinforce the positive investment outlook.

Market experts also point to the company’s large integrated townships, like Palava, and scalable digital platform initiatives through Bellevie, as competitive advantages expected to support future growth and drive further upside in stock performance.

How Lodha’s FY25 Performance Sets the Stage for Accelerated Growth

The record-setting performance in FY25 has fortified Lodha’s position as India’s leading real estate brand with a scalable, sustainable, and profitable growth model. With significant operational momentum in place, strong liquidity, and expanding geographical footprints, Lodha is well positioned to achieve consistent double-digit growth in FY26 and beyond.

The company’s strategic investments in emerging urban clusters, ongoing debt reduction, continued focus on green building practices, and sustained institutional investor confidence suggest a positive trajectory not just for its financial results but also for long-term shareholder value creation. Lodha’s vision of “Building a Better Life” appears well aligned with the growing aspirations of urban India and the evolving expectations of responsible capital markets.