Lodha sets benchmark with record pre-sales and debt reduction in Q3 FY25

India‘s leading real estate developer, Macrotech Developers Limited, trading as Lodha, delivered its best-ever quarterly performance in the third quarter of FY25, setting new benchmarks in sales, profitability, and financial management. The company announced an unprecedented pre-sales achievement of ₹45.1 billion, representing a 32% year-on-year (YoY) growth.

Supported by strong operating cash flows, Lodha also reduced its net debt by ₹6.1 billion, bringing it down to ₹43.1 billion, with a debt-to-equity ratio of 0.22x—well below the company’s stated ceiling of 0.5x. Lodha’s exceptional Q3 performance demonstrates its strategic focus on sustainable growth, operational excellence, and fiscal discipline.

Abhishek Lodha, Managing Director and CEO, highlighted the company’s consistent performance, stating, “We have now achieved pre-sales of over ₹40 billion for four consecutive quarters, reflecting our commitment to delivering predictable and profitable growth. Our robust embedded EBITDA margins of 35% underline our ability to balance profitability with operational efficiency.”

What fueled Lodha’s revenue and profitability surge?

Lodha’s Q3 FY25 operational and financial metrics reveal an all-around growth trajectory:

• Revenues from operations surged to ₹40.8 billion, a 39% YoY increase.
• Adjusted EBITDA rose by 48% YoY to ₹15.9 billion, reflecting strong margin management.
• Net profit soared by 66% YoY to ₹9.4 billion, underlining the company’s superior execution and financial prudence.
• Collections touched a record ₹42.9 billion, up 66% YoY, highlighting the strength of its customer-centric approach and project execution capabilities.

The company’s performance in FY25 reflects not just market demand but also its strategic expansion into new geographies, timely project launches, and alignment with customer preferences.

How is Lodha expanding its footprint in Bengaluru and other key markets?

A cornerstone of Lodha’s growth strategy is its geographical diversification. The company added its fifth project in Bengaluru, with a gross development value (GDV) of ₹28 billion. This expansion signals Lodha’s strategic intent to deepen its presence in high-growth markets outside its traditional stronghold in the Mumbai Metropolitan Region (MMR).

Across the first nine months of FY25, Lodha secured business development projects worth ₹195 billion in GDV across Bengaluru, Pune, and MMR. These achievements represent over 90% of its full-year guidance, positioning the company for sustained growth in FY26 and beyond.

What role does sustainability play in Lodha’s strategy?

Sustainability is at the core of Lodha’s vision. The company retained its prestigious position in the Dow Jones Sustainability Index (DJSI), one of only three real estate companies from emerging markets to make the list. Furthermore, the World Benchmarking Alliance ranked Lodha third globally and first in India among 300 companies shaping urban environments.

Lodha’s sustainability initiatives include decarbonization efforts, the development of low-carbon concrete mixes, and the implementation of urban heat mitigation measures to reduce environmental impact. Through its Net Zero Urban Accelerator, the company continues to advance energy-efficient and sustainable urban solutions.

How is Lodha strengthening its digital infrastructure business?

In addition to its residential and commercial developments, Lodha is scaling up its digital infrastructure portfolio. In Q3 FY25, the company acquired 33 acres of land in the National Capital Region (NCR) for its warehousing and industrial business. Lodha also expanded its joint venture in the digital infrastructure platform, reinforcing its position in this high-growth segment.

These strategic investments align with Lodha’s broader objective of diversifying revenue streams and tapping into new growth verticals.

What sets Lodha apart in the real estate sector?

Lodha’s commitment to financial discipline and operational efficiency sets it apart from peers. The company’s cost of debt continues to decline, reaching an industry-leading 8.8% in Q3 FY25. This financial resilience was acknowledged by credit ratings agency ICRA, which revised Lodha’s outlook to ‘Positive’ (AA-/Positive).

Despite significant investments in new projects, Lodha’s ability to generate operating cash flows—₹24 billion in Q3 alone—enabled it to achieve substantial debt reduction. This balance between growth and financial stability underscores the company’s strategic acumen.

What are the philanthropic goals of the Lodha family?

The Lodha Philanthropic Foundation (LPF), endowed with a corpus of ₹200 billion, represents the family’s commitment to holistic development. LPF focuses on three critical areas: education and innovation excellence, environmental sustainability, and cultural preservation. Guided by a board of esteemed advisors, LPF aims to significantly scale its activities over the next 18 months, aligning its goals with India’s aspiration to become a developed nation by 2047.

Building a Better Future

Lodha’s Q3 FY25 results reaffirm its leadership in India’s real estate sector. With a focus on sustainable development, fiscal prudence, and market diversification, the company is well-positioned to capitalize on future growth opportunities. As Lodha continues to deliver on its promise of “Building a Better Life,” it is setting new benchmarks in innovation, sustainability, and financial excellence.