Lodha Developers Limited Q3 FY2026 Results
📊
Overview
📋
Detailed Analysis
Sentiment
Mixed
Executive Summary
Lodha Q3 FY26: Revenue ₹4,672.5 Cr (vs ₹4,083.0 Cr YoY), PAT ₹957.7 Cr (vs ₹944.8 Cr YoY)
In Q3 FY26 (quarter ended 31-Dec-2025) Lodha reported consolidated Revenue from Operations of ₹4,672.5 Cr and Total Income of ₹4,775.4 Cr, up YoY reflecting stronger project sales; consolidated Net Profit was ₹957.7 Cr. Profit before tax was ₹1,243.1 Cr and Basic EPS was ₹9.59 for Q3 FY26. Cost of projects increased, while finance costs rose, compressing operating margin versus the prior-year quarter. Management disclosed continued corporate actions (merger processes and ESOP allotment) and maintained focus on balance-sheet metrics such as Net Debt/Equity.Revenue from Operations (Consolidated)
₹4,672.5 Crvs ₹4,083.0 Cr in Q3 FY25
Net Profit (Consolidated)
₹957.7 Crvs ₹944.8 Cr in Q3 FY25
Profit Before Tax (Consolidated)
₹1,243.1 Crvs ₹1,158.5 Cr in Q3 FY25
Cost of Projects
₹2,742.5 Crvs ₹2,399.5 Cr in Q3 FY25
Finance Costs
₹185.0 Crvs ₹144.1 Cr in Q3 FY25
Operating Margin
31.97%vs 38.85% in Q3 FY25
Net Profit Margin
20.05%vs 22.78% in Q3 FY25
Basic EPS
₹9.59 per sharevs ₹9.48 per share in Q3 FY25
Key Highlights
10
Consolidated Revenue from Operations for Q3 FY26 rose to ₹4,672.5 Cr driven by higher project sales compared with ₹4,083.0 Cr in Q3 FY25, indicating demand momentum in the quarter.
Consolidated Net Profit for Q3 FY26 was ₹957.7 Cr, marginally higher than ₹944.8 Cr in Q3 FY25, supported by higher total income including other income of ₹102.9 Cr.
Cost of Projects increased to ₹2,742.5 Cr in Q3 FY26 from ₹2,399.5 Cr in Q3 FY25, which materially weighed on operating margin compression versus the prior-year quarter.
Finance Costs rose to ₹185.0 Cr in Q3 FY26 from ₹144.1 Cr in Q3 FY25, reflecting higher interest expense and putting pressure on interest coverage metrics despite healthy EBITDA.
Operating Margin compressed to 31.97% in Q3 FY26 from 38.85% in Q3 FY25 due to a combination of higher cost of projects and elevated finance costs, reducing margin headroom.
Other Income in Q3 FY26 was ₹102.9 Cr, up from ₹63.6 Cr in Q3 FY25, providing incremental non-operating support to PBT and PAT.
+4 more in Detailed Analysis →
Key Highlights
10
Consolidated Revenue from Operations for Q3 FY26 rose to ₹4,672.5 Cr driven by higher project sales compared with ₹4,083.0 Cr in Q3 FY25, indicating demand momentum in the quarter.
Consolidated Net Profit for Q3 FY26 was ₹957.7 Cr, marginally higher than ₹944.8 Cr in Q3 FY25, supported by higher total income including other income of ₹102.9 Cr.
Cost of Projects increased to ₹2,742.5 Cr in Q3 FY26 from ₹2,399.5 Cr in Q3 FY25, which materially weighed on operating margin compression versus the prior-year quarter.
Finance Costs rose to ₹185.0 Cr in Q3 FY26 from ₹144.1 Cr in Q3 FY25, reflecting higher interest expense and putting pressure on interest coverage metrics despite healthy EBITDA.
Operating Margin compressed to 31.97% in Q3 FY26 from 38.85% in Q3 FY25 due to a combination of higher cost of projects and elevated finance costs, reducing margin headroom.
Other Income in Q3 FY26 was ₹102.9 Cr, up from ₹63.6 Cr in Q3 FY25, providing incremental non-operating support to PBT and PAT.
Key balance-sheet ratios remain healthy
Audit/limited review concluded with unmodified conclusion and the Board approved unaudited consolidated results on 28-Jan-2026, removing near-term audit uncertainty.
Company allotted 2,57,854 equity shares during the quarter on exercise of ESOPs, a corporate action noted in the notes that modestly increased paid-up capital.
Group continues to operate as a single reportable segment (real estate development) and the results reflect India-only operations as stated in the notes.
Guidance & Outlook
4
Management signalled ongoing focus on balance-sheet metrics and debt coverage as reflected by disclosure of multiple NCD security-cover certificates, indicating priority on debt servicing and refinancing flexibility.
Given higher finance costs reported in Q3 FY26, management is likely to prioritise interest-cost control and collection efficiencies in ensuing quarters to protect margins.
The company is progressing merger schemes (merger by absorption of listed subsidiaries) and notes filings with NCLT are in process, which could simplify structure and drive equity consolidation ahead.
No material capex guidance was disclosed in the quarterly notes; the Group continues to monitor regulatory changes (new labour codes) and expects no material impact so far.
Risks & Concerns
5
Operating margin contraction from 38.85% in Q3 FY25 to 31.97% in Q3 FY26 signals margin pressure from rising project costs and could compress future profitability if cost trends persist.
Finance Costs increased to ₹185.0 Cr in Q3 FY26 from ₹144.1 Cr in Q3 FY25, creating higher interest burden that could limit free cash flow and debt-servicing flexibility if rates remain elevated.
The accounts include several listed secured NCD issuances (total listed secured NCDs outstanding ₹2,204.4 Cr standalone noted) with security cover disclosures; any deterioration in project receivables or asset valuations could strain covenants and trustee comfort.
Merger approvals and common-control accounting for amalgamations are in progress and subject to regulatory/NCLT approvals, creating execution risk and potential restatement/adjustment complexity.
Exposure to changes in labour regulations (new Labour Codes enacted 21-Nov-2025) remains an uncertainty; management currently expects immaterial impact but final rules could alter costs for contract workforce.
AI-generated analysis. May contain inaccuracies — verify against original sources.