Lodha Developers' Shares Dip Amid Modest Q2 Presales; Brokerage Warns of H2 Hurdles

Shares of Macrotech Developers, better known as Lodha Group, tumbled over 1% on Wednesday despite reporting a 7% year-on-year jump in Q2 presales to Rs 4,570 crore. The sequential uptick was a modest 3%, falling short of investor expectations in a buoyant real estate market. The company also clocked collections of Rs 3,480 crore for the quarter, up 13% from last year, signaling steady cash flow amid ongoing project executions. However, net debt climbed to Rs 5,370 crore, a Rs 300 crore sequential rise, attributed to aggressive land acquisitions and approval costs in the first half of FY26. Lodha remains optimistic, sticking to its ambitious FY26 bookings target of Rs 21,000 crore and anticipating a surge in new launches during the second half. "We're on track with robust demand in key markets," a company spokesperson noted, highlighting upcoming projects in Mumbai and Thane. Yet, the market's reaction underscores concerns. At mid-morning trade, Lodha's stock was down 1.2% at Rs 1,131.4 on the NSE. Nuvama Institutional Equities, while holding a 'buy' rating, slashed its target price to Rs 1,580 from Rs 1,619. Analysts flagged the need for a steep 29% YoY presales growth in H2 to hit the full-year goal, amid rising input costs and regulatory delays. As India's residential sector heats up with urban migration, Lodha's ability to accelerate launches will be pivotal. Investors will watch upcoming earnings for signs of momentum.