LODHA

Posts Modest H1 Growth; Full-Year Target Hinges on H2 Launches

(now Macrotech Developers) reported modest growth in the first half of FY26, with pre-sales (bookings) increasing by 8% year-on-year (y-o-y) to ₹9,020 crore. Pre-sales in Q2FY26 were up 7% y-o-y to ₹4,570 crore, a growth rate that was lower than the company's ambitious full-year guidance of 20% y-o-y. → The subdued growth was attributed to a limited number of new launches, a high base from the previous year (due to one-off land sales), and seasonally weak demand during the monsoon and the inauspicious "shraadh" period. → Lodha has maintained its FY26 pre-sales target of ₹21,000 crore. With only 43% achieved in H1, the company needs to secure over ₹12,000 crore in pre-sales in the remaining half of the year. → The achievement of the full-year target is heavily dependent on the ramp-up of new launches planned for H2FY26, following the lifting of the freeze on environmental clearances by the Supreme Court. → Analysts warn that market conditions are becoming challenging, as the MMR market is mid-cycle and the Pune market shows signs of slowing, potentially requiring Lodha to gain significant market share just to maintain growth. → Collections saw an improvement in Q2FY26, rising 13% y-o-y to ₹3,480 crore, and are expected to pick up significantly as the new launch pipeline gathers pace in H2. → Lodha added a new project in the MMR during Q2, bringing its total first-half business development additions to ₹25,000 crore, effectively meeting its full-year goal ahead of schedule and securing future launch visibility. → Net debt increased slightly to ₹5,370 crore from ₹5,080 crore due to high business development and approval spending, though the net debt-to-equity ratio remains at a comfortable level below 0.5x.