1. At a Glance
Lodha’s Q1 FY26 was less “real estate mogul” and more “real risk, mate.” Revenue grew 23% YoY to ₹3,492 Cr, but profit slumped 27% QoQ. Add in an auditor side-eyeing covenant breaches, and you’ve got enough drama to fill a Netflix series.
2. Introduction with Hook
Imagine building towers so tall they touch the clouds — only to have auditors rain on your parade. Lodha (aka Macrotech Developers) just dropped Q1 numbers that looked shiny on the surface (sales up, OPM still buff at 28%), but the cracks are showing — covenant non-compliance and falling profits. Two stats to chew on:
- Net Profit: ₹675 Cr (down 27% QoQ)
- Debt: Still ₹7,094 Cr, not going anywhere
Welcome to Indian real estate — where cash is king, but debt wears the crown.
3. Business Model (WTF Do They Even Do?)
Lodha basically:
- Buys land, builds towers (luxury to affordable)
- Sells flats like hot samosas, but with 30-year loans attached
- Collects money in installments, making sure banks stay awake at night
They’ve expanded into Pune, dipped toes in Bengaluru, and occasionally play logistics landlord. Basically, they sell the dream — and sometimes the debt that comes with it.
4. Financials Overview
| Metric (Q1 FY26) | Value | Comment |
|---|---|---|
| Revenue | ₹3,492 Cr | +22.7% YoY, but flat sequentially |
| OPM | 28% | Margins still flexing |
| Net Profit | ₹675 Cr | -27% QoQ, -9% YoY |
| EPS | ₹6.76 | Less than last quarter’s ₹9.24 |
Commentary: Margins tighter than Mumbai parking spots.
5. Valuation
- P/E: 43x (at ₹1,279)
- EV/EBITDA: ~23x (est.)
Fair Value Range (EduInvesting Sauce): ₹1,050–₹1,350
If you think 43x P/E is a bargain, you’re probably the guy paying ₹600 for airport vada pav.
6. What’s Cooking – News, Triggers, Drama
- Auditor flagged covenant breaches: Not exactly a confidence booster.
- Security cover shortfall: Bondholders just spilled their coffee.
- Merger spree: Subsidiaries merged to simplify structure. Or complicate? Time will tell.
- Bengaluru expansion: Because one overheated housing market wasn’t enough.
Plot twists? More than your daily soap.
7. Balance Sheet
| Item | FY25 (₹ Cr) | Q1 FY26 Trend | Edu Take |
|---|---|---|---|
| Assets | 49,841 | Stable | Solid but heavy |
| Borrowings | 7,094 | Not reducing fast | Debt: not Titanic-level, but ship is wobbling |
| Net Worth | 19,180 | Slight up | Equity cushion okay |
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF |
|---|---|---|---|
| FY23 | ₹2,750 Cr | ₹1,789 Cr | -₹3,706 Cr |
| FY24 | ₹2,512 Cr | -₹2,947 Cr | ₹951 Cr |
| FY25 | ₹1,566 Cr | -₹90 Cr | -₹2,506 Cr |
Takeaway: Cash flows behave like your freelancer friend — always hustling, never rich.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | Edu Take |
|---|---|---|
| ROE | 14.7% | Okayish |
| ROCE | 15.6% | Hotter than rivals |
| D/E | 0.37x | Healthy |
| PAT Margin | 20%+ | Good, but watch trends |
| P/E | 43x | Pricey |
ROCE is hotter than Twitter after an earnings miss.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹9,470 Cr | ₹2,064 Cr | ₹490 Cr |
| FY24 | ₹10,316 Cr | ₹2,665 Cr | ₹1,554 Cr |
| FY25 | ₹13,780 Cr | ₹3,987 Cr | ₹2,767 Cr |
PAT grew 10%, but only if you squint hard.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| DLF | 7,994 | 4,657 | 44x |
| Lodha | 14,425 | 2,966 | 43x |
| Godrej Properties | 4,923 | 1,216 | 55x |
| Oberoi Realty | 4,869 | 2,062 | 30x |
Lodha is like the least drunk guest at a wedding full of finance bros — still tipsy though.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 71.9% (falling from 82% in 2022)
- FIIs: 24.9% (they love the party)
- DIIs: 2.2% (meh)
- Public: 1% (retailers, blink and you miss)
Promoter stake falling slowly — like their patience with debt covenants.
13. EduInvesting Verdict™
Lodha is still a skyscraper in the Indian real estate skyline — tall, shiny, and occasionally shaky. Great margins, decent ROCE, but high valuation and covenant drama keep things spicy.
Edu POV: A decent pit stop for growth, but don’t expect business class legroom while holding this ticket.
Written by EduInvesting Team | 27 July 2025
Tags: Lodha Developers, Macrotech, Real Estate, Q1 FY26, EduInvesting Premium, Financial Analysis, Indian Realty, Covenant Breach
