Macrotech Devel.

Lodha delivered its best ever Q2 performance with presales of INR 45.7 billion, marking the 7th consecutive quarter above INR 40 billion and achieving 7% YoY growth despite a challenging market environment. The H1 presales of INR 90 billion represent 43% of the full-year guidance, keeping the company well on track for INR 210 billion annual target. Non-launch weekly sales improved to INR 3 billion from lower levels at year-start, demonstrating strong brand momentum and customer walk-ins without promotional activities. The company maintained robust embedded EBITDA margins of 32% despite higher JDA contribution (50% vs targeted 40%), showcasing business model resilience.

The data center opportunity at Palava emerged as a game-changing value creator with land values appreciating to INR 30 crores per acre (from INR 21 crores previously) following the Maharashtra Green DC Policy MOU. With 400 acres earmarked and 3 GW power capacity available, the total land value potential reaches INR 100 billion. The powered shell opportunity presents massive scale with potential INR 2,500 crores annualized PAT from just 250 MW development. AWS and STT anchor commitments validate the infrastructure quality, while competitive advantages include $6-7 million per MW build costs (vs $10-12 million globally), $0.07-0.08 per kWh power costs, and PUE of 1.2-1.3. Management is developing comprehensive business plans for this opportunity.

The geographic diversification strategy continues to deliver exceptional results with Pune and Bangalore expected to contribute over 30% of annual presales compared to just 3% at IPO 4.5 years ago. Pune team has scaled meaningfully from INR 200 crores in FY21 to INR 2,500 crores in FY25, with H1 FY26 already at INR 1,400 crores, positioning to become the largest developer in Pune within 2 years. The systematic pilot-then-scale approach proved successful in Bangalore and is now being replicated for NCR entry in 2026, likely starting with Gurugram. This expansion strategy provides a long runway for sustained growth while maintaining the 20% annual growth and 20% ROE targets.

Palava's transformation from lower mid-income to premium location is progressing with key infrastructure nearing completion. The Palava-Airoli-Mulund freeway will be operational next quarter, providing access to prices less than half of Airoli while connecting to major job hubs within 30-minute driving distance. The bullet train connectivity to BKC (operational 2028-29) will make Palava just 10 minutes from Mumbai's financial district. Premium products including Golf View apartments at ~$1 million each and villa projects are already launched and under construction. Management expects significant sales and margin expansion starting next fiscal as infrastructure benefits materialize, with Palava and Upper Thane targeting 3.5% market share of the INR 235,000 crores Mumbai housing market by end of decade.