Lodha Developers Limited

Macrotech Developers reported its highest-ever quarterly presales of INR 48.1 billion in Q4 FY25. For the full fiscal year 2025, presales reached INR 176 billion, marking a 21% year-on-year growth and surpassing the company's guidance of 20%. The company achieved an embedded EBITDA margin of 33% for FY25, exceeding its 30% guidance. Collections for FY25 stood at INR 144.9 billion, a 29% increase from the previous year, while net debt reduced to INR 39.9 billion, maintaining a healthy net debt to equity ratio of 0.2x.

Management noted that while FY25 saw slower economic growth, the outlook for India remains positive, with expected GDP growth of 6.5% and supportive monetary policy from the RBI, including a 50 basis points interest rate cut. Despite a conservative price growth of 4% in FY25 (lower than the 5-6% guidance) to protect profitability, the company anticipates a medium-term price growth of approximately 2% below wage growth, supported by renewed government capex and spending.

The company highlighted significant infrastructure investments in its large townships, Palava and Upper Thane. The Mulund-Airoli-Palava freeway is expected to be operational in the current fiscal year, reducing travel time to Mumbai significantly. The Navi Mumbai International Airport is also slated for operationalization this year. These developments are expected to transform Palava into a core suburb, driving sales to INR 8,000 crores by the end of the decade with EBITDA margins approaching 50%.

Lodha is actively growing its annuity business, primarily in warehousing and industrial spaces, with over 2.1 million square feet of leased area. The company acquired 33 acres in NCR and 45 acres in Chennai to further expand this segment. The annuity income run rate reached INR 2.5 billion in FY25 and is projected to grow to close to INR 4 billion by the end of FY26, with a long-term target of INR 15 billion by FY31.

The company's sales strategy focuses on a diversified model, with only 30% of FY25 sales coming from new launches, and the rest from under-construction (50%) and ready inventory (20%). The conversion rate improved to 8% in FY25 from 7.5% in FY24, with an average value per conversion increasing to INR 2.3 crores. Lodha maintains a balanced portfolio across affordable, aspirational, premium, and luxury segments, and is expanding its channel partner network in Pune and Bangalore.

For FY26, Macrotech Developers targets INR 21,000 crores in presales, representing a 20% growth, with an expected EBITDA margin of 33% and over INR 6,500 crores in EBITDA. The company also aims for over INR 7,500 crores in operating cash flow and plans to add INR 25,000 crores in new Gross Development Value (GDV). Growth is expected to be driven by Mumbai (INR 1,000-1,500 crores incremental sales), and equally by Pune and Bangalore, with a new city pilot planned for FY26.