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    LOTUSDEV

    LOTUSDEVGood
    Realty·13 Nov 2025
    Management Summary

    Sri Lotus Developers & Realty Limited reported a strong Q2 FY26 with significant growth in pre-sales and revenue, driven by successful new project launches. Despite a lower EBITDA margin in the current quarter compared to previous periods due to project mix, management expressed high confidence in achieving its ambitious FY26 guidance for pre-sales, revenue, and PAT growth, supported by a robust redevelopment-focused pipeline and asset-light model. The company also highlighted its strong cash balance and industry-leading ROE.

    Highlights

    8

    • Revenue for Q2 FY26 stood at ₹176 crores, marking a 43% YoY growth and 187% QoQ growth.

    • Pre-sales for the quarter reached ₹257 crores, a significant 126% YoY increase and over 3X QoQ growth.

    • Collections for Q2 FY26 were ₹106 crores, up 16% YoY and 51% QoQ.

    • EBITDA for the quarter was ₹50 crores, with an EBITDA margin of 28.6%.

    • Profit After Tax (PAT) for Q2 FY26 was ₹46 crores, showing an 8% YoY degrowth but 80% QoQ growth.

    • The company launched two key projects, Arcadian at Juhu and Amalfi at Versova, in September 2025, securing initial bookings of ₹92 crores and ₹38 crores respectively.

    • Management reiterated FY26 guidance of ₹1,100-₹1,300 crores in pre-sales, 75-85% YoY revenue growth, and 30-35% YoY PAT growth.

    • The ongoing and upcoming pipeline comprises 18 projects with a Gross Development Value (GDV) of ₹13,000-₹14,000 crores, targeting 2.1 million sq ft of saleable area by FY30.

    What Changed2

    vs Q3 FY26

    Guidance items13 → 11 (-2)Risks discussed3 → 2 (-1)

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue₹176 Cr+43%YoY
    2. 02Pre-sales₹257 Cr+126%YoY
    3. 03Collections₹106 Cr+16%YoY
    4. 04EBITDA₹50 Cr+66.6%QoQ
    5. 05EBITDA Margin28.6%

    Guidance & targets

    11
    CategoryTargetPriority
    Pre-sales
    Pre-sales Value
    ₹1,100 to ₹1,300 crores
    		High
    Revenue
    Revenue Growth
    75% to 85%
    		High
    Profitability
    PAT Growth
    30% to 35%
    		High
    Profitability
    EBITDA Margin
    35% to 40%
    		Medium
    Profitability
    PAT Margin
    25% to 30%
    		High
    Profitability
    Return on Equity (ROE)
    41%
    		High
    New Projects
    New Project Additions
    2 to 3 projects
    		Medium
    Pipeline
    Gross Development Value (GDV)
    ₹13,000 to ₹14,000 crores
    		High
    Pipeline
    Saleable Area
    2.1 million sq ft
    		High
    Business Development
    GDV of H1 FY26 added projects
    ₹5,000 crores
    		High
    Collections
    Collection to Pre-sale Ratio
    45% to 60%
    		Medium

    Risks & concerns

    3
    RiskSeverity

    Quarterly variation in EBITDA/PAT margins

    EBITDA margin for Q2 FY26 was 28.6%, lower than the guided 35-40% range, attributed to the initial stage of new project launches. — Analyst acknowledged

    medium

    Conversion of bookings to collections

    Collections were lower than pre-sales due to launches being skewed to the end of the quarter, with conversion expected in subsequent quarters. — Management acknowledged

    low

    Areas of Evasion(1)

    • Specific current booking numbers for Arcadian and Amalfi (Sanjay Kumar Jain stated 'I don't have that, we will get back.')

    Q&A highlights

    3

    “So, as far as ROE is concerned, as you know that we have got 2-3 other policies. Number one, we are concentrating on high-yielding products only. That's one. Second is our asset light model. Because of the redevelopment, we don't have to deploy a large fund into buying the land. So, that is also giving a good return. Third, as you know that company is almost net debt-free. So, we don't have any expense on paying the interest. Fourth is, our marketing is extremely limited because it's more like on appointment basis. So, till today, we have not done any marketing expense, unlike our peers, who has to spend at least 7% to 8% on marketing. So, on that also, we are saving a lot of cost. So, this is what gets us a good ROE.”

    Management clearly articulated the strategic pillars (high-yielding products, asset-light redevelopment, debt-free status, low marketing costs) contributing to their industry-leading ROE, providing insight into their business model's efficiency.

    asked by Nikhil Garg

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 FY26 Performance Driven by New Launches

    Sri Lotus Developers & Realty Limited reported robust financial performance for Q2 FY26. Revenue grew 43% YoY and 187% QoQ to ₹176 crores. Pre-sales surged by 126% YoY to ₹257 crores, while collections increased 16% YoY to ₹106 crores. The quarter saw the successful launch of Arcadian at Juhu and Amalfi at Versova in September 2025, which collectively secured initial bookings of ₹130 crores within the first week.

    02

    FY26 Guidance Reaffirmed with High Confidence

    Management expressed high confidence in achieving its ambitious FY26 guidance. The company targets pre-sales of ₹1,100 to ₹1,300 crores, revenue growth of 75% to 85% YoY, and PAT growth of 30% to 35% YoY. This confidence is underpinned by the strong market response to recent launches and a robust pipeline of four upcoming launches in H2 FY26, including Project Varun at Bandra and Lotus Aquaria at Prabhadevi, with a combined revenue potential of ₹3,500 to ₹3,700 crores.

    03

    Asset-Light Redevelopment Strategy and High ROE

    The company's core strength lies in its asset-light redevelopment model, with over 84% of ongoing projects and 91% of upcoming projects in this segment. This strategy, combined with a focus on high-yielding products, a net debt-free status, and limited marketing expenses, enabled Sri Lotus Developers to achieve an industry-leading Return on Equity (ROE) of 41% for FY25. Management is confident in sustaining this momentum and maintaining PAT margins of 25% to 30%.

    04

    Expanding Business Development Pipeline

    Sri Lotus Developers continues to expand its presence across prime micro-markets in Mumbai. In H1 FY26, the company added six new projects, including Lotus Portofino, Lotus Sky Plaza, and Lotus Odyssey, with an estimated Gross Development Value (GDV) of around ₹5,000 crores. The total ongoing and upcoming pipeline now stands at 18 projects (15 residential, 3 commercial) with a GDV of ₹13,000 to ₹14,000 crores, representing 2.1 million square feet of saleable area to be realized by FY30.

    05

    EBITDA Margin Fluctuations and Future Outlook

    The EBITDA margin for Q2 FY26 was 28.6%, lower than the guided range of 35% to 40%. Management clarified that this was due to the initial stage of recently launched projects, where margins tend to be lower. They expect EBITDA margins to normalize and improve to the 35% to 40% range in future quarters as projects progress. The previous year's higher margin (53.5% in Q2 FY25) was attributed to an unusually low-cost, one-off📎 project.

    06

    Funding Plan and Cash Position

    The company maintains a strong financial position with a net cash balance of ₹851 crores as of September 2025. Following its IPO, which raised ₹792 crores (net proceeds of ₹732 crores), ₹137 crores have been deployed. Management stated that the company has sufficient balance to fund its new projects, as redevelopment projects typically require only 10-15% of project costs to be invested over their lifetime, minimizing the need for additional debt.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.