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    Tata Capital Limited

    TATACAPNeutral
    Financial Services·29 Jan 2026
    Management Summary

    Lodha delivered record quarterly performance with strong presales growth and margin expansion. The company is executing its diversification strategy with data centers at Palava and geographic expansion into NCR while maintaining disciplined pricing and balance sheet management.

    Highlights

    6
    • Record quarterly presales of INR 5,600 crores (+25% YoY)

    • 9M presales at INR 14,600 crores, 70% of FY26 guidance achieved

    • Embedded EBITDA margin of ~32% with strong underlying profitability

    • Business development of INR 34,000 crores GDV added in Q3

    • Data center opportunity scaled to INR 1,30,000 crores investment commitment

    • NCR market entry with 2 projects totaling INR 3,300 crores GDV

    What Changed2

    vs Q4 FY26

    Guidance items7 → 4 (-3)Q&A highlights8 → 4 (-4)
    Key financials

    Metrics

    8

    Periods

    2

    Headline

    7
    • Revenue
      ₹4,660 Cr
      YoY+29.0%
    • Adjusted EBITDA
      ₹1,490 Cr
      YoY+23%
    • PAT
      ₹950 Cr
    • Pro forma PAT
      ₹1,200 Cr
    • Presales
      ₹5,600 Cr
      YoY+25%

    9M

    1
    • Presales
      ₹14,600 Cr

    Guidance & targets

    4
    CategoryTargetPriority
    Presales
    Annual presales
    INR 21,000 crores
    High
    Margins
    Embedded EBITDA margin
    ~33%
    High
    Returns
    Return on Equity
    ~20%
    High
    Collections
    Operating cash flow
    INR 7,000 crores plus/minus 5%
    Medium

    Risks & concerns

    3
    RiskSeverity

    Construction execution delays impacting collections

    Lost 4-6 months due to environmental clearances, impacted Q3 collections by 17%Other acknowledged

    medium

    Market concentration in Mumbai South Central

    Q3 launches focused in South Central Mumbai, but weekly run-rate sales remain distributedOther acknowledged

    low

    Industry volume weakness in affordable segment

    Industry volume decline in entry-level segment, but Lodha positioned in premium segmentOther acknowledged

    low

    Q&A highlights

    4

    “we see footfalls and conversions remaining steady through the course of the last few quarters and in line with what we would have expected at the start of the year”

    Confirms sustained demand despite supply concerns in pockets

    asked by Akash Gupta (Nomura)

    1 min read4 chapters

    Detailed Narrative

    01

    Record Performance Driven by Market Leadership

    Lodha achieved record quarterly presales of INR 5,600 crores (+25% YoY), marking the first time crossing INR 5,000 crores quarterly. Strong performance across Q1-Q3 reflects brand strength and execution capability in premium markets. 9-month presales at INR 14,600 crores represents 70% of annual guidance, keeping company on track for FY26 targets.

    02

    Strategic Diversification and Geographic Expansion

    Company scaled data center opportunity at Palava from INR 30,000 crores to INR 1,30,000 crores total investment with government MoU providing significant cost advantages. NCR market entry commenced with 2 projects (INR 3,300 crores GDV) following successful Bangalore expansion model. Strategy focuses on capital-light joint development initially.

    03

    Margin Resilience and Balance Sheet Discipline

    Embedded EBITDA margin of ~32% achieved despite minimal land sales contribution, demonstrating strong underlying profitability. Net debt maintained at INR 6,170 crores (0.28x equity), well below 0.5x ceiling. Average cost of funds reduced to 7.9% (-10bps), supporting capital efficiency.

    04

    Operational Recovery and Collections Outlook

    Environmental clearance issues resolved by November, enabling construction momentum recovery. Collections declined 17% YoY to INR 3,560 crores due to prior year land sales and construction delays. Management expects significant collections improvement over next 12 months as construction accelerates and sales convert to cash flow.

    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.