Lodha Developers reports strong Q2, eyeing data center growth at Palava

Lodha Developers Limited (formerly Macrotech Developers Limited) announced robust financial results for Q2 FY26, with presales reaching INR45.7 billion, a 7% year-on-year increase. This brings H1 sales to INR90 billion, aligning with 43% of their full-year guidance of INR210 billion. The company anticipates moving towards a run rate of high INR50s to low INR60s billion in subsequent quarters. Adjusted EBITDA for the quarter stood at INR13 billion, growing 37% year-on-year, with an EBITDA margin of 34.4%. Pro forma PAT was INR9.3 billion, implying a PAT margin of 20.3% and enabling a return on equity (ROE) of 20%.

The company also highlighted significant progress in business development, adding a new location in MMR with a Gross Development Value (GDV) of INR23 billion. This achievement in H1 alone has met their full-year BD guidance of INR250 billion, with expectations to outperform. Net debt reduced to INR53.7 billion (0.25x equity), and the overall cost of debt fell by 30 basis points to 8%.

A major strategic focus is the emerging data center and AI space, particularly at Palava. The Palava park, spanning 400 acres, is poised to benefit from over $1 billion in incentives under the Green Digital Infrastructure policy. Land values in this segment are moving towards $0.3 billion per acre, with the existing balance land earmarked for data centers valued at approximately INR100 billion. The company is exploring powered shell models, which could generate an annualized PAT of INR0.1 billion per megawatt.