IGI Logo

Strong financials beat and steady presales

Operational performance

* In 2QFY26, presales rose 7%/3% YoY/QoQ to INR45.7b (in line with our estimates). In 1HFY26, they rose 8% YoY to INR90.2b.

* With the Supreme Court approving the Environmental Clearance (EC) process in late August for certain projects, the company is set for significant project launches in the second half of the year.

* Collections rose 13%/21% YoY/QoQ to INR34.8b (13% below our estimates) and are expected to strengthen in 2HFY26. In 1HFY26, collections rose 10% YoY to INR63.6b.

* The company has added one new project in MMR with a GDV of INR23b in 2QFY26. With this, the company was able to achieve its full-year BD guidance of INR250b in 1HFY26 itself (six new projects added in MMR, Pune, and Bengaluru).

* Net debt increased ~INR2.7b to INR53.7b in 2QFY26, yet below the ceiling of 0.5x Net Debt/Equity.

Financial performance

* LODHA reported revenue of INR38b, +45%/+9% YoY/QoQ (17% above estimates). In 1HFY26, it reported INR73b in revenue, rising 33% YoY.

* EBITDA (excl. other income) rose 57% YoY/13% QoQ to INR11.1b (19% above our estimates). Reported EBITDA margin stood at 29%. According to management, the embedded EBITDA margin for presales stood at ~32% in 2Q. Adjusted EBITDA (excluding interest charge-off and capitalized interest) stood at INR13.1b, with a margin of 34.5%. In 1HFY26, EBITDA stood at INR21b, up 43% YoY, with a margin of 29%. Embedded EBITDA margin for presales stood at ~32%. Adjusted EBITDA (excluding interest charge-off and capitalized interest) stood at INR25.1b, with a margin of 34.4%.

* Reported PAT came in at INR7.9b, rising 86% YoY and 17% QoQ (19% above estimates), while adjusted PAT came in at INR7.9b, rising 88% YoY with a 21% margin. In 1HFY26, reported and adjusted PAT rose 63% YoY each at INR14.6b and INR14.7b, respectively, with a 20% adjusted PAT margin.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412