LODHA: PAT rose 28% in Q2 as margins expanded; FY31 PAT target is ₹85bn+

What happened

Lodha reported second-quarter revenue up 18% and profit after tax up 28% from a year earlier, with adjusted EBITDA margin expanding to 36.2%. The company set a profit after tax target of ₹85bn+ for FY31.

Confirmed

Global impact / market context

A rising profit per sale means more cash is generated from each home sold, which can fund land purchases and construction without as much borrowing. The ₹85bn+ FY31 profit target shows management expects this growth to continue for several years.

Analyst inference

The results reflect strong housing demand and better pricing power for the developer, since revenue grew while costs grew more slowly. The FY27 pre-sales guidance of ₹240bn and the plan to grow annuity income 10x by FY32 show how management frames future growth.

Analyst inference

What to watch

1. Track whether reported adjusted EBITDA margin stays near 36.2%, since a lower figure would mean profit per sale is shrinking and could slow progress toward the FY31 profit target. Confirmed
2. Watch whether the company meets its FY27 pre-sales guidance of ₹240bn, which is the value of homes booked; a shortfall would reduce future revenue and cash available for construction. Proposed
3. Monitor the 10x annuity income goal by FY32, as steady recurring rent could make earnings less dependent on home sales and support the company's long-term profit ambition. Analyst inference

Evidence

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