Sri Lotus Developers and Realty Ltd (LOTUSDEV) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Shree Lotus Developers and Realty Limited's Q2 FY '27 earnings conference call. Before we begin, I would like to remind participants that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. With this, I now hand the conference over to Mr. Anand Pandit, Managing Director and Chairman of Shree Lotus Developers and Realty Limited. Thank you, and over to you, sir.
Anand Pandit (Sri Lotus Developers and Realty Ltd): Good morning, everyone, and a very warm welcome to the Q2 and H1 FY '27 earnings call of Shree Lotus Developers and Realty Limited. Joining me today are our CEO, Mr. Sanjay Kumar Jain; our CFO, Mr. Rakesh Gupta; and our investor relations advisors from SGA. Our investor presentation has been uploaded to the stock exchanges and our website, and we hope you have had a chance to go through it. Let me begin with a brief update on the real estate market. Mumbai remains India's largest housing market with sales in the first 9 months of calendar 2026 at their highest since 2018, and the luxury segment continues to lead. In the first half of the calendar year, sales of homes priced above 10 crore reached a record of over ₹18,500 crores while prime residential prices rose 6.2% year-on-year, more than twice the global average. Demand is driven largely by end users upgrading to larger homes in better locations, while scarce land in prime micro markets makes redevelopment the principal route to new supply, precisely where Lotus has built its capability. Before I begin with the business update, a word on interest rates. Earlier this month, RBI raised the repo rate by 25 basis points to 5.5%, its first increase since early 2023. While this is likely to weigh on affordable and mid-income housing, the luxury segment is far less sensitive to borrowing costs. Our buyers rely far less on home loans and buy for long-term value and lifestyle. We, therefore, do not expect it to materially alter demand in the micro markets we operate in. Turning to our performance, Q2 FY '27 completes a strong first half for Lotus. Delighted to share that we recorded pre-sales for the quarter at ₹470 crores, up 83% year-on-year. For H1 FY '27, pre-sales stood at ₹879 crores, up 176% year-on-year. Our growth has not come at the cost of profitability. In Q2, total revenue rose 53% year-on-year to ₹269 crores.
Anand Pandit (Sri Lotus Developers and Realty Ltd): 401 crores up 69%. EBITDA at rupees 155 crores up 95% and PAT at 134 crores up 86% at improved PAT margin of 33.5%. Collection stood at rupees 60 crores for the quarter and rupees 209 crores for the first half. Collection in our business are linked to construction milestone and can vary from quarter to quarter. As our ongoing project progress and recent launches reach their billing milestones, we expect collection to pick up over the coming quarters. Our recent launches continue to perform well. Lotus Trident in Andheri West, our luxury commercial offering has been a standout performer, contributing pre-sales of rupees 178 crore in its first full quarter since its launch at the end of June. Its success show how well the Lotus brand travels beyond ultra luxury residential into luxury commercial real estate. We also made significant progress on business development during the quarter. Three new projects added, Lotus Empressa at Shivaji Park in Dadar West, Lotus Stellar in Versova, and Lotus Supremus in Juhu, which adds rupees 2,700 to 2,800 crores of GDV to existing GDV pipeline. These additions deepen our presence in Juhu and Versova where we have a strong track record and extend our footprint to Shivaji Park, one of Central Mumbai's most established residential neighborhoods. With these additions, our ongoing and upcoming pipeline now comprises 24 projects with an aggregate GDV of approximately rupees 20,000 crores, of which 19 are redevelopment-led. Looking ahead, we are well prepared for the second half. We planned to launch four projects, Lotus Aurelia, Lotus Sky Plaza, Lotus Portofino, and Lotus Odyssey, with a combined estimated GDV of rupees 3,500 to 4,000 crores. Together with the momentum from our recent launches and a growing pipeline, we remain confident of delivering our FY27 guidance of pre-sales in the range of rupees 1,800 to 2,000 crores, along with revenue and PAT growth of 55% to 60% over FY26 levels. We also remain confident of sustaining strong profitability with EBITDA and PAT margin expected at 35% to 40% and 25% to 30%, respectively. Behind this numbers is a simple operating philosophy. We select projects on the strength of their location and margins, not their scale, and we oversee every stage of redevelopment ourselves from design and construction to sales and customer engagement. This is what enables us to deliver consistently strong margins and the credibility we have built with housing societies and development partners continues to open up new redevelopment opportunities for us, as reflected in the three additions in this quarter. With that, I will now hand over the call to Mr. Sanjay Kumar Jain, our CEO, to take you through the financial highlights in more detail. Thank you.
Sanjay Kumar Jain (Sri Lotus Developers and Realty Ltd): Thank you, Anand sir. Good morning, everyone. Let me now take you through our financial performance for Q2 and H1 FY27, which reflects strong business momentum, significant growth in profitability and continued progress in expanding our development portfolio.
Sanjay Kumar Jain (Sri Lotus Developers and Realty Ltd): our business performance and growth outlook. Lotus Trident in Andheri West delivered pre-sale of 178 crore in Q2 marking its full first full quarter since launch. Lotus Aquaria in Prabhadevi continue to witness healthy inquiry level. During the quarter, we further strengthen our development pipeline by adding three new projects at Shivaji Park, Dadar West, second in Versova, and in Juhu. Together, these addition represent an estimated GDV of 2,700 crore, approximately. Looking ahead, we plan to launch four projects in H2 FY '27: Lotus Sky Plaza, Lotus Portofino, Lotus Aurila, and Lotus Odyssey with a combined estimated GDV of 3,500 to 4,000 crore. These addition provide us with a strong pipeline of future opportunity and reinforce our focus on expanding our portfolio and creating long-term value. Coming to our financial performance, Q2 FY '27 delivered strong growth across our key financial parameter. Pre-sales grew 83% year-on-year to 470 crores, compared with 257 crore in corresponding quarter last year. Total revenue increased 53% to 269 crore, while EBITDA more than doubled, growing 113% to 107 crore from Rs. 50 crore. Our EBITDA margin remained healthy at 39.90%. Profit after tax grew 91% to 89 crore, compared with 46 crores in Q2 FY '26. The combination of strong revenue growth, substantial EBITDA expansion, and higher profitability demonstrates the strength overall of our operating performance. Turning to H1 FY '27, our performance reflects an even stronger growth trajectory. Pre-sales increased 176% year-on-year to 879 crore, compared with 319 crore in H1 FY 2026. Total revenue grew 69% to 401 crore. EBITDA increased 95% to 155 crore with a healthy margin of 38.80%. Profit after tax rose 86% to 134 crore, compared with 72 crores in corresponding period last year. Overall, these number demonstrate strong momentum across sales, revenue, and profitability, providing a solid foundation for the next phase of our growth. Moving to our balance sheet, maintaining financial strength and flexibility remain a key priority. As of 30th September 2026, we had a net cash position of 494 crore. This provide us with the financial flexibility to fund our ongoing projects, support upcoming launches, and pursue new development opportunities while maintaining a disciplined capital structure. In addition, our estimated project level surplus stand at approximately 9,500 crore over the development cycle of our portfolio. This this represent significant potential value from our projects subject to the project execution, realization, cost, and other relevant assumptions. It is important to distinguish these projected project level surplus from our current cash balance or accounting profits. On capital deployment, we remain committed to discipline and transparent utilization of fund. We raised approximately 792 crores through the fresh issue of our IPO with net proceed of approximately 732 crore after issue expenses, of which 550 crore earmarked for our subsidy for Amalfi, Arcadia, and Varun. 305 crore had been deployed as on 30th September 2026. We remain on track with our planned utilization schedule. To conclude, H1 FY '27 has been a strong period of the for the company. We have delivered 176% growth in pre-sales, nearly double our EBITDA, significantly increase our profitability, and maintain a net cash position. With four planned project launch in H2 FY '27, a strengthened development pipeline, a disciplined approach of to capital deployment, we are focused on sustaining our growth momentum, executing our projects efficiently, and delivering long-term value for our shareholder. With that, I would
Sanjay Kumar Jain (Sri Lotus Developers and Realty Ltd): to open the floor for questions. Thank you.
Moderator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ankit S Mehta from Roha Velva Securities Private Limited. Please go ahead.
Ankit S Mehta (Roha Velva Securities Private Limited): Good morning, sir. I have a couple of questions. So, first how are we seeing the luxury market evolve? And how are we positioned in this market for the future? And the second is that we have been continuously registering margins upward of 35%. So, how sustainable are these especially when we are in expansion mode?
Anand Pandit (Sri Lotus Developers and Realty Ltd): Hi, Ankit. This is Anand Pandit. Good question. First of all, luxury market is growing every day actually. Everyone wants to and it's evolving with socioeconomic change in people's life. Things are changing even with real estate also. Everyone wants to move to a better home, new home with larger home, good facility, good amenity. So, this luxury market which was, I would say, very limited is now growing. And we are getting that advantage of other growing market. As far as margins are concerned, as you, as I have mentioned earlier we are a net debt-free company. So, we don't have to pay or we don't have to have any burden of interest. Second, till today, we have not done any marketing expenses very limited awareness campaign we did. So, that is where we don't spend much money on that. Third is our project cycle is very fast. We generally complete our all the projects in two and a half to three and a half years between that. So, because of that our deployment of fund is very efficient and that gives us a great sales velocity. So, I feel combination and also we have got better pricing, you know, premium pricing policy. So, all these five contributes to good EBITDA margin and PAT margin both. And I'm sure that this will continue.
Ankit S Mehta (Roha Velva Securities Private Limited): That was all from my side. Thank you, sir.
Anand Pandit (Sri Lotus Developers and Realty Ltd): Thank you.
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