Lodha shares rise over 6% as Q2 profit grows 28% and Motilal keeps Buy

Shares of Lodha Developers Ltd, formerly Macrotech Developers Ltd, rose more than 6% on 3 November 2026. The gain followed a brokerage note from Motilal Oswal that kept its Buy rating and set a target price of ₹1,375. The stock move came after the Mumbai-based developer reported a 28.3% rise in consolidated net profit for the quarter ended 30 September 2026.

The company's board approved the quarterly figures on 30 October 2026. Consolidated net profit was ₹1,013 crore for the quarter, and revenue from operations rose 17.6% to ₹4,468 crore. For the first half of FY27, profit after tax was ₹2,386 crore, up 63%, and revenue was ₹9,460 crore, up 30%.

What drove the quarter

Sales bookings were the main support. Q2 pre-sales were ₹5,037 crore, up 10% year on year, and first-half pre-sales reached ₹9,670 crore. Collections were flat at ₹3,450 crore in the quarter, so bookings grew faster than cash received.

Cash generation was weaker. Net operating cash flow fell 39% to ₹880 crore in the quarter, according to a summary of the brokerage note. The company has guided operating cash flow of ₹8,500 crore for FY27, against about ₹2,800 crore in the first half.

The balance sheet is steady. Net debt stood at ₹5,279 crore on 30 September 2026, giving a net debt-to-equity ratio of 0.2 times. Credit rating agency ratings place the company at AA with a Stable outlook.

Land monetisation is another lever. The company's first-quarter profit of ₹1,373 crore benefited from a land sale at Palava. In June 2026, a data-centre operator bought Palava land at about ₹42.5 crore per acre, against about ₹21 crore per acre in an earlier 2025 deal.

The broker view

Motilal Oswal's note retained its presales and collections estimates. It raised the discount rate on the residential portfolio to 11.3% and the cap rate on the annuity portfolio to 8.0%, which lowered its target from ₹1,430 set in July 2026 to ₹1,375. The note expects presales of ₹6,000 crore to ₹7,000 crore in each of the next two quarters. It also cites about ₹2 lakh crore of unsold gross development value in the development business and about ₹40,900 crore of launched inventory yet to be sold.

ICICI Securities, in a note dated 2 November 2026, kept its BUY rating and target of ₹1,388 unchanged. It pointed to the second-half FY27 launch pipeline and the Palava data-centre land opportunity. These are the brokers' views, not statements by the company.

Gurugram entry and what investors will watch

The company's first project in the National Capital Region is Lodha Pantheon, a Grade A++ office project on Golf Course Road, Gurugram. The company said in a filing that the project has a saleable area of about 4 lakh sq ft across 27 floors on a 1.2-acre site, with a cost of ₹1,100 crore to ₹1,200 crore. Office spaces will be sold to buyers rather than held for rent. The company has not disclosed the financial contribution the project will make.

The company also has a joint development agreement with MRG Group for two Gurugram projects, one commercial and one residential. It plans to launch 17 projects with an estimated gross development value of ₹1.9 lakh crore across its key markets in the second half of FY27.

Three numbers will matter in coming quarters: third-quarter pre-sales against the ₹6,000 crore to ₹7,000 crore range in the brokerage's estimates, operating cash flow against the FY27 guidance, and the pace of Palava land sales. The company has said it expects to monetise about 150 acres at Palava over three to four years, for about ₹10,000 crore. The company's FY27 pre-sales guidance is ₹24,000 crore.