Sri Lotus Developers and Realty (NSE:LOTUSDEV) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Sri Lotus Developers and Realty Limited Q1 FY 'twenty seven Earnings Conference Call. Before we begin, I would like to remind all the participants that this conference call may contain forward looking statements about the company, which are based on beliefs, opinions and expectations of the company as of the date of this call. These statements are not a guarantee of future performance and may 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 at the end of today's presentation. Please note that this conference is being recorded.

0:46 I would now like to hand the conference over to Mr. Anand Pandit, Managing Director and Chairman of Sri Lotus Developers and Realty Limited. Thank you, and over to you, sir. Good morning, everyone, and a very warm welcome to the Q1 FY twenty seven earnings call of Sri Lotus Developers and Realty Limited. Joining me today are our CEO, Mr. Sanjay Kumar Jain and 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.

1:34 Let me start with a brief overview of the market. Luxury real estate is telling a different story than the rest of the housing market. While most buyers globally are being cautious during interest rates and broader uncertainty. Luxury buyers are not. They are driven by long term wealth creation, family legacy, and lifestyle, not by loan rates. Mumbai is a good example of this. Even as the overall housing market has moderated, luxury housing demand across the city has grown by more than 11%, led by successful families and professionals upgrading to bigger, better homes.

2:29 At the same time, supply in mark... Micro markets like Worley, Bandra, and South Mumbai remain constrained. There is very little fresh land left. So most new luxury supply comes through redevelopment rather than greenfield construction. With major infrastructure, the Coastal Road, Metro Line 3, and the Trans Harbor Link transforming connectivity across the city, we believe Mumbai's luxury real estate market is set up for strong, sustained growth in the years ahead. Turning to our operating and financial performance for the quarter.

3:19 Q1 FY 'twenty seven has started on a strong note. Presales stood at $40.09 crores, up by 567% year on year. Collections stood at INR 150 crores, up by 115% year on year, With several projects have passed link level, collections are being to flow through an encouraging sign for the cash flow trajectory of our ongoing portfolio. Profit after tax grew 77% year on year to INR 46 crores at a paid margin of 34.5%.

4:10 This performance reflects the differentiated niche nature of our product portfolio along with the operating margins and cost efficiencies we bring to our construction execution. Our average selling price stood at INR 86,000 per square foot, underscoring the strength of our product across the micro markets we operate in. During the quarter, we launched two new projects, LOTUSDLARDIENT in Andhari and LOTUSDEVE Pravadivi, together representing a combined GDV of rupees 1,350 crores.

4:57 We were also recently appointed developer for a very, very prestigious commercial redevelopment project with an estimated GDV of rupees 1,600 crores in Juhu. Looking ahead, we plan to launch four more projects over the remainder of FY twenty seven, LOTUS Aurelia, LOTUS Sky Plaza, LOTUS Portofino and LOTUS Odyssey, with a combined estimated GDV of INR 3,500 crores to INR 4,000 crores. Backed by this launch pipeline, strong demand outlook and the quality of our developments, we remain committed to our FY 'twenty seven guidance of presales in the range of INR 1,800 crores to INR 2,000 crores, along with revenue and PED growth of 55% to 60%.

5:59 We remain confident of sustaining strong profitability with EBITDA and bad margins expected at 35% to 4025% to 30%, respectively. Our ongoing and upcoming pipeline comprises 22 projects, 17 residential and five commercials, with an aggregate GDP of approximately INR 17,500 crores to INR 18,000 crores. Notably, 17 of these 22 projects are redevelopment led, reinforcing our core focus and competitive strengths in this segment.

6:47 Alongside our operating momentum, we have also been investing in digital and print marketing to accelerate sales as we expand into newer micro markets. Last quarter, we launched a campaign showcasing 11 of our projects across Mumbai's coastline, a first of its kind initiative in India spanning Verso, Juhu, Carter Road, Bankston, Pravadabhi, and Nepenthes Road. This continues to build brand recall for LOTUS as we take our portfolio into newer parts of the city and complement the inquiry moment we are seeing on our recent launches.

7:35 Taken together, our operating performance, launch pipeline, and brand building efforts all points in the same direction, a business that is scaling with discipline. What continues to differentiate LOTUS is not merely growth, but the quality of the growth. We remain focused on capital discipline, curated project selection process, premium micro market positioning, and execution excellence, while maintaining one of the strongest profitability profiles in the industry on a debt free net cash balance sheet. With that, I will now hand the... Hand over the call to mister Sanjay Kumar Jain, our CEO, to take you through the financial highlights in more details.

8:32 Over to you, Sanjay. Thank you, Allan, sir. Good morning, everyone. Let me make... Let me take you through the key operational and financial highlight for q one financial year twenty twenty seven. We have started the year on a strong and increasing note with healthy growth across presale collections, revenue, and profitability. During the quarter, we launched two project, LOTUS Trident in Andheri West and LOTUS Ecuaria in Parbati. Towards the end of June twenty twenty six, and we are seeing encouraging inquiry level across both projects. Our growth pipeline also remain... Remains strong over the balance of financial year 2027.

9:19 We plan to launch four more projects representing an additional estimated GDV of approximate 3,500 to 4,000 crore. In addition, we were appointed as the developer for a landmark commercial retail redevelopment project in June, Mumbai with an estimated GDV of approximate 1,600 crore. This further strengthened our redevelopment portfolio and reinforced our presence in one of Mumbai's most premium micro market. Coming to our q one f five twenty seven consolidated financial performance, the number reflect the strength and stability of our business model. FreeSphere stood at rupees 409 crores, registering a strong growth of 567% year on year. Collection increased by 115% year on year to rupees 150 growth, demonstrating healthy execution and cash flow moment across our portfolio.

10:20 Revenue grew by 116% year on year to rupees $1.32 per EBITDA stood at rupees 48 crores, growing 63% year on year with a healthy EBITDA margin of 36.4%. Profit after tax increased by 77% year on year to rupees 46 crore, while our bad margin remained strong at 34.5%. Our adjusted ROE for the quarter stood at 15.5%. What is particularly encouraging is that we are delivering this growth while maintaining a strong and disciplined balance sheet. As of June 2026, we added total cash balance of approximately 776 crore against that of rupees $1.53 crore, resulting in net cash position of 623 crore.

11:16 Our projected free cash flow from the completed and ongoing project at approximate 3,245 crores, while upcoming projects are expected to generate approximate 5,240 crores, taking the total projected surplus to approximate 8,485 crores. This provide us significant financial strength and visibility to support our future growth pipeline while continuing to maintain capital discipline. On the deployment of IPO proceeds, we raised approximate $7.92 per hour through the press issue with net proceed after issue expenses of approximate $7.32 per hour. Of the $5,555.50 crores year mark for our subsidiary towards Amalfi, Arcadian, and Varun, we had deployed 271 crore as on 06/30/2026, and the utilization remain in the... In line with our planned deployment schedule.

12:20 Overall, q one financial year twenty seven has given a strong start off to the year with a robust launch pipeline, healthy sales moment, strong profitability, significant projected cash flow, and net cash balance sheet, we believe we are well positioned to deliver substantial and profitable growth over the coming years. Our focus remain clear. Select the right projects, maintain capital discipline, execute with excellent, and create long term value for all our stakeholders. With that, I would like to open the floor for questions. Thank you. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch tone telephone.

13:10 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have our first question from the line of Varun Shivram from Choice. Please go ahead. Hi, sir. Am I audible? Yes, sir. Yeah. Yeah. Thank you, sir. Thanks for the opportunity, and congrats on a good set of numbers. The first question I had was on the new BD project of Juhu. So can you share a more... Like, few more details on that? And what kind of GD should we expect? What is the kind of completion dates we should be looking at for this project?

13:59 Yes. This is a a commercial redevelopment project. This is like a shopping center in Juhu and very, very prestigious project. And we expect the GDV about 1,600 crores. And, hopefully, we'll be starting this project next year after planning other passing of plans and other formalities, and about three to four years thereafter to complete the project. Understood. Thank you. So my second question would be that we've had a very strong presale number of around 409 crores. So with these presale numbers, I believe we believe that we we can achieve the annual guidance around 2,000 crores. So is this achievable?

14:50 And if this is substantial, then what makes you think that we'll grow by 55, 60% for the full year? So, Varun, we are launching four new projects during the year, and we are getting good response for the... Our already launched project, Tidant and Aquaria. And Celestia, we are already... We had taken the... For more than 400 crores sales from last two quarters. So we are very confident that we are easily achieved with the 1,800 crore balance. Understood, sir. Thank you, sir, for the detailed answers and all the rest. Thank you. Thank you. Thank you.

15:35 We have our next question from the line of Harsh Pathak from Motilal Oswal Financial Services. Please go ahead. Yeah. Hi, Anandji and team. Good morning. And first of all, congratulations on the strong quarterly performance. And also, on the new deal win. So my first question is on the pipeline for the next three quarters. Like you highlighted, there are four projects coming up. Can you please indicate which quarters are these projects lined up for, and what is the approximate GDV for this respective project that we can look forward to? So, Harsh, good morning. So, Sanjay, so we are launching the four new project. One is the LOTUSDEV that is in the OC VARAH, that will be launched either this half year end or start of the third quarter. So approximate GDV is around 1,500 crore for that.

16:36 Second project we are launching in the that is is LOTUSDEV, and that will be the GDV of the thousand crore, and it will be the fourth quarter of the... This year. The third project we we intend to launch is that in the Verso, that LOTUSDEV, you know, mostly it will be launched within three to four months. And this is the GDV of around 500 crore. And fourth project that we intend to launch is the LOTUSDEV is in the Nepensee Road, and that that will be also around 600 to 700 crore GDV. Sure. Understood. Also, this new project that we have won in Juhu, can you please, you know, give some specifics where this project is? And would we be reserving some portion for the rental portfolio, or we'll we'll be taking it up entirely for StrataSim?

17:32 So, Harsh, this is right in the Juhu, you know, in middle of Juhu, the project is, and its existing shopping center and commercial offices. It's more than 5,000 square meter of plot, which is one of the largest in Jubu. So what we'll be doing is this would be a redevelopment project. So we'll be rehousing those establishment there again, and remaining portion will be using for our commercial pipeline. Right now, we are not sure that we want to keep it for rental because it's a very high value ticket size there. So maybe we might think about some other area for our rental annuity, but not this particular project.

18:29 Understood. And what with the total capital outlay, what are the... What is the profitability we have assumed in this? As we have mentioned that our EBITDA would be in the range of about 40% and profit is net net profit about 25 to 30%. I'm sure we'll be able to achieve that or beat that in this project. Surely. And my last question is on the Gift City project. What are the updates there, and when are we looking on the further steps on this project? Gift City project is going very well. Actually, that particular... About 300 acre of land, they are included into gift areas, so that is how we got included into gift area.

19:21 We wanted a mix use. So government is right now changing that that process is going on so that we can achieve our mix use that is commercial, retail, and residential. So we are expecting that by the end of this year, we'll get our... All approvals in place. Immediately after that, we'll be starting the project. Understood. Okay. Thanks a lot, Anandji and Sanjay, for taking my questions. Thank you. Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one on your touch tone phone. The next question is from the line of Akhil from Monarch Capital.

20:10 Sir, congratulations on the set of numbers. I see the collections have also improved this quarter. So just two questions from my end. One, we have a guidance of around 50% to 6555% to 60% revenue growth and INR 1,800 crores, INR 50,000 crores of pre sale. What's our goal for cash collections this year? And if you can also give some more insights on how the EBITDA margin we can expect going forward further improve from here from 36% to 38%? Or is this the is this the kind of sustainable level of margin we should keep in mind? So, Keith, good morning. Regarding that...

20:56 The cash collection, because most of the project last year and this quarter is in the basement or the in the stage. Then at the end of this financial year, our three projects, Aquaria will get completed approximately 90%... Sorry. Arcadian will be completed 90% of the total project cost. Varun will be also completed 90%. Amaldi will be around 60 to 70%. So then the cash collection will be improved because the billing will be and all the payment will be due. So this year, we are intend to collect around thousand crores. Regarding EBITDA margin, we are on the same range what if we have guided the approximately 33 to 36%.

21:52 Understood, sir. Thank you. Thank you. We have our next question from the line of Manish Odhwal from Nilmargbang Securities. Please go ahead. Yes, sir. Thank you for the opportunity. I have a couple of questions. First, on the market micro market where we're operating. So over the last one year, how much price hike you have seen in your existing projects or launch projects? Can you just give a direction about that? And secondly, in our sales strategy, when we launched the project, How the sales strategy works like 30% in rent we sell at the launch then next year, one year, how our strategy on sales works? And third, premium portfolio pricing of versus peers like LoRa and Oberai in our market, how much premium we are operating or whether we are in line with these operators?

22:53 Thank you. So for your... I think two or three questions. So as far as the price rate is concerned, it's about 5% to 10% we have seen the price rise. As far as sale is concerned, you know, since we are in ultra luxury, it's difficult to predict how the sale will happen. You know? But, generally, what we do is about 20 to 30%, we sell it during the launch time. And then slowly, as we come out of the plane, slowly, gradually, it starts picking it up. So within the span of three years, generally, you know, as a thumb rule, we complete the project. So every year, we sell... Offload about 30% of the stock.

23:48 So regarding the pricing related to other developers and... So normally, we are driving mark... Micro market, we are getting 10 to 15% higher than the other developers. And last, sir, on the balance sheet leverage, what is our view? How we want to live... Use our balance sheet for leverage for future growth? So, Manish, we have total around 18,000 crore GDV. 18,000 crore GDV, and we have the network of around 1,900 crore network. So normally in the redevelopment, approximately 10% of the GDV is our investment, and we have the sufficient balance and the future profit also will come.

24:37 So we are confident that we can able to use this fund, and we will execute. And in the... For the future also, for every year, we are getting good balance sheet addition in the network. Alright, sir. Thank you very much. Wish you all the best for remaining part of the quarters. Thank you. Thank you. We have our next question from the line of Raj Lakhani from Systematics Group. Please go ahead. Yes, sir. So thank you for the opportunity. Sir, could you please share the latest update on the progress of LOTUS, Varun and Aprotest? And I just wanted to know how much construction work has been completed for Varun.

25:24 Hi, Raj. Regarding that, Varun, so we have come... Just completed the Flint level. Now we have the... Around 20 slabs are there. So we are confident before January, we'll complete the RCC work, and 90% of the work will be completed till March. Okay, sir. Thank you so much. Thank you. The next question is from the line of from Step Trade Capital. Please go ahead. Anikit?

26:20 Anikit, are you there? As there are no response, we'll move on to the next participant. Next question is from the line of Praful Gandhi from Incred AMC. Please go ahead. Am I audible? Yes. Yes, Prawal. Hi, sir. Thank you for the opportunity, and congratulations on the quarter. My first question was, as of March end, our GDV was about 17,000 crore. Now as of June end, how much is this, including the including the project that we won? So, verbal...

27:06 And as of March, around 16,005 per rule or 16,700 per rule as the GDV, and the additional 1,600 per rule GDV will be added in this. So it will be around 1,800... 18,000 crore will be the GDEV. Okay. And for the for the current quarter, how much was the presales from the launches, and how much was the sustenance number? So we are getting good as one was from the Trident. So we are already done this quarter, the 150 crores sales from the Trident. Okay. So meaning out of 410 crores of presales, about $1.50 crores was the.

27:52 No. No. No. So... Sorry. So I'm saying the... Between the July to September, the... We are getting good response from TriNet, and we are already within one month. We have achieved 152 gold presale from the TriNet. And regarding this June quarter, package will give that. Yes. So for the June quarter, the primary number came from the launch... Launch of the last financial year. So around $3.50 plus or crore was from that existing launch, which we done in FY '26. And the many cars from the And this is the $3,350 crore was sustenance and remaining 60 crore was because of the new launch. No. No. Reverse way. So new launch was only two projects in this quarter, which is around 25 crore, and balance was from existing local launch, which was running FY '26 and prior.

28:51 Understood. Sir, and secondly, when I see your presentation, so there are multiple projects within the residential as well as within the commercial, which are stated to commence in FY '27 itself. But in the in the previous participant question, you mentioned that in this year, we are only planning four launches additionally. So why why is there a discrepancy there? So so there are six projects recurring this year. We are launching six projects. Out of six projects, two two projects are commercial for our residential, and we are talking about the total construction activities for the... All the residential and the the commercial project.

29:38 So we are ongoing project of the residential also, and commercial ongoing project is only two. The other is the residential projects. Okay. So, additionally, these four projects which are expected to come, two will be in commercial and two will be in residential side. So I'll go first, at least even in the presentation. All projects will be launched in next nine months, and the remaining will be... We will be starting construction activity, but the launch will happen in the maybe next quarter or the next to next quarter. So this is what we are guiding. Right? Okay. Understood. And secondly, sir, so there there have been articles that in the in the Warsaw area, the luxury redevelopment is seeing a lot of demand.

30:27 And given our balance sheet strength and the collections that we are seeing, are we planning to planning to back some projects there? We already have three projects there, and all three are on the ocean. You know? Sea... Seafront projects. And we are getting excellent response there, and we are in talks with some of the societies there, most societies. And, yes, what you are saying is correct. Is getting good momentum. Understood. And, sir, with respect to promoter equity so far, it is about 82%. How do we see the timeline for reducing that to 75% or below?

31:16 So we have got the total three year. One year has passed, so we are still two years to go. And within that time, I think we'll be able to dilute that. Any range that you are looking at or any any discussions that you have started with investors? No. Not at all. Not at all. It's very premature at this point of time, I think. Understood. Thank you, sir, and all the best. Thank you. Thank you. We have our next question from the line of Sahil Vaidya from Sackman Capital. Please go ahead. Yes. Good afternoon, sir. So my question is in your Acuaria Prabhadri project, the estimated GDV is 800 crore.

32:01 So what is the tenant share and the fee component part from the company? So this 800 crore is company part only, but we disclose as a JV is our sellable person only. The... Because the area of the tenants are given free to the... This existing tenants. So it not included. Ah, okay. Okay. Good. And so what's the pricing for SquarePod? Do you have launched the Accruity Approved? It it is started around 85,000 rupees per square feet. Oh, okay. That's all for my side. Thank you. Thank you. We have our next question from the line of Darshan Parekh from PG Industries. Please go ahead.

32:52 Yes. Hi. Can you am I audible? Yes. Yes. Hi. First of all, thank you guys for giving me the chance, and congratulations on a very good number in the quarter. I just have two questions from your presentation. So one of the brand equity slide where you have an average appreciation of LOTUS, which is given to the customers as well as end users. Do you see the influx of the new amount of supply coming into the market affecting this average appreciation? And do you think this affects anything of your projects in the future? And yes, the second question I have is primarily related to the residential projects that are upcoming. You have a quarter two project of LOTUS Monarch in June, which is very high, 2.40 lakh square feet. Just any more information on these two things? That's it.

33:46 Okay. So as far as appreciation is come... Concerned, that's... Honestly, it's not our business. But, yes, we are seeing good demand in the ultra luxury because what is happening that people who want to shift to their new houses, they want to shift to the better better product. And our product right now, majority of our product is attracting B and G blue and green theory where we can... From the project, we can see water that is seafront or garden. So this is always care in Mumbai or anywhere. So we seek it that by the time we complete our project, yes, there would be a considerable appreciation.

34:37 As far as second project is concerned, LOTUSDEV monarch is concerned, there is some paperwork going on, and there are many stakeholders included in that. So right now, we are in process of getting it concluded. Okay. Thank you. Thank you. Thank you for the time. Thank you. We have our next question from the line of Harsh Pathak from Motilal Oswal Financial Services. Please go ahead. Yes. Hi. Thanks for the follow-up. I just wanted to know on the operational side, like, you know, we won this Jubu project on the commercial redevelopment front. So I believe the kind of tenant profile and the people we'll be dealing is different from the residential redevelopment.

35:27 So what had set us apart? And can you walk us through, you know, the process and how we finally, you know, back the project? First of all, what is happening in Mumbai particularly is a concept of walk to work. And people want their workplace nearby their residences. So people who are buying our product in Juhu as a residential clients, significant of them are wanting to have their own offices or back office or their family offices very nearby. So client profile would be, I would guess, more or less similar for this project.

36:16 Understood. Understood. And, sir, since now we have also started incurring expenses on the sales and marketing front, what are they currently as a percentage of presales, and what is our medium term target? So I would... I mean, there were two, three reasons why we started this whole marketing activity. Number one, we got listed last year. So in the benefit of our investor also, a larger awareness should be there. So that is why we started our campaign. That's one. Second, we are entering into fresh new micro markets of Mumbai. So there, our visibility was required, and that is how we started. And third, as far as balance sheet impact is concerned, I would guess net net, it won't impact us.

37:08 Of course, our expense would be, I would say, about 1% approximately. But that also will be able to recover because what happens that during this advertising, there will be many clients we'll be getting directly where we will not be spending any money on brokerage. So that is how we feel that we'll not have any net impact. Understood,. Thanks a lot for taking my questions. You. Thank you. We have our next question from the line of Sahil Vaidya from SACMAN Capital. Please go ahead. Thank you for the follow-up. So my question is in the presentation.

37:53 Sorry to interrupt, Sahil. Can you please be a little louder? Can you hear me now? No. Yep. But little better. But if you can be a little louder, it would be great. Yep. Can you hear me now? Hello? Yes. Okay. Yeah. Yeah. So, yeah, my question is, so in the presentation, you have given the estimated corporate data for each of the projects. So, like, is it your total share, or it's... That... Does that include the tenant component also? And if it is include, what is the average percentage the tenants have the share? So in presentation, we actually gave both the numbers. One is our total carpet area for the project as well as our cerebral carpet area for the project. So the sellable part is is after removing the area which we are giving free to our existing tenants.

38:45 Oh, okay. Okay. Great. Yeah. That's all from my side. Thank you. Thanks. Thank you. That was the last question of the day. I now hand the conference over to the management for closing comments. We thank everyone for joining the call today. This quarter reflects the resilience of our business model in a realistic landscape that continues to reward the right positioning. India's luxury segment has held firm even as the broader market has moderated, and Mumbai's infrastructure led connectivity gains and limited land supply keep it among the most compelling growth opportunities within it.

39:36 LOTUS doesn't compete on volume. We compete on the quality, design, and exclusivity of our product in micro markets where new supply is genuinely scarce. That focus backed by rigorous governance, transparent disclosures, and in that debt free balance sheet is what allows us to bear strong growth with industry leading margins, and it's a positioning we intend to protect as we scale. We thank you for your continued engagement and confidence. For any further queries, please reach out to SGA, our investor relations advisers.

40:26 Thank you, and have a wonderful day. Thank you, everyone. On behalf of Sri Lotus Developers and Realty Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.