Sri Lotus Developers and Realty (NSE:LOTUSDEV) Q2 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Sri Lotus Developers and Realty Limited's Q2 FY 'twenty seven 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 guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded.

0:50 With this, I now 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 q two and h one FY twenty seven earnings call of Sri 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.

1:40 Let me begin with a brief update on the real estate market. Mumbai remains India's largest housing market with sales in the first nine months of calendar twenty twenty six at their highest since 2018, and the luxury segment continues to lead. In the first half of the calendar year, sales of homes priced about INR 10 crore reached a record of INR thousand 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.

2:48 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 twenty twenty three. 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.

3:40 Turning to our performance. Q2 FY twenty twenty seven completes a strong first half for LOTUS. Delighted to share that we recorded presales for the quarter at INR $4.70 crores, up 83% year on year. For H1 FY 'twenty seven, pre sales stood at INR $8.79 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 INR $2.69 crores.

4:34 EBITDA more than doubled to INR 107 crores, with margins expanding to 39.9%. For the first half, revenue stood at INR $40.01 crores, up 69% EBITDA at INR 155 crores, up 95% and PED at INR 134 crores, up 86% at an improved PET margin of 33.5%. Collections stood at INR 60 crores for the quarter and INR $20.09 crores for the first half. Collection in our business are linked to construction milestones and can vary from quarter to quarter.

5:23 As our ongoing project progress and recent launches reached their billing milestones. We expect collection to pick up over the coming quarters. Our recent launches continue to perform well. LOTUSDEV in Andheri West, our luxury commercial offering, has been a standout performer, contributing presales 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.

6:12 We also made significant progress on business development during the quarter. Three new projects added, LOTUS Empressa at Shivaji Park in Dada West, LOTUS Tailor in Versovan, and LOTUS Supremis in Jho, which adds rupees 2,700 to 2,800 crores of GDV to existing GDV pipeline. These additions deepen our presence in Juhu and Versoa, where we have a strong track record and extend our footprint to Shivaji Park, one of Central Mumbai's most established residential neighborhoods.

6:59 With these additions, our ongoing and upcoming pipeline now comprises 24 projects with an aggregate GDV of approximately INR 20,000 crores, of which 19 are redevelopment led. Looking ahead, we are well prepared for the second half. We plan to launch four projects, LOTUS Aurelia, LOTUS SKYY Plaza, LOTUS Portofino and LOTUS Odyssey, with a combined estimated GDP of INR 3,500 crores to INR 4,000 crores. Together with the momentum from our recent launches and the growing pipeline, we remain confident of delivering our FY 'twenty seven guideline of presales in the range of INR 1,800 crores to INR 2,000 crores, along with revenue and PAT growth of 55% to 60% over FY 'twenty six levels.

8:11 We also remain confident of sustaining strong profitability with EBITDA and PEP margin expected at 35% to 4025% to 30%, respectively. Behind these 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 our development 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 the housing society and development partners continues to open up new redevelopment opportunities for us as reflected in the three addition in this quarter.

9:14 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 details. Thank you. Thank you, Anantras. Good morning, everyone. Let me now take you through our financial performance for Q2 and H1 FY 'twenty seven, which reflects strong business momentum, significant growth $1.78 crore in Q2, marking its full... Plus full quarter since launch.

10:01 LOTUS Equaria in Parbati, we continue to witness healthy inquiry level. During the quarter, we further strengthened our development pipeline by adding three new projects at Shivaji Park, the other West, second in the Warsawba and in June. Together, these addition represent an estimated GDV of 2,700 crore approximately. Looking ahead, we plan to launch four projects in h two FY twenty seven. LOTUS Sky Plaza, LOTUS Protofino, LOTUS Aurila, and LOTUS ODYSSEY, which a combined estimated GDV of 3,500 to 4,000 crore. These additions provide us with a strong pipeline of future opportunity and reinforce our focus on expanding our portfolio and creating long term value.

10:52 Coming to our financial performance, Q2 FY 'twenty seven delivered strong growth across our key financial parameter. Presales grew 83% year on year to $4.70 crores compared with INR $2.57 crores in corresponding quarter last year. Total revenue increased 53% to $2.69 crore, while EBITDA more than doubled, growing 113% to $10.07 crore from rupees 50 crore. Our EBITDA margin remained healthy at 39.90%. Profit after tax grew 91% to INR 89 crore compared with INR 46 crore in Q2 FY 'twenty six. The combination of strong revenue growth, substantial EBITDA expansion and higher profitability demonstrates the strength of our operating performance.

11:48 Turning to H1 FY twenty seven, our performance reflects an even stronger growth trajectory. Free sales increased 176% year on year to $8.79 crore compared with INR $3.19 crore in H1 FY twenty twenty six. Total revenue grew 69% to INR $40.01 crore. EBITDA increased 95 to INR 155 crore with a healthy margin of 38.80%. Profit after tax rose 86% to 134 crore compared with 72 crore since corresponding period last year. Overall, these numbers demonstrate strong momentum across sales, revenue, and profitability, providing a solid foundation for the next phase of our growth.

12:40 Moving to our balance sheet, maintaining financial strength and flexibility remain a key priority. As of 09/30/2026, we had a net cash position of 494 per. This provide us with the financial flexibility of... To fund our ongoing projects, support upcoming launches and pursue new development opportunity, while maintaining a disciplined capital structure. In addition, our estimated project level surplus is standard at approximately INR 9,500 crore over the development cycle of our portfolio. This represents significant potential value from our projects, subject to the project revision, realization, cost and other relevant assumptions.

13:28 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 $7.92 crores through the first issue of our IPO with net proceed of approximately $7.32 crore issue expenses. Of which, 550 crore earmarked for our subsidiary for the Malphi, Arcadian and Maroon. 305 crore had been deployed as on 09/30/2026. We remain on track with our planned utilization schedule. To conclude, h one FY twenty seven has been a strong period of the... For the company.

14:16 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 'twenty seven is strengthened development pipeline, a disciplined approach of 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 like to open the floor for Christian. Thank you. Thank you very much. We will now begin with the question and answer session. The first question is from the line of Ankit S. Mehta from Roha Wellworth Securities Private Limited.

15:23 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 they, especially when we are in expansion mode? Hi, Ankit. This is Ankit Pandit. Good question. First of all, actually, the market is growing every day, actually. Everyone wants to... And it's evolving with the 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 a larger home, good facility, good amenity.

16:14 So this luxury market, which was, I would say, very limited, it's now growing. And we are getting that advantage of the 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.

17:12 So I feel combination... And also we have got better pricing, you know, premium pricing policy. So all this five contributes to good EBITDA margin and bad margin both. And I'm sure that this will continue. That was all from my side. Thank you, sir. Thank you. The next question is from the line of Deep Dhamani from Choice Broking. Please go ahead. Hi, sir. Thanks for the opportunity. So first of all, I'd like to congratulate the team for a great set of numbers and very good margins. So I just have one question. So your commercial project seems to be getting stronger traction right now. And what really margin are you seeing at Trident?

18:03 And what do you think about will commercial development become a bigger part of the pipeline going forward? So, yes, there is a good moment for commercial properties, and we have very balanced portfolio of commercial. We... Right now, in our portfolio, we have got about five projects of commercial. And commercial has got good, I would say, good margins, sustainable margin. And I think we are the only one right now in the suburbs who has completed the redevelopment in commercial space. And we have delivered that last year.

18:49 It's called Arc one. And now we have taken about two to three projects of redevelopment in commercial space also. And I'm sure the margins will be good on that also. Okay. Got it, sir. And what about the realization in margin in Trident? So margin in the Trident will be in the similar line because it will be like our guided margin of EBITDA 33% to 35%. It will remain the same. Got it, sir. That's all from me. Thank you. Thank you. The next question is from the line of Siddharth S from Napha Asset Manager. Please go ahead.

19:36 Siddharth, can you unmute your line, please? Am I audible? Yes. You're audible. Yes. Yeah. Yeah. I'm gonna ask on the date set of numbers, my queries on the collections and the market and the, you know, overall expectation was that the collections would materialize this year. And and with the milestone, middling, I just wanna understand a better picture on it in terms of, you know, how exactly the collections will catch up because the headline numbers all look great, but I think that's the only part of concern I and in general, you know, the markets are seeing in the sense. If you could just explain a project cycle better and how do you expect the collections to pan out going forward, that'll be really helpful. Good morning, Sudhak. Regarding the collection, what happened, our three, four projects we already launched that are in the...

20:26 Mostly are in the basement level. And you know that all the payment plan is the construction day. So normally, the... When the project launch, normally, the collection will be five to 10%. Once that it reached the print level, it is approximately 25%. So if you see that that this number is the 800 gold of this half yearly, this is our PCL is there. And out of 800 crores, we have collected 200 crores so that nearly 25% of the collection we have done that. So from the... This next half yearly, we are confident that we'll get the good collection because the... Out of three project, two project will be the out from the basement, and the collection will be improved.

21:17 Understood. Understood. So to get a better clarity on this, you know, pre listing your, you know, collection as a percentage of presales in FY '23 was in the range of 97.5, and '24, it was 92.8. And on the year of FY '25, it was very healthy at 75.1. So what do you expect collection as a percentage of presales to be going forward? That's... That that could give me and provide me with a lot of clarity. So so that it is depending on the... Which is is the project is there. In the last year and before... In the 2425 also, there is a... Some of the project is on the completion stage. So at the time of the completion stage, the collection will always be the 90%, 95% is the view. So that's reflecting the balance sheet.

22:02 The same will be... You'll see that once the project will be completed. So next year, we are aiming the three project will be completed. Then these three project, you will see the collection will be the 95 to 100% collection. Okay. Okay. Understood. Congrats and wish you all the best, and looking forward to. Thanks. Thank you. Thank you. The next question is from the line of Mohit Surana from Monarch Network Capital Limited. Congratulations on the great set of numbers. You have been keep on outperforming the numbers every quarter. So just one question more from a medium term perspective, like we understand FY 'twenty seven, there are guidance, you are well on track to meet that guidance.

22:56 But slightly longer period FY 'twenty eight, FY 'twenty nine, Do you see the similar kind of growth that you are achieving in FY 'twenty seven, you'll be able to maintain same kind of growth in FY 'twenty eight and 'twenty nine? Some color on that will be really helpful. Morning, Mohit. This is Sanjay Jan. Regarding that, we have given the... Every every financial year at the beginning, we are giving the guidance for the... That financial year. But whatever the projects we have in hand, we have given the guidance. So if you see that in the presentation, so approximately, we have the GDV of 20,000 crore on out of 10,000 recorded. Sorry? So approximately 20,000 crores, we we we have in hand. And from the project level, the surplus will be around 9,500 crore, and our intention to complete these projects will... For next four four and a half years.

23:58 So you can calculate that. Understood, sir. That answers my question. Yeah. Thanks. Yeah. Congratulations, sir, once again, and wish you all the best. Thank you. Thank you. Thank you. The next question is from the line of Rahul Bhora from Viomi Partners LLP, Polycarat Family Office. Please go ahead. Hello, sir. Good morning. Thank you for the opportunity. I was comparing the two PPTs with last quarter versus this quarter. In the upcoming projects, a lot of time lines have been shifted further for a lot of projects, and they've been shifted for, like, one one year. So if you could just please go from light on these.

24:45 So... Hi, Raj. Good morning. Regarding this timeline, because this is a continuous process and there's some regulatory and the approvals is required. So in the two projects, we have shifted the timeline. One is the LOTUS Monarch to be accepted for one year because of the deal... These are three, four parties involved. One is the society, one is the trust, third is the charity commissioner, and fourth is the government. So we have given the conservative. We hope that if we can start before that also. So major one and second is the in the. We have extended the line. So other projects are in the same timeline.

25:33 And in this process also, we are adding some new projects. So that will be replaced by these. So our guidance and that that will be the... In the future will be... Remains here. Got it, sir. Thank you so much. My second question is regarding your gift city project. If you could just throw some more light on what kind of projects we are developing there because it's written mixed use. So I I believe it's it's going to be residential plus commercial. If you could just throw some light on the gift city project, sir. Sure. It's a find a half acre land parcel, which is right sitting on the River Sabarmati. It's in Gift area.

26:20 Recently, gift authority has acquired in a way 300 acres, and this plot is part of that. This would be ownership land only, and Gift City would be planning authority in this. So we are expecting that as soon as town planning scheme is declared, we'll get approval for mixed use. When I say mixed use, it would be commercial, retail, residential, all three components. And according to our calculation, approximately about 1,300,000 to 1,500,000 square feet of space we'll be able to make there.

27:16 Got it, sir. On the last question, on Amara and Athena, could you just give us some update as to where the construction is and because they are scheduled to get completed this financial year. So if you could just update us on Amara and Athena project. Hi. So in the Amara, we have completed the RCC, and we hope that this quarter, we will get the OC. Otherwise, this financial year will definitely as predicted will get the OC. Athena also, we are in the RCC stage, and we are hopefully that before March, we'll get the OC in the Athena.

28:04 Okay. Thank you so much, sir. Best of luck. Okay. The next question is from the line of Prabhupal Gandhi from Incred Asset Management Company. Am I audible? Yes, yes, Prabhupal. Hi, sir. Good morning. So first of all, congratulations on the business traction that we saw in Andheri commercial property. Within a quarter, we have been able to do a pre sales of 30%. So congratulations on that. My question is on the Prabhadivi launch that we had last quarter. In the presales breakup, it seems that Prabhadivi has not contributed anything, and this is a GDV of INR 800 crores.

28:54 So how should we read this number? Hi, Prabhad. So it is always in the real estate. Prabhad Devi, we have gone for the new micro market, and we are doing the small marketing for the project. We are getting very good inquiry. And so maybe you'll see the the result in the next two quarters in the. If you see the other other other projects in the that is within six month of launch, we have got the 36% sales. And the titan also within three months, 35 overall sales we have got.

29:44 Any any feedback that we are receiving in that we are trying to address? No. No. No. No. Push back or nothing. Just had Not at all. I mean, for us, it's a new micro market. Second, we are sitting tight on what our expectation is because this is a very, very unique project, which has got almost 270 degree of direct sea view. And our pricing has little more premium pricing. This is going to be one of unique art decor building and with the the height of approximately 200 meters.

30:38 So we are expecting that we'll have good clientele there. And as soon as we are we are completed with, then we'll be getting more traction on it. Understood. Sir, second question is, you mentioned that next year, we are seeing three projects which will be completed. So if you can put some numbers to what collection in absolute terms are we expecting for H2 of this year and for FY 'twenty eight? Yeah. Hi, Prahladag. So for the next year, we will be able to tell the start of the financial year. Sorry, sir. But your voice is is a bit unclear.

31:30 Yeah. But we can... Is it clear now? Yes. So this is clear. Can I proceed? Okay. So I was saying that for the next year guidance or next year number, we will be updating the beginning of the year. So right now is not a good time to evaluate and update you. Okay. And for the h two of this year? I mentioned that our two projects are above the level in the last quarter, and they are reaching. So we expect this h two will be much better than h one. Okay. Because my question was because we have a net cash of INR 500 odd crores.

32:23 And in the first half of this year, we consumed INR 300 crores to do business development. So will there be a situation where our collections does not move as per our expectations, and we'll end up pulling back on the business addition. So, Pavel, what what happened in the... For the new development, it is not like that we require much bank balance because normally, for... To start the the new project, we require only eight to 10% of the project cost. But in this quarter, what we have decided that we have to pay the the upfront fees to the government to save the the cost and also to get the discount for the supplier also.

33:16 So that was because the cash balance was there. So we have we have to use that fund efficiently. We have done that. So we have sufficient cash balance available for the new project, and we don't see any stress on that. Understood. And any time lines on when we can expect OCF to be positive for us, operating cash flows to be positive for us? Again, it depends on the what kind of project you're on sales in that particular quarter or financial year we are doing. So since we are in a very growing state and lots of projects are coming for construction, so it will be a... Maybe more I can clear that definitely we will be having no CF positive. But for existing project, there will be high next year. It's...

34:09 They got at a later stage of completion. While the same there is... When I'm seeing new projects, there will be more consumption of cash flow. So it will it will be a net effect. But we have a good balance in books, and we don't see any kind of or anything in that. Well well, in addition to that, it is always the project wise. So if there is a one project, Arcadian, so it will get the working capital positive immediately because already the... This is the basement is completed, and now we... It is on the eighth or ninth left. So project wise, yes. But overall, maybe this... We cannot leave that. But if you want, we can give that project project wise that cash positive when he's with the cash positive.

34:58 Understood, sir. And, again, just congratulating for you guys improving the cap table. So with capital group coming in, I'm sure that your cap table has improved. So congratulations on that. Thank you and all the best. Thank you. Thank you. The next question is from the line of Harsh Patak from Motilal Ulfa Financial Services Limited. Please go ahead. Yeah. Hi, Anand, G and team, and congratulations for the strong pre sales performance for the quarter. So my first question is on the pricing front. What kind of price appreciation are we seeing on our existing projects? And what would be, you know, the strategy on, you know, the pricing for our upcoming projects for h two?

35:54 So every pricing for every project is different, as you know. It depends on which kind of project, where we have, which micro market, and who are the competitors. But as we progress with our construction phase, yes, pricing and if market is supporting, which I anticipate, prices will definitely go up from here. Understood. So have we seen some of our projects seeing that kind of price appreciation so far in the first half? Almost all the projects, I would say. All the projects. Understood. So my next question is on the approvals front.

36:42 Where are we on the approval side for all the four projects for h two? We are we are more or less 90% approvals are in place right now. So we are very confident that in h two, that four projects we will be able to launch. Understood, sir. And my last question is on the project addition front. So we have done commendable activity on the new project additions. How do we see the forthcoming additions? Are we expecting any sizable additions this year? And do we have any plans in place for the next two years as well? So this is going to be... As you know, this is going to be a continuous process.

37:33 Right now, we are in talks with a couple of societies already. Some we are shortlisted also. So every quarter, yes, we'll be adding some projects. Understood, sir. Thanks a lot for taking my questions, and best wishes. Thank you. Thank you. As there are no further questions from the participants, I now hand over the conference to the management for closing remarks. Thank you all for joining us today. The first half of FY 'twenty seven has laid a strong foundation for the year.

38:21 Pre sales of INR $8.79 crores, EBITDA margin of nearly 40%, a successful entry into luxury commercial with LOTUSDEV and three new projects added to our pipeline. As we move into the second half, our priorities are very clear, delivering our four planned launches on schedule and progressing construction across our ongoing developments so that collection keeps pace with the sales. Demand in Mumbai's ultra luxury segment remains anchored by end users rather than by financing. And with a net debt free balance sheet, we are well placed to keep adding the right redevelopment opportunities without stretching ourselves.

39:15 We appreciate the continued interest and support of our investors. Should you have any further questions, please feel free to get in touch with SGA, our investor relations advisers. Thank you, and have a great day. Thank you. 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.