Lodha Developers has one eye on a bigger threat

Lodha Developers, a major player in India's real estate sector, reported a 10% year-on-year rise in sales bookings to Rs 5,037 crore in the September quarter. As the company expands into new markets and aims for higher sales, it remains vigilant about the potential geopolitical and economic fallout of the Middle East conflict. This concern echoes broader worries about the impact of artificial intelligence on housing demand, even as Lodha's latest Bengaluru project shows strong demand for quality homes.

In the first half of FY27, sales bookings rose 7% to Rs 9,670 crore, indicating a robust market. The company targets Rs 24,000 crore in sales bookings for the full financial year, up from Rs 20,530 crore in FY26. Lodha Developers' strong September-quarter performance resulted in a 28% year-on-year rise in consolidated net profit to Rs 1,013.5 crore.

CEO Abhishek Lodha noted the company's continued momentum since its 2021 IPO, projecting surpassing FY27 profit guidance. The company is set to launch a pilot project in Delhi-NCR during the festive season, expanding beyond its current markets of Mumbai and Pune. Despite the strong sales, Lodha is closely monitoring the Middle East conflict's potential impact on the economy and housing demand, even as it expects higher interest rates to have minimal direct effect on their target segments.