Lodha Developers' share price rises 4%; is it right time to buy the stock?

Lodha Developers shares advanced 4.4 per cent in trade after Q1 results and earnings call; here's what investors should do next

Lodha Developers shares advanced 4.4 per cent in trade on Tuesday (July 29, 2025), logging an intra-day high at ₹1,255.2 per share on BSE. Around 10:09 AM, Lodha Developers share price was up 3.55 per cent at ₹1,244 per share. In comparison, Sensex was up 0.06 per cent at 80,939.32. On Monday, the stock fell over 6 per cent after the company posted its Q1 results on Saturday, July 26, 2025.   The gains in the stock on Tuesday come a day after the counter slipped over 6 per cent and triggered a sharp fall in the Nifty Realty index that ended the day over 4 per cent lower.

 

Why were Lodha Developers shares buzzing in trade? 

Lodha Developers, formerly known as Macrotech Developers Limited, stock gained momentum after the earnings call held on Monday, after market hours. This call was to discuss the Q1 earnings released on Saturday, July 26, 2025. 

 

In Q1FY26, Lodha Developers’ profit (attributable to owners of the company) grew 42 per cent year-on-year (Y-o-Y), to ₹674.7 crore. Its revenue (from operations) increased by 22.66 per cent Y-o-Y, to ₹3,491.7 crore.

 

The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter stood at ₹1,200 crore, up 25 per cent YoY. Meanwhile, its Ebitda margin stood at 34.4 per cent.  READ STOCK MARKET LATEST UPDATES TODAY LIVE

Lodha Developers con-call highlights 

The overall urban slowdown has not impacted residential demand as is evident from a strong bookings run-rate of ₹270 crore in a non-launch week – a key metric the company tracks to measure the strength of demand. 

 

The run-rate is up meaningfully compared to last year and will soon reach ₹300 crore by end of FY26. While there is some slowdown in IT, the Global Capability Centres (GCCs) employment is only growing. 

 

The company expects 55 per cent of annual bookings guidance to be achieved in H2, given the strong launch pipeline planned for the last 2 quarters. 

 

Since entering Bengaluru (FY24), the company has achieved cumulative bookings of ₹19,000 crore, and it now has five projects in the city.   ALSO READ | Torrent Pharma gains over 2% after Q1 results; what should you do?

Brokerages' view on Lodha Developers

Nomura maintained 'Buy' with a target of ₹1,450  per share, as the brokerage believes the company can make up for the slower growth in Q1FY26 in the rest of the year, led by sales from its large inventory and new project launches.

 

The brokerage is upbeat on Lodha, on the back of its robust business model that drives sales through deep penetration within micro markets, strong collections aiding operating cash flow (OCF) generation at a 15 per cent compound annual growth rate (CAGR), which should enable Lodha exceed its business development goals for future growth, while maintaining a low net debt/equity position. 

 

ICICI Securities has upgraded its rating to 'Add' from 'Hold'  with an unchanged target of ₹1,284, based on a 40 per cent premium to FY25 net asset value (NAV) of ₹917. The brokerage finds Lodha Developers' stock attractive as it has corrected 8 per cent over the last three months. 

 

JM Financial Institutional Securities maintained 'Buy' with a target of ₹ 1,480 per share. JM Financial sees Lodha well placed to withstand temporary headwinds given its well-diversified and growing presence in three of the top five markets in India.