Summary
Sri Lotus Developers and Realty Limited - Q3 FY26 Earnings Call Summary Monday, February 09, 2026 4:00 PM
Event Participants
Executives 3 Anand Pandit (Chairman & Managing Director), Rakesh Gupta (Chief Financial Officer), Sanjay Kumar Jain (Chief Executive Officer)
Analysts 5 Aniket Madhwani (Steptrade Capital), Ankit S. Mehta (Wellworth Share & Stock Broking), Aayush Saboo (Choice Institutional Equities), Kapil Aggarwal (Daksh and Associates), Mohit Surana (Monarch Networth Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Pre-sales | ₹376 crores | +247% YoY; Driven by strong launch of Project Varun and existing inventory absorption. |
| Revenue | ₹224 crores | +93% YoY; Recognized on percentage of completion method across ongoing projects. |
| EBITDA | ₹79 crores | +29% YoY; Reflects steady execution despite higher base in previous years. |
| EBITDA Margin | 35.5% | Normalized from 50%+ in FY25 as COVID-era low-cost land projects are completed. |
| Profit After Tax | ₹70 crores | +37% YoY; Management notes confidence in sustaining 25-30% PAT margins. |
| Collections | ₹119 crores | Healthy momentum; Management expects Q4 collections to exceed Q3 as construction slabs progress. |
| Net Cash | ₹845 crores | Includes ₹732 crores net proceeds from IPO; ₹200 crores deployed as of Dec 31, 2025. |
| Project Pipeline | 20 Projects | Aggregated GDV of ₹16,000 to ₹17,000 crores; 3.2 million sq. ft. saleable area. |
Geographic & Segment Commentary
- Mumbai Residential (Ultra-Luxury): Core focus remains on redevelopment in premium micro-markets like Juhu, Versova, and Bandra. Projects “The Arcadian” and “Amalfi” saw 34% and 45% absorption respectively within four months of launch.
- Commercial Segment: Currently comprises four projects in the pipeline. The flagship Greenfield project, Lotus Trident, is awaiting regulatory approvals with a planned launch in Q1 FY27.
- GIFT City (Gujarat): Represents the company’s first strategic expansion outside the Mumbai market. One project has been added to the portfolio as part of the recent eight-project expansion phase.
Company-Specific & Strategic Commentary
- Asset-Light Redevelopment Model: 15 of 20 pipeline projects are redevelopment-led, leveraging a proven track record to secure contracts from societies even amid intense competition (Anand Pandit).
- Growth and Project Acquisition: Added eight new projects in FY26 YTD, contributing ₹7,500 - ₹8,000 crores in incremental GDV (Anand Pandit).
- Execution Scaling: Management is aggressively hiring experienced staff and focus on HR to manage the ramp-up to 20 concurrent projects (Anand Pandit).
- Capital Allocation: IPO proceeds of ₹732 crores are being deployed for working capital, with plans to fully utilize the funds within one year to support a total GDV potential of ₹17,000 crores (Sanjay Jain).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Pre-sales | ₹1,100 - ₹1,300 crores for FY26 | Management is on track with ₹695 crores achieved in 9M FY26; Q4 to be driven by two new mega launches. |
| New Launches | 2 Projects in Q4 FY26 | Lotus Aquaria (Prabhadevi) and Lotus Celestia (Versova) have a combined potential of >₹2,000 crores. |
| PAT Margins | 25% - 30% | Long-term target based on current project mix and premium product positioning. |
| Debt Profile | Zero Debt for 2 years | Current cash of ₹845 crores is sufficient for working capital; future funding may consider QIP or debt if needed. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Approvals | Delays in statutory approvals have already pushed the launch of the Lotus Trident commercial project to Q1 FY27. |
| Execution Complexity | Managing 20 simultaneous projects (mostly redevelopment) requires precise coordination with housing societies and slab-linked construction timelines. |
| Margin Normalization | EBITDA margins have compressed from >50% to ~35% as the benefit of low-cost land bank acquired during the COVID-19 period diminishes. |
Q&A Highlights
Revenue Recognition and Margins
- Question: Why have operating margins reduced from 50%+ last year to the 30-35% range? (Kapil Aggarwal)
- Answer: Last year benefited from a specific project acquired during COVID with low costs and high price appreciation; 35-40% EBITDA is the sustainable target for the next 2-3 years (Rakesh Gupta).
Collection Lag vs. Sales
- Question: Why are collections low compared to high pre-sales numbers? (Aniket Madhwani)
- Answer: Collections are slab-linked; because several projects were launched in the last four months, meaningful cash flow will trigger as construction hits specific percentage completion levels in Q4 and beyond (Rakesh Gupta).
Capital and Debt
- Question: Will the company require debt for non-redevelopment JV projects? (Aayush Saboo)
- Answer: Current net cash of ₹845 crores is sufficient for the existing ₹17,000 crore GDV pipeline; no debt is envisioned for at least the next two years (Sanjay Jain).
Market Competition
- Question: How does the company differentiate itself in the crowded Mumbai redevelopment market? (Mohit Surana)
- Answer: The company focuses exclusively on the “ultra-luxury” niche; track record in faster construction and quality leads societies to prefer the Lotus brand even over competitors they had previously considered (Anand Pandit).
Key Takeaway
Sri Lotus Developers and Realty Limited delivered a robust Q3 FY26, characterized by a 247% YoY surge in pre-sales to ₹376 crores and a 93% increase in revenue to ₹224 crores. The company is successfully pivoting its portfolio toward high-value redevelopment, having added eight projects this year with an incremental GDV of up to ₹8,000 crores. While EBITDA margins have normalized to 35.5% from previous highs due to the exhaustion of COVID-era land costs, profitability remains strong with a 37% YoY growth in PAT. Management remains focused on an asset-light model and is scaling execution capabilities to manage a total pipeline of 20 projects with a ₹17,000 crore GDV potential. With two major launches in Prabhadevi and Versova planned for Q4 FY26, the company is well-positioned to meet its full-year pre-sales guidance of ₹1,100 - ₹1,300 crores while maintaining a net cash-positive balance sheet.
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