₹5,600 Cr Pre-Sale: Jefferies Sees 48% Upside in This Realty Stock After Strong Q3 Performance

Synopsis: Lodha Developers shares jumped with the company reporting a record Q3 FY26 pre-sale of Rs 56.2 billion (+25% YoY, +23% QoQ), marking 70% of FY26 guidance. A strong project pipeline of Rs 338 billion GDV led to Jefferies giving an upside of 48%. 

The shares of this company, which is engaged in the business of real estate development. It is among the largest real estate developers in terms of presales and development pipeline in India, with a presence in the MMR, Pune and Bengaluru. It had its shares in momentum today after the company reported its Q3 performance, along with two brokerage houses giving an upside of up to 48% 

With the market cap of Rs 1,08,750 crore, the shares of Lodha Developers Ltd have closed at Rs 1,089. The shares are trading at a PE of 32.7, whereas their industry PE is at 34.1, and have given a return of more than 300% since their listing in April 2021. 

About the Q3 performance 

The Lodha Developers Q3 FY26 updates are truly stellar, as they have logged their highest-ever quarter of pre-sales of Rs 56.2 billion, showing a remarkable 25% YoY growth and also a sharp 23% QoQ growth. Notably, the company has already delivered nearly 70% of their FY26 pre-sales guidance in Q3, giving a very robust view for H2 FY26 as well.

One of the major positives in the quarter came through the quality of growth, aided by good sustenance sales and the robust product launching pipeline in Q4. Even as the collections at Rs 35.6 billion were lower in YoY terms because of last year’s special income, the management stated that collections are set to scale up in a big way in the next quarters.

Another significant positive was business development, with five new projects added in Q3 with a GDV of Rs 338 billion in MMR, NCR, and Bengaluru. This propelled 9MFY26 business development to Rs 588 billion, outnumbering the full-year guidance by 2.3 times, thereby increasing revenue visibility to a great extent. However, it is to be noted that its net debt stood within constraints with a touch of aggression, at Rs 61.7 billion.

Brokerage view

Jefferies has a ‘Buy’ recommendation on Lodha with a price target of Rs 1,650, indicating an upside potential of around 48% over the current level of Rs 1,111.7. The broking house has pointed out record pre-sales in Q3, solid additions to projects, and a positive outlook on preserving pre-sales growth, which may further help improve margins in the medium term.

Nomura has also maintained a Buy recommendation with a target price of Rs 1,450, which shows an upside of around 30% from the current price of Rs 1,111.7. Nomura’s positive view is inspired by Lodha’s highest quarterly pre-sales, rapid achievement of a significant part of FY26 guidance and solid business growth momentum that provides a basis of growth clarity through FY27.

Financial highlights and more

The revenue from operations for the company stood at Rs 3,798 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 2,626 crores, up by about 45 per cent YoY. Similarly, the net profit stood at Rs 790 crore in Q2 FY26, up from Rs 423 crore in Q2 FY25.

Lodha is a well-established realty player in India with a strong reputation for developing quality residential and commercial projects with a focus on quality, design, and liveability. The company is a strong believer in well-planned projects, customer-friendly delivery, and sustainable building practices, utilising their collaboration with renowned architects to develop iconic projects.

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