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Lodha Developers' Net Debt Climbs 15% Amid Aggressive Land Buying Spree

Lodha Developers reported a 15% quarter-on-quarter increase in its net debt, which reached Rs 6,170 crore in Q3. The rise is attributed to the company's aggressive strategy of acquiring land parcels in key regions like Mumbai, Delhi-NCR, and Bengaluru. Despite the higher debt, the company asserts it remains well within its manageable limit of 0.5x net debt to equity. The developer is expanding its footprint, including a new entry into the Delhi-NCR market via a partnership, and has set a sales bookings target of Rs 21,000 crore for the current fiscal year.

Key Points: Lodha Developers Q3 Net Debt Rises 15% to Rs 6,170 Crore

  • 15% net debt rise to Rs 6,170 cr
  • Aggressive land acquisitions drive increase
  • Debt remains within 0.5x equity ceiling
  • New Gurugram entry with MRG Group
  • Sales bookings target Rs 21,000 cr
2 min read

Lodha Developers' net debt rises 15 pc in Q3

Lodha Developers reports a 15% rise in Q3 net debt to Rs 6,170 crore due to land acquisitions, but says it remains within manageable limits.

"Even with significant investments... our net debt stood at Rs 61.7 billion, well below our ceiling - Lodha Developers"

Mumbai, Jan 18

Real estate firm Lodha Developers Limited has reported a 15 per cent increase in its net debt during the October-December quarter, reaching Rs 6,170 crore.

The rise is attributed to the company's aggressive land acquisitions aimed at expanding its business, according to its key business updates to exchanges.

For comparison, the company's net debt was Rs 5,370 crore at the end of September 2025.

Despite the increase, Lodha Developers said its net debt remains well within manageable limits.

"Even with significant investments in business development over the first nine months of this fiscal year, our net debt stood at Rs 61.7 billion, well below our ceiling of 0.5x net debt to equity," the company noted.

During the December quarter, Lodha acquired five land parcels across key regions, including the Mumbai Metropolitan Region, Delhi-NCR, and Bengaluru.

These acquisitions were made through outright purchases as well as partnerships with landowners.

The Mumbai-based company plans to develop primarily housing projects on these sites, with an estimated total revenue potential of Rs 33,800 crore.

In a notable move last month, Lodha Developers partnered with MRG Group to develop two projects in Gurugram -- marking its entry into the Delhi-NCR housing and commercial real estate market.

The company is already working on a warehousing project in the region. Lodha continues to have a strong presence in residential markets across Mumbai, Pune, and Bengaluru.

The company has also seen growth in its sales bookings. During the last fiscal year, Lodha's sales bookings rose to Rs 17,630 crore, compared with Rs 14,520 crore in the previous year.

For the current financial year, it has set a sales bookings target of Rs 21,000 crore.

Since its inception, Lodha Developers has delivered 110 million square feet of real estate and is currently developing over 130 million square feet across ongoing and planned projects.

- IANS

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Reader Comments

P
Priya S
As someone who bought a Lodha flat in Mumbai, I'm cautiously optimistic. Their quality is good, but increased debt makes me nervous about future maintenance and project completion timelines. Hope they manage their finances well. 🤞
A
Aman W
This is actually a smart, bold move. The Indian real estate market is booming, especially in premium segments. Acquiring land now in MMR, Delhi-NCR, and Bengaluru is securing future inventory. Their debt-to-equity ratio is still healthy at below 0.5x. Bullish on Lodha! 💹
S
Sarah B
Interesting to see them pushing into Gurugram. The Delhi-NCR market is very competitive. I wonder if their Mumbai-centric luxury model will translate well there. The partnership with MRG Group seems like a wise way to enter a new market.
K
Karthik V
The key is execution. They have a massive 130 million sq ft in the pipeline. That's a huge responsibility to homebuyers. Debt funding expansion is fine, but they must not compromise on construction quality or delivery schedules. The real test begins now.
N
Nisha Z
Sales bookings are up sharply, which is a good sign that there is demand for their projects. If they can keep sales momentum at ₹21,000 crore this year, the increased debt should be manageable. It's a calculated risk that could pay off big for shareholders.

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