Operator: Ladies and gentlemen, good day, and welcome to Sri Lotus Developers and Realty Limited's Q2 FY 2027 earnings conference call. Before we begin, I would like to remind participants that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.
Operator: With this, I now hand the conference over to Mr. Anand Pandit, Managing Director and Chairman of Sri Lotus Developers and Realty Limited. Thank you, and over to you, sir.
Anand Pandit: Good morning, everyone, and a very warm welcome to the Q2 and H1 FY 2027 earnings call of Sri Lotus Developers and Realty Limited. Joining me today are our CEO, Mr. Sanjay Kumar Jain, our CFO, Mr. Rakesh Gupta, and our investor relations advisors from SGA. Our investor presentation has been uploaded to the stock exchanges and our website, and we hope you have had a chance to go through it. Let me begin with a brief update on the real estate market. Mumbai remains India's largest housing market, with sales in the first nine months of calendar 2026 at their highest since 2018, and the luxury segment continues to lead.
Anand Pandit: In the H1 of the calendar year, sales of homes priced above INR 10 crore reached a record of over INR 18,500 crores, while prime residential prices rose 6.2% year-on-year, more than twice the global average. Demand is driven largely by end users upgrading to larger homes in better locations. While scarce land in prime micro markets makes redevelopment the principal route to new supply, precisely where Lotus has built its capability. Before I begin with the business update, a word on interest rates. Earlier this month, RBI raised the repo rate by 25 basis points to 5.5%, its first increase since early 2023. While this is likely to weigh on affordable and mid-income housing, the luxury segment is far less sensitive to borrowing costs.
Anand Pandit: Our buyers rely far less on home loans and buy for long-term value and lifestyle. We therefore do not expect it to materially alter demand in the micro markets we operate in. Turning to our performance, Q2 FY 2027 completes a strong H1 for Lotus. Delighted to share that we recorded pre-sales for the quarter at INR 470 crores, up 83% year-on-year. For H1 FY 2027, pre-sales stood at INR 879 crores, up 176% year-on-year. Our growth has not come at the cost of profitability. In Q2, total revenue rose 53% year-on-year to INR 269 crores. EBITDA more than doubled to INR 107 crores, with margins expanding to 39.9%.
Anand Pandit: For the H1, revenue stood at INR 401 crores, up 69%, EBITDA at INR 155 crores, up 95%, and PAT at INR 134 crores, up 86% at an improved PAT margin of 33.5%. Collections stood at INR 60 crores for the quarter and INR 209 crores for the H1. Collection in our business are linked to construction milestones and can vary from quarter to quarter. As our ongoing project progress and recent launches reach their billing milestones, we expect collection to pick up over the coming quarters. Our recent launches continue to perform well. Lotus Trident in Andheri West, our luxury commercial offering, has been a standout performer, contributing pre-sales of INR 178 crore in its first full quarter since its launch at the end of June.
Anand Pandit: Its success shows how well the Lotus brand travels beyond ultra-luxury residential into luxury commercial real estate. We also made significant progress on business development during the quarter. Three new projects added: Lotus Empressa at Shivaji Park in Dadar West, Lotus Stellar in Versova, and Lotus Supremus in Juhu, which adds INR 2,700 to 2,800 crores of GDV to existing GDV pipeline. These additions deepen our presence in Juhu and Versova, where we have a strong track record, and extend our footprint to Shivaji Park, one of central Mumbai's most established residential neighborhoods. With these additions, our ongoing and upcoming pipeline now comprises 24 projects with an aggregate GDV of approximately INR 20,000 crores, of which 19 are redevelopment-led. Looking ahead, we are well prepared for the second half.
Anand Pandit: We plan to launch four projects, Lotus Aurelia, Lotus Sky Plaza, Lotus Portofino, and Lotus Odyssey, with a combined estimated GDV of INR 3,500 to 4,000 crores. Together, with the momentum from our recent launches and a growing pipeline, we remain confident of delivering our FY 2027 guideline of pre-sales in the range of INR 1,800 to 2,000 crores, along with revenue and PAT growth of 55% to 60% over FY26 levels. We also remain confident of sustaining strong profitability with EBITDA and PAT margin expected at 35% to 40% and 25% to 30%, respectively. Behind these numbers is a simple operating philosophy. We select projects on the strength of their location and margins, not their scale, and we oversee every stage of a development ourselves, from design and construction to sales and customer engagement.
Anand Pandit: This is what enables us to deliver consistently strong margins, and the credibility we have built with housing societies and development partners continues to open up new redevelopment opportunities for us, as reflected in the three additions in this quarter. With that, I will now hand over the call to Mr. Sanjay Kumar Jain, our CEO, to take you through the financial highlights in more detail. Thank you.
Sanjay Kumar Jain: Thank you, Anand Sir. Good morning, everyone. Let me now take you through our financial performance for Q2 and H1 FY 2027. It reflects strong business momentum, significant growth in profitability, and continued progress in expanding our development portfolio. Let me begin with our business performance and growth outlook. Lotus Trident in Andheri West delivered pre-sale of INR 178 crore in Q2, marking its first full quarter since launch. Lotus Aquaria in Prabhadevi continued to witness healthy inquiry level. During the quarter, we further strengthened our development pipeline by adding three new projects at Shivaji Park, Dadar West, second in Versova, and in Juhu. Together, these additions represent an estimated GDV of INR 2,700 crore approximately. Looking ahead, we plan to launch four projects in H2 FY 2027: Lotus Sky Plaza, Lotus Portofino, Lotus Aurelia and Lotus Odyssey, with a combined estimated GDV of INR 3,500 to 4,000 crore.
Sanjay Kumar Jain: These additions provide us with a strong pipeline of future opportunity and reinforce our focus on expanding our portfolio and creating long-term value. Coming to our financial performance, Q2 FY 2027 delivered strong growth across our key financial parameter. Pre-sales grew 83% year-on-year to INR 470 crore, compared with INR 257 crore in corresponding quarter last year. Total revenue increased 53% to INR 269 crore, while EBITDA more than doubled, growing 113% to INR 107 crore from INR 50 crore. Our EBITDA margin remained healthy at 39.90%.
Sanjay Kumar Jain: Profit after tax grew 91% to INR 89 crore compared with INR 46 crore in Q2 FY26. The combination of strong revenue growth, substantial EBITDA expansion, and higher profitability demonstrates the strength of our operating performance. Turning to H1 FY 2027, our performance reflects an even stronger growth trajectory. Pre-sale increased 176% year-on-year to INR 879 crore compared with INR 319 crore in H1 FY2026.
Sanjay Kumar Jain: Total revenue grew 69% to INR 401 crore. EBITDA increased 95% to INR 155 crore with a healthy margin of 38.80%. Profit after tax rose 86% to INR 134 crore compared with INR 72 crore in corresponding period last year. Overall, these numbers demonstrate strong momentum across sales revenue and profitability, providing a solid foundation for the next phase of our growth. Moving to our balance sheet, maintaining financial strength and flexibility remain a key priority. As of 30 September 2026, we had a net cash position of INR 494 crore.
Sanjay Kumar Jain: This provides us with the financial flexibility to fund our ongoing projects, support upcoming launches, and pursue new development opportunity while maintaining a disciplined capital structure. In addition, our estimated project level surplus stand at approximately INR 9,500 crore over the development cycle of our portfolio. This represents significant potential value from our projects subject to the project execution, realization, cost, and other relevant assumptions.
Sanjay Kumar Jain: It is important to distinguish this projected project level surplus from our current cash balance or accounting profits. On capital deployment, we remain committed to disciplined and transparent utilization of fund. We raised approximately INR 792 crore through the fresh issue of our IPO with net proceed of approximately INR 732 crore after issuance expenses. Of which INR 550 crore earmarked for our subsidiary for the Amalfi, Arcadian and Varun. INR 305 crore had been deployed as on 30 September 2026. We remain on track with our planned utilization schedule. To conclude, H1 FY 2027 has been a strong period for the company. We have delivered 176% growth in pre-sale, nearly double our EBITDA, significantly increased our profitability and maintained a net cash position.
Sanjay Kumar Jain: With four planned project launch in H2 FY 2027, a strengthened development pipeline, a disciplined approach to capital deployment, we are focused on sustaining our growth momentum, executing our projects efficiently, and delivering long-term value for our shareholder. With that, I would like to open the floor for question. Thank you.
Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ankit S. Mehta from Roha Wellworth Securities Private Limited. Please go ahead.
Ankit Mehta: Good morning, sir. I have a couple of questions. First, how are we seeing the luxury market evolve, and how are we positioned in this market for the future? The second is that we have been continuously registering margin support of 35%. How sustainable are they, especially when we are in expansion mode?
Anand Pandit: Hi, Ankit. This is Anand Pandit. Good question. First of all, luxury market is growing every day, actually. Everyone wants to and it's evolving with the socioeconomic change in people's life. Things are changing even with real estate also. Everyone wants to move to a better home, new home with larger home, good facility, good amenity. So this luxury market, which was, I would say, very limited, it's now growing, and we are getting that advantage of the growing market. As far as margins are concerned, as I have mentioned earlier, we are a net debt free company, so we don't have to pay or we don't have to have any burden of interest. Second, till today, we have not done any marketing expenses. Very limited awareness campaign we did. So that is where we don't spend much money on that. Third is our project cycle is very fast.
Anand Pandit: We generally complete all the projects in 2.5 to 3.5 years between that. So because of that, our deployment of fund is very efficient, and that gives us a great sales velocity. So I feel combination and also we have got better pricing, premium pricing policy. So all this five contributes to good EBITDA margin and PAT margin both. I am sure that this will continue.
Ankit Mehta: That was all from my side. Thank you, sir.
Anand Pandit: Thank you.
Operator: The next question is from the line of Deep Tamani from Choice Broking. Please go ahead.
Deep Tamani: Hi, sir. Thanks for the opportunity. First of all, I would like to congratulate the team for a great set of numbers and very good margins. I just have one question. Your commercial project seems to be getting stronger traction right now. What realization margin are you seeing at Trident, and what do you think about, will commercial development become a bigger part of the pipeline going forward?
Anand Pandit: So yes, there is a good moment for commercial properties, and we have very balanced portfolio of commercial. Right now in our portfolio, we have got about five projects of commercial, and commercial has got, I would say, good margins, sustainable margin. I think we are the only one right now in the suburbs who has completed redevelopment in commercial space. We have delivered that last year. It is called Arc One. Now we have taken about two to three projects of redevelopment in commercial space also. I am sure the margins will be good on that also.
Anand Pandit: So yes, there is a good moment for commercial properties, and we have very balanced portfolio of commercial. Right now in our portfolio, we have got about five projects of commercial, and commercial has got, I would say, good margins, sustainable margin. I think we are the only one right now in the suburbs who has completed redevelopment in commercial space. We have delivered that last year. It is called Arc One. Now we have taken about two to three projects of redevelopment in commercial space also. I am sure the margins will be good on that also.
Anand Pandit: So yes, there is a good moment for commercial properties, and we have very balanced portfolio of commercial. Right now in our portfolio, we have got about five projects of commercial, and commercial has got, I would say, good margins, sustainable margin. I think we are the only one right now in the suburbs who has completed redevelopment in commercial space. We have delivered that last year. It is called Arc One. Now we have taken about two to three projects of redevelopment in commercial space also. I am sure the margins will be good on that also.
Deep Tamani: Okay. Got it, sir. What about the realizations and margins in Lotus Trident?
Anand Pandit: Margin in the Lotus Trident will be in the similar line because it will be like our guided margin of EBITDA 33% to 35%, it will remain the same.
Deep Tamani: Okay. Got it. That is all from my side. Thank you.
Anand Pandit: Thank you.
Operator: The next question is from the line of Siddharth S. from NAFA Asset Managers. Please go ahead. Siddharth, can you unmute your line, please?
Siddharth Suresh: Am I audible?
Operator: Yes, you are audible.
Siddharth Suresh: Yeah. Congrats on the great set of numbers and my query is on the collections and the market and the overall expectation was that the collections would materialize this year. Since the milestone is middling, I just want to understand a better picture on it in terms of how exactly the collections will catch up because the headline numbers all look great, but I think that's the only point of concern I and in general, the markets are seeing in this sense. If you could just explain your project cycle better and how do you expect the collections to pan out going forward, that will be really helpful.
Sanjay Kumar Jain: Good morning, Siddharth S. Regarding the collection, what happened, our three core projects which we already launched that are mostly are in the basement level. You know that all the payment plan is the construction linked. Normally, when the project launch, normally the collection will be 5% to 10%. Once that it reach the plinth level, it is approximately 25%. If you see that this number is the INR 800 crore, this half yearly our pre-sale is there. Out of INR 800 crore, we have collected INR 200 crore, so that nearly 25% of the collection we have done that. From this next half yearly, we are confident that we'll get the good collection because out of three project, two project will be out from the basement and the collection will be improved.
Siddharth Suresh: Understood. To get a better clarity on this, pre-listing your collections as a percentage of pre-sales in FY23 was in the range of 97.5%, and in 2024 it was 92.8%. On the year of FY25, it was very healthy at 75.1%. What do you expect collections as a percentage of pre-sales to be going forward? That could give me and provide me with a lot of clarity.
Sanjay Kumar Jain: Siddharth S., it is depending on which stage the project is there. In the last year and in the 2024, 2025 also, some of the project is on the completion stage. At the time of the completion stage, the collection will always be the 90%, 95% is due. That's reflect in the balance sheet. You'll see that once the project will be completed. Next year, we are aiming the three project will be completed. Then these three projects you will see the collection will be the 95% to 100% collection.
Siddharth Suresh: Okay. Understood. Congrats and wish you all the best, and looking forward to connect. Thanks.
Sanjay Kumar Jain: Thank you.
Operator: Thank you. The next question is from the line of Mohit Sodana from Monarch Networth Capital Limited. Please go ahead.
Mohit Surana: Sir, congratulations on the great set of numbers. You have been keen on outperforming the numbers every quarter. Sir, just one question more from a medium-term perspective. We understand FY 2027, the guidances, you are well on track to meet that guidance. But slightly longer period, FY28, FY29, do you see the similar kind of growth that you are achieving in FY 2027, will you be able to maintain same kind of growth in FY28 and 29? Some color on that will be really helpful.
Sanjay Kumar Jain: Good morning, Mohit. This is Sanjay Jain. Regarding that, every financial year, at the beginning, we are giving the guidance for that financial year. Whatever the projects we have in hand, we have given the guidance. If you see in the presentation, approximately we have the GDV of INR 20,000 crore. Sorry. Approximately INR 20,000 crore GDV we have in hand. From the project level, the surplus will be around INR 9,500 crore. Our intention to complete these projects for the next four to four and a half years. You can calculate that.
Mohit Surana: Understood, sir. That answers my question.
Sanjay Kumar Jain: Right.
Mohit Surana: Yeah. Congratulations, sir. Once again, and wish you all the best.
Sanjay Kumar Jain: Thank you.
Operator: Thank you. The next question is from the line of Rahil Bora from Vyom Partners LLP, Polycab Family Office. Please go ahead.
Rahil Bohra: Hello, sir. Good morning. Thank you for the opportunity. I was comparing the two PPTs, last quarter versus this quarter. In the upcoming projects, a lot of timelines have been shifted further for a lot of projects, and they have been shifted for one year. If you could just please throw some light on this.
Sanjay Kumar Jain: Hi, Rahil. Good morning. Regarding this, the timeline, because this is a continuous process and there is some regulatory and approvals required. So in the two projects we have shifted the timeline. One is the Lotus Monarch, we have shifted for one year because there are three, four parties involved. One is the society, one is the trust, and third is the charity commissioner, and fourth is the government. So we have given the conservative. We hope that we can start before that also. So major one and second is in the Ghatkopar, the Lotus Solana, we have extended the line. So other projects are in the same timeline. In this process also, we are adding some new projects. So that will be replaced by these. So our guidance in the future will remain same.
Rahil Bohra: Got it, sir. Thank you so much. My second question is regarding your GIFT City project. If you could just throw some more light on what kind of projects we are developing there, because it is written mixed use. So I believe it is going to be residential plus commercial. If you could just throw some light on the GIFT City project, sir.
Sanjay Kumar Jain: Sure. It is a five and a half acre land parcel, which is right sitting on the River Sabarmati. It is in GIFT area. Recently, GIFT Authority has acquired, in a way, 300 acres, and this plot is a part of that. This will be an ownership land only, and GIFT City would be planning authority in this. We are expecting that as soon as a town planning scheme is declared, we will get approval for mixed use. When I say mixed use, it would be commercial, retail, residential, all three components. According to our calculation, approximately about 1.3 to 1.5 million square feet of space we will be able to make there.
Rahil Bohra: Got it, sir. On the last question, sir, on Lotus Amara and Lotus Athena, could you just give us some update as to where the construction is, and because they are stated to get completed this financial year. If you could just update us on Lotus Amara and Lotus Athena project.
Sanjay Kumar Jain: Hi. In the Lotus Amara, we have completed the RCC, and we hope that this quarter we will get the OC. Otherwise, this financial year will definitely, as predicted, will get the OC. Lotus Athena also, we are in the RCC stage, and we are hopeful that before March we will get the OC in the Lotus Athena.
Rahil Bohra: Okay. Thank you so much, sir. Best of luck.
Sanjay Kumar Jain: Thank you.
Operator: Thank you. The next question is from the line of Prabal Gandhi from InCred Asset Management Company. Please go ahead.
Prabal Gandhi: Hi, am I audible?
Sanjay Kumar Jain: Yeah. Yeah, Prabal.
Prabal Gandhi: Hi, sir. Good morning. First of all, congratulations on the business traction that we saw in Andheri commercial property. Within a quarter, we have been able to do a pre-sales of 30%. So congratulations on that. My question is on the Lotus Aquaria launch that we had last quarter. In the pre-sales breakup, it seems that Lotus Aquaria has not contributed anything, and this is a GDV of INR 800 crores. How should we read this number?
Sanjay Kumar Jain: Hi, Prabal. It is always in the real estate. Lotus Aquaria, we have gone for the new micro market, and we are doing the small marketing for the Lotus Aquaria project. We are getting very good inquiry, and so maybe you will see the result in the next two quarters in the Lotus Aquaria. If you see the other projects in the Lotus Celestia, that is within six months of launch, we have got 36% sales. The Lotus Trident also within three months, 35% overall sales we have got.
Prabal Gandhi: Any pushback that you are receiving in Lotus Aquaria that you are trying to address?
Sanjay Kumar Jain: No, no. No pushback or nothing stressful, just that.
Rakesh Gupta: Not at all. I mean, for us, it's a new micro market. Second, we are sitting tight on what our expectation is, because this is a very unique project which has got almost 270 degree of direct sea view. Our pricing are little more premium pricing. This is going to be one of unique art deco building and with the height of approximately 200 meters. So we are expecting that we'll have good clientele there, and as soon as we are completed with plinth, then we'll be getting more traction on that.
Prabal Gandhi: Understood. Sir, second question is, you mentioned that next year we are seeing three projects which will be completed. So if you can put some numbers to what collection in absolute terms are we expecting for H2 of this year and for FY28?
Rakesh Gupta: Yeah, no problem. So, for the next year, we will be able to tell at the start of the next financial year, because generally we give guidance on the numbers for that.
Prabal Gandhi: Sorry, sir, but your voice is a bit unclear.
Rakesh Gupta: Yeah, Prabal. Is it clear now?
Prabal Gandhi: Yes, sir. It is clear now. You may proceed.
Rakesh Gupta: Okay, I was saying that for the next year guidance or next year number, we will be updating from the beginning of the year. So right now is not a good time to, because we evaluate and reduce.
Prabal Gandhi: Okay, and for the H2 of this year?
Rakesh Gupta: I mentioned that our 2 projects are above the plinth level in the last quarter, and they are at the milestone of construction stage. We expect this H2 will be much better than H1 in terms of collection because of milestone of our construction Arcadian and 3 projects.
Prabal Gandhi: Okay. My question was, because we have a net cash of INR 500 odd crores, and in the H1 of this year, we consumed INR 300 crores to do business development. Will there be a situation where our collections does not move as per our expectations, and we will end up pulling back on the business addition?
Sanjay Kumar Jain: Prabal, what happened for the new development, it is not like that we required much bank balance because normally to start the new project, we required only 8% to 10% of the project cost. But in this quarter, what we have decided that we have to pay the upfront fees to the government to save the cost and also to get the discount for the supplier also. That was because the cash balance was there. We have to use that fund efficiently. We have done that. We have the sufficient cash balance available for the new project, and we do not see any stress on that.
Prabal Gandhi: Understood. Any timelines on when we can expect OCF to be positive for us, operating cash flows to be positive for us?
Rakesh Gupta: Again, it depends on what kind of project launches in that particular quarter or financial year we are doing. Since we are in a very growing stage and lots of projects are coming for construction, it will be maybe not exactly clear that we will be having OCF positive, but for existing projects there will be high collection next year as these are at a later stage of completion. While at the same, we are launching new projects, there will be more consumption of cash flow. It will be a net effect, but we have a good balance in books, and we don't see any kind of insufficiency or anything in that.
Sanjay Kumar Jain: Prabal, in addition to that, it is always the project-wise. If there is one project, Arcadian, it will get the working capital positive immediately because already the basement is completed and now it is on the eighth or ninth slab. So project-wise, yes. But overall, maybe we cannot give that. But if you want, we can give that project-wise, when will the cash positive be.
Prabal Gandhi: Understood, sir. Again, just congratulating for you guys improving the cap table. With Capital Group coming in, I'm sure that your cap table has improved. So congratulations on that. Thank you, and all the best.
Sanjay Kumar Jain: Thank you.
Operator: Thank you. The next question is from the line of Harsh Pathak from Motilal Oswal Financial Services Limited. Please go ahead.
Harsh Pathak: Yeah. Hi, Anand and team, and congratulations for the strong pre-sales performance for the quarter. My first question is on the pricing front. What kind of price appreciation are we seeing on our existing projects, and what would be the strategy on the pricing for our upcoming projects for H2?
Anand Pandit: Pricing for every project is different as you know. It depends on which kind of project, where we have, which micro-market, and who are the competitors. But as we progress with our construction phase, yes, pricing and which I anticipate, prices will definitely go up from here.
Harsh Pathak: Understood. Have we seen some of our projects seeing that kind of price appreciation so far in the H1?
Anand Pandit: Almost all the projects, I would say. All the projects.
Harsh Pathak: Understood. My next question is on the approvals front. Where are we on the approval side for all the four projects for H2?
Anand Pandit: More or less 90% approvals are in place right now. We are very confident that in H2, that four projects will be able to launch.
Harsh Pathak: Understood, sir. My last question is on the project addition front. We have done commendable activity on the new project additions. How do we see the forthcoming additions? Are we expecting any sizable additions this year? Do we have any plans in place for the next 2 years as well?
Anand Pandit: As you know, this is going to be a continuous process. Right now we are in talks with a couple of societies already. Some we are shortlisted also. Every quarter, yes, we will be adding some projects.
Harsh Pathak: Understood, sir. Thanks a lot for taking my questions, and best wishes.
Anand Pandit: Thank you.
Operator: Thank you. As there are no further questions from the participants, I now hand over the conference to the management for closing remarks.
Anand Pandit: Thank you all for joining us today. The H1 of FY 2027 has laid a strong foundation for the year. Pre-sales of INR 879 crores, EBITDA margin of nearly 40%, a successful entry into luxury commercial with Lotus Trident, and three new projects added to our pipeline. As we move into the H2, our priorities are very clear. Delivering our four planned launches on schedule and progressing construction across our ongoing developments so that collection keeps pace with the sales. Demand in Mumbai's ultra-luxury segment remains anchored by end users rather than by financing. With a net debt-free balance sheet, we are well-placed to keep adding the right redevelopment opportunities without stretching ourselves. We appreciate the continued interest and support of our investors. Should you have any further questions, please feel free to get in touch with SGA, our investor relations advisors.
Anand Pandit: Thank you, and have a great day.
Operator: Thank you. On behalf of Sri Lotus Developers and Realty Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Anand Pandit: Thank you.
