Macrotech Developers Plans Major Expansion into Delhi-NCR Housing Market

Macrotech Developers is planning to expand into the Delhi-NCR housing market. Managing Director Abhishek Lodha emphasized that this initiative aligns with the company's broader strategy to extend its presence beyond its existing markets in the Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. The expansion reflects Macrotech Developers' efforts to strengthen its business footprint and tap into new growth opportunities.

The company is actively looking to acquire land in the Delhi-NCR region, either through direct land purchases or joint development agreements with local landowners. Macrotech Developers has already secured a land parcel in the area for industrial and logistics park development. The company’s current focus, however, is shifting toward the residential market, where it sees significant growth potential.

Macrotech's previous strategy in new markets has been to begin with a few pilot projects to test the waters before making substantial investments. Following its success in the MMR and Pune housing markets, the company entered Bengaluru in 2022 and has since launched two housing projects, with plans for three more in the city.

Delhi-NCR has long been one of India’s largest and most competitive housing markets, attracting real estate developers from other regions. Prestigious builders from South and West India, such as the Prestige Group, Birla Estate, Sobha, Oberoi Realty, and Shapoorji Pallonji Real Estate, have all made their mark in this region. This makes the entrance of Macrotech Developers into the market all the more significant. The region’s scale, diverse consumer base, and evolving infrastructure offer an attractive opportunity for real estate firms seeking to grow their presence.

In its performance for the 2024-25 fiscal year, Macrotech Developers has seen impressive results. The company reported record pre-sales bookings of ₹4,510 crore, reflecting a 32% increase from the previous year. For the fiscal year up to December, the company achieved ₹12,820 crore in pre-sales, marking a 25% year-on-year growth. Macrotech is confident that it will reach its annual pre-sales target of ₹17,500 crore by the end of the fiscal year.

Alongside the growth in pre-sales, the company also managed to reduce its net debt by 12% to ₹4,320 crore in the December quarter, down from ₹4,930 crore at the end of September 2024. This improvement is attributed to strong internal cash flows, which have been fueled by the solid pre-sales performance.

Mr. Lodha pointed out that Macrotech Developers has been expanding its land portfolio across its existing markets—MMR, Pune, and Bengaluru—adding numerous parcels that are expected to generate more than ₹19,000 crore in revenue. In terms of business development, the company is nearing 90% of its full-year target for the fiscal year, which stands at ₹21,000 crore.

Despite significant land acquisitions, the company has maintained a prudent approach to its financial health. As of the latest quarter, Macrotech’s net debt is approximately ₹4,300 crore, with a low debt-to-equity ratio of 0.22. This balanced financial strategy has allowed the company to remain agile in its operations while also delivering strong financial results.

Macrotech Developers’ recent financial performance highlights its ability to adapt to changing market conditions and expand its business in new regions. For instance, the company’s consolidated net profit for the December quarter was ₹944.4 crore, an increase of 88% compared to the same period the previous year. This growth was fueled by a rise in total income, which increased to ₹4,146.6 crore, up from ₹2,958.7 crore during the same period in the prior fiscal year. Over the first nine months of the fiscal year, Macrotech's net profit more than doubled to ₹1,842.6 crore, from ₹883.6 crore in the previous year.

The company’s total income for the first three quarters of 2024-25 reached ₹9,749.5 crore, marking an increase from ₹6,385.6 crore in the corresponding period of the previous fiscal year.

With a track record of delivering around 100 million square feet of real estate, Macrotech Developers is continuing to grow its ongoing and planned portfolio, which exceeds 110 million square feet. The company’s strategic focus on business expansion through land acquisitions and development projects reflects its commitment to becoming a dominant player in the Indian real estate sector.

Image source- lodhagroup.com