Macrotech Developers Reports Pre-Sales Growth of ₹4,500 Crore in Q3FY25

Macrotech Developers, also known as Lodha Group, reported pre-sales of over ₹4,500 crore in Q3 of FY25, showing a 32% year-on-year (YoY) growth.This is the highest-ever pre-sales figure the company has reported. The growth is reflective of the company's expanding presence and its focus on key markets, including its recent expansion into Bengaluru. Additionally, Macrotech Developers reported a 66% increase in collections for Q4FY25, amounting to ₹4,200 crore, compared to ₹2,500 crore in the same period last year.

This positive financial performance aligns with the company's strategic vision, which is evident in its growth trajectory. As part of its ongoing efforts to expand its real estate footprint, Macrotech Developers has made notable progress in Bengaluru, marking the addition of a new project with a gross development value (GDV) of ₹2,800 crore. This new project represents the company’s fifth location in the city, underscoring its commitment to the Bengaluru market. Since entering Bengaluru in mid-2021, the company has made considerable strides in the city’s competitive real estate market, driven by the demand for both residential and commercial properties, particularly in the thriving IT sector.

The company’s expansion strategy includes focusing on major markets such as Bengaluru, Mumbai Metropolitan Region (MMR), Pune, and Delhi NCR. Over the first nine months of FY25, Macrotech Developers launched eight new projects in these regions, with a cumulative GDV of over ₹19,500 crore. This achievement places the company well on track to meet its full-year guidance, having already surpassed 90% of its target for the fiscal year.

Macrotech Developers has diversified its portfolio beyond residential developments, with significant progress in the commercial and industrial real estate sectors. A notable move in this regard was the acquisition of 33 acres of land in the Delhi NCR region. This land is intended for the company's Digital Infrastructure business, which focuses on warehousing and industrial developments. In addition, the company has entered into an agreement with its joint venture (JV) partner to increase its stake in the rental income platform associated with its digital infrastructure projects. This diversification aligns with the company’s strategy to reduce reliance on residential developments and spread its risks across different sectors.

The company's strong financial position is further supported by its efforts to reduce debt. Macrotech Developers reported a reduction of over ₹600 crore in its net debt, bringing the total to ₹4,300 crore. This reduction is reflected in the company’s debt-to-equity ratio, which now stands below 0.5x, highlighting the company’s financial discipline. The decrease in debt allows the company to better manage its finances while ensuring sustainable growth.

Looking ahead, Macrotech Developers' Managing Director and CEO, Abhishek Lodha, shared his confidence in the company's future growth prospects. Speaking in October 2024, Lodha emphasized that the company had successfully completed its pilot phase in Bengaluru. 

The pilot phase, which began in mid-2021, involved building a strong local operating team, understanding market nuances, and showcasing the company's delivery capabilities to consumers. With the pilot phase now complete, Macrotech Developers is set to expand in Bengaluru, aiming for a 15% market share in the city by the end of the decade.

Image source- lodhagroup.com