Lodha Developers is betting heavily on digital infrastructure and commercial real estate to build a stronger stream of recurring revenues, with the company expecting its annuity income to grow more than tenfold over the next six years to exceed Rs 3,000 crore annually. The strategy will be driven primarily by its planned 1 GW data centre capacity, besides investments in warehousing, industrial parks and high street retail assets.
“Our journey to grow annuity business continues to gain momentum. We expect to grow our annuity income by over 10x in the next six years to over Rs 3,000 crore per annum led by data centers with 1GW capacity, warehousing & industrial parks and high street retail,” Managing Director Abhishek Lodha said while announcing the company’s June quarter results.
The company has already taken another step towards strengthening its data centre business during the quarter by onboarding Digital Edge India, a joint venture between Singapore based Digital Edge and the National Investment and Infrastructure Fund (NIIF), at its Green Data Center Park in Palava, Navi Mumbai. Lodha said it sold land to the operator at a price of more than Rs 42 crore per acre, underscoring the rising value of its land bank earmarked for digital infrastructure.
“This further validates the extraordinary value of our Palava landholding, which has climbed more than 15x over the last five years and will continue to grow,” the company said.
The annuity income roadmap comes alongside a strong operational performance in the first quarter of FY27. Lodha reported its highest ever quarterly profit after tax of Rs 1,373 crore, more than double from a year ago, while revenue rose 43% year on year to Rs 4,997 crore. Net debt declined by Rs 446 crore during the quarter to Rs 4,931 crore, supported by healthy operating cash flows.
Commenting on the broader business outlook, Abhishek Lodha said the company’s growth momentum remains supported by strong housing demand and increasing preference for established developers.
“Our growth, coupled with rising profitability and ROEs alongside low leverage, sets Lodha apart. On the back of strong structural housing demand and accelerating consolidation in favour of tier 1 brands like Lodha, the company is confident of growing its profit at 20% CAGR over the long term,” he said.
The company also said its net debt to equity ratio remained at a comfortable 0.2x, well below its internal ceiling of 0.5x, while its exit cost of debt stood at 7.8%, among the lowest in the industry. With a development pipeline having a gross development value of nearly Rs 2 lakh crore, excluding land earmarked for future use, Lodha expects its development business to become net debt free over the next few years.
