Macrotech Developers Shines in Q3 FY25: 88% YoY Profit Growth Boosts Stock by 3%
Macrotech Developers Ltd: Overview
Macrotech Developers Ltd., also known by its brand name Lodha Group, is one of India’s leading real estate developers. The company is primarily engaged in the development of residential, commercial, and industrial properties. It has established a strong presence in key urban markets such as Mumbai Metropolitan Region, Pune, and Bengaluru. It has diversified its revenue with contribution of about 40 ongoing projects. With a focus on creating sustainable, high-quality developments, Macrotech Developers caters to diverse segments, including affordable housing, premium luxury residences, and office spaces. The company is recognized for its expertise in project execution and has delivered numerous landmark developments, positioning itself as a trusted name in the real estate sector. Additionally, Macrotech Developers has ventured into international markets, including London, with high-value residential projects that cater to global investors.
The Indian real estate sector is a key contributor to the country’s economy, driven by rapid urbanization, rising disposable incomes, and government initiatives like ‘Housing for All’ and ‘Smart Cities Mission.’ The sector is expected to grow at a steady pace due to strong demand for residential properties, particularly in the affordable and mid-income segments. In addition, the commercial real estate market continues to attract investments, fueled by demand for office spaces from IT/ITeS, e-commerce, and co-working sectors. The post-pandemic recovery has also driven demand for integrated townships and mixed-use developments, areas where Macrotech Developers has a strong foothold. However, challenges such as rising input costs, regulatory hurdles, and fluctuating interest rates could impact the industry’s growth.
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Macrotech Developers Ltd. launched 41 new projects in the first nine months of fiscal year 2025, increasing its gross development value (GDV) by ₹740 billion; an important ₹195 billion of this increase comes from only eight projects. An important portion of the company’s performance, over 90% of its ₹210 billion full-year guidance, comes from a major Bangalore project with a gross development value of ₹28 billion. Macrotech’s annuity income is increasing because of growth in its Digital Infrastructure platform investments and this increase is also due to the acquisition of approximately 33 acres of land near NCR for warehousing. Over the next three decades, Palava and Upper Thane projects are forecast to produce between $175 and $200 billion in revenue, with projected EBITDA margins around 50%.
Macrotech is building a collection of high-street retail spaces within its projects to improve development quality, coupled with generating large recurring income. Xperia Mall in Palava, boasting 0.4 million square feet of gross leasable area, is projected to earn ₹4 billion in rental income by fiscal year 2031, with further growth anticipated. In Q3 of fiscal year 2025, the company acquired approximately 33 acres of land in the National Capital Region. This marked its first expansion outside the Mumbai Metropolitan Region, including about 45 acres acquired in Chennai. Macrotech’s actions this past quarter included an important increase in its Digital Infrastructure platform investment and a net lease of 0.3 million square feet, 0.2 million square feet of which went to Zomato for its Hyperpure business.
Business Segments
- Residential Development: Macrotech Developers is a market leader in residential real estate, offering a wide range of properties, from affordable housing to luxury projects. The company’s flagship projects include Palava City, an integrated smart city near Mumbai, and premium developments like Lodha Altamount and Lodha Park. These projects cater to varied customer segments and are designed with a focus on sustainability and modern amenities.
- Commercial Development: The Company has been expanding its portfolio in the commercial real estate segment, developing Grade A-office spaces and retail hubs. Notable projects include Lodha Excelus and iThink Techno Campus, which cater to corporate clients seeking modern and efficient workspaces.
- Integrated Townships: Macrotech’s integrated township projects, such as Palava City, are designed to offer a holistic living experience. These townships combine residential, commercial, educational, and recreational facilities, making them self-sustained urban ecosystems.
- Industrial and Logistics Parks: Through its subsidiary, Macrotech Logistics Parks, the company is involved in developing industrial and logistics infrastructure to support India’s growing manufacturing and e-commerce sectors. These parks are strategically located to ensure seamless connectivity and operational efficiency for businesses.
- International Projects: Macrotech Developers has established a presence in London with high-end residential projects like Lincoln Square and Grosvenor Square. These projects target global investors and offer premium living spaces in prime locations.
Subsidiary Information
- Lodha Developers International Ltd: This subsidiary focuses on Macrotech Developers’ international operations, primarily in the United Kingdom. It oversees premium residential and commercial real estate projects in London, targeting the high-end luxury segment. Notable projects include developments in prime London locations like Grosvenor Square and Mayfair. The subsidiary aims to expand the group’s global footprint and reputation in the international real estate market.
- Lodha Real Estate Pvt Ltd: This subsidiary handles the development and sale of real estate projects in India. It operates across various segments, including affordable housing, premium housing, and commercial spaces. The company focuses on urban centers like Mumbai Metropolitan Region (MMR) and Pune, contributing significantly to the parent company’s revenue.
- Palava City Management Pvt Ltd: Palava City Management focuses on the development and management of the Palava smart city, one of India’s largest private township projects located near Mumbai. It includes residential, commercial, and recreational spaces, along with state-of-the-art infrastructure. The subsidiary oversees the operations, maintenance, and governance of the township, ensuring sustainability and high living standards for its residents.
- Lodha Buildcon Pvt Ltd: Lodha Buildcon Pvt Ltd undertakes specific real estate projects, primarily focusing on large-scale developments. It plays a critical role in executing high-quality residential and commercial properties that meet the company’s strategic goals.
- Cowtown Infotech Services Pvt Ltd: This subsidiary focuses on providing IT and infrastructure services to Macrotech Developers’ various projects. It ensures the integration of smart technologies, infrastructure planning, and digital solutions in township developments, including Palava.
Q3 FY25 Earnings
- Revenue of ₹4083 crore in Q3 FY25 up by 39.3% YoY from ₹2931 crore in Q3 FY24.
- EBITDA of ₹1306 crore in this quarter at a margin of 32% compared to 30% in Q3 FY24.
- Profit of ₹945 crore in this quarter compared to a ₹505 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 2931 | 4083 | 9470 | 10316 |
| Expenses | 2055 | 2777 | 7406 | 7651 |
| EBITDA | 876 | 1306 | 2064 | 2665 |
| OPM | 30% | 32% | 22% | 26% |
| Other Income | -77 | 64 | -1037 | 48 |
| Net Profit | 505 | 945 | 490 | 1554 |
| NPM | 17.2% | 23.1% | 5.2% | 15.1% |
| EPS | 5.2 | 9.5 | 5.1 | 15.6 |