Sri Lotus Developers Shares FY26 Outlook with Strong PAT, Revenue, and Pre-Sales Targets

Synopsis: The real estate developer posted robust Q3 FY26 pre-sales of ₹376 crore and maintained a strong net cash position of ₹845 crore, reinforcing its expansion momentum in Mumbai’s luxury real estate market.

Sri Lotus Developers delivered a strong Q3 FY26 performance driven by robust pre-sales growth and steady margin expansion. This article outlines the company’s financial performance, IPO fund utilization, operational progress across key luxury projects, expanding development pipeline, balance sheet strength, and management’s guidance for FY26.

Incorporated in February 2015, Sri Lotus Developers and Realty Limited is a developer of residential and commercial properties located in Mumbai, specialising in redevelopment projects within the ultra-luxury and luxury segments of the western suburbs.

With the market capitalization of Rs 7,037 crore, the shares of the company closed at Rs 144.00 per share, up by 1.27 percent from its previous day’s close. The company trades at a fairly valued P/E of 31.2x versus the industry average of 28.8x. It maintains very low leverage with a 0.08 debt-to-equity ratio, while delivering strong profitability, reflected in a 37.2 percent ROCE and 41.3 percent ROE.

Financial Highlights Q3 FY26: For Q3 FY26 on a consolidated basis, the company reported pre-sales of Rs 376 crore, marking a sharp 247 percent year-on-year increase. Revenue came in at Rs 224 crore, up 93 percent YoY, while collections reached Rs 119 crore during the quarter, indicating healthy execution momentum.

EBITDA stood at Rs 79 crore, rising 29 percent year-on-year, with margins at 35.5 percent for Q3 and 34.5 percent for the nine months. Profit after tax increased 37 percent YoY to Rs 70 crore. Project-related expenses for ongoing and upcoming developments totaled Rs 57 crore during the quarter.

IPO Utilisation & Capital Position: The company plans to utilize Rs 550 crore from the IPO proceeds by investing in its subsidiaries—Richfeel Real Estate, Dhyan Projects, and Tryksha Real Estate—to partly fund the development and construction of ongoing projects such as Amalfi, The Arcadian, and Varun. The remaining Rs 182.29 crore is earmarked for general corporate purposes.

As of 31 December 2025, the company reported net cash of Rs 845 crore. It raised Rs 792 crore through a fresh issue, with net proceeds of Rs 732 crore after expenses, of which Rs 200 crore has already been deployed. Management stated that this liquidity can directly support projects worth Rs 8,000 crore GDV(Gross Development Value) and up to Rs 17,000 crore through operating cash flow cycles.

Operational Highlights & Project Updates: Project Varun in Bandra recorded strong launch traction, with 19 percent of its carpet area sold in the first quarter itself, supported by healthy inquiries. The Arcadian in Juhu and Amalfi in Versova also maintained robust momentum, achieving 34 percent and 45 percent inventory absorption, respectively, within four months of launch.

Construction at Lotus Aquaria in Prabhadevi is progressing steadily, while work at Lotus Celestia in Versova is set to commence this quarter. Both ultra-luxury projects are expected to be launched by March 2026, carrying a combined revenue potential exceeding Rs 2,000 crore, strengthening FY26 pre-sales visibility.

Lotus Trident, the company’s greenfield commercial development, is awaiting key regulatory approvals and is targeted for launch in Q1 FY27. The company continues expanding across prime micro markets such as Bandra and Prabhadevi, reinforcing brand strength through a high-quality and well-located development pipeline.

During the year, eight new projects were added, contributing an incremental GDV of Rs 7,500 to 8,000 crore. The overall pipeline now includes 20 projects: 16 residential and four commercial, with an estimated GDV of Rs 16,000 to 17,000 crore and 3.2 million sq. ft. saleable area, supporting expected PAT margins of 25 to 30 percent.

Guidance: For FY26, the company has guided for pre-sales in the range of Rs 1,100–1,300 crore. It expects strong revenue growth of approximately 75–85 percent year-on-year, supported by project launches and execution momentum. Profit after tax is projected to grow by around 30–35 percent YoY, reflecting operating leverage and sustained demand.

Sri Lotus Developers’ Q3 FY26 performance underscores its strong foothold in Mumbai’s luxury real estate segment, driven by exceptional pre-sales growth, disciplined execution, and robust liquidity. With an expanding project pipeline, strategic IPO fund deployment, and steady margin expansion, the company is well-positioned to sustain its growth trajectory and deliver significant value in FY26 and beyond.

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