Nomura maintained its buy rating on Macrotech Developers (Lodha) but cut its target price to Rs 1,450. The company however posted a robust Q3 FY25 performance and strong outlook for the Palava region. Macrotech reported a 39.3% year-on-year (YoY) increase in revenue to Rs 4,083 crore compared to Rs 2,931 crore in Q3 FY24. EBITDA rose 47.9% YoY to Rs 1,305.8 crore from Rs 883.1 crore, with the EBITDA margin expanding to 31.98% from 30.13% in the same period last year. Profit after tax (PAT) surged 87.1% YoY to Rs 945 crore, driven by better operational efficiency and improved collections.
Pre-sales for Q3 FY25 hit a record high of Rs 4,510 crore, a 32% YoY growth from Rs 3,410 crore in Q3 FY24, marking the company’s best-ever quarterly pre-sales performance. The company remains on track to achieve 20% pre-sales growth for FY25. Collections grew sharply by 66% YoY to Rs 4,290 crore, compared to Rs 2,590 crore in the same period last year. Additionally, Macrotech reduced its net debt significantly by Rs 610 crore to Rs 4,310 crore during the quarter, underscoring its focus on deleveraging.
Nomura highlighted the company’s growth potential in the Palava region, where rising land transaction prices and strong sales momentum are expected to contribute to long-term revenue growth. Management projects annual revenue of Rs 80 billion from Palava by FY30, compared to Rs 22 billion in FY24. The brokerage remains optimistic about Macrotech’s ability to deliver on its key performance indicators (KPIs) for FY25, including pre-sales and operating cash flows, supported by its operational strength and strategic focus on high-growth regions.
