Synopsis:
A strong player in Mumbai’s redevelopment space is expanding its residential and commercial portfolio with robust execution and pipeline visibility. Despite weak Q1FY26 earnings, growth prospects remain solid with premium projects, high-margin models, and strategic market expansion, supported by strong cash flow and long-term value creation.
India’s residential and commercial real estate sector is booming in 2025, contributing 13% to GDP and valued at $482 billion. The residential market reached $268.4 billion, led by mid-segment and premium housing, while commercial real estate surged at a 12–15% CAGR, driven by tech-enabled offices and demand in Tier-2 cities.
With a market capitalization of Rs 9,769.59 crore, the shares of Sri Lotus Developers and Realty Ltd were trading at Rs 199.00 per share, increasing around 7.25 percent as compared to the previous closing price of Rs 185.55 apiece.
Brokerage recommendations
Motilal Oswal, one of the well-known brokerages in India, gave a ‘Buy’ recommendation on the infra stock with a target price of Rs 282 apiece in the bull case scenario, indicating a potential upside of 51 percent from the previous closing price of Rs 185 per share.
The brokerage wrote in its note that Sri Lotus Developers and Realty has emerged as a strong player in society redevelopment, backed by robust execution and a growing project pipeline. Pre-sales rose at a 39% CAGR during FY22–25 and are projected to accelerate sharply at 129% CAGR in FY25–28, highlighting strong demand momentum and future growth visibility.
Currently, Lotus Developers has established a strong portfolio with four completed and five ongoing residential projects worth Rs 1,900–2,000 crore. Its growth pipeline includes eight upcoming residential projects valued at Rs 7,000–7,500 crore and three commercial assets with Rs 3,000–3,500 crore sales potential, reflecting robust expansion and long-term value creation across housing and commercial segments.
Moreover, Lotus Developers is executing 2.6 msf projects, with 89% under the redevelopment model, ensuring strong cash flow visibility. Collections are projected to grow at a 129% CAGR, hitting Rs 4,020 crore by FY28E. Cumulative OCF could reach Rs 6,900 crore by FY32, supported by robust execution, delivering margins above 40% and profits exceeding 35%.
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Financial Highlights & Guidance
The company reported a sharp decline in Q1FY26, with revenue halving to Rs 61 crore from Rs 121 crore a year earlier. Net profit also dropped 35 percent to Rs 26 crore, reflecting weaker demand or operational pressures. The performance highlights challenges in sustaining growth momentum amid competitive and market headwinds.
The company’s portfolio across Mumbai highlights steady expansion with completed, ongoing, and upcoming projects. By FY30, developments are expected to cover 2.7 million sq. ft. carpet area and 2.0 million sq. ft. saleable area, generating GDV of Rs 12,000–13,000 crore. This mix of residential and commercial projects underscores strong growth potential and urban footprint.
Lotus Developers is expanding into key micro-markets of Mumbai, beyond their luxury base in Juhu and Andheri West. They target Bandra, Versova, Prabhadevi & Nepean Sea Road, and Ghatkopar, with a mix of ongoing and upcoming projects. South-Central Mumbai stands out for premium value, positioning Lotus for broader growth across the city’s lucrative real estate segments.
Recently, Sri Lotus Developers IPO was listed on the BSE at Rs 178, giving investors a listing gain of Rs 28 per share (18.67%) over the issue price of Rs 150. The IPO, open from 30 July to 1 August 2025, had an issue size of Rs 792 crore and a minimum investment of Rs 14,000 for a lot of 100 shares.
Sri Lotus Developers & Realty is a real estate developer based in Mumbai, Maharashtra. The company specialises in the redevelopment of residential and commercial properties, focusing on ultra-luxury and luxury segments in the western suburbs of Mumbai.
Written by Abhishek Singh
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