Synopsis: Real estate stock gained 8 percent after outlining its data center expansion plan, which is expected to support growth in rental income through leasing data center capacity.
The share of this company, which builds residential apartments, large integrated townships, commercial offices, and digital infrastructure across Mumbai, Pune, Bengaluru, and London, gained focus after its data center plans
With a market capitalization of Rs 1,27,594 crore, Lodha Developers Ltd’s share on Tuesday made a day high of Rs 1,299 per share, up by 8 percent from its previous day’s close price of Rs 1,199.75 per share. The share of the company gave a return of 6 percent over the last year.
Data centre expansion plan
Lodha Developers plans to raise around Rs 9,000 crore by selling 150 acres of land at its Green Data Centre Park in Palava to hyperscalers. The company expects annual land sales of Rs 2,000 to 3,000 crore, supported by rising demand for data center sites. It has already sold around 132 acres to companies including Amazon Web Services, STT Data Centres, and Digital Edge India.
The company plans to use most of the land sale proceeds to develop 1 GW of build-to-suit data center power shell capacity across about 90 acres. These ready-to-use facilities will be leased to data center operators and hyperscalers, helping increase recurring rental income. Lodha expects its annual rental income to grow from Rs 300 crore in FY26 to around Rs 3,000 crore over the next six years, with the data center business contributing a major share. How will Lodha earn around Rs 3,000 crore annually from its data centre business?
Monetising land to fund data centre expansion
Lodha Developers plans to raise around Rs 9,000 crore by selling 150 acres of land at its Palava data centre park to hyperscalers. The company will use these proceeds to fund the expansion of its data centre infrastructure and unlock value from its large land bank.
Building 1 GW of data centre capacity
The company plans to develop around 1 GW of build-to-suit data centre power shell capacity across nearly 90 acres. These facilities will be designed with the required infrastructure, including power and cooling systems, making them ready for data centre operators to use.
Earning through lease rentals
Instead of directly operating data centres, Lodha will lease these completed power shells to data centre operators and hyperscalers. This model will help the company generate steady rental income while benefiting from the growing demand for data centre capacity.
Rental income expected to scale
As more data centre capacity gets developed and leased, Lodha expects its annual rental income to increase significantly. The company aims to grow rental income from around Rs 300 crore in FY26 to nearly Rs 3,000 crore over the next six years, with the data centre business becoming a key growth driver.
Jefferies maintains Buy rating on Lodha Developers
Brokerage firm Jefferies has maintained a Buy rating on Lodha Developers with a target price of Rs 1,400. The brokerage highlighted that the company’s data center-led Palava land monetisation strategy started showing benefits in the June quarter, with rising land values supporting a sharp increase in profit.
Data center land sales to drive growth: According to Jefferies, Lodha has scaled up its land monetisation business and now expects Rs 2,000–3,000 crore of high-margin annual land sales from Palava. The growing demand for data center infrastructure has increased the value of the company’s land bank and created a new growth opportunity.
Residential business remains on track: The brokerage noted that residential pre-sales had a slow start in the quarter as the company delayed some launches. However, management remains confident of achieving its 17 percent growth guidance for the residential business, supported by upcoming launches and strong demand.
About the Company
Lodha Developers Limited is one of India’s largest real estate developers, founded in 1980 by Mangal Prabhat Lodha and headquartered in Mumbai. The company builds residential apartments, large integrated townships, commercial offices, and digital infrastructure across Mumbai, Pune, Bengaluru, and London.
Financial Highlight: Revenue grew by 43 percent YoY to Rs 4,997 crore in Q1 FY27 from Rs 3,492 crore in Q1 FY26, and EBIDT grew by 95 percent to Rs 1,922 crore in Q1 FY27 from Rs 984 crore in Q1 FY26. Accompanied by a net profit growth of 103 percent to Rs 1,373 crore in Q1 FY27 from Rs 675 crore in Q1 FY26, resulting in an EPS growth of 103 percent to Rs 13.73 per share in Q1 FY27 from Rs 6.76 per share in Q1 FY26.
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