Realty stocks came under pressure on Monday, July 28, with Lodha Developers leading the decline despite reporting a robust 42 per cent year-on-year jump in consolidated net profit for the June quarter. The Nifty Realty index slipped over 3 per cent intraday, with Lodha Developers tanking nearly 7 per cent, making it the biggest laggard in the pack.

Profit jumps to Rs 675 crore, revenue at Rs 3,625 crore

Lodha Developers posted a consolidated net profit of Rs 675.1 crore for Q1 FY26, up from Rs 475.9 crore in the same quarter last year. Total income surged to Rs 3,624.7 crore from Rs 2,918.3 crore in the year-ago period, driven by strong housing demand across key markets like MMR, Pune, and Bengaluru.

The company reported its best-ever Q1 pre-sales performance at Rs 4,450 crore, according to MD & CEO Abhishek Lodha.

Reasons behind the fall 

Lodha acknowledged that pre-sales could have been stronger but for a two-week disruption during the India-Pakistan border tension, which impacted buyer sentiment. However, he remained optimistic, citing structural tailwinds such as low mortgage rates, rising affordability, and premiumisation of home demand as key growth drivers.

“We’ve already achieved over 90 per cent of our FY26 business development guidance in Q1 alone,” Lodha said, adding that five new projects with Rs 22,700 crore in gross development value (GDV) have been added across MMR, Pune, and Bengaluru.

Nifty Realty index in the red

The broader realty pack saw a steep correction with stocks like Godrej Properties (-3.6%), DLF (-4.3%), Prestige Estates (-4.2%), and Brigade Enterprises (-3.3%) trading deep in the red. Anant Raj was the only stock in the Nifty Realty index to post gains, rising 0.52 per cent.

Outlook

While Lodha’s fundamentals remain strong, analysts say the correction may be due to profit booking or sectoral drag despite the earnings beat. With robust guidance and upcoming launches, investor focus will remain on Q2 momentum and project execution.