Results filed 15 October 2026 · Market cap ₹12,022 crore · PE 41.1
GrowthGuidance maintainedTranscript read
Revenue
+52.5%
on a year ago
EBITDA
+112.7%
on a year ago
Profit to shareholders
+77.9%
on a year ago
EBITDA margin
39.9%
+3.6 pts on last quarter
Sri Lotus Developers reported strong headline Q2 FY27 revenue growth of 53% YoY to ₹269 crore with EBITDA margins expanding to 39.9% and pre-sales reaching ₹470 crore. However, cash collections dropped 44% YoY to ₹60 crore in Q2, resulting in an operating cash burn of ₹201.3 crore for H1 FY27. Management maintained its FY27 guidance of ₹1,800–2,000 crore pre-sales while acknowledging one-year timeline extensions on select upcoming redevelopment projects.
Sri Lotus Developers and Realty Limited, Q2 FY27₹ crore, consolidated
Q2 FY27
Q1 FY27
vs previous quarter
Q2 FY26
vs a year ago
Revenue
269
132
+102.9%
176
+52.5%
Operating profit (EBIT)
107
47.78
+123.2%
50.01
+113.3%
Operating margin
39.7%
36.1%
+361 bps
28.4%
+1132 bps
Other income
12.17
13.65
−10.8%
12.7
−4.2%
Exceptional items
0
0
–
0
–
Profit before exceptional items and tax
118
60.91
+94.3%
62.23
+90.1%
Profit to shareholders
82.09
45.46
+80.6%
46.15
+77.9%
Earnings per share (₹)
1.68
0.93
+80.6%
0.98
+71.4%
Source: Sri Lotus Developers and Realty Limited’s filing to NSE, 15 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.
What stood out
Sharp divergence between reported pre-sales/revenue growth and cash collectionsSourceQ2 pre-sales reached ₹470 crore (+83% YoY) and revenue was ₹269 crore (+53% YoY), but collections fell 44% YoY to ₹60 crore from ₹106 crore (Investor Presentation, page 10-11).
Substantial negative operating cash flow in H1 FY27 despite strong reported net profitSourceNet Cash from Operating Activities was negative ₹201.3 crore in H1 FY27 compared to negative ₹145.5 crore in H1 FY26, driven by a ₹305.8 crore working capital drag (Investor Presentation, page 14).
Significant project timeline pushbacks across upcoming pipelineSourceManagement confirmed shifting launch timelines by one year on Lotus Monarch and extending Lotus Salona/Solana due to regulatory/approval complexities involving societies, trusts, charity commissioners, and government (Transcript, page 8-9).
PAT MarginSourceTranscript, page 4; Investor Presentation, page 5
25% to 30%
FY27 / consistent basis
maintained
Tailwinds
Strong traction in newly launched luxury commercial project Lotus TridentSourceDelivered pre-sales of ₹178 crore (~38% of Q2 pre-sales) in its first full quarter, achieving 35% sold status within 3 months (Investor Presentation, page 11; Transcript, page 4, 10).
Healthy margin expansion driven by asset-light redevelopment model and zero net debtSourceQ2 EBITDA margin reached 39.9% vs 28.6% in Q2 FY26, assisted by absence of interest burden and low marketing expense (Transcript, page 6; Investor Presentation, page 12).
Net cash balance position providing funding cushion for approvals and constructionSourceNet cash position of ₹494 crore as of September 30, 2026 (Investor Presentation, page 4, 5).
Headwinds
Steep decline in quarterly cash collectionsSourceQ2 FY27 collections fell 44% YoY to ₹60 crore compared to ₹106 crore in Q2 FY26 (Investor Presentation, page 11).
Negative operating cash flows deteriorating furtherSourceConsolidated H1 FY27 operating cash flow was negative ₹201.3 crore compared to negative ₹145.5 crore in H1 FY26 (Investor Presentation, page 14).
Slow pre-sales traction in Lotus Aquaria (Prabhadevi)SourcePrabhadevi project has achieved only 4% inventory sold with no pre-sales contribution reported in Q2 despite launch at June end (Investor Presentation, page 28; Transcript, page 9-10).
New businesses and products
partnership · In planning / town planning approval stage; Expected commencement Q1 FY28, completion FY31
GIFT City Area Flagship Ultra Luxury Project
Expected benefit
Mixed-use development (1.3 to 1.5 million sq. ft.) with estimated GDV of ₹2,000 to ₹2,200 crore; 50% revenue share
Risks
Subject to town planning scheme declaration and regulatory approvals from GIFT City authority
new business · Appointed as preferred developer / secured
New pipeline additions in Mumbai: Lotus Impressa/Empressa (Dadar West), Lotus Stellar (Versova), Lotus Supremus (Juhu), and expansion at Lotus Insignia
Expected benefit
Adds ₹2,700 to ₹2,800 crore of GDV to existing pipeline
Risks
Approvals and society/statutory negotiations
Timeline
Expected commencement H2 FY28
Investment
Funded from internal accruals/cash balance (management noted paying upfront government fees)
Severe cash conversion lag with negative operating cash flowsSourceDespite reporting PAT of ₹134 crore in H1 FY27, OCF was negative ₹201.3 crore, and Q2 collections dropped 44% YoY to ₹60 crore (Investor Presentation, page 11, 14).
Slippage in project commencement and launch schedulesSourceLaunch timelines for multiple upcoming projects (e.g., Lotus Monarch delayed by one year, Lotus Solana extended) were shifted outwards due to approvals involving multiple authorities (Transcript, page 8-9).
How the call went
Analysts pressed management hard on the large divergence between booked pre-sales and actual cash collections, project launch delays, and negative operating cash flows. Management defended execution speed and margin profile, but avoided committing to OCF turnaround timelines or absolute collection figures.
Specific or vague
Management gave specific GDV and pre-sales breakdowns, but gave evasive or vague answers when asked for quantitative collection targets, OCF breakeven timelines, and individual project pricing appreciation.
Candour
Management acknowledged project timeline delays (Lotus Monarch and Lotus Salona) and weak sales at Lotus Aquaria, but downplayed OCF burn and avoided giving absolute collection projections.
The hard questions
Analysts directly challenged the company on lagging cash collections relative to reported pre-sales, persistent negative operating cash flows, zero sales contribution from Prabhadevi, and deferred launch timelines in PPTs.
What analysts pressed on
Sharp mismatch between pre-sales growth and falling cash collections (collections were only ₹60 crore in Q2 against ₹470 crore pre-sales).
Timeline slippages of up to one year across upcoming projects compared to previous presentations.
Negative operating cash flows and high cash burn from upfront approvals/business development fees.
Lack of sales momentum in Lotus Aquaria (Prabhadevi) despite being launched in June.
Answers that sidestepped
Refusal to provide absolute cash collection targets for H2 FY27 or FY28, stating it would only be updated at the start of the next financial year (Transcript, page 10).
Non-committal reply regarding when company-level operating cash flow will turn positive, deflecting to project-specific working capital stages (Transcript, page 11).
Vague response on pricing appreciation without specific figures, stating 'almost all the projects' (Transcript, page 12).
Numbers against the story
While management highlighted record pre-sales growth (+83% in Q2, +176% in H1) and margin expansion near 40%, the financial cash flow statement paints a considerably tighter picture: collections dropped 44% YoY in Q2 to ₹60 crore, cash and cash equivalents fell by ₹210.8 crore in H1 FY27, and operations consumed ₹201.3 crore in net cash due to working capital expansion and upfront statutory payments.
Figures: the company’s results filing with NSE, linked under the table.
Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.