Realty stocks decline: Lodha Developers tanks 7%; Nifty Realty index down 3%

Realty stocks declined, tumbling 3-7% on Monday, July 28, majorly dragged by Lodha Developers.

Lodha Developers on Saturday had reported a 42% surge in its consolidated net profit to ₹675.1 crore for the first quarter of this fiscal year, due to better income driven by strong housing demand. Its net profit stood at ₹475.9 crore in the year-ago period.

The total income rose to ₹3,624.7 crore in the April-June period of the 2025-26 fiscal year from ₹2,918.3 crore in the corresponding period of the preceding year.

The company's MD and CEO, Abhishek Lodha, said the latest June quarter was its best-ever first-quarter pre-sales performance at ₹4,450 crore.

The performance would have been much better but for two weeks of uncertainties during the India-Pakistan conflict, which had an adverse effect, he added.

"Structural industry tailwinds on the back of low homeownership levels, rising household incomes, strong affordability, and low mortgage rates, combined with ever-increasing customers' desire to own quality homes from branded developers, like Lodha, form the cornerstone of our business strategy to deliver 20% topline growth on a sustainable basis for the foreseeable future," said Abhishek.

With the help of interest rate reduction and the benefit from income tax cuts, he said the company is witnessing a pickup in mid-income demand.

“We expect this to strengthen in H2 of this fiscal year,” he added.

He highlighted that the company has achieved more than 90% of its FY26 business development guidance in the first quarter itself. “We have added five projects at marquee locations in MMR, Pune, and Bengaluru with Rs 22,700 crore of GDV (gross development value) potential.”

Lodha Developers has a strong presence in the residential markets of the Mumbai Metropolitan Region (MMR), Pune, and Bengaluru.

The realty firm remains bullish on growth potential in the housing market as it plans to launch ₹17,000 crore worth of residential projects by March next year to meet consumers’ demand.

Except for Anant Raj (0.52%), all the other realty stocks on the Nifty Realty index slipped into the red on Monday.

At the time of writing the article, Lodha Developers was the biggest loser, declining 2.85% despite strong June quarter earnings.

Shares of Godrej Properties, DLF, and Brigade Enterprises tumbled 2.18%, 2.12%, and 1.95%, respectively.

Oberoi Realty (-1.9%), Prestige Enterprises (-1.86%), Raymond Limited (-1.37%), Sobha Realty (-0.73%), and The Phoenix Mills (-0.07%) were also seen lower.