Lodha Developers is set to generate a substantial Rs 10,000 crore by strategically monetising 150 acres of land at its Palava data centre park in the Mumbai metropolitan region, a move designed to self-fund significant infrastructure development and boost annual rental income.
Key Points
- Lodha Developers aims to generate Rs 10,000 crore in sales over the next 3-4 years by monetising 150 acres at its Palava data centre park.
- The land monetisation will fund the development of 1 gigawatt (Gw) of powered shell capacity on 90 acres, projected to yield over Rs 2,000 crore in annual rental income by FY32.
- The company's data centre build is largely self-funded from these land sales, avoiding additional group leverage and capital competition with its development company.
- Lodha expects annual land sales between Rs 2,000 and Rs 3,000 crore for several years, with a capital expenditure of Rs 500-700 crore for data centre land monetisation.
- The company plans to launch 21 projects and phases with a gross development value of about Rs 25,000 crore for FY27, including its first project in the National Capital Region (NCR).
Mumbai-based real estate developer Lodha Developers intends to generate Rs 10,000 crore in sales over the next three-four years by monetising about 150 acres of land at its data centre park in Palava, part of the Mumbai metropolitan region (MMR).
“I would like to highlight that land monetisation is not an exceptional item for this company. It is a planned recurring pillar of our business,” said Abhishek Lodha, managing director (MD) and chief executive officer (CEO) of Lodha Developers, during the company’s investor call on its earnings for the first quarter of 2026-27 (Q1 of FY27) on Monday.
The company expects to monetise the 150-acre land at an average price of about Rs 60 crore per acre. The developer said the land monetisation will fund the build-out of about 1 gigawatt (Gw) of powered shell capacity on around 90 acres. This would generate over Rs 2,000 crore of annual rental income by FY32.
Funding and Growth Strategy
Lodha stated the company’s data centre build is largely self-funded from land sales inside the same park. It does not add to group leverage and does not compete with its development company (DevCo) for capital in any significant manner.
Earlier, the company’s annuity business reported an income of Rs 300 crore on an annualised basis, based on exit rental as of June 2026 and without any contribution from data centres. “That target (of this segment) is over Rs 3,000 crore — 10 times by FY32, of which over Rs 2,000 crore will come from data centres, Rs 600 crore from retail and offices, and about Rs 400 crore from warehousing and industrial,” Lodha said.
The country's second-largest listed developer holds about 660 acres in the data centre park, of which around 370 acres were earmarked for monetisation in the first phase. It has already monetised about 130 acres under this phase. Beyond this, Lodha nearly has an additional 300 acres of land monetisation optionality at its data centre park.
“The balance land of around 300 acres gives us further optionality for both sale as well as build-out on our balance sheet, and we will evaluate the same in due course,” Lodha added. He said, through the company’s land company (LandCo), a strategic operational arm dedicated to managing and maximising value from its vast land reserves, the company intends to monetise land for non-competing users.
Financial Outlook and Project Launches
Overall, Lodha expects land to be between Rs 2,000 and Rs 3,000 crore of sales every year for the next several years.
Meanwhile, it will incur a capital expenditure of Rs 500-700 crore over the period of land monetisation via data centres.
Previously, in his firm’s Q4 FY26 earnings call, Lodha had informed that the company plans to develop around 1 Gw of build-to-suit data centre-powered shell capacity (custom-built buildings with power and core infrastructure, ready for data centre operators to install servers and equipment) across nearly 100 acres in Palava near Mumbai, entailing an incremental cost of Rs 10,000–11,000 crore.
Lodha said leasing for the first of the boxes within the 1 Gw-powered shell will conclude in FY27.
“We are in talks with a couple of large operators for that and hope that there will be good progress over the next six-nine months. As we have laid out earlier, our current strategy is to move from the sale of land to additionally building powered shell,” he added.
Further, Lodha said, “Over time, we might move from powered shell to turnkey shell, but that's at least a couple of years out.”
On the residential side, after delivering pre-sales of Rs 4,629 crore in Q1 FY27, up 4 per cent year-on-year (Y-o-Y), Lodha is expecting pre-sales for Q2 FY27 at Rs 5,000 crore or more.
The company has guided pre-sales of over Rs 24,000 crore for FY27 and expects to achieve 40-42 per cent of it in the first half of FY27 (H1 FY27).
For FY27, Lodha plans to launch projects and phases totalling 21 with a gross development value (GDV) of about Rs 25,000 crore, including the company’s first project launch in the National Capital Region (NCR).
Impact of External Factors
On the West Asia conflict, Lodha said, “The demand impact is quite moderate.
"West Asia’s non-resident Indian (NRI) buyers represent about 4 to 5 per cent of our sales, neatly a third of our total NRI business and sentiment there remains subdued.
"There is an offsetting dynamic we think that is not yet fully played out.”
On the cost front, Lodha said the company’s supply chain is about 95 per cent domestic. Hence, availability has not been a problem.
“Energy-intensive input costs have risen.
"If the situation persists for a full year, we would expect project construction cost to rise by between 1 and 1.5 per cent.
"This, spread across a three- to four-year build period and assuming no price response, is project-level earnings before interest, taxes, depreciation and amortisation (Ebitda) impact of 35-75 basis points,” he added.
