Management

• Anand Kamalnayan Pandit (Chairman and Managing Director)
• Roopa Anand Pandit (Non- Executive and Non-Independent Director)
• Ashka Anand Pandit (Whole-time Director)
• Madhukant Sanghvi (Independent Director)
• Ved Prakash Bharadwaj (Independent Director)
• Priti Desai (Independent Director)
• Ankit Kumar Tater (Company Secretary and Compliance Officer)
• Rakesh Gupta (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 792 cr which comprises entirely of offer for sale component (OFS) of Rs 792 cr. The company intends to utilize a portion of the Net Proceeds towards Investment in the Subsidiaries, Richfeel Real Estate Private Limited, Dhyan Projects Private Limited and Tryksha Real Estate Private Limited for part-funding development and construction cost of their Ongoing Projects, Amalfi, The Arcadian and Varun, respectively (Rs 550 cr), and rest for general corporate purpose.

Competitive Strengths

Strategic position in the Ultra Luxury Segment and Luxury Segment of the residential real estate market of the Western Suburbs of Mumbai with a customer centric focus and strong pipeline of projects Majority of the company’s Completed, Ongoing and Upcoming Projects are under the Ultra Luxury Segment and Luxury Segment and are located in Mumbai. There has been significant demand growth in the luxury housing, particularly in the > Rs 2.5 Cr segment and in the Rs 1.5 Cr - Rs 2.5 Cr segment between 2021 and in Q1 2025. Mumbai’s position as the commercial capital of India, together with the demographics of high-income customer base and an expanding segment of young professionals provide a substantive market for the company’s projects - ultra luxury and luxury residential properties in the western suburbs of Mumbai. As of June 30, 2025, the company has 5 Ongoing Projects with an aggregate estimated Developable Area of 0.80 million square feet and estimated Saleable RERA Carpet Area of - 0.30 million square feet. In addition, the company has 11 Upcoming Projects with an aggregate estimated Developable Area of 4.98 million square feet.

Strong brand recognition with ability to sell at a premium pricing, allowing the company to sell throughout the construction phase As per Anarock Report, The Lotus Developers commands a premium of approximately 22% on its quoted prices compared to the average quoted prices in the Juhu market. Further, when the Juhu market’s average quoted price is compared to Lotus Developers’ recent average transacted value of Rs 61,304 per sq. ft. on carpet area, it reflects a premium of ~10% over the average quoted market price in Juhu. The company’s projects are executed under the “Lotus Developers” brand. The company’s established presence in the western suburbs of Mumbai leads to brand recognition, particularly in the ultra-Luxury segment and luxury segment. The company has been able to leverage its established brand and quality product offerings to sell units within its projects, relatively early in the project development period, including through pre-sales.

Asset-light model for development of projects through development agreements, enabling the company to maintain a high level of cash flow generated from operating activities The pre-sales provide the company with cash flows thus reducing the need for financing construction while allowing the company to achieve optimal returns on its projects. As on June 30, 2025, the following table sets forth details of the Saleable Area of projects which received their occupancy certificates, and the Saleable Area sold prior to the receipt of such occupancy certificate. The company acquires its interest in land of a redevelopment project via an asset light model, pursuant to which it enters into development agreements with housing societies and holders of existing units. Similarly, under the Joint Development Projects, the company will develop the premises jointly with owners of land parcels that are sought to be developed. This approach has served as a catalyst to strengthen the redevelopment and joint development portfolio.

Experienced Promoters and management team The company believes it is positioned to leverage its established presence in the western suburbs of Mumbai to benefit from the growing demand for real estate projects in the Ultra Luxury Segment and Luxury Segments in the western suburbs of Mumbai. Simultaneously reducing the cost on upfront land acquisition and accelerating capital efficiency. A substantial amount of the company’s projects is redevelopment projects or joint development projects. The company’s Promoter and senior management team have considerable experience in the Indian real estate industry, which enables the company to identify suitable projects for development. The company’s promoter, Anand Kamalnayan Pandit, has 24 years of experience in the real estate industry. The company’s management team remains committed to enhancing marketing efforts by exploring new terrains within the real estate sectors. The extensive knowledge and experience of the Promoters, along with Key Managerial Personnel and Senior Management Personnel, provides the company with a competitive edge in this challenging market.

Peer Comparison

Key Risks & Concerns

High Concentration Risk in Western Suburbs of Mumbai The company’s operations are predominantly focused on the Western Suburbs of Mumbai (accounting for ~82.7% of its saleable area), a region with limited land and strained infrastructure. Economic and regulatory fluctuations in this area could significantly impact real estate prices and project demand, adversely affecting business performance and financial outcomes. Risk of Delayed Project Completion

Delays in project completion due to issues like land title clearance, approvals, or financing may lead to penalties under RERA, customer dissatisfaction, and legal disputes. Although the company has a history of completing projects early, any delays could impact financial performance and result in litigation from co-operative housing societies under RERA/MoFA.

Dependency on Third-Party Contractors and Unsold Inventory Risk The company relies entirely on third-party contractors for construction. Delays or failures by contractors could lead to additional costs, penalties, and project delays, adversely affecting the business. While no material defaults have occurred in the past three years, dependency on contractors and specialist agencies remains a risk

Outlook and Valuation

Sri Lotus Developers exhibits strong outlook due to its proven track record and asset-light strategy. It has demonstrated rapid growth, with revenue and EBITDA scaling at 81.5% and 267.8% CAGR respectively, over FY23-25. This impressive performance is attributed to an increase in area under development and strong delivery of units. As of June 30, 2025, the company boasts 5 ongoing projects with a total estimated developable area of 0.8 Mn. Sq. Ft., and 11 upcoming projects spanning 5.0 Mn. Sq. Ft., providing substantial earnings visibility for the foreseeable future.

Its strategic focus on an asset-light business model, primarily through redevelopment and JDA agreements, is a significant strength driving higher return on investments and efficient capital allocation. This approach has resulted in a strong balance sheet and a net debt-free status. Approximately 90% of its upcoming projects are structured under capital-efficient models. This disciplined financial management, combined with a consistent increase in PAT, including a 90.3% increase YoY in FY25, underscores its superior return profile.

It boasts high brand recall value and commitment to quality real estate development. It is strategically positioned to capture rising demand in the Ultra-Luxury and Luxury Segments within Mumbai’s western suburbs, with ongoing and upcoming projects specifically in this region. Its history of ahead-of-schedule project delivery and ability to command premium pricing contribute to strengthening its brand visibility and market presence, ensuring continued growth and success in the premium real estate space. The company is valued at a P/E multiple of 32.2x based on FY25 adjusted EPS, on the upper price band. We recommend a SUBSCRIBE rating to the issue.