Major Players Showcase Remarkable Recovery Amid Soaring Sales

Mumbai, 10 October 2024: In a groundbreaking shift for the Indian real estate sector, the top eight listed developers have achieved a remarkable 54% reduction in net debt since its peak in FY 2019. As of Q1 FY 2025, their collective net debt stands at approximately INR 20,808 crore, a significant decrease from the INR 44,817 crore recorded at the end of FY 2019.

Surge in Booking Values Drives Debt Reduction

The financial uplift is underscored by an impressive surge in collective booking values, which soared by 234%, rising from INR 27,144 crore in FY 2019 to a staggering INR 90,573 crore by FY 2024. In Q1 FY2025 alone, these developers reported a booking value of INR 26,832 crore, nearly matching the total from all of FY 2019.

Dr. Prashant Thakur, Regional Director & Head of Research at ANAROCK Group, notes that this debt reduction is coupled with a significant increase in sales revenue, indicating robust buyer demand in the residential market across the top seven cities. “The financial data analysis reveals that while some developers faced a rise in debt due to aggressive expansion, the overall trend is one of financial resilience and strategic growth,” he said.

Leading Developers Make Notable Strides

Among the top players, DLF Ltd. reported a remarkable 165% decline in net debt, bolstered by surplus cash of INR 2,896 crore. Kolte Patil also showcased an impressive 107% reduction, gaining INR 37 crore in surplus cash. Notably, Lodha Developers reduced its net debt by 83% in the same timeframe.

Strategic Growth Amidst Challenges

While the majority of developers have successfully reduced debt, a few have seen their debt levels rise as they aggressively pursue land acquisitions across various markets. Dr. Thakur emphasizes the significance of these investments for long-term growth despite the short-term increase in liabilities.

A Promising Future for Real Estate

As the financial year progresses, the ongoing demand for residential properties signals a promising trajectory for these developers. With three more quarters remaining in FY 2025, the market is poised for continued growth, positioning these top eight developers at the forefront of the Indian real estate landscape.

This data was compiled by ANAROCK Research from company financials, showcasing a significant turnaround in the fortunes of the listed developers in a highly competitive market.