Lodha Developers plans to raise ₹9,000 cr by selling Palava land to hyperscalers

Lodha Developers Ltd, which has 660 acres earmarked for constructing data centres in suburban Mumbai's Palava, plans to raise ₹9,000 crore by selling 150 acres, said its managing director Abhishek Lodha in an analyst call on Monday.

The Mumbai-based developer is eyeing ₹2,000-3,000 crore worth of annual land sales to hyperscalers as land prices have shot up due to robust demand for suitable data centre sites.

“India has emerged as a strong location for data centres. We have three leading operators now at the (Green Data Centre) Park. We want to further scale up and hope to increase capacity. Capacity attracts further demand,” said Abhishek Lodha.

Lodha has sold around 132 acres at its Green Data Centre Park, Palava, to Amazon Web Services and STT Data Centres over the last two years.

During the June quarter, it sold 30 acres of land to Digital Edge India, a joint venture between Digital Edge (Singapore) and National Investment and Infrastructure Fund (NIIF), at over ₹42 crore per acre.

Lodha has around 3,700 acres in Palava and Upper Thane in the Mumbai Metropolitan Region (MMR), according to its latest investor presentation.

With various infrastructure projects in and around the Palava region, including bullet train connectivity, the demand for this land and its value are expected to continue to rise.

Rental income

Lodha Developers, which has one of the largest commercial land banks among real estate developers, plans to deploy most of the land sale proceeds to develop 1 gigawatt (GW) of build-to-suit data centre power shell capacity across around 90 acres. It will lease the space to data centre operators or hyperscalers, which will boost its annuity income.

Powered shells are bare, ready-to-use buildings equipped with essential infrastructure such as power supply and cooling systems.

The company’s rental income, which stood at ₹300 crore at the end of 2025-26, is expected to grow significantly to around ₹3,000 crore in six years. A bulk of this will be generated from the data centre business.

Lodha Developers, one of the top four residential developers in the country, reported a two-fold rise in net profit to ₹1,373 crore for the June quarter, fuelled by strong growth in revenue and cash flows. Revenue from operations saw a 43% year-on-year jump to ₹4,996.7 crore compared to the year-ago quarter.

Despite no fresh launches, it saw a 4% rise in pre-sales to ₹4,629 crore in the first quarter. The developer is targeting ₹24,000 crore in pre-sales from housing projects in the current fiscal year, compared with ₹20,530 crore in FY26. Its net debt also fell by ₹446 crore to ₹4,931 crore during the quarter.

Its business is broadly split into three verticals—DevCo (residential development), RentCo (annuity or rental business) and LandCo.