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Shares of Sri Lotus Developers and Realty surged more than 4 per cent on January 7 after the real estate company announced a development agreement with actor Abhishek Bachchan for a land parcel in Gujarat’s GIFT City. The stock closed at Rs 167.42, snapping a two-session losing streak.

In an exchange filing, Sri Lotus Developers said the agreement was executed through its wholly owned subsidiary, Rise Root Projects Private Limited, marking the company’s entry into the GIFT City area of Gandhinagar. The proposed project will span a built-up area of over one million square feet and represents Sri Lotus’ first project in Gujarat, expanding its footprint beyond its core Mumbai market.

The company described the project as an ultra-luxury mixed-use development on freehold land, calling it a key milestone in its growth journey. The deal is structured as a profit-sharing arrangement with Abhishek Bachchan, allowing Sri Lotus to leverage its expertise in design, planning, development and execution.

The upcoming development will comprise a mix of premium retail, Grade-A commercial office spaces and high-end residential units, aimed at catering to the rising demand from financial institutions, fintech firms, and IT/ITeS companies operating in GIFT City. The project is expected to be completed within four years of its launch, the company said.

Commenting on the development, Anand K Pandit, Chairman and Managing Director of Sri Lotus Developers, said the company’s expansion into GIFT City aligns with its strategy to tap emerging growth hubs. “GIFT City is rapidly emerging as a premier global financial and business hub, supported by progressive policy initiatives, strong infrastructure development, and growing interest from domestic and international investors,” he said, adding that the project aims to address demand for premium and ultra-luxury residential and commercial spaces in the region.

On the stock performance front, Sri Lotus Developers shares have gained nearly 6 per cent over the past five sessions and around 7 per cent in the last one month, recovering part of the losses seen earlier. The stock had declined over 14 per cent in the past six months. The company currently commands a market capitalisation of Rs 8,182 crore.

Sri Lotus Developers & Realty posted a strong operational performance in Q2 FY26, with revenue rising 44 per cent year-on-year to Rs 176 crore, driven by healthy project launches and sales momentum. Pre-sales surged 126 per cent YoY to Rs 257 crore, reflecting robust demand, while net profit slipped 8 per cent to Rs 46.36 crore, largely due to higher expenses during the quarter.

The company also reported collections of Rs 106 crore, up 16 per cent YoY, and EBITDA of Rs 50 crore, indicating steady cash flow generation. During the quarter, Sri Lotus launched two projects—The Arcadian in Juhu and Amalfi in Versova—which supported the sharp rise in pre-sales. It also completed four projects in the first half of FY26, while maintaining a strong net cash position of Rs 851 crore.

Looking ahead, the company plans to launch four new projects in H2 FY26 and has reiterated its full-year guidance, targeting pre-sales of Rs 1,100–1,300 crore and revenue growth of 75–85 per cent for the year.

Shweta Birendra Shukla is a Senior Sub-editor at Zee Business, born and raised in Mumbai—the city that never sleeps and the financial capital that never stops buzzing.