Lactide-based random polyester polyols for use in polyurethane compositions are disclosed. The polyester polyols have an OH value in the range of greater than 400 mg KOH/g up to 1100 mg KOH/g and are the reaction product of at least one polycarboxylic acid, at least one lactide, and one or more polyalcohols. The polyester polyols can be formulated into the B-side of a two part polyurethane composition to obtain a polyurethane having improved hardness and solvent resistance and a low VOC content. The polyurethane composition is particularly suitable for polyurethane coating applications.