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    Godrej Properties Q1 FY27 earnings call

    GODREJPROP
    Realty·4 Aug 2026
    Management Summary

    Godrej Properties reported strong Q1 FY27 booking value of INR8,651 crores, up 22% YoY, and added significant new projects. However, reported financials saw a decline in income, EBITDA, and net profit, largely due to fewer project completions in the quarter and a 58% drop in operating cash flow. The company remains confident in its annual delivery and ROE targets, with a robust launch pipeline and strong market demand in key regions.

    Highlights

    5

    • Booking value of INR8,651 crores, a 22% YoY growth, driven by strong demand in new project launches like Godrej Vanantara (INR3,237 crores) and Godrej Samaris (INR1,248 crores).

    • Achieved 22% of annual guidance for booking value and 48% of annual guidance for business development in Q1 FY27.

    • Collections grew by 18% YoY to INR4,348 crores, indicating healthy cash inflow from sales.

    • Management remains confident in achieving 20% ROE in FY28 and 13.5 million sq ft of delivery for the full year.

    • The overall Indian residential industry, particularly Bangalore, Hyderabad, and Noida, is showing strong performance.

    Concerns

    4

    • Operating cash flow (OCF) declined by 58% to INR399 crores in Q1 FY27.

    • Total income declined by 16% to INR1,337 crores, EBITDA declined by 40% to INR545 crores, and net profit declined by 42% to INR350 crores.

    • Only one project completion in Q1, contributing to the decline in reported financials.

    • Cost inflation, particularly in materials like aluminum, and past issues with tile availability, though some trends are reversing.

    Key financials

    Single quarter

    06 metrics
    1. 01Booking Value₹8,651 Cr+22%YoY
    2. 02Collections₹4,348 Cr+18%YoY
    3. 03Operating Cash Flow₹399 Cr-58.0%YoY
    4. 04Total Income₹1,337 Cr-16%YoY
    5. 05EBITDA₹545 Cr-40%YoY

    Order Book

    high confidence

    Total Value

    ₹ 8,651 crores

    as of 2026-06-30

    quantified
    22.0% YoY

    Inflow this qtr

    ₹ 8,651 crores

    Execution

    On track for 13.5 million square feet of delivery in the full year.

    Composition

    Mix4 geographys
    • Bengaluru44.0%
    • MMR21.0%
    • NCR18.0%
    • Pune & Hyderabad16.0%

    Share of order book by geography

    Pipeline

    other

    3 new projects added with estimated saleable area of ~8 million sq ft and expected booking value of INR9,500 crores. Robust launch pipeline including Bandra, Golf Extension Road (Gurgaon), and projects in Bangalore, Hyderabad, Pune.

    "Q1 FY27 booking value was strong, driven by new project launches and sustenance sales, contributing 22% to the annual guidance. The company has a robust launch pipeline for the rest of the year, with key projects like Bandra and Golf Extension Road on track."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹2,250 crores

    Debt

    Net ₹10,000 crores

    Liquidity

    Liquidity disclosed

    Operating cash flow in the first quarter stood at INR399 crores, a decline of 58%. Collections in the first quarter stood at INR4,348 crores, year-on-year growth of 18%.

    Guidance & targets

    15
    CategoryTargetPriority
    Booking Value
    Annual Booking Value Guidance
    Q1 achieved 22% of annual guidance
    		High
    Business Development
    Annual Business Development Guidance
    Q1 achieved 48% of annual guidance (INR9,500 crores)
    		High
    Operating Cash Flow
    Full Year Operating Cash Flow
    approximately INR9,000 crores
    		High
    Delivery
    Full Year Delivery
    13.5 million square feet
    		High
    Profitability
    Return on Equity (ROE)
    20%
    		High
    Profitability
    PAT Margin
    15%
    		High
    Debt
    Net Debt Cap
    INR10,000 crores
    		High
    Collections
    FY27 Collections
    INR24,000 crores
    		High
    Free Cash Flow
    FY27 Free Cash Flow
    positive
    		Medium
    Free Cash Flow
    FY28 Free Cash Flow
    positive
    		High
    Booking Value Growth
    Booking Value Growth
    20%
    		High
    Launch Pipeline
    GDV of Launches
    INR37,000-38,000 crores
    		Medium
    Launches
    Timing of Big Launches (Bandra, Golf Course Road)
    Q2 or Q3
    		High
    Tier 2 Cities
    Contribution from Tier 2 Cities
    not more than 10% to 15% of top line
    		High
    Tier 2 Cities
    Booking Value per Acquisition in Tier 2 Cities
    INR500 crores to INR700 crores
    		High

    What to watch in Q2 FY27

    5

    Operating Cash Flow (OCF) trajectory

    next quarter (Q2 FY27)
    CurrentINR399 crores (58% decline YoY)
    TargetMeaningful increase, Q2 significantly better than Q1, building towards ~INR9,000 crores for FY27

    Why it matters

    OCF saw a significant decline in Q1; its recovery is crucial for the company's financial health and full-year guidance.

    While OCF in Q1 was very weak, we expect our operating cash flow to meaningfully increase in the rest of the year and grow to approximately INR9,000 crores for the full year.

    Risks & concerns

    7
    RiskSeverity

    Decline in reported financials (Income, EBITDA, PAT)

    Total income declined by 16% to INR1,337 crores, EBITDA by 40% to INR545 crores, and net profit by 42% to INR350 crores in Q1 FY27, primarily due to only one project completion. — Management acknowledged

    medium

    Operating Cash Flow (OCF) decline

    OCF declined by 58% to INR399 crores in Q1 FY27, though management expects it to increase significantly over the rest of the year. — Management acknowledged

    medium

    Cost inflation (materials)

    While steel costs have reduced, aluminum prices have shot up, and tile availability was a challenge in April/May, indicating ongoing material cost pressures. — Management acknowledged

    medium

    Project delays or cost overruns

    Management considers very substantial project delays or huge cost overruns due to global situations as relatively small risks. — Management downplayed

    low

    Significant deterioration in sales situation or construction disruptions

    There could be downside risk if market sales significantly deteriorate or construction schedules are disrupted by global events, though current view is positive. — Management acknowledged

    medium

    Project delivery delays (industry notoriety)

    The industry is notorious for delays, and a significant part of FY28 targets relies on timely project deliveries, especially in NCR with NGT bans. — Management acknowledged

    medium

    Extreme cost escalation

    Management believes extreme cost escalation is very unlikely, even despite past difficult global situations. — Management downplayed

    low

    Q&A highlights

    8

    “I think overall market seems to be quite strong. From a relative perspective, I would say Bangalore and Hyderabad and Noida clearly doing exceedingly well as markets. I think Bombay, it is, I would say, core Bombay, which is western suburbs, micro markets of South Bombay and Thane are doing very strong.”

    Provides management's detailed view on market performance across key geographies and their strategic focus.

    asked by Puneet (HSBC)

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Godrej Properties reported a booking value of INR8,651 crores in Q1 FY27, marking a 22% year-on-year growth and the sixth consecutive quarter exceeding INR7,000 crores. This strong sales performance was driven by new project launches and contributed 22% to the annual booking value guidance. However, the company's reported financials saw a decline, with total income down 16% to INR1,337 crores, EBITDA down 40% to INR545 crores, and net profit down 42% to INR350 crores, primarily due to only one project completion in the quarter.

    02

    Booking Value Drivers and Geographical Contribution

    Key project launches significantly contributed to the Q1 booking value, including Godrej Vanantara with INR3,237 crores in sales, Godrej Samaris in Gurugram with INR1,248 crores, and Godrej Brooklyn Avenue in Hyderabad with over INR300 crores. Godrej Vanantara is notably the third project in Bengaluru to achieve over INR3,000 crores in sales within three years. Geographically, Bengaluru led contributions at 44%, followed by MMR at 21%, NCR at 18%, and Pune and Hyderabad collectively at 16%.

    03

    Cash Flow and Business Development

    Collections for the quarter stood at INR4,348 crores, an 18% year-on-year increase. Despite this, operating cash flow declined by 58% to INR399 crores. The company added 3 new projects with an estimated saleable area of approximately 8 million square feet and an expected booking value of INR9,500 crores, achieving 48% of its annual business development guidance. Management expects OCF to meaningfully increase over the rest of the year, targeting approximately INR9,000 crores for the full year.

    04

    Market Outlook and Cost Environment

    Management noted a strong overall Indian residential market, with Bangalore, Hyderabad, and Noida performing exceptionally well. Gurugram was identified as a laggard in Q1 but is expected to see an uptick in Q2. On the cost front, while the Middle East crisis initially caused strain, steel costs have reduced by 12%, though aluminum prices have increased. Tile availability issues have been resolved, and overall cost trends are showing signs of reversal after an inflationary period.

    05

    FY28 Targets and Strategic Focus

    Godrej Properties is on track to deliver 13.5 million square feet for the full year and aims to achieve a 20% Return on Equity (ROE) by FY28. The company has set a net debt cap of INR10,000 crores and expects to be free cash flow positive in FY28. Key management incentives are tied to cash collection, imputed profits, reported profits, and Net Promoter Score, reflecting a balanced focus on growth, efficiency, and customer satisfaction. The company plans to maintain a 15% PAT margin for FY28.

    06

    Launch Pipeline and Unsold Inventory

    The company has a robust launch pipeline, with major projects like Bandra and Golf Extension Road expected in Q2 or Q3 FY27. Management indicated that the INR40,000 crores booking value for projects expected to reach revenue recognition by FY28 is largely pre-sold, with stellar projects like Aristocrat being 98% sold out. This suggests a healthy demand for their projects and minimal inventory overhang for future completions.

    This is an AI-generated summary of a publicly available earnings call transcript.