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    Godrej Propert.

    GODREJPROP
    Realty·6 Nov 2025
    Management Summary

    Godrej Properties delivered a robust Q2 FY26, reporting its highest ever Q2 net profit of INR405 crores, a 21% YoY increase. Booking value surged 64% YoY to INR8,505 crores, driven by strong demand and new project launches, particularly in Hyderabad and Bangalore. While H1 booking value reached a record INR15,587 crores, collections growth lagged at 2% YoY, with management attributing this to milestone-linked payments and a heavy OC calendar in Q4. The company remains confident in achieving its annual booking and collection guidance, despite acknowledging challenges like NGT issues in NCR and the impact of accounting methods on reported profitability.

    Highlights

    5
    • Godrej Properties delivered its highest second quarter net profit of INR405 crores, representing a 21% year-on-year growth.

    • Booking value for Q2 FY26 surged 64% year-on-year and 20% quarter-on-quarter to INR8,505 crores, marking the ninth consecutive quarter of over INR5,000 crores sales.

    • Total income for the quarter grew by 39% to INR1,867 crores, while EBITDA increased by 118% to INR614 crores.

    • The company achieved 48% of its annual guidance for booking value (INR32,500 crores) in H1 FY26, remaining on track to beat the target.

    • Business development additions in H1 FY26 totaled 9 projects with an estimated saleable area of 15 million square feet and expected booking value of INR16,250 crores, achieving 81% of the annual BD guidance.

    Concerns

    3
    • Q2 collections grew only 2% year-on-year to INR4,066 crores, lagging booking growth and expected to be skewed towards Q4.

    • Profitability (PAT) is significantly impacted by accounting methods for fast-growing companies using the project completion method, with current reported numbers being 58% (compounded over 3 years) but affected by dislocations.

    • The Ashok Vihar project in NCR continues to face a 'tree cutting issue' with no immediate visibility on timelines for resolution.

    What Changed1

    vs Q3 FY26

    Risks discussed3 → 6 (+3)

    Key financials

    Single quarter

    05 metrics
    1. 01Net Profit₹405 Cr+21%YoY
    2. 02Booking Value₹8,505 Cr+64%YoY
    3. 03Collections₹4,066 Cr+2%YoY
    4. 04Total Income₹1,867 Cr+39%YoY
    5. 05EBITDA₹614 Cr+118%YoY

    Order Book

    high confidence

    Total Value

    ₹ 8,505 crores

    as of 2025-09-30

    quantified
    64.0% YoY20.0% QoQ

    Inflow this qtr

    ₹ 8,505 crores

    Composition

    Mix9 geographys
    • Hyderabad (Godrej Regal Pavilion)₹ 1,527 crores14.6%
    • Bangalore (Godrej MSR City)₹ 1,032 crores9.9%
    • Bangalore (Godrej Tiara and another project)₹ 877 crores8.4%
    • Golf Course Road (Godrej Sora)₹ 633 crores6.0%
    • Indore (first project)₹ 400 crores3.8%
    • Bangalore₹ 1,500 crores14.3%
    • Mumbai₹ 1,500 crores14.3%
    • NCR₹ 1,500 crores14.3%
    • Hyderabad₹ 1,500 crores14.3%

    Share of order book by geography (derived from disclosed amounts)

    Pipeline

    other

    12 new projects in phase launch across eight cities with total sales potential over INR10,000 crores during the quarter. H1 FY26 business development additions of 9 projects with 15 MSF and expected booking value of INR16,250 crores.

    "Godrej Properties has delivered another robust quarter with strong booking value growth, driven by key new project launches. The company is on track to beat its annual booking value guidance and remains confident in its robust launch pipeline and resilient demand."

    Source:
    Prepared remarks

    Capital allocation

    10
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    M&A

    Four new projects

    acquisition · announced

    M&A

    Nine projects (H1 FY26)

    acquisition · announced

    M&A

    Panipat acquisition

    acquisition · announced

    Guidance & targets

    8
    CategoryTargetPriority
    Booking Value
    Annual Booking Value
    INR32,500 crores
    High
    Collections
    Annual Collections
    INR21,000 crores
    High
    Profitability
    Return on Equity (ROE)
    20%
    High
    Profitability
    Net Profit (PAT)
    INR4,000-4,500 crores
    High
    Growth
    Medium-term growth rate
    20%
    Medium
    Business Development
    Annual BD Additions Booking Value
    INR16,250 crores
    High
    Deliveries
    Homes delivered in NCR
    4,000 homes
    High
    Operating Cash Flow
    Operating Cash Flow
    INR6,500 to INR8,500 crores
    Medium

    Q4 FY26 Collections

    next quarter (Q4 FY26)
    CurrentH1 FY26 collections at INR7,736 crores (37% of annual guidance)
    TargetAchievement of INR21,000 crores annual collections guidance

    Why it matters

    Collections are a key cash flow indicator, and management expects a significant portion in Q4.

    GPL achieved 37% of yearly guidance on collections, which does and we recognize sound a little bit low, but we are confident that we are fully on track to achieve our full year guidance of INR21,000 crores collections.

    How to verify

    key_financials.metrics[label='Collections']

    Risks & concerns

    6
    RiskSeverity

    Collections skewed to Q4

    Collections growth lagged bookings, with a significant portion expected in Q4 due to milestone-linked payments and OC calendar.Analyst acknowledged

    medium

    Profitability impacted by accounting methods

    Reported net profit is affected by the project completion accounting method for fast-growing companies, leading to dislocations.Management acknowledged

    medium

    NGT issues in NCR causing construction delays

    NGT regulations have caused three months out of 12 months of construction delays in NCR.Management acknowledged

    medium

    COVID-related project delays

    Some projects launched before COVID lost about 6 months of construction time.Management acknowledged

    low

    Ashok Vihar project (NCR) tree cutting issue

    The project faces an ongoing 'tree cutting issue' affecting NCR overall, with no immediate visibility on timelines for resolution.Management acknowledged

    medium

    High land prices in recent auctions

    Recent auctions in Hyderabad and Navi Mumbai saw land prices exceeding INR2,000 crores, which seemed high.Management acknowledged

    low

    Q&A highlights

    8

    “So, Puneet, you know, we did not get too much OCs into this quarter. Whatever OCs we received were of JV project. So, like earlier explained, you know, JV project, we do lot of structuring. So, the reporting of those, you know, income keeps happening in those respective periods.”

    Analyst questioned the reported gross margin, which seemed unusually low, and management clarified it's due to the nature of JV project revenue recognition upon occupation certificate.

    asked by Puneet from HSBC Bank

    3 min read6 chapters

    Detailed Narrative

    01

    Robust Q2 FY26 Performance Driven by Strong Bookings

    Godrej Properties reported its highest ever Q2 net profit of INR405 crores, a 21% year-on-year increase. The company's booking value for the quarter surged 64% YoY and 20% QoQ to INR8,505 crores, marking the ninth consecutive quarter of sales exceeding INR5,000 crores. Total income for Q2 FY26 grew 39% to INR1,867 crores, while EBITDA saw a significant 118% increase to INR614 crores. For the first half of FY26, booking value reached INR15,587 crores, the highest ever, achieving 48% of the annual guidance of INR32,500 crores.

    02

    Key Project Launches Fuel Sales Growth

    Sales in Q2 FY26 were primarily driven by strong demand for several new project launches. Godrej Regal Pavilion in Hyderabad achieved INR1,527 crores in booking value, contributing to Hyderabad's total sales of INR2,600 crores for the current calendar year. In Bangalore, Godrej MSR City recorded INR1,032 crores, and Godrej Tiara along with another project contributed INR877 crores. The company's first project in Indore also saw robust returns with over INR400 crores in booking value.

    03

    Collections Lag Bookings, Skewed Towards Q4

    Despite strong booking growth, collections in Q2 FY26 grew only 2% YoY and 11% QoQ to INR4,066 crores. H1 FY26 collections stood at INR7,736 crores, a 10% YoY increase. Management acknowledged that collections are currently low relative to bookings but expressed confidence in achieving the full-year guidance of INR21,000 crores. This skew is attributed to milestone-linked payments, particularly a heavy Occupation Certificate (OC) calendar expected in Q4, and rapid ramp-up in construction activity.

    04

    Strategic Business Development and Market Outlook

    In H1 FY26, Godrej Properties added 9 new projects with an estimated saleable area of 15 million square feet and an expected booking value of INR16,250 crores, achieving 81% of its annual BD guidance. Management highlighted strong growth opportunities across all markets, with Bangalore currently being the best-performing. Hyderabad, a new entry, has shown significant potential with INR2,600 crores in sales this calendar year. The company also noted its strategy for the Worli project, aiming for profit maximization through gradual inventory release and pricing between INR80,000 to INR1.5 lakhs per square foot.

    05

    Execution and Profitability Challenges Addressed

    Management addressed concerns regarding profitability, explaining that reported net profit is affected by accounting dislocations for fast-growing companies using the project completion method. However, execution has seen significant improvements, with labor strength increasing from 21,000 to 32,000 and construction spend growing 82% YoY in Q2. While external challenges🌐 like NGT issues in NCR and past COVID-related delays have impacted timelines, the company is confident in delivering 4,000 homes in NCR over the next 6-9 months and achieving its FY28 ROE target of 20% and PAT of INR4,000-4,500 crores.

    06

    FY26 Operating Cash Flow Guidance

    For FY26, Godrej Properties provided an operating cash flow guidance range of INR6,500 to INR8,500 crores. This projection reflects the company's internal aspirations to speed up construction and capitalize on strong collections. Management emphasized that while there might be minor quarter-to-quarter fluctuations, the overall trend for operating cash flow growth should mirror sales growth in the long term, supported by increased billing milestones.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.