Godrej Properties Limited

Godrej Properties achieved its best-ever year in calendar year 2025, with bookings reaching INR34,171 crores, marking a 19% year-on-year growth. Collections also saw a significant increase of 28% year-on-year, totaling INR18,979 crores. Operating cash flow for the year was INR7,246 crores, a 20% growth, and earnings stood at INR1,582 crores, up 6%. The company maintained its position as the largest residential real estate developer in India by both bookings and collections for the second consecutive year.

For Q3 FY26, Godrej Properties reported a net profit of INR195 crores, a 20% year-on-year increase, and total income declined by 17% to INR1,020 crores. EBITDA for the quarter grew 21% to INR338 crores. Cumulatively for the first nine months of FY26, net profit reached INR1,200 crores (18% YoY growth), total income grew 7% to INR4,480 crores, and EBITDA increased by 40% to INR1,867 crores. The company's booking value for Q3 FY26 was INR8,421 crores, a 55% YoY growth, and for 9M FY26, it was over INR24,000 crores, up 25% YoY.

In Q3 FY26, Godrej Properties added three new projects with an estimated salable area of 7.3 million square feet and an expected booking value of INR8,400 crores. For the first nine months of FY26, the company added 12 new projects, totaling an estimated salable area of 22 million square feet and an expected booking value of nearly INR25,000 crores, surpassing its annual BD guidance by 123%. The company has cumulatively added projects with over INR1 lakh crores sales potential since FY23, indicating strong future growth visibility.

Operating cash flow in Q3 FY26 grew 73% year-on-year to INR1,062 crores but declined 11% quarter-on-quarter. For 9M FY26, operating cash flow decreased by 7% to INR3,199 crores. This decline was attributed to a sharp 66% increase in direct construction spend during the first nine months of FY26, as the company focused on improving execution speed. Management expects a robust operating cash flow in Q4, linked to deliveries and ramped-up collections, anticipating to surpass FY25 OCF.

The real estate market is maturing, with buyers increasingly appreciating product quality and location, shifting from speculative to end-user or seasoned retail investor demand. Godrej Properties noted strong performance across all geographies, with no single market contributing more than 30% to booking value and five markets contributing over INR3,000 crores each. Hyderabad saw sales of INR3,000 crores in CY25 from just two projects, and Bangalore experienced over 100% growth in 9M FY26, indicating exceptional outcomes in these IT-driven markets despite broader sector risks.

The company is highly confident in meeting and beating its FY26 booking value guidance of INR32,500 crores and achieving its collections guidance of INR21,000 crores. A significant launch pipeline is planned for Q4 FY26 and FY27, including projects in Greater Noida (Sigma sector, Godrej Golf Links), Panvel (commercial), Kharghar, Bangalore (Hoskote), Pune (Upper Kharadi, Mahalunge), Raipur, Ahmedabad (Vastrapur), Golf Course Road, Bannerghatta, MSR City, Mundhwa, and Nagpur. Management expects healthy growth to sustain across key metrics in FY27, with long-term net profit margins targeted at 10-15% and EBITDA margins around 25%.