Godrej Properties Limited — Q4 FY25 earnings call

Call held 2 May 2025

Management summary

Godrej Properties delivered a record-breaking FY25, achieving its highest ever bookings, collections, operating cash flows, and net profit, significantly outperforming guidance across key metrics. Q4 FY25 also saw record bookings of over Rs. 10,000 crores. The company provided robust FY26 guidance for bookings and collections, while acknowledging some project delays and maintaining a conservative stance on business development targets.

Highlights

  • Q4 Booking Value reached a record Rs. 10,163 crores, growing 87% QoQ and 7% YoY.

  • FY25 Booking Value was Rs. 29,444 crores, a 31% YoY growth, achieving 109% of guidance.

  • FY25 Customer Collections stood at a record Rs. 17,047 crores, representing a 49% YoY growth and 114% of annual guidance.

  • FY25 Operating Cash Flow was Rs. 7,484 crores, up 73% YoY, marking the highest ever for the company.

  • FY25 Net Profit increased by 93% YoY to Rs. 1,400 crores, driven by record project deliveries of 18.4 million square feet.

Concerns

  • Q4 EBITDA declined 2% to Rs. 634 crores compared to the previous year.

  • Q4 Net Profit declined 19% to Rs. 382 crores compared to the previous year.

  • Key projects like Ashok Vihar and Bandra faced delays, with Bandra potentially pushing to next financial year.

Key financials

2 periods

Q4

  • Booking Value
    ₹10,163 Cr
    YoY +7% QoQ +87%
  • Customer Collections
    ₹6,961 Cr
    YoY +48% QoQ +127%
  • Operating Cash Flow
    ₹4,047 Cr
    YoY +55% QoQ +559%
  • Total Income
    ₹2,646 Cr
    YoY +36%
  • EBITDA
    ₹634 Cr
    YoY -2%
  • Net Profit
    ₹382 Cr
    YoY -19%

FY25

  • Booking Value
    ₹29,444 Cr
    YoY +31%
  • Booking Volume
    25.73 million square feet
    YoY +29%
  • Customer Collections
    ₹17,047 Cr
    YoY +49%
  • Operating Cash Flow
    ₹7,484 Cr
    YoY +73%
  • Total Income
    ₹6,848 Cr
    YoY +57%
  • EBITDA
    ₹1,970 Cr
    YoY +65%
  • Net Profit
    ₹1,400 Cr
    YoY +93%
  • Project Deliveries
    18.4 million square feet
    YoY +47%

What they filed

Q1 FY27: revenue up 14.2%, net profit up 8.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue663 185 912 106 92 −86%268 +45%928 +2%121 +14%
EBITDA-40 -181 77 -263 -408 −920%-175 +3%-27 −135%-260 +1%
Net profit206 35 279 56 13 −94%60 +71%219 −22%61 +9%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹29,444 Cr

as of 2025-03-31 quantified

31% YoY

Inflow this quarter

₹10,163 Cr

Composition

Mix 3 geographies
  • NCR 35.7%
  • Mumbai 27.3%
  • Bangalore 17.3%

Share of order book by geography· partial disclosure (80.3% of the book)

Pipeline

other

Estimated booking value from 14 new projects added in FY25, and 2 new projects added in Q4. Also, unlaunched phases from prior acquisitions and total inventory.

Financial Year 2025 was another record-breaking year for Godrej Properties in which we achieved our highest ever bookings, collections, operating cash flows, earnings and deliveries. Our sales are the most widely distributed in the industry with only 27% of our booking value coming from our home market of Mumbai and only 13% of our booking value coming from the largest single project.

Source: Prepared remarks

Capital allocation

high confidence
  • M&A New projects (Business Development) Acquisition · Closed

    To maintain rapid growth trajectory and expand market share.

    Added 14 new projects with an estimated saleable area of approximately 19 million square feet and expected booking value of Rs. 26,450 crores in FY25.

    It was also a strong year for business development. We added 14 new projects with an estimated saleable area of approximately 19 million square feet and expected booking value of Rs. 26,450 crores. This includes two new projects with an expected booking value of Rs. 3,000 crores added in the 4th Quarter.
  • M&A Equity Capital Acquisition · Closed · Consideration ₹[object Object] (stock)

    To invest for growth and maintain strong balance sheet.

    The equity capital of Rs. 6,000 crores raised through a QIP in December 2024 will enable us to continue to invest for growth.

    The record operating cash flow of nearly Rs. 7,500 crores we generated in Financial Year '25 combined with the equity capital of Rs. 6,000 crores we raised through a QIP in December 2024 will enable us to continue to invest for growth.
  • Liquidity Liquidity disclosed The company generated a record operating cash flow of Rs. 7,500 crores in FY25 and raised Rs. 6,000 crores through a QIP, which will enable continued investment for growth. Management aims to keep net debt below Rs. 10,000 crores.
    The record operating cash flow of nearly Rs. 7,500 crores we generated in Financial Year '25 combined with the equity capital of Rs. 6,000 crores we raised through a QIP in December 2024 will enable us to continue to invest for growth. ... The constraint we have set ourselves now is that we would like to keep net debt below Rs. 10,000 crores.

Guidance & targets

Volume

  • Residential Bookings Volume · FY26 · High confidence > Rs. 32,500 crores
    In FY26 we plan to grow residential bookings to over Rs. 32,500 crores, a 20% growth over our FY25 guidance through the launch of over Rs. 40,000 crores of inventory combined with strong sustenance sales.

    — Pirojsha Godrej

  • Inventory Launches Volume · FY26 · High confidence > Rs. 40,000 crores

    — Pirojsha Godrej

Collections

  • Customer Collections Collections · FY26 · High confidence Rs. 21,000 crores
    We have guided to Rs. 21,000 crores collections which is 40% higher than our last year's guidance and 20% higher than actuals.

    — Pirojsha Godrej

Business Development

  • BD Guidance Business Development · FY26 · Low confidence Rs. 20,000 crores
    I think what we think is that certainly we should never come under pressure to meet business development guidance. We should only do deals if on a standalone basis they make sense. So frankly I would say this in our view is a bit of low-ball guidance. We would be very surprised if we don't significantly surpass this.

    — Pirojsha Godrej

Debt

  • Net Debt Debt · Ongoing · High confidence < Rs. 10,000 crores
    The constraint we have set ourselves now is that we would like to keep net debt below Rs. 10,000 crores.

    — Pirojsha Godrej

Margin

  • Imputed EBIT Margins Margin · Next 2 years · Medium confidence 26-27%
    Yes, the endeavor will be to continue maintaining and improve improving our margin profile. And I think like Pirojsha was mentioning the reason for having frankly a very conservative business development target is to actually look at these which at least meet these margin profile if not more and that too in a way that we feel capital churn can be very fast. So yes, we expect that these should be a long-term trend that we would like to maintain.

    — Gaurav Pandey

Profitability

  • PAT Margin Profitability · Portfolio level · Medium confidence 14-15%
    I think of late we have been targeting up to 15% PAT margin. And the kind of deals we have been able to secure, there have been many projects where in fact we are delivering slightly better than even 15%. So, give or take 14% to 15% PAT margins what we are looking at, of course there are plotted development where this goes up to between 20% and 25%, even 30% of PAT margin. But at a portfolio level, 15% is what we want to consistently do.

    — Gaurav Pandey

What to watch in Q1 FY26

FY26 Residential Bookings Performance

next quarter
Current FY25 bookings: Rs. 29,444 crores
Target > Rs. 32,500 crores

Why it matters

To assess if the company continues its strong growth trajectory and outperforms its conservative guidance.

In FY26 we plan to grow residential bookings to over Rs. 32,500 crores, a 20% growth over our FY25 guidance through the launch of over Rs. 40,000 crores of inventory combined with strong sustenance sales.

Risks & concerns

  • Macroeconomic Uncertainty

    medium

    Global macroeconomic uncertainty (tariffs, etc.) and oil prices are watch items, though the current cost pressure environment is benign.

    Management acknowledged

  • Project Approval and Launch Timelines

    medium

    Uncertainties exist regarding launch timelines and obtaining necessary approvals, which can impact project execution.

    Management acknowledged

  • Project Delays (Ashok Vihar & Bandra)

    medium

    Ashok Vihar project delayed due to environmental issues and court case; Bandra project delayed due to slower-than-anticipated slum redevelopment by partner.

    Management acknowledged

  • Cost Inflation

    low

    While construction costs have been stable, cost inflation remains a watch item, especially concerning oil prices.

    Management acknowledged

Q&A highlights

7 direct
Conservatism of FY26 Booking Guidance Direct
I think we always want to be very confident of the guidance we give. This is an industry with uncertainties, whether on the macro or with launch timelines and so forth. So, we do tend to keep a reasonable amount of buffer in our internal plans over guidance. I think 20% over last year's guidance is actually a pretty strong guidance. We also have included in our investor presentation our performance on guidance over the last 3 years. And I am happy to share that we have been able to meet each individual metric of guidance that we have provided. Again, this year the goal will be to outperform guidance.

Analyst questioned if the 20% growth guidance was too conservative given past outperformance, and management confirmed it includes a buffer with an intent to outperform.

Asked by Parikshit Kandpal

Growth Potential in NCR and MMR Markets Direct
I think the aspiration would be to grow much faster than 10%. But certainly, we think in all the markets that we operate in there is a huge growth opportunity. We have looked at the data that suggests that basis prop equity data for the top seven markets, our current market share would be about 4.3%. I think over the medium term we would like to take that to double digits. There is a strong opportunity for growth in each of the markets that we are in.

Analyst asked if key markets like NCR and MMR were reaching optimal levels. Management reiterated significant growth opportunities and a long-term goal of doubling market share from 4.3%.

Asked by Parikshit Kandpal

Future Profitability and Accounting Method Direct
Yes, I think we are following the project completion accounting system, and I think that we will continue with that. That's of course different than some of our peers in the industry are following and thus create a lag in reported earnings. I think we will continue to see improved margins in reported earnings as more of the projects that are owned outright that have, we purposely launched at a more premium end of the market start hitting the P&L. So, I think you will continue to see that. We expect a very large uptick in reported revenues and earnings around FY28 when these last couple of years numbers start fully reflecting in the P&L.

Analyst inquired about future profitability mix and a potential shift to POCM accounting. Management confirmed sticking to project completion method, expecting margin improvement and a significant revenue/earnings jump around FY28 as premium projects mature.

Asked by Parikshit Kandpal

Construction Cost Trends Direct
I would say if I were to give you a sense of what we are seeing cost inflation in the last, say 2 to 3 years, I think this has been a very stable period of time where most of the cost inflation indices have been in control. Yes, in some markets aluminum costs have increased, but steel prices have also dropped, some markets cement have been flattish to dropped. So, for most markets cost inflation I would say is going to be within that range. But yes, there is of course finally how would oil prices behave. I think that would be sort of a thing to watch out from a risk point of view and I think interest rate getting into a sort of a lower cycle, this could really benefit if it continues because the CAPEX cycle will see a boost.

Analyst asked about construction cost trends. Management indicated a stable cost environment over the last 2-3 years, with some offsetting movements in material prices, and a generally benign outlook, though oil prices remain a watch item.

Asked by Puneet

Low Business Development Guidance Direct
I think what we think is that certainly we should never come under pressure to meet business development guidance. We should only do deals if on a standalone basis they make sense. So frankly I would say this in our view is a bit of low-ball guidance. We would be very surprised if we don't significantly surpass this. I think we have, on average, over the last 3 years surpass the BD guidance by about 60% on average and we are continuing to see good opportunities and continue to see good results from the launches of those opportunities.

Analyst questioned the seemingly low BD guidance of Rs. 20,000 crores. Management clarified it's a conservative 'low-ball' figure, prioritizing quality deals and expecting to significantly outperform it, as they have in the past.

Asked by Puneet

Delays in Ashok Vihar and Bandra Projects Direct
And the reasons for the delay in Bandra are the site clearance, etc., there is a slum redevelopment project has taken more time than anticipated. It's not a process that we are directly involved with, it's a partner working on that. But there has actually been tremendous progress during last financial year. So, I think there is much better visibility now than ever before. And we are hopeful that we can do it by the end of this year. But I think one should assume next year is probably the safer bet for that. Ashok Vihar, there has been an issue that affects the whole market where there are a lot of trees on the site and the relocation of that trees requires significant approvals and given the environmental issues in NCR, this has become an issue taken up by the court.

Analyst asked for reasons behind delays in two significant projects. Management provided specific reasons (slum redevelopment for Bandra, environmental/court issues for Ashok Vihar), indicating Bandra might push to next FY, but noted improved underwriting terms for Ashok Vihar.

Asked by Akash Gupta

Imputed EBIT Margins vs. Price Appreciation Partial
I think it partially is. These are also estimates of cost to completion. There would be reasonable buffers in those estimates. ... Yes, we have also been maintaining because as you would appreciate that these are forward looking number, and we just want to be a little bit more cautious on the contingency and escalations that may or may not happen from a cycle point of view. So just build some buffers before releasing out these numbers so as to not give an over optimistic figure. But yes, if things remain what they are in terms of cost indices, this has an upside risk to it.

Analyst questioned why price appreciation wasn't fully reflected in imputed EBIT margins. Management explained that it partially is, but cost estimates include buffers for contingencies and potential cost inflation, implying a conservative approach to margin projections.

Asked by Akash Gupta

Value of Unsold Inventory Direct
Around Rs. 20,000 crores.

Analyst sought clarification on the value of unsold inventory, which was quantified by the CFO at Rs. 20,000 crores.

Asked by Kunal Lakhan

2 min read 6 chapters

Detailed narrative

Record-Breaking FY25 Performance Across Key Metrics

Godrej Properties achieved its highest ever bookings, collections, operating cash flows, earnings, and deliveries in FY25. The company's booking value grew 31% YoY to Rs. 29,444 crores, selling 25.73 million square feet and exceeding its guidance by 109%. Customer collections surged 49% YoY to Rs. 17,047 crores, while operating cash flow increased 73% YoY to Rs. 7,484 crores. Net profit saw a significant 93% YoY increase, reaching Rs. 1,400 crores for the full year.

Strong Q4 FY25 Momentum Driven by New Launches

The fourth quarter of FY25 marked a significant milestone, with booking value reaching a record Rs. 10,163 crores, representing an 87% QoQ and 7% YoY increase. This was the first time the company crossed Rs. 10,000 crores in quarterly bookings. Key project launches driving this performance included Godrej Riverine in Noida (Rs. 2,206 crores), Godrej Astra in Gurugram (Rs. 1,323 crores), and Godrej Madison Avenue in Hyderabad (Rs. 1,081 crores). Q4 customer collections also demonstrated robust growth, up 127% QoQ and 48% YoY to Rs. 6,961 crores.

Robust Business Development and Inventory Pipeline

In FY25, Godrej Properties added 14 new projects, contributing approximately 19 million square feet with an estimated booking value of Rs. 26,450 crores, surpassing its annual BD guidance by 132%. The company also highlighted a substantial pipeline of unlaunched phases from prior acquisitions, valued at Rs. 50,000-55,000 crores, and a total inventory (including township projects) exceeding Rs. 1,10,000 crores. Unsold inventory currently stands at Rs. 20,000 crores, indicating significant future sales potential.

FY26 Guidance and Strategic Financial Targets

For FY26, Godrej Properties has set ambitious targets, planning to grow residential bookings to over Rs. 32,500 crores, representing a 20% increase over its FY25 guidance. The company also intends to launch over Rs. 40,000 crores of inventory and targets customer collections of Rs. 21,000 crores. Management aims to maintain net debt below Rs. 10,000 crores and expects to achieve portfolio-level PAT margins of 14-15%, with imputed EBIT margins of 26-27% for the next two years.

Market Share Expansion and Geographic Diversification

The company emphasized its consistent market share growth, moving from approximately 2.5% to 4.3% over the last three years, with a long-term aspiration to reach double-digit market share. Sales are geographically diversified, with NCR, Mumbai, and Bangalore contributing Rs. 10,523 crores, Rs. 8,034 crores, and Rs. 5,089 crores respectively in FY25. Management sees strong growth opportunities across all operating markets, including Bangalore and Pune, which are still at a relatively low base.

Project Delays and Benign Cost Environment

Godrej Properties acknowledged delays in key projects such as Ashok Vihar (due to environmental issues and a court case) and Bandra (due to slower-than-anticipated slum redevelopment by a partner). Despite these, management noted improved underwriting terms for Ashok Vihar. The construction cost environment has been stable over the past 2-3 years, with some offsetting movements in material prices, leading to an overall benign outlook, though oil prices remain a watch item.

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