Godrej Properties Limited — Q4 FY26 earnings call

Call held 4 May 2026

Management summary

Godrej Properties reported a record-breaking FY26, achieving its highest-ever bookings and collections, driven by strong business development and project deliveries. The company provided robust FY27 guidance, targeting significant growth in bookings and collections, while maintaining focus on profitability and achieving FCFE positive status by FY28. Management acknowledged some Q4 softness and geopolitical uncertainties but expressed confidence in its diversified portfolio and launch pipeline.

Highlights

  • FY26 bookings of INR34,171 crores (16% YoY growth) exceeded guidance by 5%.

  • Q4 FY26 bookings of INR10,163 crores marked the highest ever quarterly bookings, growing 21% QoQ.

  • FY26 collections reached INR19,965 crores (17% YoY growth), setting a new record for the company.

  • Business development additions in FY26 totaled INR42,100 crores of future sales potential, growing 59% YoY and achieving over 200% of guidance.

  • Q4 FY26 net profit surged 70% to INR650 crores, contributing to a 32% YoY growth in full-year net profit to INR1,850 crores.

Concerns

  • NCR sales experienced a de-growth in FY26, primarily due to delays in project approvals and launches.

  • Some Q4 FY26 launches in Kharghar and Kharadi saw softer performance, attributed to geopolitical uncertainties in March.

  • FY26 collections of INR19,965 crores fell short of the INR21,000 crores guidance by INR10 billion, mainly due to Q4 delivery skew.

Key financials

2 periods

Q4 FY26

  • Total Income
    ₹3,895 Cr
    YoY +47%
  • EBITDA
    ₹959 Cr
    YoY +51%
  • Net Profit
    ₹650 Cr
    YoY +70%
  • Operating Cash Flow
    ₹4,631 Cr
    YoY +14% QoQ +336%
  • Net Cash Flow Post BD
    ₹628 Cr
    YoY +6%

FY26

  • Total Income
    ₹8,374 Cr
    YoY +22%
  • EBITDA
    ₹2,826 Cr
    YoY +43%
  • Net Profit
    ₹1,850 Cr
    YoY +32%
  • Operating Cash Flow
    ₹7,830 Cr
    YoY +5%

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

₹34,171 Cr

as of 2026-03-31 quantified

16% YoY

Inflow this quarter

₹10,163 Cr

Composition

Mix 5 geographies
  • Mumbai ₹10,000 Cr 31%
  • Bengaluru ₹8,801 Cr 27.3%
  • NCR ₹7,412 Cr 23%
  • Pune ₹3,659 Cr 11.4%
  • Hyderabad ₹2,360 Cr 7.3%

Share of order book by geography, derived from disclosed amounts

Pipeline

other

Added INR42,100 crores of future sales potential through portfolio addition in FY26, comprising 18 deals and 33 million square feet. Q4 FY26 added 6 new projects with 11 million square feet and expected booking value of INR17,500 crores.

The company delivered its best ever year for business development and bookings in FY26, demonstrating consistency through national presence and a strong product portfolio. The launch pipeline for FY27 is robust, with many new projects expected across all key markets.

Source: Prepared remarks

Capital allocation

high confidence
  • Buyback Announced
    I think perhaps you can get an idea of where we think it sits by the fact that we bought back 5% of the company last year, including most of that in Q4.
  • Liquidity Cash ₹6,700 Cr INR6,700 crores is held in the RERA account.
    Around INR6,700 crores.

Guidance & targets

Volume

  • Residential Bookings Volume · FY27 · High confidence >INR39,000 crores
    In financial year '27, we hope to grow residential bookings to over INR39,000 crores through the launch of a large number of exciting new projects combined with strong sustenance sales.

    — Pirojsha Adi Godrej

  • Collections Volume · FY27 · High confidence >INR24,000 crores
    We expect to grow collections by 20% to over INR24,000 crores.

    — Pirojsha Adi Godrej

Profitability

  • Return on Equity (ROE) Profitability · FY28 · High confidence 20%
    We remain extremely focused on delivering our return on equity target of 20% by financial year '28 by stepping up our speed on execution and project delivery, which will create rapid growth in operating cash flows as well.

    — Pirojsha Adi Godrej

Cash Flow

  • Free Cash Flow Positive (FCFE) Cash Flow · FY28 · High confidence Strongly Positive
    I expect certainly FY28 to be strongly free cash flow positive.

    — Pirojsha Godrej

Revenue

  • Revenue Recognition Revenue · FY28 · High confidence Major bump up
    I think we would see that major bump up in FY28.

    — Gaurav Pandey

Market context

  • Free Cash Flow Positive (FCFE) Cash Flow · FY27 · Medium confidence Positive
    At the guided business development levels, I think it will be FCF positive.

    — Pirojsha Godrej

What to watch in Q1 FY27

NCR Sales Performance

Next quarter (Q1 FY27) and full FY27
Current INR7,412 crores in FY26 (de-growth)
Target >INR10,000 crores in FY27

Why it matters

NCR was a weak spot in FY26; its recovery is crucial for overall FY27 guidance achievement and demonstrating geographical diversification.

You rightly pointed out NCR saw a dip in sales last year... We do feel we have a strong portfolio in NCR and hope to get back to above INR10,000 crores in sales in NCR as we were the 2 preceding financial years.

Risks & concerns

  • Geopolitical Situation Impact on Demand

    medium

    Uncertainty from global geopolitical events (e.g., Iran war) could cause cautiousness among consumers and impact demand, particularly in the short term.

    Both acknowledged

  • Project Approval Delays

    medium

    Delays in approvals for projects like the Gurgaon acquisition and Ashok Vihar led to a dip in NCR sales in FY26 and can impact launch timelines.

    Management acknowledged

  • AI-related Disruption in IT Sector

    low

    Concerns about AI's impact on IT sector demand are considered 'a little bit overdone' by management, with global capability center demand offsetting any softness.

    Analyst downplayed

  • Construction Cost Inflation

    low

    Estimated 5-6% maximum cost impact and 0.1-0.2% margin impact per quarter, which is considered manageable with small price hikes and easing supply chain issues.

    Management acknowledged

Q&A highlights

5 direct
NCR Sales Performance and FY27 Outlook Direct
You rightly pointed out NCR saw a dip in sales last year... We do feel we have a strong portfolio in NCR and hope to get back to above INR10,000 crores in sales in NCR as we were the 2 preceding financial years.

Addresses a key underperforming region in FY26 and outlines the strategy for its recovery, crucial for overall FY27 guidance.

Asked by Parikshit Kandpal

Impact of Geopolitical Situation on Demand and Costs Direct
On the cost impact, I would say we've done some cost estimation because of the portfolio size and projects at different levels. I would say, give or take, cost impact would be between 5% to 6% at max. Again, in some projects could be even lower.

Provides specific quantification of potential cost and margin impacts from external events and suggests a potential positive demand shift to India.

Asked by Kunal Lakhan

FY27 Business Development Guidance vs. Opportunistic Growth Partial
I think it's really a question of the opportunities we see out there. That's why we don't focus too much on business development guidance and have kind of kept it steady in the last few years... if we see very good opportunities, we do think we still have the balance sheet that can support them, and we will look to add projects.

Clarifies management's approach to BD, balancing FCF positive goals with seizing larger growth opportunities, indicating flexibility beyond stated guidance.

Asked by Kunal Lakhan

FY26 Collections Guidance Miss Direct
I think a lot of the deliveries ended up being skewed towards sort of even later in Q4 than we were originally planning. So, I think there is a little bit of slippage because of that. We, of course, are disappointed to have missed this INR21,000 crores guidance.

Acknowledges a miss in a key operational metric and explains the reason, while also reassuring about buffers in the next year's guidance.

Asked by Rahul Jain

Revenue Recognition Bump in FY28 Direct
I think we would see that major bump up in FY28... And Kunal, that obviously what implies, that's why the FY28 was the year we said from when we will be hitting this 20% ROE because that's the year where we see the significant bump up.

Confirms a significant future revenue event and links it directly to the company's ROE target, providing clarity on the timing of financial realization.

Asked by Kunal Lakhan

Ashok Vihar Project Launch Status Partial
I wouldn't say there's a certainty of it getting launched this year, but I think very strong progress is being made and the team on the ground feels that this year, we will be able to launch it.

Provides an update on a long-delayed, significant project, indicating potential for its launch in FY27, which would be a positive catalyst.

Asked by Kunal Lakhan

Q4 FY26 Launch Performance in Kharghar and Kharadi Direct
I think the project Kharghar and Upper Kharadi are exactly part of the bucket of projects which saw impact of lower conversion in the last 2 weekends of March due to Middle East, something that, so this is more of a short-term issue and the idea is, in fact we had great check pickup, conversions did take a hold because consumers were expecting that because there's a geopolitical situation, there are some extraordinary deals to clinch, which we don't offer very frankly.

Explains the reasons behind softer performance in specific Q4 launches, attributing it to short-term external factors rather than fundamental demand issues.

Asked by Akash Gupta

3 min read 6 chapters

Detailed narrative

Record-Breaking FY26 Performance Across Key Metrics

Godrej Properties delivered its best-ever year in FY26, achieving record bookings of INR34,171 crores, representing a 16% year-on-year growth and surpassing its guidance by 5%. The company also recorded its highest-ever collections at INR19,965 crores, a 17% increase from the previous year. In terms of project deliveries, GPL completed 12.1 million square feet across 9 cities, exceeding its annual guidance by 21%. This strong performance underscores the company's ability to consistently grow through various market cycles.

Robust Q4 FY26 Bookings and Earnings Growth

The fourth quarter of FY26 was particularly strong, with bookings reaching an all-time high of INR10,163 crores, marking a 21% quarter-on-quarter growth. This was driven by significant new project launches, including Godrej Aveline in Bengaluru and Godrej Arden in Greater Noida, which each generated over INR1,500 crores in sales. Financially, Q4 FY26 saw a 47% increase in total income to INR3,895 crores, a 51% rise in EBITDA to INR959 crores, and a substantial 70% surge in net profit to INR650 crores, reflecting strong operational leverage.

Aggressive Business Development and Future Sales Potential

FY26 was a landmark year for business development, with Godrej Properties adding INR42,100 crores of future sales potential to its portfolio, a 59% year-on-year growth that exceeded guidance by over 200%. This was achieved through 18 deals covering approximately 33 million square feet. The fourth quarter alone saw the addition of 6 new projects with an estimated booking value of INR17,500 crores and 11 million square feet, setting a strong foundation for future launches and sustained growth.

Ambitious FY27 Guidance and Strategic Focus

For FY27, Godrej Properties has set ambitious targets, aiming for over INR39,000 crores in residential bookings and more than INR24,000 crores in collections, both representing a 20% increase. The company is committed to achieving a 20% Return on Equity (ROE) by FY28, driven by enhanced execution speed and project delivery. Management emphasized a strategic shift towards consistent 20% growth after a period of disproportionate expansion, with lower investment requirements for future growth.

Geographical Diversification and Market Dynamics

The company's FY26 sales were well-diversified, with Mumbai contributing over INR10,000 crores, Bengaluru INR8,801 crores, and NCR INR7,412 crores. While NCR experienced a dip in FY26 due to launch delays, management expects a strong recovery, targeting over INR10,000 crores in FY27. Demand in Mumbai, Pune, and Hyderabad remains robust, with new launches planned for Ahmedabad and Calcutta. Management also noted that pricing in Noida has been a 'consistent surprise' due to strong demand-supply dynamics.

Cash Flow Generation and Future Financial Health

Godrej Properties generated positive net cash flow post business development expenses of INR628 crores in Q4 FY26. The company holds approximately INR6,700 crores in RERA accounts, indicating strong liquidity. Management expressed confidence in achieving Free Cash Flow Positive (FCFE) status in FY27, particularly at guided BD levels, and expects to be 'strongly free cash flow positive' by FY28. This improved cash generation is anticipated to support consistent and growing dividend payouts, following a modest dividend in the current financial year.

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