Management retained its FY27 guidance, citing strong demand and an expanding project pipeline.
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Godrej Properties Limited reported a sharp decline in profitability for the first quarter of the financial year 2027, with net profit after tax falling 42 per cent year-on-year to ₹350 crores from ₹600 crores in Q1 FY26. Total income contracted 16 per cent to ₹1,337 crores from ₹1,593 crores in the same period last year. Shares of the Mumbai-based real estate developer closed at ₹2,033.60 on the NSE on Tuesday, down 2.68 per cent on the day, giving the company a market capitalisation of approximately ₹61,257 crores.The profit before tax fell 44 per cent to ₹480 crores, while EBITDA declined 40 per cent to ₹545 crores. Adjusted EBITDA margin contracted sharply to 41.7 per cent from 58.1 per cent in Q1 FY26. The company attributed the fall in revenue recognition primarily to lower deliveries in the quarter, with only 0.9 million sq. ft. delivered, compared with 7.4 million sq. ft. in the preceding quarter, Q4 FY26. Revenue recognition in the real estate sector is tied to project completion and delivery milestones.Bookings remain robust despite earnings pressureOn the operational side, however, the picture was notably stronger. Booking value rose 22 per cent year-on-year to ₹8,651 crores across 3,738 units and 6.2 million sq. ft., marking the sixth consecutive quarter with bookings exceeding ₹7,000 crores. The standout launch of the quarter was Godrej Vanantara in Bengaluru, which alone clocked ₹3,237 crores in bookings. Customer collections grew 18 per cent year-on-year to ₹4,348 crores.Net debt rose to ₹7,637 crores as of June 30, 2026, from ₹6,414 crores at the end of March 2026, pushing the net debt-to-equity ratio to 0.39 from 0.33. Construction and related outflows surged 54 per cent year-on-year to ₹2,244 crores, the company said, reflecting accelerated execution activity expected to translate into deliveries in FY28. Operating cash flow for the quarter stood at ₹399 crores, down sharply from ₹4,631 crores in Q4 FY26, largely due to the steep drop in collections following the low-delivery quarter.Expansion pipeline and FY27 outlookThe company added three new projects in Q1 FY27 with an estimated saleable area of 8 million sq. ft. and expected booking value of ₹9,500 crores, including a large group housing project in Greater Noida DMIC. Against its full-year FY27 guidance of ₹39,000 crores in booking value, the company has achieved 22 per cent in the first quarter. Management maintained all guidance parameters as on track. Godrej Properties also said it expects a cumulative operating cash flow of ₹20,000–22,000 crores across FY27 and FY28.Published on August 4, 2026
