Godrej Properties posted a 21% year-on-year rise in net profit to Rs 405 crore in the second quarter of FY26, beating analyst estimates. Sequentially, profit grew 33%. The company had posted a profit of Rs 335 crore in the year-ago period, and analysts estimated profit to rise to Rs 349 crore in the second quarter of the current financial year.
However, the company missed analyst estimates on revenues by a wide margin and posted a revenue of Rs 740 crore, down 32% from Rs 1,093 crore in the year-ago period. Analysts expected a revenue of Rs 1,223 crore. The company posted a negative Ebitda of Rs 513 crore (excluding other income) compared to the Ebitda of Rs 32 crore in Q2FY25.
“We have achieved a remarkable increase in scale in the past three-and-a-half years. Our quarterly bookings in Q2 is higher than our annual bookings of FY22. With a robust launch pipeline, strong balance sheet, and resilient demand, we are on track to surpass our booking value guidance for FY26,” Chairman Pirojsha Godrej said in a release.
The company has achieved 48% of the FY26 booking target of Rs 32,500 crore, and 47% of the launch value guidance of Rs 40,000 crore. In FY25, it did bookings of `29,444 crore. “We never did 45% of full-year sales in H1. With good pipeline including some largest projects in cities such as Mumbai, we could move past the full-year guidance,” Godrej told FE.
The company’s net debt rose 20% compared to the first quarter of FY26. Godrej said its debt-to-equity ratio of 0.3:1 is extremely conservative and it is very much as per their plan.
Though the company has met just 30% of its FY26 delivery target, Godrej said deliveries are skewed towards the last quarter. “We are on track. In fact, more than 10 million square feet (of deliveries) could happen in Q4,” he said .
On rising property prices, he said the period of rapid price increase is behind and one can expect a steady real estate market ahead. “Though land prices have moved up sharply, we are still finding good opportunities to buy land parcels,” he said.
On job losses in the tech sector and its impact on residential property sales , he said they have not seen any impact. “We have seen all-time high sales in Bengaluru. Bengaluru became the biggest city in our portfolio with Rs 5,000 crore worth of sales in H1,” he said .
The company has achieved sales of Rs 2,600 crore in two launches in Hyderabad — the highest first-year sales for any developer in a new market — he said.