Godrej Properties' Q2 profit grows 21% on strong bookings, sales momentum

Godrej Properties' Q2 profit rose 21% YoY to Rs 405 crore, beating analyst estimates, driven by strong bookings and new launches despite a 32% revenue decline

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Real estate firm Godrej Properties’ profit (attributable to the equity holders of the parent) for the second quarter of FY26 grew 21 per cent year-on-year (YoY) to Rs 405.1 crore, beating analysts’ estimates.

 

The Bloomberg analysts’ poll had pegged the profit at around Rs 349.4 crore. However, the company’s revenue fell 32.2 per cent YoY to Rs 740.4 crore, missing the estimate of Rs 1,223 crore.

 

What drove Godrej Properties’ profit growth despite lower revenue?

 

The company’s booking value rose 64 per cent YoY and 20 per cent quarter-on-quarter (QoQ) to Rs 8,505 crore in Q2 FY26, as it sold 7.14 million square feet (msf) across 12 new projects and phase launches in eight cities. These launches had a total sales potential of Rs 10,100 crore. 

 

Pirojsha Godrej, executive chairperson, Godrej Properties, said, “Godrej Properties delivered another solid quarter for bookings and earnings. We have achieved a remarkable increase in scale in the past three and a half years. Our quarterly bookings in Q2 are higher than our annual bookings of FY22. We are pleased that this sales growth is spread across markets and driven by both volumes and pricing. The Rs 6,000 crore raised through a QIP last year, combined with strong operating cash flows, will enable us to continue investing for growth.”

 

How did collections and cash flow perform this quarter?

 

Collections grew 2 per cent YoY and 11 per cent QoQ to Rs 4,066 crore in Q2 FY26. For the first half (H1) of FY26, collections rose 10 per cent YoY to Rs 7,736 crore.

 

“GPL achieved 37 per cent of yearly collection guidance, which may seem a little low, but we are confident of meeting our full-year target of Rs 21,000 crore. Deliveries and collections are slightly skewed toward the fourth quarter, but we’ve seen strong construction progress and expect a robust finish to the year,” Godrej said during the company’s earnings call on Thursday.

 

How close is the company to its annual bookings target?

 

With Q2 bookings, Godrej has achieved 48 per cent of its annual bookings guidance of Rs 32,500 crore for FY26.

 

During Q2 FY26, the company added four new projects with a total saleable area of 5.82 msf and an expected booking value of Rs 4,850 crore. In H1 FY26, nine new projects were added, covering 15.06 msf with an expected booking value of Rs 16,250 crore — achieving 81 per cent of its annual business development guidance.

 

What were the key financial highlights for the quarter?

 

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) in Q2 FY26 stood at Rs 614 crore, up 118 per cent YoY. For H1 FY26, EBITDA rose 45 per cent YoY to Rs 1,529 crore.

 

Revenue for H1 FY26 declined 35.9 per cent YoY to Rs 1,174.9 crore, while profit grew 17.5 per cent over the same period. Sequentially, revenue grew 70.4 per cent, but profit declined 32.5 per cent.

 

What is Godrej Properties’ outlook for FY26?

 

“With a robust launch pipeline, strong balance sheet, and resilient demand, we are on track to surpass our booking value guidance for FY26 and deliver sustained, high-quality performance across all key operating metrics,” Godrej added.