Launches boost presales growth of top real estate developers in Q2

Listed players relatively insulated from overall housing sales moderation: Analysts

Top real estate developers reported healthy presales growth in the second quarter of FY26, aided by a steady pipeline of new project launches.

 

While overall housing momentum across major Indian cities moderated during the quarter, listed players remained relatively insulated. They were supported by strong brand recall, calibrated launch strategies and sustained demand for premium housing.

 

Akshay Shetty, research analyst at Mirae Asset ShareKhan, said, “Q2 FY26 was broadly constructive for the sector. Most large listed developers reported healthy collections, strong presales, and stable launch pipelines, along with improving visibility on revenue recognition.” DLF, the country’s largest listed real estate developer, recorded a fivefold year-on-year (Y-o-Y) in­crease in presales at ₹4,332 crore, driven by its maiden Mumbai project. These were The Westpark (₹2,316 crore), and robust sales in its uber-luxury project, Camellias (₹1,624 crore), according to ICICI Securities.

 

Mumbai-based Lodha Developers posted a moderate 7 per cent rise in presales to ₹4,570 crore as it launched ₹4,900 crore worth of inventory across five projects. Bengaluru-headquartered Prestige Estates Projects reported a 50 per cent increase in sales to ₹6,017.3 crore. It was supported by 4.42 million sq ft (msf) of volumes sold and improved realisations across apartments and plotted developments, analysts at HDFC Research noted. 

 

Godrej Properties’ presales rose 64 per cent Y-o-Y to ₹8,505 crore as it launched nine new projects or phases with a gross development value (GDV) of ₹10,000 crore. These projects contributed 64 per cent of its quarterly pre-sales, according to JM Financial.

 

Oberoi Realty, however, posted a 10 per cent decline in presales to ₹1,300 crore due to the absence of new launches. On the earnings front, all major developers except DLF reported healthy profit growth.

 

Vijay Agrawal, managing director (MD) and sector lead-infrastructure, at Equirus Capital, said, “Developers that had scheduled handovers or large launch windows in Q2 reported stronger top line and collections; others — with launches shifted to later quarters or with fewer completions — showed muted numbers. Margin performance reflected the same divergence: Companies earning from fresh, higher-margin laun­ches or from incremental inventory reduction saw healthier earnings before interest, taxes depreciation and amortisation (Ebitda). Those still in heavy marketing or with higher working capital intensity had flatter margins.”

 

Aniket Dani, director at CRISIL Intelligence, said operational margins remained stable at around 25 per cent for developers. It was supported by improving realisations and a higher contribution from premium projects. “Cash flows remained healthy, aided by stronger collections and improved leverage,” he added.

 

Quarter-on-quarter (Q-o-Q), sales momentum moderated. According to Anuj Puri, chairperson of Anarock Group, the sector met only 52 per cent of its full-year guidance in the first half of FY26, indicating a softer quarter after a strong Q1. Puri attributed the Q-o-Q moderation to a high base created by record launches in FY25 and Q1 of FY26. This, along with a lower pace of new launches in Q2, weighed on absorption.

 

“We can also attribute a more cautious buyer sentiment in certain micro markets, largely due to high prices and interest rates,” he added.

 

Housing sales across the top seven cities declined 11 per cent Y-o-Y in Q2FY26. This is due to high prices and monsoon-related disruptions, signalling a period of market stabilisation.

 

Experts said the moderation in broader demand did not materially affect top developers. They had benefitted from disciplined inventory management, planned launch timing, higher realisations, and a rising share of premium sales. Dani said listed residential developers posted a 25-30 per cent Y-o-Y increase in sales volumes in Q2.

 

Analysts remain cautiously optimistic for the remainder of FY26, supported by a strong launch pipeline, sustained demand for premium homes, and buyer preference for branded developers.

 

Pre-sales are expected to grow 10-15 per cent in FY26 — lower than the exceptional growth of the past two years, according to Puri.

 

Dani added that total sales value is likely to grow even if volumes remain range-bound.

 

“The strong booking value momentum already built in Q1–Q2 provides visibility for revenue recognition in the coming quarters, although operational revenue growth will be more gradual, reflecting the construction-linked recognition cycle,” he said.