Godrej Properties' Q1 net profit falls 42%; booking value rises 22%

The real estate developer retained its FY27 guidance despite lower quarterly income, while booking value rose 22 per cent on strong demand across key markets

Godrej Properties, the real estate development arm of the Godrej Industries Group, reported a 41.7 per cent year-on-year (YoY) decline in its profit (attributable to owners of the company) for the first quarter of FY27 to ₹350.1 crore amid lower total income.

 

The Mumbai-based real estate developer’s total income declined 16 per cent YoY to ₹1,337 crore, driven by a 29.3 per cent drop in the company's other income for the quarter, which stood at ₹838.9 crore.

 

The company’s management, during the earnings call on Tuesday, attributed the decline in income to the fact that it had only one project completion in Q1 FY27, and that was a development management (DM) structure project.

 

 

The company's profit missed the Bloomberg consensus estimate of ₹550.8 crore.

 

Godrej’s revenue from operations for Q1 FY27 stood at ₹506.2 crore, up 16.5 per cent YoY. Revenue also missed the Bloomberg consensus estimate of ₹1,437.5 crore.

 

Further, Godrej’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for Q1 FY27 decreased 40 per cent YoY to ₹557 crore. Meanwhile, the Ebitda margin contracted to 41.66 per cent in Q1 FY27 from 58.09 per cent in Q1 FY26.

 

Pirojsha Godrej, executive chairperson of Godrej Properties, said, “We remain on track to deliver bookings of over ₹39,000 crore and collections of ₹24,000 crore for the year, which will allow us to generate approximately ₹9,000 crore of OCF, which in turn will allow us to continue to invest in sustainable growth. We will continue to seek to gain market share through outstanding design, timely delivery and high-quality developments.”

 

Godrej’s total expenses in Q1 FY27 stood at ₹856.80 crore, up 16.95 per cent YoY. It reported construction and related outflows of ₹2,244 crore, up 54 per cent YoY on account of an increase in the pace of execution, which is likely to be reflected in deliveries in FY28, according to the company.

 

The company’s operating cash flow (OCF) stood at ₹399 crore in Q1 FY27, compared with ₹4,631 crore in Q4 FY26. It noted that OCF will vary quarterly due to volatility in collections, which depend on bookings, construction progress, milestones achieved and deliveries, whereas outflows are largely spread evenly over the year, with an increasing trend due to the growing scale.

 

Godrej Properties’ booking value in Q1 FY27 grew 22 per cent YoY to ₹8,651 crore. It sold 3,738 units with a total area of 6.2 million square feet in Q1 FY27, driven by new project launches, including Godrej Vanantara (₹3,237 crore) in Bengaluru, Godrej Samaris (₹1,248 crore) in Gurugram, and Godrej Brooklyn Avenue (₹317 crore) in Hyderabad.

 

Booking contribution was led by Bengaluru (44 per cent), followed by the Mumbai Metropolitan Region (21 per cent), the National Capital Region (18 per cent), Pune (11 per cent), and Hyderabad (5 per cent).

 

Q1 FY27 is the sixth consecutive quarter in which Godrej’s booking value has exceeded ₹7,000 crore. It is also the highest first-quarter booking value achieved by Godrej Properties.

 

On a quarter-on-quarter (QoQ) basis, Godrej’s revenue declined 85.4 per cent, while profit slipped 46.1 per cent. Its sales value, too, declined 14.87 per cent.

 

On geopolitical tensions in the Middle East, Gaurav Pandey, managing director and chief executive officer of Godrej Properties, said the crisis did have an impact. During the company’s earnings call on Tuesday, Pandey said there are some encouraging signs with a decline in some costs and the resolution of supply-side issues; however, relative to the February base, costs are still elevated.

 

“As and when we see in the coming months the supply side becoming more normal and the supply-side constraints easing, the cost reductions will happen,” Pandey added.

 

On the company’s expansion plans across tier-II cities, Pandey said, “At the moment, there's a good pipeline and I won't be surprised if, by the end of the year, you'll see two or three new cities getting added (to the portfolio).”