Execution key as Godrej Properties lines up ₹32K cr worth of projects in H2

With projects worth ₹32,000 crore lined up for launch in H2 FY27, Godrej Properties is banking on timely execution and strong sustenance sales to meet its full-year bookings target.

The presales or bookings performance of Godrej Properties (GPL) in the second quarter (July-September/Q2) of 2026-27 (FY27) was a mixed bag. Overall presales declined 6 per cent year-on-year (Y-o-Y) to ₹8,000 crore, as some launches were deferred to the third quarter (October-December/Q3). This was offset to some extent by strong traction in sustenance sales from existing inventory.

 

Though presales in the first half (H1) of FY27 were on the lower side, the company has stuck to its full-year guidance of ₹39,000 crore. The outlook remains strong, with the company set to launch projects worth ₹32,000 crore and Q3 expected to be particularly strong. At the current price of ₹1,532, the stock has shed 25 per cent over the past three months and is trading at around 15x its 2027-28 earnings estimates.

 

With some launches deferred, Q2 performance was driven by sustenance sales from existing projects, which grew 83 per cent Y-o-Y and contributed about 63 per cent of sales.

 

The National Capital Region and the Mumbai Metropolitan Region were the key geographies in Q2, accounting for about 24 per cent each of bookings. Other major markets that contributed to sales were Bengaluru (20 per cent share), Pune (12 per cent), and Hyderabad (10 per cent).

 

Cash generation remained robust during the quarter, with collections rising 31 per cent Y-o-Y to ₹5,320 crore, while operating cash flow grew 33 per cent to ₹1,580 crore. According to Systematix Research analysts Harmish Desai and Raj Lakhani, the management is targeting collections of ₹15,000 crore and operating cash flow of ₹7,000 crore in the second half (H2) FY27, making launch execution and the conversion of the pipeline into sales key monitorables.

 

The brokerage believes GPL’s established brand, strong development pipeline, and presence across key residential markets provide long-term growth visibility, supported by a capital-efficient mix of joint developments and outright land ownership. It has a ‘hold’ rating on the stock, with a target price of ₹1,645. 

 

Bookings in H1FY27 increased 7 per cent Y-o-Y to ₹16,659 crore. The company expects H2 to be strong in terms of launches, with projects worth ₹32,000 crore lined up. These would comprise new projects, alongside a rising contribution from sustenance sales.

 

The company added four projects in H1, with an estimated saleable area of 9 million square feet and booking potential of ₹15,500 crore, achieving 78 per cent of its full-year business development guidance. 

 

Elara Securities is positive on the real estate major’s strategy, citing strong micro-market selection, the addition of margin-accretive projects, a rising economic share, deeper penetration in existing markets, and expansion beyond the top six to seven markets. It has reiterated a ‘buy’ rating, with a target price of ₹2,700.

 

Ongoing business development and launches planned for the coming quarters should provide revenue visibility over the medium term. While net debt increased in Q2 on account of project additions, leverage remains comfortable.

 

Analysts led by Harsh Pathak of Motilal Oswal Research are positive on the company, citing its focus on generating better free cash flow in the coming quarters. They expect the profitability profile to improve over the medium term. The brokerage has a ‘buy’ rating on the stock, with a target price of ₹2,200.