Godrej Properties falls 5% despite strong Q4; brokerages see up to 15% gain

Godrej Properties share price today

Shares of Godrej Properties, a Mumbai-based real estate company and subsidiary of Godrej Industries Group, slipped around 5 per cent to hit a low of ₹1,805.40 on the National Stock Exchange (NSE) after the company reported its results for the January-March 2026 quarter (Q4FY26). 

 

Around 11:50 AM, shares of Godrej Properties were trading at ₹1,817, down 4.4 per cent from its previous session's close of ₹1,899.90. In comparison, the benchmark NSE Nifty50 index was quoting at 23,903.10 levels, down by 216.20 points or 0.90 per cent. 

 

On a year-to-date (YTD) basis, the stock has slipped over 5 per cent compared to a 7.7 per cent decline in Nifty50. 

 

Godrej Properties Q4FY26 results highlights

In the March 2026 quarter, Godrej Properties reported a 73 per cent increase in its consolidated profit at ₹650 crore, as compared to ₹376 crore in the year-ago period. 

 

The company's revenue from operations jumped 63 per cent to ₹3,458 crore from ₹2,122 crore in the corresponding quarter of the previous fiscal. Its earnings before interest, tax, depreciation, and amortisation (Ebitda) surged to 523 crore from ₹110 crore in the year-ago period. Ebitda margin improved to 15.12 per cent from 5.18 per cent in Q4FY25.

 

The company's board of directors has recommended a dividend of ₹10 per share (200 per cent) of the face value of ₹5 each for FY26.

 

In FY26, the real estate company's booking value grew 16 per cent Y-o-Y to ₹34,171 crore. In Q4FY26, the company reported its highest-ever quarterly booking value of ₹10,163 crore, up 21 per cent quarter-on-quarter (Q-o-Q). 

 

Godrej Properties collections improved 17 per cent Y-o-Y to ₹19,965 crore in FY26. For Q4FY26, collections stood at ₹7,947 crore, up 14 per cent Y-o-Y and 86 per cent Q-o-Q. 

 

reported presales of ₹101.6 billion in Q4FY26, up 20.7 per cent year-on-year and flat sequentially, with booking area at 7.3 million square feet. The company delivered 7.4 million square feet in Q4FY26 and 12.1 million square feet in FY26.

 

GPL added 18 new projects during FY26 with a gross development value (GDV) of ₹421 billion, exceeding its annual guidance by over two times. It has set a presales target of ₹390 billion for FY27, implying 15 per cent growth, supported by a strong launch pipeline of over ₹480 billion.  CHECK Stock Market LIVE Updates

Brokerages on Godrej Properties:

According to HDFC Securities, Godrej Properties' management indicated that concerns around AI-driven demand slowdown appear overstated, citing continued strength in global capability centres (GCCs). It attributed the dip in NCR performance in FY26 to project launch delays and expects recovery to above ₹100 billion in FY27, while pricing trends remain stable across markets.

 

"With a strong balance sheet, disciplined capital allocation, and no immediate plans for equity dilution, GPL is targeting a return on equity (RoE) of 20 per cent from FY28, led by strong execution, rising share of better margins projects moving into revenue recognition and margin accretion from premium launches," the brokerage said in its note.

 

According to HDFC Securities, construction cost inflation of 5-6 per cent is seen as manageable through calibrated price hikes and forward contracts, with construction spending likely to sustain double-digit growth. The brokerage believes that strong presales momentum, upcoming launches, and steady demand provide multiple triggers for rerating. It has maintained a ‘Buy’ rating with a revised target price of ₹2,194 per share.

 

Motilal Oswal Financial Services (MOFSL) said Godrej Properties has delivered healthy pre-sales growth despite a high base on the back of the benefits of diversification across many regions. Additionally, collections growth has been slightly higher than pre-sales growth, which is encouraging. Strong business development activity in FY26, along with a robust launch pipeline, provides good visibility for medium-term growth.

 

The brokerage also said that while net debt increased during FY26 due to a sharp rise in project additions, overall leverage remains comfortable. Despite the elevated base, management has guided for around 14 per cent pre-sales growth, with collections expected to grow at a faster pace.

 

MOSFL has maintained its ‘Buy’ rating on the stock with a sum-of-the-parts-based target price of ₹2,180. 

According to Jefferies, Godrej Properties expects pre-sales and collections to grow around 14 per cent and 20 per cent, respectively, in FY27, despite a high base. The brokerage believes strong pre-sales quality and higher construction spends should support a return on equity of around 20 per cent and a turnaround in free cash flow by FY28.

 

Jefferies has raised its FY27 pre-sales estimates to ₹384 billion, while trimming FY27-FY28 earnings due to project timing changes and slightly higher costs. It also highlighted that promoters acquired a 5 per cent stake in 2HFY26, signalling confidence in the long-term outlook.

  The brokerage maintained a ‘Buy’ rating with a revised target price of ₹2,475.     

Analysts at HSBC Securities said, Godrej Properties has shifted its strategy from a predominantly joint development model to a land acquisition-led approach. The brokerage expects this to result in higher collections, improved margins driven by price appreciation, and stronger operating cash flows. 

 

The brokerage expects robust project deliveries to drive reported profitability, better collections, and improved free cash flow to equity. The stock is currently trading at a discount to its June 2026 NAV estimate.

 

HSBC has maintained its ‘Buy’ rating and raised the target price to ₹2,900 from ₹2,800, factoring in changes to business development, dividend assumptions, and faster project completions.

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