Godrej Properties Targets ₹32,500 Crore Sales in FY26

Godrej Properties has set an ambitious sales booking target of ₹32,500 crore for the financial year 2025-26, signaling its confidence in the continued strength of India's housing market. Led by Executive Chairperson Pirojsha Godrej, the company is building on a record-breaking performance and pursuing an aggressive growth strategy focused on land acquisition and new project launches across major Indian cities.

Record Performance in FY25 Sets the Stage

The company's confidence is rooted in its exceptional performance during the 2024-25 fiscal year. Godrej Properties achieved its highest-ever sales bookings, reaching a record ₹29,444 crore, a significant 31% increase from the ₹22,527 crore recorded in the preceding year. This performance positioned it as one of the largest listed real estate developers in the country by sales. The financial results were equally strong, with consolidated net profit surging by 93% to ₹1,399.89 crore in FY25, up from ₹725.27 crore in FY24. Total income also grew substantially to ₹6,967.05 crore.

Aggressive Growth and Future Targets

Looking ahead, Godrej Properties is not resting on its laurels. The sales guidance of ₹32,500 crore for FY26 represents a 10% growth over its actual performance in FY25. To achieve this, the company has planned a massive pipeline of new projects, aiming to launch properties worth ₹40,000 crore during the fiscal year. This is a step up from the ₹36,600 crore worth of projects launched in FY25. Key high-value projects, including one in Worli, Mumbai, and another in Ashok Vihar, Delhi, are expected to be major contributors to these sales figures.

Strategic Shift Towards Outright Land Acquisition

A key element of Godrej Properties' growth strategy has been a decisive shift from joint venture models to outright acquisition of land parcels. In the last fiscal year alone, the company acquired 14 land parcels across major cities, including Gurugram, Greater Noida, Mumbai, Bengaluru, and Pune. These acquisitions have a combined revenue potential of approximately ₹26,500 crore. This approach provides the company with greater control over project timelines and profitability. Pirojsha Godrej has indicated that the company will likely exceed its land acquisition guidance of ₹20,000 crore for the current fiscal year as well.

Financial Strength Fueling Expansion

The company's aggressive expansion is supported by a robust balance sheet. A successful Qualified Institutional Placement (QIP) in late 2024 raised ₹6,000 crore. This, combined with strong operating cash flows of ₹7,500 crore, has created a substantial "war chest" for further investments in land and project development. The board has also approved raising up to ₹2,000 crore through debt instruments, further strengthening its financial capacity for growth.

Market Outlook: Strong Demand Amidst Cooling Euphoria

Pirojsha Godrej provides a balanced view of the current real estate market. He acknowledges that while the post-pandemic "euphoria" has mellowed slightly, the underlying demand for housing remains "very strong." He believes the positive real estate cycle is in its middle stages and will likely continue until 2028. Godrej also noted that major infrastructure developments, such as Mumbai's coastal road, are crucial for managing price inflation but are unlikely to cause an absolute drop in property prices, as demand continues to outpace supply due to significant wealth creation in the country.

Key Financial and Operational Highlights

Conclusion: Maintaining Momentum for Market Leadership

Godrej Properties has firmly established its leadership in the Indian real estate sector through a combination of record sales, strategic land acquisitions, and a clear vision for future growth. With a strong project pipeline, a healthy balance sheet, and a confident outlook on market fundamentals, the company is well-positioned to meet its ambitious targets for FY26. The focus remains on maintaining this momentum to expand its market share and deliver value to its stakeholders in a dynamic but promising real estate landscape.