Godrej Properties Q3 Profit Jumps 20% on Record Bookings

Introduction

Godrej Properties Limited (GPL) has reported a robust operational and financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The real estate major achieved its highest-ever third-quarter net profit, which grew 20% year-on-year (YoY) to ₹195 crore. This profitability was driven by a phenomenal 55% YoY surge in booking value, which reached a record ₹8,421 crore for the quarter. The strong results underscore sustained housing demand and the company's effective execution, even as it navigated a decline in total income.

Stellar Sales Performance

The primary driver of GPL's strong quarter was its exceptional sales performance. The booking value of ₹8,421 crore was achieved through the sale of 3,973 homes, covering an area of 6.43 million square feet. This momentum was not limited to the third quarter. For the nine-month period of FY26 (9M FY26), the company's booking value increased by 25% YoY to ₹24,008 crore from the sale of 12,726 homes. This performance keeps the company firmly on track to exceed its annual sales guidance.

Profitability Amidst Revenue Contraction

Interestingly, the record profit was achieved despite a 17% YoY decline in total income, which stood at ₹1,020 crore for Q3 FY26. This apparent contradiction is explained by a significant improvement in operational efficiency and margins. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 21% YoY to ₹338 crore. Consequently, the EBITDA margin expanded sharply to 33.2% in Q3 FY26 from 22.9% in the corresponding quarter of the previous year. This indicates strong cost management and a favorable mix of projects contributing to higher profitability.

Nine-Month and Calendar Year Highlights

The company's strong performance extends beyond the third quarter. For the nine months ending December 31, 2025, net profit grew by 18% YoY to ₹1,200 crore, while EBITDA saw a substantial 40% YoY increase to ₹1,867 crore. For the full calendar year 2025, Godrej Properties achieved its best-ever performance, with bookings reaching ₹34,171 crore, a 19% growth over the previous year. This sustained growth highlights the company's consistent market leadership.

Financial Health Snapshot

Business Development and Project Pipeline

Godrej Properties continued its aggressive business expansion to fuel future growth. In Q3 FY26, the company added three new projects with an estimated booking value of ₹8,400 crore. Over the nine-month period, it added 12 new projects with a total estimated booking value of ₹24,650 crore. This significantly exceeds its annual guidance for new project additions and ensures a robust launch pipeline for the coming years.

Management's Confident Outlook

Executive Chairperson Pirojsha Godrej expressed confidence in the company's performance, stating that GPL is poised to end FY26 as its best-ever year across all key operating metrics. The company is on track to comfortably surpass its annual booking value guidance of ₹32,500 crore. This optimism is backed by a strong project pipeline and sustained demand in key real estate markets like the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR).

Addressing the Risks: Debt and Income

While the operational performance was strong, two key areas warrant attention. The first is the 17% YoY decline in Q3 total income, which contrasts with the growth in bookings and profits. This will be monitored to see if it's a one-off timing issue related to revenue recognition or a developing trend. The second concern is the increase in net debt, which rose to ₹6,873 crore as of December 31, 2025, from ₹3,269 crore in March 2025. This pushed the net debt-to-equity ratio to 0.37x. However, the company's strong credit rating and low average cost of borrowing provide a financial cushion.

Conclusion

Godrej Properties has delivered a standout performance in Q3 FY26, with record sales and profits highlighting its strong market position and operational capabilities. The company's ability to expand margins and grow profits despite lower income is a testament to its efficiency. While the increase in debt and the dip in quarterly income require monitoring, the robust project pipeline and confident management outlook suggest that Godrej Properties is well-positioned for continued growth in the resilient Indian real estate market.