Godrej Properties Q1 FY27: Bookings stayed strong, profits fell, and management kept FY27 guidance unchanged

Godrej Properties reported a mixed start to FY27. The operational engine stayed healthy, but the reported earnings line weakened sharply.

In Q1 FY27, booking value came in at INR 8,651 crore, up 22 percent year on year, on 3,738 units and 6.2 million square feet. Collections also rose 18 percent year on year to INR 4,348 crore. But consolidated total income fell to INR 1,337 crore from INR 1,593 crore a year ago, and net profit after tax dropped 42 percent to INR 350 crore.

The company framed this as a quarter where sales momentum was intact, construction intensity increased, and cashflows were temporarily softer because deliveries were low. It also maintained that it remains on track for FY27 guidance across launches, booking value, collections, deliveries and business development.

Operational scorecard: consistent sales, high contribution from Bengaluru

The key headline in the quarter was the continuity in bookings. Godrej Properties highlighted that this was the sixth consecutive quarter with booking value above INR 7,000 crore, and the twelfth consecutive quarter above INR 5,000 crore.

Three launches drove a large part of the quarter’s performance: Godrej Vanatara in Bengaluru contributed INR 3,237 crore, Godrej Samaris in Gurugram added INR 1,248 crore, and Godrej Brooklyn Avenue in Hyderabad added INR 317 crore. Sustenance sales also contributed, with projects such as Godrej Aveline in Bengaluru and Godrej Trilogy in the Mumbai Metropolitan Region.

Geographically, Bengaluru led the quarter with INR 3,798 crore of booking value, followed by MMR at INR 1,805 crore and NCR at INR 1,538 crore. Pune delivered INR 939 crore and Hyderabad INR 410 crore.

The company also added three new business development projects during Q1 FY27. These had an estimated saleable area of about 8.05 million square feet and expected booking value of INR 9,500 crore. The two largest additions were in NCR: Greater Noida DMIC and Noida Sector 150. A plotted development project was also added in Chennai OMR.

Financial performance: income and profit declined, cashflow was positive but subdued

On the consolidated P&L, Q1 FY27 showed a significant year on year decline.

Total income was INR 1,337 crore, down 16 percent. Adjusted EBITDA fell 40 percent to INR 557 crore and EBITDA fell 40 percent to INR 545 crore. Profit before tax was INR 480 crore, down 44 percent. Net profit after tax was INR 350 crore, down 42 percent.

Management’s presentation also showed that a large part of total income in the quarter was classified as interest and other income at INR 839 crore, alongside project-wise revenues and a share of profit or loss from joint ventures.

Operating cashflow for Q1 FY27 was INR 399 crore. The cashflow statement showed total operating cash inflow of INR 4,998 crore and total operating cash outflow of INR 4,599 crore. Within outflows, construction and related outflow was INR 2,244 crore and other project related outflow was INR 2,355 crore. Land, approval and capital outflow was INR 1,211 crore.

The company explicitly pointed out that operating cashflow can vary sharply by quarter because collections are dependent on construction milestones and deliveries, while outflows are more evenly spread through the year. It noted that Q1 FY27 deliveries were just 0.9 million square feet versus 7.4 million square feet in Q4 FY26, which contributed to lower collections sequentially.

Financial summary

Balance sheet and leverage: net debt moved higher

As of 30 June 2026, consolidated net debt was INR 7,637 crore, up from INR 6,414 crore as of 31 March 2026. Net debt to equity increased to 0.39 from 0.33. The company also disclosed an average borrowing cost of 7.15 percent year to date.

The balance sheet showed total assets of INR 88,318.71 crore as of 30 June 2026, compared to INR 81,894.43 crore as of 31 March 2026. Inventories were INR 61,171.73 crore, and current borrowings were INR 16,677.65 crore as of 30 June 2026.

Strategy and targets: ROE ambition and FY27 guidance maintained

The presentation laid out an explicit profitability ambition: the company intends to deliver 20 percent ROE from FY28 while retaining market share leadership.

It also provided forward-looking cashflow targets. Godrej Properties expects cumulative collections of INR 52,000 to 55,000 crore and cumulative operating cashflow of INR 20,000 to 22,000 crore for FY27 and FY28. This is positioned as the basis for becoming free cash flow positive by FY28.

For FY27, management reiterated guidance and marked progress after Q1 as on track across all major parameters. Guidance includes booking value of INR 39,000 crore, launch value of INR 48,000 crore, customer collections of INR 24,000 crore, deliveries of 13.5 million square feet, and business development of INR 20,000 crore by expected booking value.

Separately, the company highlighted an expectation that booking value of about INR 40,000 crore would be delivered and recognized in the P&L by FY28, subject to regulatory approvals and the accounting structure of each project.

Takeaways

Q1 FY27 reinforced the company’s ability to sustain strong bookings and collections growth, supported by major launches and Bengaluru-led demand. At the same time, the quarter reflected how reported earnings and operating cashflows can swing based on the timing of deliveries and revenue recognition.

The next few quarters will be watched for two proof points that the company itself emphasized: delivery ramp-up through the rest of FY27, and the translation of scale into operating cashflow in line with the FY27-FY28 targets it has outlined.