Godrej Properties reported robust operational performance for Q2 FY27, achieving a booking value of INR8,008 crore from the sale of 3,658 units. Despite a slight year-on-year decline in bookings, the company highlighted strong sustenance sales growth of 83%. Management expressed confidence in surpassing full-year guidance, citing a strong launch pipeline valued at INR32,000 crore for the second half of the fiscal year.
Godrej Properties Reports Strong Q2 FY27 Operational Performance
Godrej Properties Limited has announced its financial results for the second quarter of Fiscal Year 2027 (Q2 FY27), revealing a booking value of INR8,008 crore, generated from the sale of 3,658 units. The total area sold was 6.2 million square feet. For the first half of the fiscal year (H1 FY27), the company achieved a booking value of INR16,669 crore from 7,396 units, representing a 7% growth year-on-year.
Sustenance Sales Drive Growth Amidst Lower Bookings
While headline booking numbers for the quarter saw a slight decrease of 6% year-on-year and 7% quarter-on-quarter, the company emphasized a strong operational quarter driven by sustenance sales. Sustenance sales grew by an impressive 83% year-on-year to INR5,054 crore. Key projects like Godrej Trilogy, Godrej Vanantara, and Godrej Samaris were significant contributors, each adding over INR500 crore to sustenance sales. Godrej Brooklyn Avenue in Hyderabad also contributed over INR500 crore to bookings.
Confident Outlook Driven by Robust Launch Pipeline
Management expressed strong confidence in achieving and potentially surpassing the full-year guidance across all key operating metrics. The company has launched only one-third of its expected annual launch pipeline in the first half of FY27, yet has already achieved 43% of its annual bookings guidance. The launch pipeline for the second half of the year is robust, valued at approximately INR32,000 crore, with launches expected to pick up significantly from October 2026 onwards.
Projects such as Bandra, Sector 63A in Gurugram, Thane Uniabex, Vikhroli, Ashok Vihar, Noida DMIC, Neopolis, and others are in the pipeline. Management anticipates the second half of FY27 to be the company’s best-ever period for both launches and sales.
Financial Highlights and Future Projections
Total income for the quarter grew by 38% to INR2,575 crore. For the first half, total income grew by 13% to INR3,912 crore. The company expects to deliver positive free cash flow and a 20% reported Return on Equity (ROE) in FY28. Godrej Properties has also added one new project with an estimated saleable area of 1.1 million square feet and an estimated booking value of INR6,000 crore in the last quarter, bringing the total to four projects and approximately 9 million square feet of saleable area.
The company aims to achieve INR15,000 crore in cash collection and INR7,000 crore in operating cash flow in the second half of FY27. This is expected to facilitate continued investment in growth while maintaining free cash flow positivity.
Market Insights and Strategy
Management noted that the market remains strong, with prices holding up well across various micro-markets. The company’s strategy continues to focus on opportunistic sourcing of high-return opportunities, maintaining a healthy portfolio, and prioritizing quality of sales over optical price maximization. Expansion into new micro-markets and deepening presence in existing strong markets like Bangalore and Mumbai remain key priorities.
Regarding pricing, while generally steady, specific markets like Noida have seen minor price increases, with a focus on end-user sales. The company is also exploring opportunities in markets like Chennai for future group housing development, though its primary focus remains on consolidating its position in the top 5 markets.
Source: BSE
