Godrej Properties Limited

Residential Commercial Projects

Annual Returns

Cumulative Returns and Drawdowns

Fundamentals

Ownership

Margined

AI Summary

asof: 2025-12-03

Analysis of Godrej Properties Limited (GODREJPROP)

Godrej Properties (GPL) demonstrated robust Q2 FY26 performance with record bookings (INR 8,505 Cr, +64% YoY), strong profitability (H1 net profit INR 1,005 Cr, +18% YoY), and aggressive business development (81% of FY26 guidance achieved in H1). The company remains on track to exceed FY26 bookings guidance (INR 32,500 Cr) amid diversified market contributions and a strong pipeline. Below is a structured analysis of tailwinds, headwinds, growth prospects, and key risks, derived from the earnings transcript, investor presentation, financials, amalgamation disclosure, and recent land acquisition press release.

Tailwinds (Positive Drivers)

Sustained Sales Momentum: 9th straight quarter of >INR 5,000 Cr bookings; 3rd consecutive >INR 7,000 Cr. H1 bookings at INR 15,587 Cr (48% of guidance). Diversified across 4 markets (Bengaluru, MMR, NCR, Hyderabad each >INR 1,500 Cr in Q2)—a first for any Indian developer.
Strong Execution Ramp-Up: Labor force at record 32,000 (+54% QoQ); Q2 construction spend +82% YoY. Delivered 2.2 Mn sq ft in Q2; on track for FY26 deliveries guidance despite H1 softness.
Business Development Aggressiveness: H1 additions: 9 projects, 15 Mn sq ft, INR 16,250 Cr potential BV (81% guidance). Recent wins: 5-acre Hyderabad plot (INR 4,150 Cr potential); Kukatpally (INR 3,800 Cr).
Balance Sheet Strength: INR 6,000 Cr QIP (Dec 2024) bolsters liquidity. Net debt/equity at 0.30x (low); avg borrowing cost 7.4%. Operating cash flow resilient (H1 INR 2,137 Cr).
Market Leadership & Brand: India’s #1 by FY25 bookings/collections/OCF. Sustainability #1 globally (GRESB 100/100; S&P DJ 89/100). 56 awards in Q2.
Pricing Power & New Launches: Strong response to launches (e.g., Regal Pavilion Hyderabad INR 1,527 Cr; MSR City Bengaluru INR 1,032 Cr). Worli “Trilogy” (restructured to 73% area share) priced INR 80k-1.5L/sq ft, low competition.

Headwinds (Challenges)

Collections Lagging Sales: H1 collections INR 7,736 Cr (37% guidance); back-loaded to Q4 due to milestone/OC timing. OCF down 24% YoY in H1.
P&L Volatility: Weak gross margins from JV structuring/OC timing mismatches (project completion accounting). Q2 EBITDA +118% YoY but reliant on older projects; newer outright OCs expected FY28.
Execution Delays: NCR NGT/tree-cutting issues (e.g., Ashok Vihar stalled). Historical COVID impacts lingering; some pre-COVID projects delayed.
Rising Costs: Land auctions exorbitant (e.g., Hyderabad/Navi Mumbai >INR 2,000 Cr for 10-11 acres). Construction/project outflows high (H1 ~INR 10,000 Cr).
Market-Specific Softness: NCR H1 lag (vs. peers); Pune prices flattish; Gurgaon speculation risks (quality-focused sales, not full sell-outs).

Growth Prospects

FY26 Outlook: Bookings to beat INR 32,500 Cr (upside from 48% H1); collections INR 21,000 Cr on track (Q4 lumpiness). Launches across 8+ cities (e.g., Worli, Greater Noida, Pune Mundhwa, Chennai, plotted in Raipur/Ahmedabad). OCF range INR 6,500-8,500 Cr.
Medium-Term (FY28): 20% ROE target via OC step-up (newer outright projects). 20% CAGR sales growth; market share from 4.3% national (no city >10% share). Hyderabad ramp (INR 2,600 Cr CY25; new plots). Plotted entry into Indore/Panipat/Raipur/Baroda.
Strategic Expansion: 232 Mn sq ft pipeline; micro-market penetration (e.g., Worli/Bandra). Restructurings (e.g., Worli JV to area-share) boost economics. Amalgamation of subsidiary (EHPL) streamlines structure.
Macro Tailwinds: Resilient demand (end-user focus); Bengaluru/Hyderabad booming; national industry growth 10-13% to FY28.

Metric	FY22	FY25 Actual	FY26 Guidance	FY26 H1 Actual	FY28 Target
Bookings (INR Cr)	~7,000 (annual)	29,444	32,500	15,587 (48%)	N/A
Collections (INR Cr)	N/A	17,047	21,000	7,736 (37%)	N/A
ROE	N/A	N/A	N/A	N/A	20%

Key Risks

Execution/Regulatory: Delays from NGT/environmental clearances (NCR-specific); labor/supply chain volatility despite tech interventions.
Cash Flow Lumpiness: Milestone/OC dependency; Q4 skew could spill to FY27 if construction slips.
Margin Pressure: JV accounting distortions; rising land/construction costs erode embedded margins (annual disclosure planned).
Market/Cyclical: Speculation in Gurgaon; oversupply in some micromarkets; interest rate sensitivity (despite low costs).
Concentration: Heavy reliance on top 4 markets (80%+ sales); new markets (e.g., Hyderabad) unproven at scale.
M&A/Structuring: Amalgamation (EHPL) needs NCLT approval; JV consolidations inflate inventory (H1 jump INR 14,000 Cr).
External: Economic slowdown impacting affordability; competition in premium segments.

Overall Summary

Bullish Outlook with Execution Focus: GPL’s tailwinds dominate—explosive bookings, pipeline depth, and capital access position it for 20%+ growth and market leadership. FY26 set for record beats; FY28 ROE inflection via OCs. Headwinds (collections/execution) are cyclical/transitory, mitigated by ramped labor/contractors and QIP liquidity. Risks center on NCR delays and lumpiness, but diversified portfolio (221 Mn sq ft residential pipeline) and sustainability edge provide buffers. Recommendation: Strong Buy for growth investors; monitor Q3 collections/OC progress. Stock could re-rate on FY28 visibility (current net debt low at 0.30x).

GODREJPROP

Equity Metrics

January 13, 2026