Analyst Concall
Godrej Prop sees strong business momentum to continue FY26
This story was originally published at 20:39 IST on 2 May 2025
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--Godrej Properties: Confident of maintaining business momentum in FY26
--CONTEXT: Godrej Properties mgmt's comments at post-earnings analyst call
--Godrej Properties: After FY25, aim to outperform guidance in FY26 as well
--Godrej Properties: Growth to be led by both volume, value in FY26
--Godrej Properties: See lower interest rates benefitting realty industry
--Godrej Properties: Demand remains robust, project approvals key for co
--Godrej Properties: See strong growth opportunity next couple of decades
--Godrej Properties: Would like to keep net debt below INR 100 bln in FY26
By Sandeep Sinha and Shakshi Jain
MUMBAI – Godrej Properties Ltd. is confident of continuing the strong business momentum in the financial year 2025-26 (Apr-Marc) because of a robust launch pipeline, strong balance sheet, and sectoral tailwinds. The company plans to launch projects worth INR 400 billion in FY26 and guided INR 210 billion in collections, 40% higher than last year's guidance.
The management is confident of meeting this forecast, led by price and volume growth. It reported a booking value of more than INR 50 billion for the seventh consecutive quarter and clocked a booking value of over INR 100 billion last quarter.
The company has an inventory worth INR 500-550 billion and a total inventory if over INR 1.1 trillion. It is seeing very strong demand across markets amplified by wealth creation, a strong economy, and strong measures taken by the government.
The realty major sees strong growth opportunities in Mumbai and the National Capital Region, along with opportunities in Pune and Bengaluru. It has a healthy pipeline of launches in the Delhi region and Mumbai and expects to consistently outgrow the market given the strength of the brand.
Godrej Properties is number one player in Pune market by sales value, the company said. It held a number two position in Mumbai, National Capital Region and Bengaluru, it added. The company has a single-digit market share in these cities and sees a significant scope for growth there, the management said.
The Reserve Bank of India cutting interest rates in the upcoming policy meetings will benefit the realty industry, it said.
The management plans to keep the company's net debt below INR 100 billion. Earlier in December, the company raised INR 60 billion through qualified institutional placement and a strong operating cash flow of INR 74.84 billion will enable it to continue to invest for growth. In the current financial year, it plans to grow residential bookings to over INR 325 billion through the launch of a large number of exciting new projects combined with strong sustenance sales.
The company plans to enter newer markets and launched a project in Hyderabad last year. The management said, "The opportunity landscape to us looks very exciting. And it's not just a two-, three-year sort of time frame we have in mind. There's a couple of decades of very strong growth opportunity ahead of us."
The management also provided an update for the delay in construction in Bandra, Mumbai, which was impacted due to delay in site clearance. The Ashok Vihar project in Delhi was affected by the relocation of trees that requires significant approval. It said that the delay in Ashok Vihar may benefit the company because of the price rise.
Earlier Friday, the company had disclosed its earnings for the March quarter and FY25. For the last quarter, it posted a bottom line of INR 3.82 billion, down nearly 19% on year. For FY25, the realty firm's consolidated net profit nearly doubled to INR 14 billion from INR 7.25 billion a year ago. Its consolidated revenue rose to INR 49.23 billion from INR 30.36 billion in the previous year.
On Friday, shares of the company closed 4.1% higher at INR 2,249.30 on the National Stock Exchange. End
Edited by Deepshikha Bhardwaj
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