Analyst Concall
Godrej Prop says co's customer collection skewed towards Q4
This story was originally published at 20:55 IST on 6 November 2025
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--Godrej Prop: Apr-Sep customer collections 37% of FY26 guidance
--CONTEXT: Comments by Godrej Properties' mgmt in post-earnings investor call
--Godrej Prop: Confident of meeting FY26 guidance on customer collections
--Godrej Prop: Q2 inventory gains high as acquired stakes in JVs consolidated
--Godrej Prop: External challenges in projects' execution caused part delays
--Godrej Prop: Pune real estate market not taken off, prices flattish
--Godrej Prop: Land acquisition costs a mixed bag, prices up in some markets
By Rajesh Gajra and Arundathi A R
NEW DELHI/MUMBAI – Godrej Properties Ltd. is faced with a "slight anomaly" in the current financial year 2025-26 (Apr-Mar) as its project deliveries and collections are "skewed towards the fourth quarter (Jan-Mar)," its management said Thursday in a post-earnings conference call with analysts. The company, which had guided for customer collections of INR 210 billion in FY26, has achieved only INR 170.5 billion, or just 37%, in the first half.
This does seem a "little bit low," but the company has seen "good construction progress" during the September quarter, as evident from the "construction spend increasing rapidly," the management said. The company is therefore confident it will meet FY26 guidance on customer collections.
In Apr-Sept, Godrej Properties achieved 47% of its launch-value guidance of INR 400 billion for the year and 48% of its booking-value guidance of INR 325 billion. Further, the company has achieved only 30% of the guidance for deliveries of 10 million square feet in the first half of the current financial year. The management said deliveries are likely to increase in the March quarter, as the company has "huge OCs (occupation certificates) calendar for January, February, and March."
The company also faced external challenges in project execution, which have partly delayed some projects and affected the profitability. The adjusted earnings before interest, tax, depreciation, and amortisation margin contracted sequentially to 33.7% in the September quarter from 58.1% in the trailing quarter. The adjusted EBITDA included interest costs added to the cost of sales.
The management said external challenges included the National Green Tribunal rules in the Delhi-National Capital Region, which effectively delay construction for 3 months each year. Apart from regulatory rules, "there are some projects that have been delayed." The deliveries in FY25 were 18.4 million square feet, and the company expects FY26 deliveries to be ahead of its guidance of 10 million square feet, "even though the first half has been a little bit slow," the management said.
On inventory levels, the management said the jump in inventories in its consolidated balance sheet from the end of FY25 to the end of the September quarter was due to the company acquiring the stakes of the partner in some of its joint venture projects and their inventories starting to reflect in the consolidated accounts. This also resulted in the substantial on-year increase in inventory gains in the profit and loss account in the September quarter to INR 32.1 billion from INR 12.0 billion in the year-ago quarter.
On land acquisition costs, the management said, "it's a bit of a mixed bag... There are instances where the land price is going quite high." It said that in recent land auctions of 10-11-acre parcels in both Hyderabad and Navi Mumbai, the auction values "did seem quite high to us." This was not "too concerning now", and the company will generate returns and margins it expects from acquired land parcels, but certainly the (land) prices have gone up over the last couple of years," the management said.
On the state of real estate markets in the cities where Godrej Properties has delivered or has ongoing projects, the management said that the Gurugram real estate market looked currently "far healthier than what it was, say, 12 months back," when it was becoming speculative and risky. Noida and Greater Noida are strong real estate markets, it said.
But the management said the Pune real estate market was one that "hasn't really taken off, though we are the number one player." Price-wise, the Pune real estate market has been flattish. The Mumbai and Bengaluru real estate markets were strong, it said.
The company reported a 21% on-year rise in consolidated net profit to INR 4.1 billion, beating the Street's estimate of INR 3.2 billion. Its revenue from operations fell by over 32% year on year to INR 7.4 billion, below the INR 11.3 billion analysts expected for the reporting quarter.
On Thursday, the company's shares ended 4.3% lower at INR 2,193.70 on the National Stock Exchange. The company announced its results during market hours. End
Edited by Saji George Titus
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