Summary
Godrej Properties Limited - Q3 FY 2026 Earnings Call Summary Thursday, February 05, 2026
Event Participants
Executives 4 Gaurav Pandey (MD & CEO), Kshitij Jain (Investor Relations), Pirojsha Godrej (Executive Chairperson), Rajendra Khetawat (CFO)
Analysts 5 Abhinav Sinha (Jefferies), Gaurav Khandelwal (JPMorgan), Murtuza (Kotak Securities), Parvez Qazi (Nuvama Group), Puneet (HSBC)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Booking Value (Sales) | ₹8,421 crores | +55% YoY; highest ever Q3. Achieved 74% of FY26 guidance. |
| Collections | ₹4,282 crores | +40% YoY; +5% QoQ. Management maintains guidance of ₹21,000 crores for FY26. |
| Net Profit (PAT) | ₹195 crores | +20% YoY; highest ever Q3 profit for the company. |
| Total Income | ₹1,020 crores | -17% YoY; decline noted despite operational growth. |
| EBITDA | ₹338 crores | +21% YoY; margins improving despite lower reported income. |
| Operating Cash Flow | ₹1,062 crores | +73% YoY; -11% QoQ. Impacted by 66% rise in construction spend in 9M FY26. |
| Construction Spend | ₹1,614 crores (approx) | +66% YoY (9M); aggressive push to speed up project deliveries in Q4. |
| Net Debt to Equity | 0.37x | Improvement from previous levels; management cap set at 0.50x. |
Geographic & Segment Commentary
- NCR & North: Strong performance with the Panipat plotted launch generating ₹1,000+ crores. Management noted speculative froth is fading in Gurgaon, favoring end-user-focused brands.
- MMR (Mumbai): Achieved benchmark luxury pricing with the Worli launch. Significant future supply planned for Kharghar, Panvel (Commercial), and Bandra (FY27).
- South (Bangalore/Hyderabad): Bangalore grew 100%+ in 9M; Hyderabad contributed ₹3,000 crores in CY25 from just two projects. Demand remains resilient despite IT sector uncertainties.
- Pune: Emerging as a high-growth hub with multiple launches in Mahalunge and Mamurdi (2.5 million sq. ft. planned). High demand persists in the Upper Kharadi micro-market.
Company-Specific & Strategic Commentary
- Market Share Expansion: GPL doubled its market share from 2.4% in CY21 to 4.8% in CY25. The company’s economic interest in bookings rose to 87% from 50% in the same period.
- Execution Muscle: Direct construction spend increased 66% in 9M FY26. Management is prioritizing speedy delivery and “qualified supply” to differentiate from smaller competitors.
- Business Development (BD): Added 12 new projects in 9M FY26 with a ₹25,000 crore sales potential (123% of annual guidance). Current total inventory stands at ₹1.35 lakh crores.
- Asset Class Diversification: Moving into commercial segments with a new launch in Panvel and retail clusters within large townships like Godrej Golf Links.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Booking Value | >₹32,500 crores (FY26) | On track to beat guidance; 74% achieved in first nine months. |
| Deliveries | 10 million sq. ft. (FY26) | Management expects to exceed this target given construction ramp-up. |
| Collections | ₹21,000 crores (FY26) | Expecting a “significantly skewed” Q4; some spillover to April possible. |
| Net Profit Margin | 10% - 15% (Long-term) | Target range to balance scale and profitability; implies ~25% EBITDA. |
| Return on Equity | Target high Teens (FY28) | Accelerated construction spend today is intended to hit ROE goals by FY28. |
Risks & Constraints
| Risk | Context |
|---|---|
| Land Valuation Bubbles | Management noted “berserk” price levels in certain auctions (e.g., Gurgaon 18 months ago), leading them to pause acquisitions in specific micro-markets. |
| IT Sector Slowdown | Potential impact on demand in Bangalore/Hyderabad due to IT/AI workforce shifts, though currently offset by Global Capability Centers (GCCs). |
| Cash Flow Mismatch | Rapid construction spending has temporarily lowered operating cash flow ratios; recovery depends on hitting Q4 delivery milestones. |
Q&A Highlights
Market Dynamics & Pricing
- Question: Is there a change in demand or product mix preference? (Puneet, HSBC)
- Answer: The market is maturing; speculative “froth” is fading, especially in Gurgaon. Demand remains strong across segments (plotted, mid-income, and luxury) for branded “qualified supply.” (Gaurav Pandey)
Construction Spend & OCF
- Question: Why has construction cost jumped while cash inflows lag? (Abhinav Sinha, Jefferies)
- Answer: We are building execution muscle. Construction spend is up 66% to hit FY28 ROE targets. Inflows will catch up in Q4 as we hit major delivery milestones. (Gaurav Pandey & Pirojsha Godrej)
Business Development Strategy
- Question: Are you comfortable buying land in NCR again? (Abhinav Sinha, Jefferies)
- Answer: We use a national model to pause in overheated markets and pivot. Land valuations in Gurgaon have started softening recently, presenting new opportunities. (Pirojsha Godrej)
Financial Reconciliation
- Question: How does a ₹19,000 crore inventory increase reconcile with ₹10,000 crore cash outflow? (Murtuza, Kotak Securities)
- Answer: Discrepancy is due to consolidation of JVs (exiting partners) and gross accounting for area-share projects where no immediate cash outflow occurs. (Rajendra Khetawat)
Key Takeaway
Godrej Properties delivered a record-breaking Q3 FY26, achieving its highest-ever quarterly booking value of ₹8,421 crores (+55% YoY) and net profit of ₹195 crores. The company has aggressively expanded its market share to 4.8%, leveraging a national footprint where five distinct markets now contribute over ₹3,000 crores each in annual sales. Strategically, GPL is pivoting toward higher-speed execution, evidenced by a 66% surge in construction spending, aimed at securing long-term ROE targets. While operating cash flows were temporarily squeezed by this investment, management expects a massive catch-up in Q4 FY26 driven by a delivery pipeline exceeding 10 million square feet. With ₹25,000 crores in new project additions already secured this year and a total inventory of ₹1.35 lakh crores, the company is positioned to beat its FY26 guidance and sustain growth into FY27.
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