Godrej Properties posts record H1 bookings but profit halves

ICICI Securities has set a target price of ₹2,293 per share on Godrej Properties and kept a positive rating, a brokerage note reported on 26 October 2026 said. The note followed the company's September-quarter and half-year results, which its board approved on 23 October 2026.

The results showed a sharp split. Gross sales bookings for the first half of FY27 rose 7% year on year to ₹16,659 crore, which the company described as its highest-ever first-half booking value. Collections for the half rose 25% to ₹9,666 crore, and operating cash flow was ₹1,983 crore.

Profit moved the other way. Consolidated net profit fell 62% to ₹154 crore in Q2 FY27, from ₹405 crore a year earlier. For the half year, net profit fell 50% to ₹504 crore from ₹1,005 crore. Total income for the quarter rose 38% to ₹2,575 crore, but EBITDA fell 72% to ₹171 crore, and the adjusted EBITDA margin dropped to 10.4% from 33.7% in Q2 FY26.

What drove the earnings drop

Management linked the fall mainly to the timing of project deliveries and to accounting effects from joint venture restructuring. It pointed in particular to the Mahalunge project in Pune. Revenue recognition depends on when projects are delivered, so a bookings record does not translate into profit in the same quarter.

The brokerage's valuation note is the other part of the picture. Reports of the note say the premium over net asset value was cut from 40% to 30%, which lowers the target. The target was ₹2,469 in the brokerage's 4 May 2026 update, when the stock was shown at ₹1,900. The rating remained positive, and the brokerage read sales momentum as strong.

Debt and cash flow

Net debt rose to ₹7,908 crore as of 30 September 2026. The net debt-to-equity ratio was 0.41, up from 0.33 at the end of March 2026. The average borrowing cost for the year so far was 7.25%. Investors are watching these numbers closely, since the company's cash generation depends on collections converting into operating cash flow.

Management has kept its growth outlook. Chairperson Pirojsha Godrej said the company expects FY27 bookings of ₹41,500 crore, above the ₹39,000 crore guidance and 22% higher than the ₹34,171 crore recorded in FY26. Management also expects H2 bookings of ₹22,500 crore to ₹25,000 crore, supported by about ₹32,000 crore of launch value, against ₹16,000 crore launched in the first half.

There is a caveat on deliveries. Management said the 13.5 million square feet delivery guidance may not be achieved because of the timing of regulatory approvals. One analyst view on the stock raised the same point.

What to watch

• H2 FY27 launches worth more than ₹32,000 crore, across Mumbai, Gurugram, Thane and Noida, among other markets.
• H2 collections of ₹15,000 crore and operating cash flow of ₹7,000 crore, which management has guided to.
• Whether delivery timing and regulatory approvals allow the company to meet its delivery and profit targets.
• Net debt and borrowing costs in the coming quarters, as the launch pipeline builds.

For investors, the half-year picture is one of strong sales and collections alongside weaker reported profit. The brokerage's lower target reflects a more cautious view of valuation, not a change in its rating. The next checkpoints are the H2 launch and collection numbers, and whether delivery timing holds.