Godrej Properties profit falls 62%, but ₹32,000 crore of H2 launches are planned

Godrej Properties Ltd reported a 62% fall in consolidated net profit to ₹154 crore for the quarter ended 30 September 2026 (Q2 FY27), against ₹405 crore in the same quarter last year. The results were announced on 23 October 2026. On the earnings call that day, managing director and CEO Gaurav Pandey said the Mumbai-headquartered developer has a cumulative launch pipeline of more than ₹32,000 crore for the second half of FY27. The shares fell as much as to ₹1,468.40 on the NSE and were down about 4% in afternoon trade. Market capitalisation stood at ₹45,193.01 crore that day.

Revenue up, profit and EBITDA down

Revenue from operations rose to ₹1,935 crore from ₹740 crore a year earlier, according to the company's stock exchange filing. Total income was ₹2,575 crore, up 38% from ₹1,867 crore. EBITDA, the measure of operating earnings before interest, tax, depreciation and amortisation, fell 72% to ₹171 crore from ₹614 crore. Net profit in the previous quarter, Q1 FY27, had already fallen 42% to ₹350 crore.

Sales figures were mixed. Booking value for the quarter was ₹8,008 crore from 3,658 units totalling 6.2 million square feet, down about 6% year on year. Sustenance sales, which come from the company's existing projects, rose 83% to ₹5,054 crore. Cash collections were ₹5,318 crore, up 31% and a record for a second quarter, and operating cash flow was ₹1,584 crore, up 33%. Chairperson Pirojsha Godrej said the company's Q2 operating performance was very strong on these measures. Godrej Crown Residences in Noida contributed ₹1,036 crore of bookings in the quarter.

The second-half pipeline and approvals

The company's H2 launch value of about ₹32,000 crore compares with ₹16,000 crore launched in H1. Management has guided to H2 bookings of ₹22,500 crore to ₹25,000 crore. Pandey said that if sales velocity holds, new launches alone would bring in about ₹16,000 crore, on top of ₹8,000 crore to ₹10,000 crore from sustenance sales. Two projects, Godrej Bandra Bay and Godrej Virano in Gurugram, slipped from Q2 into Q3.

Approvals are the main timing risk. These are the RERA approvals, the project registrations required under the Real Estate (Regulation and Development) Act, 2016, that a developer needs before a project can be marketed and booked. Pandey said that for Q3, 80% of the required approvals were secured before the quarter started, because these launches had been deferred. The rest is on track and is expected in the few weeks after Diwali. For Q4, the company is targeting 80% of approvals between end-November and mid-December.

Other H2 locations named by the company include Bandra, Sector 63A in Gurugram, Thane, Vikhroli, Noida DMIC, Neopolis, Kharadi 2, Mahalunge 2 and Vastrapur, along with new phases of existing projects. Project-level RERA details and prices for most of these were not given in the company's disclosures reviewed for this report.

Bandra Bay and the wider Mumbai context

The Bandra Bay project sits in Bandra West, and the company has linked its launch to a wider public works effort. The Brihanmumbai Municipal Corporation (BMC), Godrej Properties and RC Group have begun Phase 1 of a bayfront promenade, reported to have started on 8 October 2026. Phase 1 covers a bayside walking track, a landscaped garden with lawns, and a lifestyle hub with a pet park, literature zone and amphitheatre. Maharashtra minister Ashish Shelar inaugurated a pedestrian corridor along LK Mehta Marg, the first milestone of the project. Phase 2 will add a mini golf course and a separate sports zone, and no date has been given for it. A 2025 industry report estimated the area's development potential at over ₹1 lakh crore.

No RERA registration details for the Bandra Bay launch have been confirmed in the company's disclosures, so buyers should check the project's registration on the MahaRERA portal before relying on any timeline.

What the company says about the next steps

Pirojsha Godrej said the company expects positive free cash flow and a 20% reported return on equity in FY28. The company expects H2 collections of about ₹15,000 crore and operating cash flow of about ₹7,000 crore, which it says would make the second half free-cash-flow positive. Pandey said there is a high probability of free-cash-flow positive status in Q4 and that it is almost certain for the following year. On acquisitions, the company will pursue new projects only if they meet a return threshold of about 20% internal rate of return. Pandey said the company is comfortable doing zero to two land deals a quarter if terms are not right. The company said it holds only about 5% of the industry, and Pandey described the market as being in a steady phase, with prices holding up well.

For buyers, the points to watch are whether the Q3 launches reach the market after Diwali, whether the Q4 approvals arrive by mid-December, and whether Bandra Bay and Virano get their registrations on the timetable the company has set out.