Real estate developer Godrej Properties has set an ambitious target to recognize approximately ₹40,000 crore in revenue on its profit and loss account by March 2028, driven by a sharp escalation in construction activity and housing project deliveries. In an interaction with PTI, Chairperson Pirojsha Godrej explained that under current accounting standards, sales bookings or pre-sales can only be recognized as financial revenue once project construction reaches full completion. Consequently, the company anticipates a major surge in reported revenue and net profit starting next fiscal year as numerous sold-out residential projects near their final delivery stages over the coming 18 months. For the current fiscal year, Godrej Properties aims to deliver 13.5 million square feet of residential area, with the majority of handovers concentrated across the third and fourth quarters. Reflecting this operational push, construction spending climbed 42 percent year-on-year during the first six months of the fiscal period. In its latest investor presentation, the developer highlighted that booking values of ₹40,000 crore are scheduled for delivery and financial recognition by FY28, a period expected to reflect the extraordinary pre-sales growth achieved over recent years. Furthermore, management projects achieving positive free cash flow alongside a 20 percent reported return on equity by FY28. Consistently maintaining its standing as India’s largest listed real estate firm by sales bookings, Godrej Properties expects to retain its top position, forecasting a 22 percent increase in sales bookings to a record ₹41,500 crore for fiscal 2026–27, thereby surpassing its original annual guidance of ₹39,000 crore. In the preceding fiscal year, the developer achieved ₹34,171 crore in sales bookings, while first-half bookings for the current fiscal rose 7 percent to ₹16,659 crore. Pirojsha Godrej reaffirmed that structural demand across key metropolitan focus markets—including the Mumbai Metropolitan Region, Delhi-NCR, Pune, Bengaluru, and Hyderabad, as well as plotted developments across several states—remains exceptionally robust with consistent off-take. This operational momentum comes despite near-term earnings pressure reported in the second quarter, where consolidated net profit dropped 62 percent to ₹154.15 crore due to elevated construction and operational expenses, down from ₹405.08 crore in the year-ago period. Total income for the quarter nevertheless expanded to ₹2,571.73 crore against ₹1,950.05 crore previously, while quarterly expenses grew to ₹2,476.74 crore. For the first half of the fiscal year, total income rose to ₹3,916.77 crore even as net profit moderated to ₹504 crore compared to ₹1,005 crore in the corresponding period last year. Looking past these short-term cost headwinds, the company’s expanding project delivery pipeline positions it to convert past sales records into sustained balance sheet growth through FY28.
Godrej Properties Targets 20% ROE and Positive Free Cash Flow
