For Godrej Properties Ltd, softer collections performed spoilsport within the three months ended September (Q2FY26), overshadowing sturdy pre-sales, which had been above ₹7,000 crore for the third consecutive quarter. Unsurprisingly, the inventory has declined by 5% over the past two buying and selling classes.
Pre-sales or bookings rose year-on-year and sequentially in Q2 to ₹8,505 crore, pushed by new launches together with Godrej Regal Pavilion in Hyderabad, Godrej Skyshore in Mumbai, and Godrej Tiara in Bengaluru.
H1FY26 pre-sales rose year-on-year to ₹15,587 crore or about 48% of FY26 pre-sales goal. That is the very best ever Q2 and H1 reserving worth achieved by Godrej Properties.
As compared, collections rose a mere 2% year-on-year in Q2FY26 to ₹4,066 crore and 10% in H1FY26 to ₹7,736 crore. To this point, Godrej Properties has achieved 36% of the FY26 collections steering. Thus, it has a whole lot of floor to cowl in collections.
In actual property, collections are linked to residential initiatives, attaining supply milestones. So, the administration is hopeful of an enchancment in H2FY26 as deliveries of residential models are anticipated to rise in This fall. It has delivered round 3 million sq. ft (msf) in H1FY26 and goals for 10 msf in all the monetary yr.
Godrej Properties has maintained its FY26 pre-sales steering of ₹32,500 crore, up 10% year-on-year. True, this goal appears conservative given its launch pipeline of over ₹40,000 crore.
Upcoming launches within the the rest of the yr are unfold throughout Worli in Mumbai, Panvel, the Nationwide Capital Area, Indore, Chennai, and Bengaluru. So, well timed mission approvals are essential to fulfill the pre-sales objective.
Nonetheless, there are lingering issues that residential demand momentum might take a breather in the important thing markets of Mumbai and Bengaluru. In response to Vintage Inventory Broking, Godrej Properties delivered 55% compound annual development price (CAGR) in pre-sales over FY222-FY25, and it doesn’t anticipate the identical euphoric momentum to maintain given the excessive base of FY25.
Godrej Properties is concentrating on 20% pre-sales CAGR over the medium time period. From the present market share of round 4%, it intends to extend it to 5-6% going forward because it forays into tier-2 markets.
On the enterprise improvement entrance, Godrej Properties has added 9 new initiatives in H1FY26 with income potential of ₹16,300 crore or 81% of FY26 steering. Nonetheless, elevated investments in new land acquisitions and approvals, primarily funded via debt, pushed internet debt larger.
Internet debt-to-equity at 0.3x in Q2FY26 versus 0.26x in Q1FY26. On this backdrop, enhancing money move efficiency is important to maintaining debt in examine. Working money move in H1FY26 declined 24% year-on-year to ₹2,137 crore.
The inventory’s efficiency has been unimpressive, dropping 22% thus far in 2025 versus 11% decline within the Nifty Realty index. “Whereas Godrej Properties has sustained gross margin at a wholesome degree of 35-40% for acknowledged initiatives in P&L, the upper scale of operations has led to a proportionately steeper enhance in overhead, resulting in subdued working income,” stated a Motilal Oswal Monetary Providers report dated 6 November.
The broking agency expects gross sales booked over the previous two years, characterised by a greater margin profile, to be acknowledged after FY26/FY27, which may allay investor issues.
Actual property firms acknowledge income from a mission within the monetary statements when a unit is handed over to the shopper.
