GODREJPROP Q2 FY27 Earnings Call: Guides H2 Bookings of Rs. 22,500-25,000 Cr, Record Collections Jump 31%

GODREJPROP held its Q2 FY27 earnings call on October 23, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Strong Operations, Weak Reported P&L

• Q2 FY 2026-2027 bookings of Rs.8,008 Cr — 3,658 units / 6.2 mn sq ft, down 6% YoY and 7% QoQ; H1 FY 2026-2027 bookings at Rs.16,659 Cr, up 7% YoY.
• Total income +38% YoY to Rs.2,575 Cr in Q2, but EBITDA fell 72% to Rs.171 Cr and net profit fell 62% to Rs.154 Cr; H1 FY 2026-2027 EBITDA -53% to Rs.717 Cr and net profit -50% to Rs.504 Cr.
• Weakness attributed to back-ended deliveries in FY 2026-2027, with positive momentum expected particularly in Q4 FY 2026-2027 under project completion accounting.
• Record collections — Q2 collections up 31% YoY to Rs.5,318 Cr; H1 up 25% to Rs.9,666 Cr; Q2 operating cash flow up ~300% QoQ and 33% YoY to Rs.1,580 Cr.
• 7th consecutive quarter above Rs.7,000 Cr of bookings and 13th consecutive above Rs.5,000 Cr; 2.5 mn sq ft delivered in Q2, on track for 13.5 mn sq ft in FY 2026-2027.

Sustenance-Led Quarter, Diversified Footprint

• Sustenance sales grew 83% YoY to Rs.5,054 Cr in Q2 FY 2026-2027 — described by management as the most difficult sales bucket and evidence the market is supportive with the right strategy.
• Q2 mix shifted to 63% sustenance / 37% launches versus the historical 60-40, after approval risk emerged; management said the 60-40 mix can be assumed for annual guidance (period unspecified) but can slip on approval timing.
• Three projects each contributed >Rs.500 Cr to sustenance sales — Godrej Trilogy (Mumbai), Godrej Banansara (Bengaluru), Godrej Samaris (Gurugram); Godrej Brooklyn Avenue (Hyderabad) added >Rs.500 Cr to bookings.
• Geographic spread in Q2 — NCR just under Rs.2,000 Cr, Mumbai ~Rs.1,900 Cr, Bengaluru just under Rs.1,600 Cr, Pune ~Rs.1,000 Cr, Hyderabad ~Rs.700 Cr, other cities Rs.800 Cr.
• Attributable share of sales was 85% in Q2 and 90% in H1 FY 2026-2027, confirmed by CFO Rajendra Khetawat.
• Pricing held up better than expected — Chairperson Pirojsha Godrej called the market a "steady phase"; NCR saw <1% increases, South and Mumbai ~2%, West ~0.5%; Godrej Crown Residences (Noida) is 88% sold out with the FY 2024-2025 profit cast for the cluster almost tripled.

Back-Loaded Year, Rs.32,000 Cr Pipeline

• Only one-third of the annual launch pipeline launched in H1 FY 2026-2027, yet 43% of FY 2026-2027 bookings guidance was achieved; management remains confident of surpassing full-year FY 2026-2027 guidance across all key operating metrics.
• H2 FY 2026-2027 launch pipeline of Rs.32,000 Cr — presentation guides H2 bookings at Rs.22,500-25,000 Cr; Axis Capital's Ritesh Sheth built a ~Rs.24,000 Cr case (Rs.16,000 Cr from new launches plus Rs.8,000-10,000 Cr sustenance) that Pirojsha Godrej called broadly in line with the company's estimate.
• 80% of RERA approvals for Q3 FY 2026-2027 already secured before the quarter began, with the residual expected in the weeks immediately after Diwali; for Q4 FY 2026-2027, management is targeting 80% of approvals secured between end of November and mid of December.
• Key Q3 FY 2026-2027 launches — Bandra Bay (Mumbai) and Gotrich Virano (Golf Extension Road, slipped from Q2); approvals in place for what Pirojsha Godrej called a "blockbuster" Q3, with the company attempting to pull more launches into Q3 to "break the pattern."
• H2 FY 2026-2027 guidance of Rs.15,000 Cr cash collections and Rs.7,000 Cr operating cash flow, keeping the company free-cash-flow positive for that period while funding growth.
• No cap on FY 2026-2027 growth — management will not restrict sales to the 15-20% growth targeted for FY 2026-2027 if demand allows; reaching the top end of H2 guidance would imply a 40% five-year bookings CAGR through FY 2026-2027, with hopes to cross Rs.40,000 Cr in FY 2026-2027.

Q2 EBITDA Distorted by JV Consolidation

• Q2 EBITDA margin hit by one-offs per CFO Rajendra Khetawat — Mahalungi operated under a JV model with profits earlier extracted as development management fees, interest and overheads; the JV partner exited in Q1 FY 2026-2027, and OC received in Q2 triggered line-by-line consolidation with sales and cost of sales almost equal.
• The ORIS exit settlement consolidated its losses into Q2 FY 2026-2027; the Oris settlement occurred after the partner invoked arbitration, and the company also exited one more JV in Malungay in Q2.
• 5-6 JVs remain as of Q2 FY 2026-2027 and will exit naturally as projects conclude, shifting the mix toward Godrej's own portfolio.
• A forthcoming Mahalungi phase with 100% economic interest is expected to deliver good profit when accounted into P&L (period unspecified), as market prices have appreciated since earlier phases were launched during COVID with subdued margins.

Disciplined Land Buying, Selective New Markets

• H1 FY 2026-2027 BD additions of 4 projects (~9 mn sq ft, ~Rs.15,500 Cr expected booking value) equal 78% of FY 2026-2027 full-year guidance; Q2 added 1 project (~1.1 mn sq ft, ~Rs.6,000 Cr expected booking value).
• Standing BD hurdle rates of 20% IRR and 15% bookings-to-net-profit margin; management is comfortable not doing BD for a few quarters if thresholds are not met and pushed back hard on Q2 deals with unfavorable parameters.
• Bangalore and Noida open for BD after "extremely strong sales" in both, with Hyderabad recently opened; Bangalore sales jumped from sub-Rs.2,000 Cr to over Rs.8,000 Cr in the last year (FY 2026-2027) after new micro-market entries, and the Worli project saw Rs.4,000+ Cr of sales in the last year (FY 2026-2027) within under a year of launch.
• Chennai "most likely" the next group-housing market entry but no "burning rush" — probably not a key focus for the next couple of years; Kolkata and Ahmedabad are being looked at opportunistically beyond the top five markets.
• Gurgaon running ahead of expectations in FY 2026-2027 per Gaurav Pandey — the Gulf Coast portfolio is consistently doing very well and the Extension Road launch shows "extremely positive" initial signals.

FY28 Targets, Macro Headwinds, OC-Gap Question

• FY 2027-2028: management expects positive free cash flow and a 20% reported ROE — as the exceptional growth of the past two years becomes apparent in reported financials under project completion accounting; FY 2027-2028 FCF positivity was called "almost a sure shot."
• FY28 pre-sales growth of 10-15% remains achievable even if the current macro environment persists for the next 6 months, per management, with even 15-20% possible in FY 2027-2028 provided launches and approvals come on time and product-market fit is maintained.
• Macro headwinds flagged by Nomura's Akash Gupta — Brent crude at $115/barrel and weak equity markets; Gaurav Pandey said it is "business as usual" with a product-market-fit driven approach rather than chasing market euphoria.
• NGT ban risk in NCR assessed as non-impactful — management said launches have never faced restrictions in NCR even in the worst of times; MOSA structures can be prohibited but Godrej's are already fully ready, and construction schedules already factor in historically adverse timelines.
• OC-to-handover gap challenged by analyst Artha (WS Holdings) — citing Godrej Splendor in Whitefield, Bangalore, where profit was booked in 2023 on OC receipt while physical delivery remained pending 19 months later; Pirojsha Godrej said the company "does not believe in creating any gap between occupation certificate and actual delivery" and committed to examine the specific case and revert.
• Construction momentum improving — H1 FY 2026-2027 construction and related cash flows grew 42% YoY to ~Rs.1,292 Cr, with a significant reduction in expected time to OC and actual customer handovers planned; the NCR portfolio under the NGT ban is the only part not expected to reach full potential in H2 FY 2026-2027.