Godrej Properties targets ₹40,000 crore in revenue recognition by March 2028. Chairperson Pirojsha Godrej said the firm expects a huge jump in revenue and profit next fiscal year as it delivers many completed residential projects. The company stepped up construction work to ensure these sold-out homes reach buyers on time.
Pirojsha Godrej, Chairperson of Godrej Properties, said the company expects a sharp rise in revenue and profit next fiscal as it steps up deliveries of completed residential projects. | Image: Company's Website
Real estate firm Godrej Properties will recognise about ₹40,000 crore in revenue in its books by March 2028, as it has stepped up construction work to complete ongoing housing projects, a top company official said.
In an interview with PTI, Godrej Properties Ltd Chairperson Pirojsha Godrej said there would be a huge jump in revenue and profit next fiscal year due to a sharp increase in deliveries of residential projects.
The company's sales bookings or pre-sales are recognised as revenue only when projects are completed, as per accounting standards.
Pirojsha mentioned that many projects, which are completely sold out, would be delivered over the next 18 months and become eligible for revenue recognition.
"So, you will see a huge jump in both revenues and earnings next fiscal year," he said.
Mumbai property registrations rise 9% in October, stamp duty up 13%
Solex Energy eyeing US market for international debut, says chairman
Sarda Energy & Minerals Q2 results: Net profit dips 2.2% to ₹320 crore
Lodha Developers to invest ₹1,200 cr to build prime Gurugram office complex
IBBI amends real estate insolvency rules to protect homebuyers' interests
Pirojsha said the company has set a target to deliver 13.5 million sq ft of area this fiscal, the bulk of which would happen in the third and fourth quarters.
Construction spending rose 42 per cent year-on-year during the first six months of this fiscal.
In its latest investor presentation, Godrej Properties said, "BV (booking values) of Rs 40,000 crore to be delivered and recognised in P&L (profit and loss account) by FY28".
Pirojsha mentioned that 2027-28 will be an important year for the company as the exceptional growth of the past two years in terms of record pre-sales would get reflected in the reported financial numbers.
"We expect to deliver both positive free cash flow and a 20 per cent reported ROE (return on equity) in FY28," he said.
Godrej Properties has been the country's largest listed real estate firm in terms of sales bookings in the last few financial years. It is set to retain the position this fiscal as well.
In 2026-27, the company's sales bookings are expected to rise 22 per cent to a record ₹41,500 crore, beating its annual guidance on strong demand for its housing properties.
In the last fiscal year, Godrej Properties sold properties worth ₹34,171 crore, and the company set a pre-sales or sales bookings guidance of ₹39,000 crore for the current 2026-27 fiscal.
Already, the company's sales bookings rose 7 per cent to ₹16,659 crore in the first six months of this fiscal, from ₹15,587 crore in the year-ago period.
"We are not seeing any of our own projects where we are disappointed with off-take or demand. I would say from a company perspective, demand has been quite strong," Pirojsha said.
Godrej Properties develops group housing projects in the Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, Bengaluru and Hyderabad. It is also offering housing plots across several cities in various states.
Last month, Godrej Properties reported a 62 per cent decline in its consolidated net profit to ₹154.15 crore for the quarter ended September, driven by higher expenses.
Its net profit stood at ₹405.08 crore in the year-ago period.
Total income rose to ₹2,571.73 crore in the second quarter of the current fiscal from ₹1,950.05 crore in the corresponding period of the preceding financial year.
Expenses surged to ₹2,476.74 crore during the period under review, compared with ₹1,300.98 crore a year ago.
In the first half of this fiscal, net profit declined 50 per cent to ₹504 crore from ₹1,005 crore in the year-ago period, while total income grew to ₹3,916.77 crore from ₹3,570.39 crore.
In 2025-26, the company posted a net profit of ₹1,850 crore on total income of ₹8,410.88 crore.
Godrej Properties has completed projects spanning more than 80 million sq ft since 2018.