Godrej Properties expects FY27 sales bookings to rise 22% to ₹41,500 crore on steady housing demand

Realty firm Godrej Properties expects its sales bookings to rise 22 percent this fiscal year to a record ₹41,500 crore, beating its annual guidance on strong demand for housing properties. According to Pirojsha Godrej, Chairperson Designate of the Godrej Industries Group, consumer demand has remained strong in both new and ongoing residential projects across all markets where the company operates.

Speaking on market conditions, Pirojsha noted that housing demand has held up and remained steady despite global economic uncertainties caused by the West Asia crisis. The company stated it is on track to meet or exceed its annual guidance across key metrics, including sales bookings, launches, fund collections from customers, project deliveries, and land acquisitions.

For the second half of the financial year, the company expects sales to range between ₹22,500 crore and ₹25,000 crore. In the previous fiscal year, Godrej Properties recorded sales worth ₹34,171 crore and had initially set a pre-sales guidance of ₹39,000 crore for the current 2026-2027 fiscal year. During the first six months of the current fiscal, sales bookings already rose 7 percent to ₹16,659 crore, compared to ₹15,587 crore in the corresponding period of the previous year.

The company highlighted that sustenance sales—referring to bookings in running projects—grew 83 percent year-on-year to ₹5,054 crore in the September quarter. Pirojsha added that the upcoming third quarter is expected to be the company's best-ever quarter from a sales perspective, supported by major planned launches in markets such as Mumbai's Bandra and the Golf Course Extension in Gurugram, alongside projects in Thane, Noida, and Greater Noida.

Godrej Properties plans to fund the construction of existing projects and future land acquisitions using internal accruals while generating free cash flow and maintaining a 20 percent return on equity. The developer operates primarily in the Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, Bengaluru, and Hyderabad, while also offering housing plots across multiple states.

In its recent financial results for the quarter ended September, Godrej Properties reported a 62 percent decline in consolidated net profit to ₹154.15 crore, compared to ₹405.08 crore in the year-ago period, largely driven by higher expenses. Total income for the quarter rose to ₹2,571.73 crore from ₹1,950.05 crore, while total expenses surged to ₹2,476.74 crore from ₹1,300.98 crore. For the first half of the fiscal year, net profit declined 50 percent to ₹504 crore against ₹1,005 crore in the previous year, while total income grew to ₹3,916.77 crore from ₹3,570.39 crore.

"Godrej Properties' projection to surpass its annual sales guidance indicates that consumer demand for residential real estate remains resilient despite broader macroeconomic pressures. While rising expenses have impacted short-term profitability in the latest quarter, strong execution pipelines and steady sustenance sales demonstrate the strength of organized players in the housing sector. Investors will be watching closely to see if the robust project launches in key markets translate into sustained long-term cash flow generation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes