Godrej Properties Net Debt Rises 42% as Expansion Push Gains Momentum

Godrej Properties has reported a 42% surge in net debt, reaching ₹4,637 crore at the end of the June quarter, compared to ₹3,269 crore at the close of the previous fiscal year. The increase comes as the real estate developer intensifies efforts to capitalise on robust demand in the housing market.

Godrej Properties Debt Position Hampered

As per its latest investor presentation, the company’s debt-to-equity ratio has moved up from 0.19 to 0.26. Despite the increase, the company emphasised that its leverage remains at a healthy and manageable level.

In recent years, Godrej Properties has aggressively pursued land acquisitions to support its pipeline of group housing and plotted residential development projects. For FY26 (2025-26), the company has set an ambitious target to acquire land parcels that could support housing developments worth ₹20,000 crore.

Mr. Pirojsha Godrej, Executive Chairperson, in the earnings call said, “From a debt perspective, we have laid out an absolute cap that we would like to look at for net debt of INR 10,000 crores. So, we do have a fair amount of room, and even that would only take us to about 0.5 or a little bit above that range”

Godrej Properties Q1FY26 Performance

In the April–June quarter alone, the firm acquired five key land parcels across Mumbai, Pune, Bengaluru, and Panipat, with a total revenue potential of ₹11,400 crore. These acquisitions were executed through a mix of outright purchases and joint development agreements with landowners.

Despite a soft start to the year with pre-sales dipping 18% year-on-year to ₹7,082 crore in Q1, Godrej Properties remains optimistic. The company reaffirmed its guidance to meet—or even surpass—its sales bookings target of ₹32,500 crore for the current fiscal. In FY25, the company achieved record-high sales bookings of ₹29,444 crore, marking a 31% increase over the ₹22,527 crore recorded in the previous year.

With this performance trajectory, Godrej Properties is well-positioned to retain its title as the country’s top real estate developer by sales bookings for the third consecutive year.

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On the financial front, the company posted a 15% rise in consolidated net profit for Q1 FY26, reaching ₹598.4 crore, up from ₹518.8 crore in the same period last year. However, total income for the quarter declined slightly to ₹1,620.34 crore from ₹1,699.48 crore year-on-year.

For the full FY25, Godrej Properties reported a net profit of ₹1,389.23 crore and total income of ₹6,967.05 crore.

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