Godrej Properties' net profit declined by 50% to ₹504 crore in the first half of fiscal year 2027, despite a 13% rise in total income to ₹3,912 crore. The company reported its highest-ever quarterly sustenance sales in Q2 FY27, showing strong demand in the real estate sector.
- Total income increased 13% year-on-year to ₹3,912 crore in H1 FY27.
- Net profit fell 50% to ₹504 crore compared to ₹1,005 crore in H1 FY26.
- Revenue from operations rose 161% in Q2 FY27 to ₹1,935 crore.
- EBITDA declined 53% year-on-year to ₹717 crore in H1 FY27.
- Q2 FY27 sustenance sales grew 83% year-on-year to ₹5,054 crore.
- Booking value in Q2 FY27 reached ₹8,008 crore from 3,658 units sold.
- Company expects strong launches and cash flow growth in H2 FY27.
What were the key financial results for Godrej Properties in Q2 FY27?
In the July-September quarter of FY27, Godrej Properties reported revenue from operations of ₹1,935 crore, a 161% increase compared to ₹740 crore in the same period last year. However, the company posted an EBITDA loss of ₹469 crore, slightly better than the ₹513 crore loss in Q2 FY26. Despite the revenue growth, net profit declined significantly, reflecting challenges in profitability.
How did sustenance sales perform in Q2 FY27?
Godrej Properties recorded its highest-ever quarterly sustenance sales in Q2 FY27, growing 83% year-on-year and 43% quarter-on-quarter. Sustenance sales reached ₹5,054 crore during the quarter, supported by strong demand across multiple projects. This growth highlights the company's ability to maintain sales momentum despite a cautious launch strategy.
Which projects contributed most to the sales growth?
Three major projects—Godrej Trilogy in Mumbai Metropolitan Region, Godrej Vanantara in Bengaluru, and Godrej Samaris in Gurugram—each contributed more than ₹500 crore to sustenance sales in Q2 FY27. Additionally, five projects contributed over ₹500 crore each, and six projects contributed between ₹200 crore and ₹500 crore, demonstrating a diversified and balanced portfolio.
What is the company's outlook for the rest of FY27 and FY28?
Pirojsha Godrej, Chairperson of Godrej Properties, expressed confidence in surpassing full-year guidance across key metrics. The company plans to increase project launches from October onwards and expects to generate ₹15,000 crore in collections and ₹7,000 crore in operating cash flow in the second half of FY27. For FY28, the company anticipates positive free cash flow and a 20% reported return on equity, driven by project completions and sustained growth.
How did the stock market react to the Q2 FY27 results?
On October 23, 2026, at 2:30 PM, Godrej Properties shares were trading at ₹1,499.9 on the National Stock Exchange, down 4.16%. The company's market capitalization stood at ₹45,193.01 crore, reflecting investor caution following the profit decline.
Frequently Asked Questions
Q: What caused the decline in net profit despite higher income?
A: Although total income increased, higher costs and EBITDA losses contributed to the decline in net profit for Godrej Properties in H1 FY27.
Q: What are sustenance sales?
A: Sustenance sales refer to sales from ongoing projects that maintain the company's revenue stream, excluding new project launches.
Q: How does Godrej Properties plan to improve cash flow?
A: The company aims to increase project launches and collections in H2 FY27, targeting ₹15,000 crore in collections and ₹7,000 crore in operating cash flow.
