Godrej Properties swings to an operating loss as Q1 revenue drops 85% QoQ
Other income equal to 173.09% of pre-tax profit supported earnings, while management added projects with expected booking value of Rs 9,500 cr.
Filed 04 Aug 2026, 11:29 IST · Godrej Properties Ltd (GODREJPROP)
Key takeaways
- Consolidated Q1FY27 operating margin fell to -56.30% as revenue declined 85.36% QoQ while expenses fell 73.05%.
- Net profit was supported by other income, which equalled 173.09% of pre-tax profit, despite a Rs 284.97 cr operating loss.
- Management said it added three projects worth an expected Rs 9,500 cr of booking value in Q1FY27.
Price around the results
Q1 revenue reset followed a sharp fall in deliveries
Consolidated revenue fell 85.36% QoQ, reversing the high base of Q4FY26, while operating profit swung from Rs 522.24 cr to a loss of Rs 284.97 cr. Management said Q1FY27 deliveries were 0.9 million sq. ft. versus 7.4 million sq. ft. in Q4FY26, reducing collections by Rs 3,600 cr QoQ. On a year-on-year basis, revenue still grew 16.48%, but expenses grew slightly faster at 16.71%.
Other income carried profit while operating margin weakened
Operating margin narrowed 71.40 percentage points QoQ because expenses contracted less than revenue, and it was 0.31 percentage points lower YoY as costs again grew faster than revenue. Other income contributed 173.09% of pre-tax profit, making the Rs 349.38 cr net profit dependent on a non-operating source while the operating business remained loss-making. The YoY tax-rate decline of 3.29 percentage points also reduced the drag on net profit, although interest expense rose 8.72%.
Margin was far below the Consumer Discretionary peer median
The company's -56.30% operating margin was 69.63 percentage points below the 13.33% median for 67 Consumer Discretionary peers that had reported the quarter. It ranked first from the bottom on this measure. The quarter also reversed Q4FY26's 15.10% operating margin after margins had improved from -69.25% in Q2FY26 to -36.67% in Q3FY26.
New projects expand the pipeline, with targets set for FY27-FY28
Management said the three Q1 additions are in Greater Noida, Noida Sector 150 and Chennai OMR, with estimated saleable area of 8.05 million sq. ft. and expected booking value of Rs 9,500 cr. The company told investors it expects FY27 launch value of Rs 48,000 cr and booking value of Rs 39,000 cr. Management also said it expects FY27-FY28 collections of Rs 52,000-55,000 cr and operating cash flow of Rs 20,000-22,000 cr, while noting that quarterly cash flow varies with bookings, construction milestones and deliveries.
No post-results move yet; history has skewed negative
The results are too fresh for a post-results market reaction. Across eight recent result reactions, the stock fell seven times, with a median absolute move of 2.87%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹506 cr | ₹3,458 cr | -85.36% | +16.48% |
| Other income | ₹830 cr | ₹434 cr | +91.14% | -28.33% |
| Expenses | ₹791 cr | ₹2,936 cr | -73.05% | +16.71% |
| Operating profit | ₹-285 cr | ₹522 cr | — | -17.13% |
| Operating margin (%) | -56.30% | 15.10% | — | — |
| Interest | ₹36 cr | ₹52 cr | -31.16% | +8.72% |
| Depreciation | ₹30 cr | ₹36 cr | -15.44% | +36.66% |
| Profit before tax | ₹480 cr | ₹869 cr | -44.82% | -44.26% |
| Tax | ₹130 cr | ₹224 cr | -41.81% | -50.29% |
| Net profit | ₹349 cr | ₹645 cr | -45.87% | -41.61% |
| EPS (₹) | ₹11.62 | ₹21.58 | -46.15% | -41.67% |
Operating margin of -56.30% compares with a Consumer Discretionary sector median of 13.33% across 67 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- GPL intends to deliver 20% ROE from FY28 while retaining market share leadership.
- GPL expects to deliver and recognize INR 40,000 crores of booking value in P&L by FY28.
- GPL expects FY27 and FY28 collections of INR 52,000-55,000 crores and operating cash flow of INR 20,000-22,000 crores, enabling it to be FCF positive by FY28.
- GPL's FY27 launch value guidance is INR 48,000 crore.
- GPL's FY27 booking value guidance is INR 39,000 crore.
Expansion
- GPL added three projects in Q1 FY27 with estimated saleable area of 8.05 million sq. ft. and expected booking value of INR 9,500 crore.
- The three added projects are in Greater Noida, Noida Sector 150 and Chennai OMR.
- GPL expects major projects and phases across Bengaluru, Gurugram, MMR, Noida, Pune and Kolkata to be delivered by FY28.
Problems & risks
- Operating cash flow varies quarterly because collections are volatile and depend on bookings, construction progress, milestones and deliveries.
- Q1 FY27 deliveries were 0.9 million sq. ft. versus 7.4 million sq. ft. in Q4 FY26, reducing collections by INR 3,600 crores quarter on quarter.
- Construction and related outflow increased 54% because of the increased pace of execution.
What to watch
- Whether operating margin recovers from -56.30% after the Q1FY27 decline.
- Whether expenses continue to grow faster than revenue, following the 16.71% versus 16.48% YoY split.
- Whether deliveries move up from 0.9 million sq. ft. after 7.4 million sq. ft. in Q4FY26.