Godrej Properties posts Rs 145.47 cr profit despite operating loss
Other income and a tax benefit lifted earnings, while operating margin improved 32.08 percentage points QoQ but stayed negative at -24.22%.
Filed 23 Oct 2026, 12:24 IST · Godrej Properties Ltd (GODREJPROP)
Key takeaways
- Godrej Properties reported consolidated net profit of Rs 145.47 cr, despite an operating loss of Rs 468.78 cr.
- Operating margin improved 32.08 percentage points QoQ as revenue growth of +282.32% outpaced expense growth of +203.86%, but remained negative at -24.22%.
- Other income was 650.49% of pre-tax profit and the tax rate was -47.87%, making reported profit dependent on non-operating and tax effects.
Price around the results
Other income and tax benefit drove reported profit
This consolidated quarter produced a pre-tax profit of Rs 98.38 cr even though the operating loss was Rs 468.78 cr. Other income of Rs 639.95 cr accounted for 650.49% of pre-tax profit, while the negative tax rate of -47.87% further lifted net profit to Rs 145.47 cr. Interest expense rose +5.26% QoQ and +73.92% YoY, adding pressure below the operating line.
Margins recovered from Q1 but remain below peers
Revenue rose +282.32% QoQ and +161.38% YoY, while expenses increased at slower rates of +203.86% and +91.84%, respectively; this explains the 32.08- and 45.03-percentage-point improvements in operating margin. The margin nevertheless remained negative at -24.22%, after -56.30% in Q1FY27 and +15.10% in Q4FY26, showing a volatile rather than steady recovery. It was 36.50 percentage points below the 12.28% median for 40 Consumer Discretionary peers that had reported, placing the company fourth from the bottom.
Bookings were Rs 8,008 cr as launches shifted
Management said Q2 booking value was Rs 8,008 cr from 3,658 units covering 6.2 million sq. ft. The presentation attributed lower operational sales to some launches moving to Q3FY27 and launches totaling Rs 5,500 cr in the quarter. Management said it expects H2FY27 bookings of Rs 22,500-25,000 cr, and said four projects added in H1FY27 carry expected booking value of Rs 15,500 cr. It also said H2FY27 collections and operating cash flow could reach approximately Rs 15,000 cr and Rs 7,000 cr, respectively.
No current market move; prior reactions were mostly negative
The post-results stock move is not yet available. Across eight prior results reactions, the stock fell seven times, with a median absolute move of 2.68%, so the historical pattern has been more often negative than positive.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,935 cr | ₹506 cr | +282.32% | +161.38% |
| Other income | ₹640 cr | ₹830 cr | -22.93% | -43.19% |
| Expenses | ₹2,404 cr | ₹791 cr | +203.86% | +91.84% |
| Operating profit | ₹-469 cr | ₹-285 cr | -64.50% | +8.57% |
| Operating margin (%) | -24.22% | -56.30% | — | — |
| Interest | ₹37 cr | ₹36 cr | +5.26% | +73.92% |
| Depreciation | ₹35 cr | ₹30 cr | +17.46% | +34.27% |
| Profit before tax | ₹98 cr | ₹480 cr | -79.49% | -82.62% |
| Tax | ₹-47 cr | ₹130 cr | — | — |
| Net profit | ₹145 cr | ₹349 cr | -58.36% | -63.90% |
| EPS (₹) | ₹5.12 | ₹11.62 | -55.94% | -61.93% |
Operating margin of -24.22% compares with a Consumer Discretionary sector median of 12.28% across 40 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- GPL achieved Q2 FY27 booking value of INR 8,008 crores through sales of 3,658 units covering 6.2 million sq. ft.
Guidance & outlook
- GPL intends to deliver 20% ROE from FY28 while retaining market share leadership.
- GPL expects H2 FY27 bookings of INR 22,500-25,000 crores, supported by twice the launches and continued sustenance sales momentum.
- GPL expects FY27 bookings growth of 15-20% year-on-year, implying a five-year CAGR of 38-40%.
- GPL expects H2 FY27 collections and operating cash flows of approximately INR 15,000 crores and INR 7,000 crores, enabling positive free cash flow.
- The FY27 guidance includes booking value of INR 39,000 crore and customer collections of INR 24,000 crore.
Expansion
- GPL added a new Marine Lines, Mumbai project with approximately 1.1 million sq. ft. of estimated saleable area and INR 6,000 crore expected booking value.
- GPL added four projects in H1 FY27 with approximately 9.1 million sq. ft. of saleable area and INR 15,500 crore expected booking value.
- Projects with approximately INR 40,000 crore of booking value are expected to be delivered and recognized in profit and loss by FY28.
New initiatives
- Habitat Matters invited start-ups, research institutions and technology providers to submit solutions across multiple construction materials.
Competition
- GPL reported being the largest Indian real estate developer by booking value, booking volume and cash collections in FY25 and FY26.
Problems & risks
- Q2 sales were lower year-on-year and quarter-on-quarter because some launches moved to Q3 FY27 and launches totaled only INR 5,500 crores.
- Project deliveries may be delayed beyond initial expectations because they depend on regulatory approvals.
What to watch
- Whether operating margin improves from -24.22% without a similarly large contribution from other income.
- Whether H2FY27 bookings reach management's stated Rs 22,500-25,000 cr range.
- Whether management's stated H2FY27 collections of approximately Rs 15,000 cr and operating cash flow of Rs 7,000 cr are delivered.