Godrej Properties' Q4 margin rebounds as revenue rises 62.99% YoY
Revenue grew faster than costs, but other income still accounted for 49.97% of pre-tax profit; the initial stock gain later reversed.
Filed 04 May 2026, 12:34 IST · Godrej Properties Ltd (GODREJPROP)
Key takeaways
- Consolidated operating margin recovered 51.77 percentage points QoQ to 15.10% as revenue grew +593.90% while expenses rose +331.05%.
- Net profit increased +70.55% YoY to Rs 645.44 cr, but other income contributed 49.97% of pre-tax profit and the tax rate fell 7.48 percentage points.
- The stock gained +3.52% initially, an unusual move for a share that fell after seven of its past eight results with a median absolute move of 2.87%.
Price around the results
Q4 revenue rebound restores operating profitability
Consolidated revenue grew +62.99% YoY, outpacing the +45.94% rise in expenses and lifting operating margin by 9.92 percentage points. The sequential recovery was sharper, with revenue up +593.90% and operating margin improving 51.77 percentage points from -36.67% in Q3FY26. Management said it delivered about 7.4 million square feet across eight cities during the quarter.
Cost growth supported margins, but profit quality remains mixed
Costs grew slower than revenue YoY, which explains the operating-margin expansion despite interest rising +12.29% and depreciation increasing +69.06%. Other income fell -17.09% YoY but still represented 49.97% of pre-tax profit, making a substantial contribution to reported earnings. The tax rate declined 7.48 percentage points, which also helped net profit grow faster than pre-tax profit.
Margin reverses the FY26 deterioration and edges above peers
Operating margin had declined to -69.25% in Q2FY26 and improved to -36.67% in Q3FY26 before reaching 15.10% in Q4FY26. The quarter's margin was 0.29 percentage points above the 14.81% median among 93 Consumer Discretionary peers that had reported the same quarter. On a YoY basis, the 9.92-percentage-point improvement is the clearest break from the prior two quarters' negative margins.
Bookings and FY27 targets give the operating result context
Management said Q4FY26 booking value reached Rs 10,163 cr, up +21.00% QoQ, from 4,789 units covering 7.3 million square feet. The company said Godrej Aveline generated Rs 1,572 cr of bookings after its March 2026 launch. For FY27, management targeted launch value of Rs 48,000 cr, booking value of Rs 39,000 cr, customer collections of Rs 24,000 cr and deliveries of 13.5 million square feet.
Initial market gain was atypical and did not hold
The stock rose +3.52% on the results date, with volume at 2.64 times its reference level, before falling -2.23% after five sessions and -3.70% after 15 sessions. That initial gain was larger than the historical median absolute move of 2.87%, while the later decline was consistent with the stock's record of seven down reactions in eight results. Relative performance also shifted from +3.01% on day zero to -1.47% after five sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,458 cr | ₹498 cr | +593.90% | +62.99% |
| Other income | ₹434 cr | ₹500 cr | -13.13% | -17.09% |
| Expenses | ₹2,936 cr | ₹681 cr | +331.05% | +45.94% |
| Operating profit | ₹522 cr | ₹-183 cr | — | +374.94% |
| Operating margin (%) | 15.10% | -36.67% | — | — |
| Interest | ₹52 cr | ₹31 cr | +66.39% | +12.29% |
| Depreciation | ₹36 cr | ₹32 cr | +12.83% | +69.06% |
| Profit before tax | ₹869 cr | ₹255 cr | +241.33% | +53.37% |
| Tax | ₹224 cr | ₹61 cr | +268.11% | +18.85% |
| Net profit | ₹645 cr | ₹194 cr | +232.92% | +70.55% |
| EPS (₹) | ₹21.58 | ₹6.48 | +233.02% | +70.19% |
Operating margin of 15.10% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.52% | +3.01% |
| Next session | -1.40% | — |
| 5 sessions | -2.23% | -1.47% |
| 15 sessions | -3.70% | — |
| 30 sessions | -2.22% | — |
Volume on the results session was 2.64× its 20-day average.
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 delivered projects aggregating approximately 7.4 million square feet across eight cities in Q4 FY26.
- Q4 FY26 booking value was INR 10,163 crore, achieved through sales of 4,789 units covering 7.3 million square feet.
Guidance & outlook
- GPL targets FY27 launch value of INR 48,000 crore and booking value of INR 39,000 crore.
- GPL targets FY27 customer collections of INR 24,000 crore.
- GPL targets FY27 deliveries of 13.5 million square feet.
- GPL intends to deliver 20% ROE from FY28 while retaining market share leadership across cycles.
New orders
- Godrej Aveline generated booking value of INR 1,572 crore after its March 2026 launch.
What to watch
- Whether operating margin holds above 15.10% after the Q4 recovery.
- Whether other income's 49.97% share of pre-tax profit declines in the next reported quarter.
- Progress against management's FY27 targets of Rs 48,000 cr launch value and Rs 39,000 cr booking value.