Godrej Properties profit to jump next fiscal Rs 40k cr revenue recognition by Mar 2028 Pirojsha Godrej

New Delhi, Nov 1 (PTI) Real estate firm Godrej Properties will recognise about Rs 40,000 crore in revenue in its books by March 2028, as it has stepped up construction work to complete ongoing housing projects, a top company official said.

    In an interview with PTI, Godrej Properties Ltd Chairperson Pirojsha Godrej said there would be a huge jump in revenue and profit next fiscal year due to a sharp jump in deliveries of residential projects.

    The company's sales bookings or pre-sales get recognised as revenue only when projects get completed as per accounting standards.

    Pirojsha mentioned that many projects, which are completely sold out, would be delivered over the next 18 months and become eligible for revenue recognition.

    "So, you will see a huge jump in both revenues and earnings next fiscal year," he said.

    Pirojsha said the company has set a target to deliver 13.5 million sq ft area this fiscal, the bulk of which would happen in the third and fourth quarter.

    The construction spend has risen 42 per cent annually during the first six months of this fiscal.

    In its latest investors' presentation, Godrej Properties said, "BV (booking values of Rs 40,000 crores to be delivered and recognised in P&L (profit and loss account) by FY28".

    Pirojsha mentioned that 2027-28 will be an important year for the company as the exceptional growth of the past two years in terms of record pre-sales would get reflected in the reported financial numbers.

    "We expect to deliver both positive free cash flow and a 20 per cent reported ROE (return on equity) in FY28," he said.

    Godrej Properties has been the country's largest listed real estate firm in terms of sales bookings in the last few financial years. It is set to retain the position even this fiscal.

    In 2026-27, the company's sales bookings are expected to rise 22 per cent to a record Rs 41,500 crore, beating annual guidance on strong demand for its housing properties.

    In the last fiscal year, Godrej Properties had sold properties worth Rs 34,171 crore, and the company set a pre-sales or sales bookings guidance of Rs 39,000 crore for the current 2026-27 fiscal.

    Already, the company's sales bookings rose 7 per cent to Rs 16,659 crore in the first six months of this fiscal, a 7 per cent increase from Rs 15,587 crore in the year-ago period.

    "We are not seeing any of our own projects where we are disappointed with off-take or demand. I would say from a company perspective, demand has been quite strong," Pirojsha said.

    Godrej Properties develops group housing projects in Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, Bengaluru and Hyderabad. It is offering housing plots across many cities in various states.

    Last month, Godrej Properties reported a 62 per cent decline in its consolidated net profit to Rs 154.15 crore for the quarter ended September, driven by higher expenses.

    Its net profit stood at Rs 405.08 crore in the year-ago period.

    The total income rose to Rs 2,571.73 crore in the second quarter of the current fiscal from Rs 1,950.05 crore in the corresponding period of the preceding financial year.

    Its expenses surged to Rs 2,476.74 crore during the period under review compared to Rs 1,300.98 crore a year ago.

    In the first half of this fiscal, net profit declined 50 per cent to Rs 504 crore from Rs 1,005 crore in the year-ago period, while total income grew to Rs 3,916.77 crore from Rs 3,570.39 crore.

    In 2025-26, the company posted a net profit of Rs 1850 crore on a total income of Rs 8410.88 crore.

    Godrej Properties has completed projects spanning more than 80 million sq ft since 2018.

(This story has not been edited by THE WEEK and is auto-generated from PTI)