Godrej Properties Q2 FY27 results: net profit down 63.9% to ₹145.47 crore, revenue up 161.4%

How did Godrej Properties perform in Q2 FY27?

Godrej Properties reported consolidated revenue of ₹1,935 crore in Q2 FY27, up ₹1,195 crore or 161.4% from ₹740.38 crore in Q2 FY26. Against Q1 FY27, revenue rose ₹1,429 crore or 282.3% from ₹506.17 crore. Total income was ₹2,571.73 crore, up 31.9% year on year and 91.2% sequentially, while total expenses rose 90.4% to ₹2,477 crore.

EBITDA for Q2 FY27 was ₹468.78 crore, compared with ₹512.74 crore in Q2 FY26 and ₹284.97 crore in Q1 FY27. The EBITDA margin improved to -24.2% from -69.3% a year earlier and -56.3% in the previous quarter. Profit before tax was ₹98.38 crore, down 84.8% from ₹649.07 crore, while net profit was ₹145.47 crore, down 63.9% from ₹402.99 crore.

Basic EPS was ₹5.12, down from ₹13.45 in Q2 FY26 and ₹11.62 in Q1 FY27. The profit attributable to owners was ₹154.15 crore, down 61.9% from ₹405.08 crore a year earlier and 56.0% from ₹350.10 crore in the previous quarter. On a standalone basis, revenue was ₹111.83 crore and profit was ₹80.76 crore, compared with ₹13.1 crore of profit in Q2 FY26.

What changed in Godrej Properties' costs and profit?

Total expenses increased ₹1,176 crore or 90.4% year on year to ₹2,477 crore. Cost of materials was the largest movement, rising ₹1,244 crore or 32.3% to ₹5,097 crore. Other expenses rose ₹113.07 crore or 25.7% to ₹553.42 crore, finance costs increased ₹15.90 crore or 73.9% to ₹37.41 crore, and employee cost rose ₹9.66 crore or 5.8% to ₹177.40 crore.

Other income fell ₹573.11 crore or 47.4% to ₹636.56 crore from ₹1,210 crore in Q2 FY26. Tax moved from ₹162.94 crore to a tax benefit of ₹47.09 crore, a difference of ₹210.03 crore. Q2 FY27 included an exceptional gain of ₹3.39 crore, compared with no exceptional item in Q2 FY26, while Q1 FY27 had an exceptional charge of ₹8.53 crore.

Against Q1 FY27, total expenses rose ₹1,620 crore or 189.1%, led by a ₹2,183 crore increase in cost of materials. Other income was lower by ₹202.31 crore, and tax moved from ₹130.33 crore to a tax benefit of ₹47.09 crore. The filing does not provide a further explanation for the movements in the cost lines or other income.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹2,441.34 crore, up ₹1,266.4 crore or 107.8% from ₹1,174.94 crore in H1 FY26. Total income rose 9.7% to ₹3,916.77 crore from ₹3,570.39 crore, while total expenses increased to ₹2,477 crore from ₹1,301 crore in the corresponding prior period.

H1 FY27 profit before tax was ₹578.09 crore, down 62.4% from ₹1,536.83 crore, and net profit was ₹494.85 crore, down 50.6% from ₹1,001.39 crore. Basic EPS fell 49.8% to ₹16.74 from ₹33.37. Management attributed the lower first-half profit to the back-ended nature of deliveries this year.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹93,013.48 crore, compared with ₹81,894.43 crore at 31 March 2026. Total equity was ₹19,552.22 crore, against ₹19,354.89 crore, while borrowings rose to ₹19,745.56 crore from ₹15,614.87 crore. Cash fell to ₹1,626.65 crore from ₹1,860.74 crore, and inventories increased to ₹64,625.83 crore from ₹57,806.91 crore.

Trade receivables fell to ₹466.17 crore from ₹554.07 crore, while trade payables were ₹5,887.13 crore against ₹5,899.68 crore at 31 March 2026. In H1 FY27, operating cash flow was an outflow of ₹715.92 crore, compared with an outflow of ₹1,501.88 crore in H1 FY26; investing cash flow was an outflow of ₹2,628.02 crore against ₹1,940.42 crore.

Financing cash flow in H1 FY27 was ₹3,837.11 crore, compared with ₹3,009.16 crore in H1 FY26, while capital expenditure was ₹199.97 crore against ₹151.51 crore. Management separately said operating cash flow in the quarter was ₹1,584 crore and for the first half was ₹1,983 crore.

How has Godrej Properties done over the last 8 quarters?

Revenue rose in each of the last three quarters year on year, according to the reported quarterly figures. Revenue reached its latest peak at ₹1,935 crore in Q2 FY27, after ₹506.17 crore in Q1 FY27, while the lowest point in the period was ₹434.56 crore in Q1 FY26. The latest revenue figure was higher than the previous peak of ₹3,458.13 crore? No, it was lower than that peak, but up from the prior quarter.

Profit in the reported trend was highest at ₹645.44 crore in Q4 FY26 and lowest at ₹145.47 crore in Q2 FY27. EBITDA margin improved to -24.2% in Q2 FY27 from -56.3% in Q1 FY27, but remained below the 15.1% recorded in Q4 FY26 and above the -69.3% recorded in Q2 FY26.

Which businesses drove the quarter?

Real Estate was the larger reported segment in Q2 FY27, generating revenue of ₹1,905.67 crore and EBIT of ₹92.51 crore, with an EBIT margin of 4.9%. Hospitality reported revenue of ₹29.5 crore, EBIT of ₹5.87 crore and an EBIT margin of 19.9%. The filing excerpts did not provide year-ago segment revenue or EBIT figures, so a year-on-year segment comparison could not be stated.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 23 October 2026. The results were reviewed by the Audit Committee and accompanied by a limited review report from Mis. BS R & Co. LLP. The same-day filing included the company’s results presentation for its investor and analyst conference call.

The same-day investor-communications headline stated that first-half bookings were up 7%, while Q2 net profit was down 62%. The available same-day excerpts did not mention a dividend, a fund raise or any appointment. A separate filing on 5 October 2026 had scheduled the results meeting and stated that the trading window would remain closed from 1 October 2026 to 25 October 2026.

What did Godrej Properties' management say?

Management said H2 FY27 bookings were expected to be approximately ₹22,500 crore to ₹25,000 crore, with a planned launch pipeline of ₹32,000 crore across Q3 and Q4. The company expects H2 cash collections of ₹15,000 crore, operating cash flow of ₹7,000 crore and positive free cash flow. FY27 delivery guidance remained 13.5 million sq ft.

Management said FY28 targets included positive free cash flow and 20% reported ROE. It also said H1 project additions reached 78% of FY guidance, with ₹15,500 crore of expected bookings. Pirojsha Godrej said, “Our launch pipeline has never been stronger and with launches picking up substantially from this month onwards, we remain confident of surpassing our full year guidance across all key operating metrics.”

Management identified NGT and GRAP restrictions in parts of NCR and launch-approval timing as risks to the ₹32,000 crore H2 pipeline. It also referred to settlement-related consolidation and five to six remaining JV exits as potential sources of earnings noise, and noted an alleged gap between an occupancy certificate and physical handover at Godrej Splendour.

How did Godrej Properties shares react?

Godrej Properties fell 4.4% on the reaction day from its previous close of ₹1,565.00, with the shares at ₹1,506.50. The move was 1.7 percentage points weaker than the 2.7% median decline for other Residential Commercial Projects stocks. After the filing appeared, the shares were down 0.7% after 5 minutes, 0.7% after 15 minutes and 2.0% after 30 minutes.

By the next day's close, the stock was down 2.5% from its pre-results close, 0.2 percentage points weaker than the 2.3% median decline for the industry. By the fifth session, it was up 0.2% from the pre-results close, while the industry median was down 0.3%. Earlier reaction-day moves included declines of 2.7% on 4 August 2026 and 4.4% on 6 November 2025, as well as gains of 4.7% on 4 May 2026 and 2 May 2025.

How did other Residential Commercial Projects companies do?

Thirty-five other Residential Commercial Projects companies had filed for the quarter by 4 November 2026. Their median revenue growth was 17.6%, compared with Godrej Properties’ consolidated revenue growth of 161.4%. Of the peers, 32 grew revenue more slowly than Godrej Properties, while 3 grew faster.

Twenty-one of the 35 peers reported higher profit. Peer performance was measured against the same quarter on a consolidated basis where available; the filing excerpts did not provide additional peer-by-peer operating figures.