Godrej Properties Net Debt Jumps 42% in Q1 FY26

18 Aug 2025 , 12:49 PM

Godrej Properties Ltd reported a sharp rise in its net debt during the first quarter of FY26, climbing 42% year-on-year to ₹4,637 crore. This is compared with ₹3,269 crore in the same period last year.

The company attributed the increase to its aggressive expansion strategy, as it continues to acquire land and scale up its housing portfolio to capitalise on robust demand in the real estate sector. As per the latest investor presentation, the debt-to-equity ratio moved up to 0.26 from 0.19 a year ago.

Despite the increase, the company said its leverage position remains comfortable. Managing Director and CEO Gaurav Pandey told analysts that net debt has been capped at ₹10,000 crore. Even at that level, he explained, the debt-to-equity ratio would only touch 0.5, which the firm considers manageable.

Pandey also highlighted that operational cash flows and borrowing headroom are sufficient to meet short-term funding requirements. He added that the company’s final debt position this year would depend on the scale of business development, which is guided at ₹20,000 crore worth of housing projects. Godrej Properties has been actively acquiring land parcels in recent years, focusing on both group housing and plotted residential projects.

In Q1 FY26, it purchased five land parcels in Mumbai, Pune, Bengaluru, and Panipat, with an estimated revenue potential of ₹11,400 crore. For the full year, the company has guided for acquisitions totalling ₹20,000 crore.

On the operational front, Godrej Properties has set a sales bookings target of ₹32,500 crore for FY26, aiming to surpass its record ₹29,444 crore achieved in FY25. However, pre-sales in the April–June quarter fell 18% YoY to ₹7,082 crore.

Despite the dip, the company is expected to retain its position as the top real estate developer in India in terms of sales bookings for a third consecutive year.

Financially, consolidated net profit for Q1 FY26 rose 15% YoY to ₹598.40 crore. This is compared with ₹518.80 crore a year earlier. Total income, however, dipped marginally to ₹1,620.34 crore from ₹1,699.48 crore in Q1 FY25. In the previous financial year (FY25), Godrej Properties reported a net profit of ₹1,389.23 crore on a total income of ₹6,967.05 crore.

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