Godrej Properties reported a 62 per cent year-on-year decline in consolidated net profit for the second quarter of FY27 to ₹154 crore, even as revenue, sustenance sales and cash collections increased during the period. The company attributed the profit decline to higher operating costs, while some property launches were deferred to the third quarter.
Net profit stood at ₹154 crore in the quarter, compared with ₹405 crore in the same quarter last year. Total revenue rose 38 per cent year-on-year to ₹2,575 crore. However, total expenses increased 90 per cent to ₹2,476 crore, putting pressure on earnings. EBITDA declined 72 per cent to ₹171 crore.
The value of properties booked during the quarter fell 6 per cent to ₹8,008 crore. The company said the decline was linked to the deferral of some planned launches to the third quarter. It sold 3,658 units during the quarter, covering a total area of 6.2 million square feet.
Godrej Properties Chairperson Pirojsha Godrej said the company’s underlying operating performance remained strong despite what he described as muted headline earnings and bookings numbers. Sustenance sales rose 83 per cent year-on-year to ₹5,054 crore, while cash collections increased 31 per cent to ₹5,318 crore.
The company said it launched only one-third of its expected annual launch pipeline during the first half of the financial year but achieved 43 per cent of its annual bookings guidance during that period. Godrej said this reflected continued demand for the company’s projects, although the supplied results do not provide a project-wise or city-wise breakdown of bookings.
Godrej Properties said it remained confident of surpassing its full-year guidance across key operating metrics. The company expects to generate ₹15,000 crore in collections and ₹7,000 crore in operating cash flow during the second half of FY27, according to the statement quoted in the report.
The results highlight the difference between property sales momentum and reported profitability in the residential real-estate business. Higher revenue and collections did not prevent a sharp fall in profit because expenses increased substantially during the quarter. The impact of deferred launches will also be reflected in the timing of bookings and revenue recognition across subsequent reporting periods.
The company’s next major operating milestones will be the launches deferred to the third quarter and its progress against the stated second-half targets for collections, operating cash flow and annual bookings.
