Godrej Properties’ net debt jumps 42 pc in Q1 FY26

Mumbai, Aug 17 Real estate major Godrej Properties has seen its net debt rise sharply by 42 per cent in the June quarter (Q1 FY26) to Rs 4,637 crore, compared with Rs 3,269 crore in the same quarter of the previous financial year.

The increase comes as the company continues to aggressively expand its housing portfolio to tap into strong demand in the real estate market.

According to the company’s latest investor presentation, the debt-to-equity ratio increased to 0.26 from 0.19. Despite the rise, the firm said its leverage remains at a comfortable level.

Speaking to analysts, Godrej Properties Managing Director and CEO Gaurav Pandey said the company has capped its net debt at Rs 10,000 crore.

He explained that even at this level, the debt-to-equity ratio would only touch around 0.5, which the company considers manageable.

Pandey added that the firm has sufficient cash flow from operations and borrowing capacity to support its short-term requirements.

He also pointed out that the final debt position this year would depend on the extent of business development beyond the company’s guidance of Rs 20,000 crore worth of housing projects.

Godrej Properties has been very active in acquiring land parcels over the past few years, targeting both group housing and plotted residential developments.

In the April–June quarter, the company acquired five land parcels across Mumbai, Pune, Bengaluru, and Panipat, with a combined revenue potential of Rs 11,400 crore.

For FY26, it has guided for acquisitions worth Rs 20,000 crore.

On the operational side, Godrej Properties aims to surpass its record sales bookings of Rs 29,444 crore in FY25 and has set a target of Rs 32,500 crore for FY26.

In the first quarter, however, its pre-sales declined 18 per cent year-on-year (YoY) to Rs 7,082 crore.

Despite this dip, the company is likely to retain its position as India’s top real estate player in terms of sales bookings for the third consecutive year.

On the financial front, Godrej Properties reported a 15 per cent rise in consolidated net profit to Rs 598.40 crore in the June quarter, compared with Rs 518.8 crore in the same period previous year.

Its total income fell slightly to Rs 1,620.34 crore from Rs 1,699.48 crore a year earlier.

For FY25, the company had posted a net profit of Rs 1,389.23 crore on a total income of Rs 6,967.05 crore.

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