Godrej Properties Sees 42% Increase in Net Debt in Q1 FY26
Real estate giant Godrej Properties reports a 42% jump in net debt to Rs 4,637 crore in the June quarter of FY26, driven by aggressive expansion and land acquisitions.
Godrej PropertiesNet DebtReal EstateLand AcquisitionsFinancial PerformanceReal EstateAug 17, 2025
The company's latest investor presentation reveals that the debt-to-equity ratio has increased to 0.26 from 0.19. Despite this rise, Godrej Properties maintains that its leverage remains at a comfortable level.
Speaking to analysts, Godrej Properties Managing Director and CEO Gaurav Pandey explained that the company has set a cap on its net debt at Rs 10,000 crore. Even at this level, the debt-to-equity ratio would only reach around 0.5, which the company deems manageable.
Pandey further stated that the firm has sufficient cash flow from operations and borrowing capacity to meet its short-term requirements. He noted that the final debt position this year will 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 highly active in acquiring land parcels over the past few years, focusing on 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 set a target for acquisitions worth Rs 20,000 crore.
On the operational front, 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. However, in the first quarter, its pre-sales declined 18 per cent year-on-year (YoY) to Rs 7,082 crore. Despite this dip, the company is expected 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 the 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.
Frequently Asked Questions
Why did Godrej Properties' net debt increase by 42% in Q1 FY26?
Godrej Properties' net debt increased by 42% in Q1 FY26 due to aggressive expansion in the housing market and land acquisitions to capitalize on strong demand.
What is Godrej Properties' debt-to-equity ratio as of Q1 FY26?
Godrej Properties' debt-to-equity ratio as of Q1 FY26 is 0.26, up from 0.19 in the same quarter of the previous year.
What is Godrej Properties' target for land acquisitions in FY26?
Godrej Properties aims to acquire land worth Rs 20,000 crore in FY26.
What are Godrej Properties' sales booking targets for FY26?
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.
How did Godrej Properties' financial performance fare in Q1 FY26?
In Q1 FY26, Godrej Properties reported a 15% rise in consolidated net profit to Rs 598.40 crore, while its total income fell slightly to Rs 1,620.34 crore from Rs 1,699.48 crore in the same period the previous year.
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