Godrej Properties Sees 42% Rise in Net Debt to Rs 4,637 Crore in Q1
Godrej Properties reports a 42% increase in net debt to Rs 4,637 crore in Q1, driven by plans to expand its business and meet strong housing demand.
Real EstateGodrej PropertiesNet DebtHousing DemandBusiness ExpansionReal Estate NewsAug 17, 2025
In a recent investors presentation, the company revealed that its debt-to-equity ratio has increased to 0.26 from 0.19. However, this ratio is still considered comfortable. During a conference call with analysts, Godrej Properties' MD and CEO, Gaurav Pandey, outlined the company's financial strategy. He stated, “From a debt perspective, we have laid out an absolute cap that we would like to look at for net debt of Rs 10,000 crore. So, we do have a fair amount of room and even that would only take us to about 0.5 or a little bit above that range.”
Pandey emphasized that the company has multiple sources of cash, including operating cash flow and the option to borrow if needed. He added, “But I think the decider of exactly where debt ends this year will be how much beyond this Rs 20,000 crore guidance, we are able to do on business development.”
Over the past few years, Godrej Properties has been very active in acquiring land parcels to develop group housing projects and residential developments. For the current fiscal year 2025-26, the company has set a guidance to acquire land parcels with a revenue potential of Rs 20,000 crore. In the first quarter of this fiscal, Godrej Properties acquired five land parcels in Mumbai, Pune, Bengaluru, and Panipat, with a revenue potential of Rs 11,400 crore. These acquisitions were made through outright purchases and joint development agreements with landowners.
Godrej Properties is on track to meet or exceed its sales bookings target of Rs 32,500 crore for this fiscal. In the previous fiscal year, the company's sales bookings increased by 31% to a record Rs 29,444 crore from Rs 22,527 crore. In the first quarter of the current fiscal, the company reported an 18% decline in pre-sales or sales bookings to Rs 7,082 crore.
Godrej Properties has been the largest real estate firm in the country in terms of sales bookings for the last two fiscal years. If the company achieves its sales bookings target of Rs 32,500 crore, it is likely to retain its top rank for the third consecutive fiscal year.
On the financial front, Godrej Properties recently reported a 15% increase in its consolidated net profit to Rs 598.40 crore in the first quarter of this fiscal, compared to Rs 518.8 crore in the same period last year. However, total income fell to Rs 1,620.34 crore in the April-June period of the 2025-26 fiscal year, down from Rs 1,699.48 crore in the corresponding period of the previous year. The Mumbai-based firm posted a net profit of Rs 1,389.23 crore on a total income of Rs 6,967.05 crore during the last financial year.
Frequently Asked Questions
What is the current net debt of Godrej Properties?
The current net debt of Godrej Properties is Rs 4,637 crore, as of the June quarter.
How much has the net debt increased compared to the previous fiscal year?
The net debt has increased by 42% compared to the previous fiscal year, where it stood at Rs 3,269 crore.
What is Godrej Properties' target for net debt?
Godrej Properties has set an absolute cap of Rs 10,000 crore for its net debt.
What is the company's sales bookings target for the current fiscal year?
Godrej Properties aims to achieve sales bookings of Rs 32,500 crore for the current fiscal year.
How did Godrej Properties perform in the first quarter of the current fiscal year in terms of sales bookings?
In the first quarter of the current fiscal year, Godrej Properties reported an 18% decline in pre-sales or sales bookings to Rs 7,082 crore.
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