Godrej Properties Sees 42% Rise in Net Debt to Rs 4,637 Crore in Q1, Debt-Equity Ratio at 0.26
Godrej Properties' net debt surged by 42% to Rs 4,637 crore in the June quarter, driven by strategic land acquisitions to meet strong housing demand. Despite the rise, the company remains confident in its financial stability and is on track to meet its sales bookings target of Rs 32,500 crore.
Godrej PropertiesReal EstateNet DebtDebtequity RatioLand AcquisitionsReal Estate MumbaiAug 17, 2025
The company's management has outlined a clear strategy to manage its debt levels. During a conference call with analysts, Godrej Properties MD and CEO Gaurav Pandey 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 ability to borrow if needed in the short term.
Godrej Properties has been highly active in acquiring land parcels to support its growth. For the current 2025-26 fiscal year, the company aims to acquire land parcels with a potential revenue of Rs 20,000 crore. In the first quarter of this fiscal, the company acquired five land parcels in strategic locations, including Mumbai, Pune, Bengaluru, and Panipat. These acquisitions, which were made through outright purchases and joint development agreements with landowners, have a revenue potential of Rs 11,400 crore.
The company is committed to maintaining its position as a leading real estate developer in India. Godrej Properties has set a sales bookings target of Rs 32,500 crore for the current fiscal year and is on track to meet or even exceed this target. In the past two fiscal years, Godrej Properties has been the country's largest real estate firm in terms of sales bookings, with a record sales booking of Rs 29,444 crore in the 2024-25 fiscal year, up 31% from Rs 22,527 crore in the preceding year.
However, the first quarter of the current fiscal year saw an 18% decline in pre-sales or sales bookings to Rs 7,082 crore. Despite this, the company remains optimistic about its performance for the rest of the year. On the financial front, Godrej Properties 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. Total income, however, fell slightly 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. Godrej Properties' strategic focus on land acquisitions and financial prudence positions it well to continue its growth trajectory and maintain its leadership in the Indian real estate market.
Frequently Asked Questions
What is the current net debt of Godrej Properties?
Godrej Properties' net debt increased to Rs 4,637 crore in the June quarter, up 42% from the previous fiscal year.
What is Godrej Properties' debt-to-equity ratio?
Godrej Properties' debt-to-equity ratio is 0.26, which is considered a comfortable level despite the increase from 0.19 in the previous fiscal year.
What is Godrej Properties' sales bookings target for the current fiscal year?
Godrej Properties has set a sales bookings target of Rs 32,500 crore for the current fiscal year.
Where did Godrej Properties acquire new land parcels in the first quarter of this fiscal year?
Godrej Properties acquired five new land parcels in Mumbai, Pune, Bengaluru, and Panipat during the first quarter of this fiscal year.
What is Godrej Properties' strategy for managing its debt levels?
Godrej Properties has set an absolute cap of Rs 10,000 crore for net debt and plans to manage its debt through operating cash flow and strategic borrowing if needed.
Related News Articles
Prestige One Partners with Colliers Project Leaders to Elevate Real Estate Standards
Prestige One forms strategic alliance with Colliers Project Leaders to enhance quality and delivery standards, solidifying its position in the real estate market.
WSB Real Estate Raises ₹7 Billion for Affordable Housing Projects
WSB Real Estate has successfully secured ₹7 billion in funding to invest in mid-income and affordable housing projects, aiming to address the growing demand for affordable housing in India.
India's Luxury Real Estate Market Surges 37.8% in 2024
The luxury real estate market in India is witnessing robust growth, particularly in metropolitan areas such as Delhi-NCR, Mumbai, and Hyderabad. High-net-worth individuals (HNIs) are driving this surge, showing a strong preference for high-end homes with
Ahmedabad Shines with Top Rental Yields in India
Ahmedabad leads the pack with the highest rental yields in India, clocking in at 3.9%, according to a recent report by Magicbricks. Other cities like Hyderabad, Kolkata, and Pune are also seeing significant increases in rental returns.
Union Budget 2025: Real Estate Players Eye Reforms to Boost Housing Demand
Real estate players are optimistic that the Union Budget 2025 will introduce more reforms to enhance housing demand. Key demands include improved housing finance, tax reforms, and faster project clearances.
Oberoi Realty to Redefine Mumbai's Bandra Reclamation with Major Development
Oberoi Realty, a leading property developer in Mumbai, has recently entered into a significant agreement to redevelop a 2.5-acre land parcel in Bandra reclamation. The project, which is part of the Slum Rehabilitation Authority's (SRA) initiative, aims to