Godrej Properties Sees Net Debt Surge by 42% to ₹4,637 Crore in Q1 FY26
Godrej Properties, a leading real estate developer, has reported a significant 42% rise in net debt to ₹4,637 crore in the June quarter (Q1 FY26), reflecting its aggressive expansion strategy. Despite the increase, the company maintains a comfortable leverage ratio and robust financial health.
Godrej PropertiesNet DebtReal EstateExpansionFinancial PerformanceReal EstateAug 18, 2025
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.
Frequently Asked Questions
What is the net debt of Godrej Properties as of Q1 FY26?
Godrej Properties' net debt as of Q1 FY26 is ₹4,637 crore.
How much did Godrej Properties' net debt increase from the previous year?
Godrej Properties' net debt increased by 42% from ₹3,269 crore in the same quarter of the previous financial year.
What is the current debt-to-equity ratio of Godrej Properties?
The current debt-to-equity ratio of Godrej Properties is 0.26.
What is Godrej Properties' target for sales bookings in FY26?
Godrej Properties aims to achieve sales bookings of ₹32,500 crore in FY26.
How much did Godrej Properties' net profit increase in Q1 FY26?
Godrej Properties' net profit increased by 15% to ₹598.40 crore in Q1 FY26.
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