Godrej Properties Ltd is targeting pre-sales, or bookings, of ₹32,500 crore for FY26, implying 10% year-on-year growth. But after an 18% year-on-year drop in pre-sales during the June quarter (Q1FY26) to ₹7,082 crore, investors may question whether the goal is ambitious.
Lower sales from existing projects in the National Capital Region (NCR) and last year’s high base led the decline. Godrej launched six new projects/phases in Q1, compared to eight a year ago.
New projects—Godrej MSR City and Godrej Tiara in Bengaluru, and Godrej Majesty in Noida—together accounted for over half of Q1 pre-sales. The company has a strong pipeline for FY26, including upcoming projects in Gurugram, Greater Noida, and Worli, and has reiterated its full-year launch guidance of ₹40,000 crore.
However, deliveries were muted at just 0.8 million sq. ft in Q1, against a full-year target of 10 million sq. ft. Here, ‘delivery’ refers to the transfer of ownership or possession to buyers. Lower deliveries hurt operating cash flows.
Due toweaker-than-expected sales from new launches, Nomura Global Markets Research expects Godrej to miss itsFY26 pre-sales guidance by 5%. Also, medium-term pre-sales growth could be slower than its aspirational goal of a 20% compound annual growth rate (CAGR), as new business development trends do not inspire confidence in Godrej’s ability to sharply scale-up launches, said the Nomura report on 3 August.
In Q1, Godrej added five new projects with a combined revenue potential of around ₹11,400 crore, achieving 57% of its full-year business development target. But elevated spending on land acquisitions a higher cash outgo and higher net debt sequentially.
So far in 2025, Godrej’s shares are down 25%, underperforming the Nifty Realty index’s 13% decline. There is growing concern about softening housing demand in the company’s key markets of Bengaluru, the Mumbai Metropolitan Region, and NCR. To offset its geographic concentration risk, the company is expanding into tier-2 cities in Q2FY26 and entering plotted developments in Raipur and Vadodara. But the gestation period and timely execution of these projects will be critical to meeting FY26 pre-sales targets.
That said, the headroom for growth is tightening. “After delivering a 55% CAGR in pre-sales over FY21–25, the muted FY26 guidance reflects cautious optimism,” said Antique Stock Broking.
Peer Lodha Developers Ltd targets 20% pre-sales growth in FY26. While Godrej remains focused on pricing discipline—selling at justified premiums—and is selective with land additions, sustaining 20%+ CAGR in pre-sales along with healthy margins may prove difficult from its already-elevated base, Antique noted.
