- Godrej Properties' Q4 profit rose 70.2% sequentially to Rs 650 crore
- Revenue grew 63% QoQ to Rs 3,458 crore with margins improving to 15.1%
- Jefferies and Bank of America maintain Buy ratings with higher price targets
Godrej Properties capped FY26 with a sharp earnings beat, reporting a 70.2% sequential jump in profit to Rs 650 crore for the March quarter. Revenue surged 63% quarter-on-quarter to Rs 3,458 crore, while margins expanded significantly to 15.1% from 5.2% in the previous quarter, reflecting strong operating leverage and execution. The performance, coupled with robust bookings and cash flow visibility, has prompted bullish commentary from global brokerages.
Godrej Properties Q4 Results: Key Highlights (Cons, YoY)
- Revenue up 63% at Rs 3,458 crore versus Rs 2,122 crore.
- Ebitda rose to Rs 522 crore versus Rs 110 crore.
- Ebitda margin at 15.1% versus 5.2%.
- Net profit surges 70.2% at Rs 650 crore versus Rs 382 crore.
- Other income at Rs 348.5 crore versus Rs 559 crore.
Jefferies maintained a ‘Buy' rating and raised its target price to Rs 2,475, citing confidence in growth and cash flow visibility through FY27. Bank of America (BofA) echoed similar optimism, maintaining a ‘Buy' with a higher target of Rs 2,600. It flagged a strong FY26 finish, and better-than-expected operating cash flows. Adding to the positive narrative, the company announced a dividend for the first time in a decade and saw promoters increase their stake by 5%.
In contrast, Investec downgraded the stock to ‘Hold', trimming its target price to Rs 1,986. While acknowledging solid fundamentals, strong pre-sales and improving collections, the brokerage believes current valuations fairly capture near-term growth.
Jefferies on Godrej Properties
- Jefferies maintains a Buy rating and hikes the target price to Rs 2,475 from Rs 2,420.
- FY27 outlook reflects strong confidence in growth and cash flows.
- Higher construction spends in FY26 and strong pre-sales are expected to drive ~20% ROE and a free cash flow turnaround by FY28.
- Management has announced a dividend after a decade, signalling improving financial strength.
- Promoters have also increased their stake by 5%.
- The brokerage believes sustained execution on financial metrics can drive a meaningful re-rating.
BofA on Godrej Properties
- BofA maintains a Buy rating with a target price of Rs 2,600.
- The company delivered a strong finish to FY26.
- Q4 bookings and operating cash flows were ahead of expectations.
- FY27 guidance is stronger than anticipated, with a healthy bookings outlook.
- Management targets ~20% ROE by FY28.
Investec on Godrej Properties
- Investec downgrades the stock to Hold from Buy and cuts the target price to Rs 1,986 from Rs 1,994.
- Fundamentals remain intact, but valuations appear fair at current levels.
- Collections are expected to improve, supported by strong execution.
- Pre-sales momentum remains robust, driven by new launches.
ALSO READ: Godrej Properties Q4 Results: Profit Surges Over 70%; Shares Hit Nearly Four-Month High
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