Godrej Properties Q4 Review: Profit Beat Drives Bullish Bets With 35% Upside, But Valuation Risks Remain

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

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.