Godrej Properties Targets Rs 32,500 Crore Sales In FY26

Real estate developer Godrej Properties is targeting a booking value of Rs 32,500 crore in FY26, according to Gaurav Pandey, the Managing Director and Chief Executive Officer (CEO) of the company. The leading realty player is targeting collections worth Rs 21,000 crore in FY26.

“Our guidance for FY25 was about Rs 27,000 crore. We should have continued growth of about 20% over last year's guidance. We are looking at Rs 32,500 crore guidance. This is a business where cash flow plays a huge role. Our endeavour in FY26 is to do about Rs 21,000 crore from a collection point of view. Both on sales and cash flows, we want to have a very strong trajectory,” he said during a conversation with NDTV Profit.

The real estate arm of the Godrej Group has retained its business development guidance at Rs 20,000 crore for FY26, the same as last year. Business development refers to the acquisition of new land or projects for real estate development. Pandey expressed confidence that the company will exceed this target, but it prefers to be “very conservative” when it comes to giving guidance.

“We have more than Rs 50,000 crore worth of inventory thanks to the acquisitions we did in the last two to three years. The reason for adding more business development is to take the S-curve even stronger. There is no reason we will not beat it,” he said.

The S-curve refers to a growth trajectory that starts slowly, accelerates rapidly and then plateaus. By adding new projects, Godrej Properties aims to strengthen its growth trajectory.

On being questioned about the impact of the recent lending rate cut and another one expected in June by the Reserve Bank of India, he said that in segments ranging from upper mid-income to luxury, the sensitivity to interest rates is not very high. However, he acknowledged that it can have an indirect impact.

“It creates a huge boost for the economy because the CapEx cycle tends to pick up. Through a domino effect, it positively impacts the real estate sector. But I'm not over-reading into this as the only metric,” he said.

The overall state of the economy is more relevant for the real estate sector. He underlined a positive environment for the sector due to the government policies over the past four to five months. The combination of fiscal and monetary policies should lead to good volume growth, according to the top executive.

“From a price growth perspective, it will be very market-specific. Some micro-markets with untapped potential will see strong price growth, while markets that have already surged will experience more nominal increases,” he added.

Shares of Godrej Properties were trading 1.04% lower at Rs 2,226 apiece on the NSE at 3 pm on Monday, compared to the benchmark Nifty 50 reaching 24,463.35, up 0.48%.