Godrej Properties Net Debt Rises 42% to Rs 4,637 Cr in Q1, Debt-Equity Ratio at 0.26

Realty firm Godrej Properties' net debt has risen 42 per cent in June quarter to Rs 4,637 crore as the company looks to expand its business to meet strong housing demand.

Its net debt stood at Rs 3,269 crore at the end of last fiscal.

According to its latest investors presentation, the company's debt to equity ration has risen to 0.26 from 0.19 but it is still at a very comfortable level.

In a conference call with analysts, Godrej Properties MD and CEO Gaurav Pandey said, "From a debt perspective, we have laid out an absolute cap that we would like to look at for net debt of Rs 10,000 crore. So, we do have a fair amount of room and even that would only take us to about 0.5 or a little bit above that range." He noted that there is more than enough sources of cash, both between operating cash flow and room to borrow a little bit in case there is any short-term need.

"But I think the decider of exactly where debt ends this year will be how much beyond this Rs 20,000 crore guidance, we are able to do on business development," Pandey said.

In the last few years, Godrej Properties has been very aggressive in acquisition of land parcels to build group housing projects as well as plotted (residential) development.

For the current 2025-26 financial year, the company has given a guidance that it will acquire multiple land parcels to build housing projects worth Rs 20,000 crore.

During the first quarter of this fiscal, Godrej Properties acquired five land parcels to build housing projects with revenue potential of Rs 11,400 crore.

The company acquired these five new land parcels in Mumbai, Pune, Bengaluru and Panipat.

These acquisitions were through outright purchase and joint development agreements with land owners.

Godrej Properties has maintained that it is on track to meet or even exceed Rs 32,500 crore sales bookings target for this fiscal.

During the 2024-25 fiscal, the company's sales booking rose 31 per cent to a record of Rs 29,444 crore from Rs 22,527 crore in the preceding year.

In the first quarter of this fiscal, Godrej Properties reported an 18 per cent decline in its pre-sales or sales bookings to Rs 7,082 crore.

During the last two financial years, Godrej Properties was the country's largest real estate firm in terms of sales bookings.

The company is likely to retain its top rank for the third consecutive fiscal year, if it achieves the sales bookings target of Rs 32,500 crore.

On financial front, Godrej Properties recently reported a 15 per cent increase in its consolidated net profit to Rs 598.40 crore in the first quarter of this fiscal as against Rs 518.8 crore in the year-ago period.

Total income, however, fell to Rs 1,620.34 crore in the April-June period of 2025-26 fiscal against Rs 1,699.48 crore in the corresponding period of the preceding year.

The Mumbai-based firm posted a net profit of Rs 1,389.23 crore on a total income of Rs 6,967.05 crore during the last financial year.