Company Finance
Godrej Properties Targets Rs 40,000 Crore Revenue Recognition by March 2028
Godrej Properties chairperson Pirojsha Godrej said the Mumbai-headquartered developer expects to book about Rs 40,000 crore of revenue by March 2028, as more of its sold-out housing projects are completed. The figure is a target, not a delivered result.
| Target | About Rs 40,000 crore of revenue by March 2028 (FY28) |
|---|---|
| Stated by | Pirojsha Godrej, Chairperson, Godrej Properties (interview published 1 November 2026) |
| Reason given | Construction has stepped up on ongoing projects, so more projects will be completed |
| FY27 delivery target | 13.5 million sq ft, mostly in the third and fourth quarters of FY27 |
| Q2 FY27 consolidated net profit | Rs 154.15 crore, down 62% from Rs 405.08 crore a year earlier |
| Q2 FY27 booking value | Rs 8,008 crore from 3,658 units and 6.2 million sq ft |
| FY28 targets stated | Positive free cash flow and 20% reported return on equity (ROE) |
| H2 FY27 launch pipeline | Above Rs 32,000 crore |
What happened
On 1 November 2026, Godrej Properties Ltd chairperson Pirojsha Godrej said in an interview that the company will book about Rs 40,000 crore of revenue by March 2028. The company is headquartered in Mumbai and is the real estate arm of the Godrej Group.
The reason given is that the company has stepped up construction on its ongoing housing projects. As those projects are completed, their sales become recognisable as revenue.
Pirojsha Godrej said: "you will see a huge jump in both revenues and earnings next fiscal year." The next fiscal year is FY28, which runs from April 2027 to March 2028.
What the Rs 40,000 crore figure represents
The Rs 40,000 crore is best read as a pipeline of booking value that is expected to flow into reported revenue by FY28. It is not a firm revenue forecast.
Under accounting standards, sales bookings count as revenue only when the project is completed. Until then, bookings are recorded as pre-sales. The chairperson said many fully sold-out projects will be delivered over the next 18 months and become eligible for revenue recognition. He also said FY28 will be the year when the record pre-sales of the past two years show up in reported numbers.
According to a third-party summary of the company's earnings call, the Rs 40,000 crore comes from 16 projects reaching revenue recognition. The same summary says the company's share of that pipeline is expected to rise from about 70% to about 90%.
The company has ruled out switching to percentage-of-completion accounting because of RERA complexity across states, according to the same earnings-call summary.
Recent results and bookings
Profit fell in the latest reported quarter. For the quarter ended September 2026 (Q2 FY27), consolidated net profit was Rs 154.15 crore, against Rs 405.08 crore a year earlier. The fall was linked to higher costs and back-ended project completions.
| Measure | Figure | Period |
|---|---|---|
| Sales bookings | Rs 34,171 crore | FY26 (2025-26) |
| Sales bookings guidance | Rs 39,000 crore | FY27 |
| Booking value | Rs 8,008 crore | Q2 FY27 |
| Booking value | Rs 16,659 crore, up 7% | H1 FY27 |
| Collections | Rs 5,318 crore, up 31% | Q2 FY27 |
| Operating cash flow | Rs 1,584 crore, up 33% | Q2 FY27 |
Booking value in Q2 FY27 fell 6% year on year. The company described H1 FY27 booking value as its highest-ever first-half figure. Construction spending rose 42% year on year in the first six months of FY27.
What it means for home buyers
Revenue is recognised when a project is completed. Buyers of sold-out projects should therefore see deliveries across the next 18 months, according to the chairperson. Delivery timelines depend on each project, and the company has not tied the Rs 40,000 crore figure to any single city or project.
What it means for investors and the market
The company is targeting positive free cash flow and a 20% reported return on equity (ROE) in FY28. The chairperson said new projects will be pursued only if they meet return thresholds, including an internal rate of return of about 20% and a 15% profit margin on bookings.
An illustration by MD and CEO Gaurav Pandey on the earnings call showed that a 15% margin on Rs 40,000 crore would yield about Rs 6,000 crore of profit. This is an illustration, not company guidance, and the actual figure will vary with the completion percentage of each project.
A third-party analyst summary projects revenue rising from about Rs 17,000 crore in FY26 to about Rs 40,000 crore in FY28. This is an estimate by the analyst, not company guidance.
The company is the largest listed real estate firm by sales bookings in recent years, so its delivery timelines are often read as a signal for the wider sector.
Risks to the targets
According to the earnings-call summary, the main risks to the FY28 targets are project delivery delays, construction cost inflation, and construction bans in the National Capital Region that could disrupt timelines there. Collections and operating cash flow can also be uneven from quarter to quarter. An earlier analyst note on the first quarter of FY27 pointed to cash-flow strain, with operating cash flow falling 58% to Rs 399 crore in that quarter even as collections rose.
What comes next
- Late 2026 to January 2027: management targets about 80% of Q4 FY27 launch approvals by late November to mid-December 2026, with the rest in early to mid-January 2027.
- October 2026 to March 2027 (H2 FY27): launch pipeline above Rs 32,000 crore, with H2 collections targeted at Rs 15,000 crore and operating cash flow at Rs 7,000 crore.
- By 31 March 2027: delivery target of 13.5 million sq ft, mostly in the third and fourth quarters.
- April 2027 to March 2028 (FY28): revenue recognition from about Rs 40,000 crore of booking value, with positive free cash flow and 20% reported ROE targeted.
Management expects the reported profit picture to become clearer as new projects reach revenue recognition, mainly towards the end of FY27 and during FY28. As of 2 November 2026, the Rs 40,000 crore remains a target.
Frequently asked questions
Is Rs 40,000 crore the revenue Godrej Properties has already reported?
No. It is a target for revenue recognition by March 2028. It is based on sales bookings from projects that the company expects to complete and recognise in that period.
Why does the company say revenue will jump in FY28?
Sales are recognised as revenue only when a project is completed. The company has stepped up construction on ongoing projects, so more sold-out projects are expected to be delivered over the next 18 months.
What was the company's most recent reported profit?
For the quarter ended September 2026 (Q2 FY27), consolidated net profit was Rs 154.15 crore, down 62% from Rs 405.08 crore a year earlier.
What targets has the company set for FY28?
The company is targeting positive free cash flow and a 20% reported return on equity in FY28, according to the chairperson.
What could delay the targets?
According to an earnings-call summary, the main risks are project delivery delays, construction cost inflation, and construction bans in the National Capital Region.