ICICI Securities sets ₹2,293 target on Godrej Properties after record H1 FY27 bookings

What happened

ICICI Securities set a target price of ₹2,293 per share on Godrej Properties Ltd and maintained a positive (buy) rating. The target followed the company's September-quarter and half-year results, which its board approved on 23 October 2026. Press reports of the brokerage note appeared on 26 October 2026.

The brokerage reportedly reduced the premium it applies over the company's net asset value from 40% to 30%. Reports describe this as a more conservative valuation stance in the current market.

ICICI Securities had earlier set a target of ₹2,469 on 4 May 2026, when it kept a BUY rating and raised the target from ₹2,256. The share price shown on that date was ₹1,900.

Bookings were a record, profit was not

Godrej Properties reported gross sales bookings of ₹16,659 crore for the first half of FY27, up 7% year on year. The company described this as its highest-ever first-half booking value. Collections for the half rose 25% to ₹9,666 crore, and operating cash flow was ₹1,983 crore.

Earnings moved the other way. Consolidated net profit in Q2 FY27 fell 62% to ₹154 crore, while total income rose 38% to ₹2,575 crore. EBITDA fell 72% to ₹171 crore, and the adjusted EBITDA margin dropped to 10.4% from 33.7% in Q2 FY26.

Management linked the fall mainly to the timing of project deliveries and accounting effects from joint venture restructuring. It cited the Mahalunge project in Pune, which contributed ₹1,589 crore to quarterly income. Business Standard summarised the quarter as “record first-half bookings and higher cash collections offset weak quarterly earnings”.

Debt and borrowing costs

Net debt rose to ₹7,908 crore as of 30 September 2026, from a lower level at the end of March 2026. The net debt-to-equity ratio moved to 0.41 from 0.33. The average borrowing cost for the year to date was 7.25%. Investors tracking the stock are focusing on debt and cash flow as the key measures to watch.

Outlook for the rest of FY27

Chairperson Pirojsha Godrej said the company expects FY27 sales bookings of ₹41,500 crore. That is above the ₹39,000 crore guidance and 22% above the ₹34,171 crore recorded in FY26. He also said the wider housing market had stayed relatively steady despite global uncertainty, including tensions in West Asia.

Managing Director and CEO Gaurav Pandey said the company has a launch pipeline of more than ₹32,000 crore for the second half of FY27. Management expects second-half bookings of ₹22,500 crore to ₹25,000 crore and collections of about ₹15,000 crore. It expects operating cash flow of about ₹7,000 crore in the same period.

Launches are planned across Mumbai, Gurugram, Thane, Noida and other markets. In Q2, Godrej Crown Residences in Noida recorded 0.55 million sq ft of launches, while Godrej Regent Park and Godrej Florenne in Bengaluru recorded 0.46 million sq ft and 0.11 million sq ft.

One analyst view cited in the reports says delivery guidance of 13.5 million sq ft may not be achieved because of the timing of regulatory approvals.

What it means for buyers and investors

For home buyers, the results show strong demand for new projects and a company pushing ahead with launches in the coming months. Buyers should note that launch figures and bookings are company targets, and that delivery timing has been a cause of the profit swing.

For investors, the brokerage's lower premium means a lower valuation than before, even with a positive rating. The main points to watch are net debt, cash collections and whether the second-half launches convert into bookings as planned.

What comes next

The period from October 2026 to March 2027 will show whether the company meets its raised bookings outlook and its ₹32,000 crore launch plan. Management said launches would pick up substantially from October onwards. Management said it remains confident of surpassing full-year guidance across all key operating metrics.