Brokerage Call
Motilal Oswal keeps Buy on Godrej Properties, cuts target to ₹2,200
Motilal Oswal Research has kept its Buy rating on Godrej Properties and set a target price of ₹2,200 per share, in a note reported on 26 October 2026. The call follows a 62% fall in second-quarter net profit, which the company linked to higher operating costs and deferred launches.
| Brokerage | Motilal Oswal Research (analyst Harsh Pathak) |
|---|---|
| Rating | Buy |
| Target price | ₹2,200 per share |
| Valuation basis | 15% premium on the residential business |
| Q2 FY27 net profit | ₹154 crore, down 62% from ₹405 crore a year earlier |
| H1 FY27 booking value | ₹16,659 crore, up 7%, the highest first-half figure in company history |
| FY27 bookings target | ₹39,000 crore |
| Marine Lines project | About 2.5 acres, revenue potential of about ₹6,000 crore |
What the brokerage said
Motilal Oswal Research kept its Buy rating on Godrej Properties after the company reported its September quarter results on 23 October 2026. The brokerage set a target price of ₹2,200 per share. The note's analysts, led by Harsh Pathak, said they remain positive on the company because it is focused on generating better free cash flow in the coming quarters, and they expect its profitability to improve over the medium term.
The note keeps a 15% premium on the residential business. The brokerage said it had tweaked some financial assumptions, and the target was lowered as a result. Earlier 2026 coverage cited Motilal targets of ₹2,350 and ₹2,280 for the same stock.
Second-quarter results
- Net profit was ₹154 crore, down 62% from ₹405 crore in the same quarter a year earlier.
- Total expenses rose about 90% year on year, driven largely by higher raw material costs, which outweighed a sharp rise in revenue.
- Sustenance sales rose 83% year on year to ₹5,054 crore.
- Operating cash flow was ₹1,584 crore.
- Net debt increased in the quarter because of new project additions. The company and the brokerage both describe leverage as comfortable.
The company attributed the profit decline to higher operating costs, and some property launches were deferred to the third quarter. Shares fell after the results were announced.
Land and project pipeline
Godrej Properties added about ₹15,500 crore of gross development value (GDV) in the first half of FY27, according to the Motilal note. That total includes about ₹9,000 crore from group housing projects in the National Capital Region, an aggregate figure across projects, and about ₹500 crore from plotted development in Chennai. It also includes a new Marine Lines project in Mumbai. With these additions, the company has reached 78% of its annual business development guidance of ₹20,000 crore.
The Marine Lines project is a development agreement for a prime land parcel of about 2.5 acres in Marine Lines, South Mumbai. The company has said the project carries revenue potential of about ₹6,000 crore. It is a luxury housing project. The filing was made on 28 September 2026. The company has not yet announced configurations, unit counts, prices or a launch date for it.
Launches and targets
The company launched projects with about ₹5,500 crore of GDV in the second quarter and about ₹16,000 crore in the first half. Godrej Properties has lined up projects worth about ₹32,000 crore for launch in the second half of FY27, as it works toward its full-year bookings target of ₹39,000 crore. Motilal's note maintains a 10% compound annual growth forecast for pre-sales, reaching ₹41,300 crore over FY26 to FY28.
The note also expects cumulative net operating cash flow of ₹20,000 crore to ₹21,000 crore over FY27 and FY28.
What it means for buyers and investors
For buyers, the note does not set out any change to prices, inventory or booking terms. Its effect is on the company's financial outlook. For investors, the key points are the profit decline, the cost pressure from raw materials, the deferred launches, and the company's dependence on second-half launches and collections to meet its targets.
What comes next
The company's next milestones are the launches deferred to the third quarter and the second-half launches worth about ₹32,000 crore. Progress against the stated targets for collections, operating cash flow and annual bookings will show whether the brokerage's view on cash flow holds. Launch dates for the Marine Lines, Chennai and National Capital Region projects have not been announced.
Frequently asked questions
What rating and target did Motilal Oswal set on Godrej Properties?
Motilal Oswal Research kept a Buy rating and set a target price of ₹2,200 per share, in a note reported on 26 October 2026.
Why did Godrej Properties' profit fall?
The company attributed the fall in second-quarter net profit to higher operating costs. Total expenses rose about 90% year on year, driven largely by higher raw material costs, and some launches were deferred to the third quarter.
What is the Marine Lines project?
It is a development agreement for a prime land parcel of about 2.5 acres in Marine Lines, South Mumbai, with revenue potential of about ₹6,000 crore. The filing was made on 28 September 2026.
What are Godrej Properties' bookings and launch targets for FY27?
The company has a FY27 bookings target of ₹39,000 crore and has lined up projects worth about ₹32,000 crore for launch in the second half of the year.