Real Estate Major Godrej Properties has seen a 42 percent increase in its net debt in the June quarter (Q1 FY26), up to Rs 4,637 crore as compared to Rs 3,269 crore in the same quarter of the previous financial year.
This growth comes when the company continues to aggressively expand its housing portfolio to tap into strong demand in the real estate market. According to the company’s latest investor presentation, the debt-to-equity ratio increased from 0.19 to 0.26. Despite the growth, the firm said that its leverage is at a comfortable level.
Godrej Properties gain net debt of 10,000 crore
Speaking to analysts, Godrej Property Managing Director and CEO Gaurav Pandey said that the company has captured its net debt for Rs 10,000 crore. He said that even at this stage, the debt-to-equity ratio will only touch around 0.5, which the company considers manageable.
Pandey said that the firm has adequate cash flow from operations and borrowing capacity to support its short-term requirements.
He also informed us that this year, the status of the net debt will depend on the company’s limit of commercial development beyond the company’s guidance for housing projects worth Rs 20,000 crore. Godrej Properties has been very active in obtaining land parcels over the years, and both groups target both housing and plotted residential development.
5 land projects owned by real estate company
In the April-June quarter, Godrej Properties acquired five land parcels in Mumbai, Pune, Bangalore, and Paippat, with a joint revenue potential of Rs 11,400 crore. For FY26, it has directed the acquisition of Rs 20,000 crore.
On the operational side, the purpose of company is to cross a record sales booking of Rs 29,444 crore in FY 25 and set a target of Rs 32,500 crore for FY 26. In the first quarter, however, its east sales declined by 18 % in YOY.
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