Godrej Properties to generate Rs 20,000 crore operating cash flow by Mar'28, will invest for growth: Chairman

New Delhi, Godrej Properties Ltd will generate more than Rs 20,000 crore of operating cash flow during the current and next fiscal, enabling the company to continue investing in business expansion, its executive Chairperson Pirojsha Godrej said.

In an interview with PTI, Pirojsha highlighted that the company's operational performance was quite strong in the June quarter with sales bookings rising 22 per cent to Rs 8,651 crore.

He noted that consistent sales growth is creating high visibility for both cash flows and earnings. "Actually, this was the sixth consecutive quarter where we had over Rs 7,000 crore of sales booking values".


Pirojsha exuded confidence that the company is on track to meet or exceed guidance across all parameters -- sales bookings, launches, collections from customers and land acquisition.

The company is also on track to achieve the guidance of 20 per cent ROE (return on equity) for the next financial year.

"In addition, we think the operating cash flow of the company, while a bit weak in Q1, is actually set to expand very rapidly. Between this quarter and Q4, FY28, so in the next seven quarters essentially, we expect operating cash flow of over Rs 20,000 crore, which will create a huge amount of ability to continue to invest for growth, while also allowing us hopefully next year to be free cash flow positive," Pirojsha said.

Godrej Properties, the largest listed real estate developer in terms of sales bookings, has been investing heavily on land acquisition to build housing projects amid a surge in demand after the COVID pandemic, especially for big branded players.

During the first quarter of this fiscal, the company's investments on construction and related activities rose 54 per cent annually to Rs 2,244 crore, as it seeks to ramp up execution capabilities.

In the 2025-26 fiscal, Godrej Properties had delivered 12.1 million sq ft, and the company has set a target to deliver 13.5 million sq ft in 2026-27.

Pirojsha said the company would meet the delivery target despite a weak June quarter, when it delivered only 0.9 million sq ft.

On the operational front, Godrej Properties reported a 22 per cent increase in sales bookings to Rs 8,651 crore for the April-June quarter of 2026-27. The company sold 3,738 units with a total area of 6.2 million sq ft during the June quarter.

Pirojsha said the company would achieve or exceed the sales bookings target of Rs 39,000 crore for the current fiscal.

The company had sold properties worth Rs 34,171 crore during 2025-26.

"We expect the sales momentum to continue for the rest of the year led by strong end-user demand across key markets," said Pirojsha.

Earlier this week, Godrej Properties reported a 42 per cent decline in consolidated net profit to Rs 349.38 crore for the quarter ended June on lower income.

Its net profit stood at Rs 598.40 crore in the year-ago period.

The total income also fell to Rs 1,345.04 crore in the first quarter of this fiscal from Rs 1,620.34 crore in the corresponding period of the preceding year.

The company's revenue recognition was low during the June quarter because of fewer deliveries.

Godrej Properties has delivered 79 million sq ft of real estate since FY18. It has 258 million sq ft of developable area across India. For group housing projects, the company is focusing on five cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Bengaluru and Hyderabad. It is doing residential plotted developments in many tier I and tier II cities.