1. At a Glance
India’s largest home-seller by volume, Godrej Properties, has been acquiring land like Ambani buys telecom licenses. It’s innovative, aggressive, and backed by a 125-year-old brand—but is it profitable or just pretty?
2. Introduction with Hook
Imagine a builder that launches ₹2,000 Cr worth of homes like it’s dropping new iPhones—and sells them in a week. That’s Godrej Properties. But look behind the glossy brochures and designer floor tiles, and you’ll see cracks in profitability.
- FY25 profit: ₹1,389 Cr
- FY25 OPM: Negative 2%
- FY25 Cash Flow from Ops: Negative ₹2,242 Cr
So, dream home? Or dream burn?
3. Business Model (WTF Do They Even Do?)
Godrej Properties is the real estate arm of the legendary Godrej Group.
- Operates via asset-light model: partners with landowners, reduces upfront cost
- Operates across India: NCR, MMR, Bengaluru, Pune, Hyderabad
- Focus areas: Residential (~90% revenue), Commercial, Townships
- 215 mn sq.ft under development
- Award magnet: 400+ awards in 5 years. That’s more than most Bollywood actors.
Revenue comes from booking advances, project completions, and rentals in JV/SPV projects.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 2,252 | 3,036 | 4,923 |
| Net Profit (₹ Cr) | 621 | 747 | 1,389 |
| EPS (₹) | 20.6 | 26.1 | 46.5 |
| OPM (%) | 9% | -4% | -2% |
| Dividend (%) | 0% | 0% | 0% |
🏗️ Sales doubled. Profits boomed.
🔻 OPM still negative = Profit mainly from other income.
5. Valuation
- P/E: 56.2
- Price/Book: 3.95
- Market Cap: ₹68,338 Cr
- Book Value: ₹575
Fair Value Range: ₹1,950–₹2,350
(EPS ₹40–₹50 with sustainable P/E of 45–50 for a quality developer with brand moat but weak margins)
6. What’s Cooking – News, Triggers, Drama
🍜 Recent Buzz:
- Jul’25: ₹2,000 Cr homes sold in Bengaluru in one week
- Acquired land in Panipat (₹1,250 Cr potential), Pune (₹3,100 Cr), Hoskote (₹1,500 Cr), Versova (₹4,200 Cr)
- Raised ₹2,000 Cr via debt—reappointed CEO, doubled down on expansion
🍿 Trigger Points:
- Volume bookings at all-time high
- Projects across 7 cities with ₹10,000 Cr+ in potential sales
- Huge land bank = Long-term optionality
- But cash flow = negative. Red alert!
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹139 Cr | ₹139 Cr | ₹151 Cr |
| Reserves | ₹9,125 Cr | ₹9,853 Cr | ₹17,162 Cr |
| Borrowings | ₹6,431 Cr | ₹10,679 Cr | ₹12,641 Cr |
| Total Assets | ₹23,105 Cr | ₹35,735 Cr | ₹55,450 Cr |
💣 Borrowings doubled in 2 years
🏦 Reserves rose 90%—thanks, other income!
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net CF (₹ Cr) |
|---|---|---|---|---|
| FY23 | -2,861 | 2,564 | 832 | 536 |
| FY24 | -693 | -1,974 | 3,258 | 591 |
| FY25 | -2,242 | -4,273 | 6,710 | 194 |
🚩 ₹2,242 Cr burned from operations
🔥 Financing is saving grace. Business isn’t throwing cash, it’s inhaling it.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 6% | 6% | 7% |
| ROE (%) | 6.2% | 7.1% | 8.9% |
| Debtor Days | 58 | 37 | 32 |
| Working Cap Days | 1,574 | 1,565 | 1,248 |
| Cash Cycle | 58 | 37 | 32 |
👍 Improving working capital
👎 ROE < 10% = More builder than banker
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) | Other Income (₹ Cr) | OPM (%) |
|---|---|---|---|---|
| FY23 | 2,252 | 621 | 787 | 9% |
| FY24 | 3,036 | 747 | 1,326 | -4% |
| FY25 | 4,923 | 1,389 | 2,044 | -2% |
🎩 Other income = the real builder. Operating profits barely exist.
11. Peer Comparison
| Company | P/E | ROE (%) | Net Profit (₹ Cr) | Market Cap (₹ Cr) |
|---|---|---|---|---|
| DLF | 45.1 | 11.2 | 4,578 | 2,06,442 |
| Macrotech (Lodha) | 51.8 | 14.7 | 2,764 | 1,43,099 |
| Prestige Estates | 158.8 | 3.5 | 617 | 74,241 |
| Godrej Properties | 56.2 | 8.9 | 1,389 | 68,338 |
| Oberoi Realty | 30.5 | 14.6 | 2,167 | 66,166 |
🔍 Godrej: Mid-pack P/E, low ROE. Not cheap, not star—just branded.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Mar 2024 | Mar 2025 |
|---|---|---|
| Promoters | 58.47% | 46.67% |
| FIIs | 29.91% | 30.54% |
| DIIs | 5.62% | 9.33% |
| Public | 5.98% | 13.46% |
👀 Promoter stake fell 12%
💸 FIIs & DIIs absorbing it. Retail also climbing aboard.
13. EduInvesting Verdict™
Godrej Properties is a well-branded, ambitious developer with huge booking volumes and smart land acquisitions. It’s riding a real estate upcycle—but operational cash flows are MIA, and OPM is thinner than a builder’s promises.
- Best realty branding in India? Possibly.
- Operationally profitable? Not really.
- Cash machine? Only on paper, literally.
Great stock to boast about at parties. Just don’t ask it to pay dividends or generate OPM.
Metadata
– Written by EduInvesting Research | July 15, 2025
– Tags: Real Estate, Godrej Properties, Builders, Negative OPM, Godrej Group, Property Market, Branded Developers
