Ladies and gentlemen, thank you so much for joining the conference call. The call will begin shortly. Request you to please stay connected. Thank you so much for your patience. Ladies and gentlemen, good day and welcome to Godrej Properties Q2 FY 2026 conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kshitij Jain. Thank you, and over to you, sir.
Thank you. Hello everyone, and thank you for joining us on Godrej Properties Q2 FY 2026 Results Conference Call. We have with us Mr. Pirojsha Godrej, Executive Chairperson, Mr. Gaurav Pandey, Managing Director and CEO, and Mr. Rajendra Khetawat, CFO of the company. Before we begin this call, I would like to point out that some statements made in today's call may be forward-looking in nature. The forward-looking statements are based on expectations and may involve risk. The outcome may differ materially from those suggested by such statements, and a disclaimer to this effect has been included in the results presentation. I now invite Mr. Godrej to make his opening remarks.
Good afternoon, everyone. Thank you for joining us for Godrej Properties second quarter financial year 2026 conference call. I'll begin by discussing the highlights of the quarter, and we then look forward to taking your questions and suggestions. Godrej Properties delivered another robust quarter. We had our highest second quarter and half-year net profit of INR 405 crore and INR 1,005 crore, respectively, a growth of 21% and 18% year-on-year. GPL's quarterly bookings in Q2 have again crossed the annual bookings of financial year 2022. Booking value for the quarter grew 64% year-on-year and 20% quarter-on-quarter to INR 8,505 crore. This is the ninth consecutive quarter of over INR 5,000 crore sales, and the third consecutive quarter of over INR 7,000 crore sales. This was achieved through the sale of about 4,500 homes with a total area in excess of 7 million square feet.
In the first half of the financial year, our booking value grew 13% year-on-year to INR 15,587 crore. This was the highest ever Q2 and first half booking value for the company. With this, Godrej Properties has now achieved 48% of its annual guidance for booking value and remains on track to beat its guidance of INR 32,500 crore for the full financial year. Four markets, Bangalore, Mumbai, NCR, and Hyderabad, each contributed more than INR 1,500 crore to the booking value in the second quarter, which is the first time GPL has achieved this. Sales in the second quarter were driven by strong demand in several key new project launches. Godrej Regal Pavilion, Godrej Properties' second launch in Hyderabad, achieved a booking value of INR 1,527 crore. This takes our total sales in Hyderabad during the current calendar year to about INR 2,600 crore.
Marking a strong entry for the company into this new city. Godrej MSR City in Bangalore, which was launched in the first quarter and saw additional area being released in Q2, achieved a booking value of INR 1,032 crore. Godrej Siara, another project in Bangalore, achieved a booking value of INR 877 crore. Godrej Sora, our project on Golf Course Road, achieved a booking value of INR 633 crore, and several other projects, including our first project in Indore, which saw a booking value of INR 400 + crore, saw robust return. Twelve new projects and phase launches happened across eight cities, and these had a total sales potential of over INR 10,000 crore during the quarter. Collections in the second quarter grew 2% year-on-year and 11% quarter-on-quarter to INR 4,066 crore. In the first half of financial year 2026, collections grew 10% to INR 7,736 crore.
GPL achieved 37% of its yearly guidance on collection, which does be recognized sound a little bit low, but we are confident that we're fully on track to achieve a full year guidance of INR 21,000 crore of collection. We had a slight anomaly this year where both deliveries and therefore collections and operating cash flow are slightly skewed towards the fourth quarter, but we've seen good construction progress during Q2, as evidenced by the construction spends increasing rapidly, and we're very confident of a strong end to the year for deliveries and collections.
In terms of business development, we added four new projects with an estimated saleable area of 5.8 million square feet and an expected booking value of just under INR 5,000 crore in the second quarter, taking our first half business development additions to nine projects with a total estimated saleable area of 15 million square feet and an expected booking value of INR 16,250 crore, thereby achieving about 81% of our annual guidance. I'm happy to share that GPL was recognized as the global sector leader in real estate and ranked number one globally with a score of 100 on 100 by the Global Real Estate Sustainability Benchmark in 2025.
Godrej Properties also currently ranks number one globally in the real estate and management sector on S&P Global Dow Jones Best in Class Index for 2025 with a score of 89 on 100 as of 31st October 2025, which saw a significant increase from the score last year. For the quarter, our total income grew by 39% to INR 1,867 crore, EBITDA grew by 118% to INR 614 crore, and net profit grew by 21% to INR 405 crore. For the half year, our total income grew by 16% to INR 3,460 crore, EBITDA grew by 45% to INR 1,529 crore, and net profit grew by 18% to INR 1,005 crore. With a robust launch pipeline, strong balance sheet, and resilient demand, we are on track to achieve our bookings target of INR 32,500 crore in FY 2026 while continuing to grow our collections and operating cash flow.
On that note, I conclude my opening remarks. Thank you all for joining us on the call. We are now happy to take any questions, comments, or suggestions you may have.
Thank you so much, sir. We'll now begin with a question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use headsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Our first question comes from the line of Puneet from HSBC Bank. Please go ahead.
Yeah, thank you so much, and congrats on good sales. My first question is actually on the P&L side. When I look at your sales reported versus cost of goods sold, the gross margin seems to be extremely weak. I understand the mismatch in terms of other things, but why should gross margin be so weak? Can you shed some light there?
Puneet, you know. We didn't get too much OCs into this quarter. Whatever OCs we received were of JV projects. Like earlier explained, JV projects, we do a lot of structuring. The reporting of those incomes keeps happening in those respective periods. When the project gets completed, you will not see that kind of a margin. That's why that anomaly you will see when the JV projects get the occupation certificate. Otherwise, as it happens.
Yeah, yeah, it is like to like, yeah. As and when our own projects start getting into P&L, you will see a significant change in the P&L trajectory, which will. You will see that the sales minus the cost of sales would be a resultant would be a significant net profit margin.
Okay. What would be your share of sales in this quarter?
Around 87%.
87%. You also highlighted collections are low and likely to be in Q4. Why should that be the case? Generally, collections should be more even-ended, right? Unless there are some schemes which have been going on.
Not really. I mean, just to share with you, typically, as you would know, these are linked to different milestones. Some of these are linked to terrace completion. Some of these are linked to slab. And some of it is also linked to OCs. What's really happening for us is that the sales that have happened, say, later part of the last year, would have got into timely collections between then and last itself. That the Q4 and Q1 sales that we've done, we'll start hitting some of the slab in Q4. All the OC milestones that we're getting, we have a huge OC calendar for January, February, March, respectively, all those completion milestones, which are reasonably between 10%-20% for different stages of different types of projects, that will sort of kick in.
Every quarter, you will see a marginal growth for sure, but I think quarter four is purely lumpy because there is a heavy OC calendar coming in that part of the year. Just to double-click on it, to give you a sense of lead indicator of what makes it slightly more probable and more confident, where this confidence is coming from, is two lead indicators, actually. One is that our labor strength has reached an all-time high. We were, give or take, 20,000, 21,000 laborers at the start of the year. By the time we wrapped up H1, we reached 32,000 laborers. This has never happened in terms of ramp-up of our execution ever. This has led to also great direct construction spend growth in Q2 by 82% YoY . This massive uptake will lead to collectible milestones hitting us in the next few months.
Understood. Just on this construction cost side as well, if I add up all the construction-related, project-related cash flows and land spends over the first half, it is close to INR 10,000 crore. When I look at inventory end of H1 and inventory end of March 31, it is about INR 14,000 crore. What would that gap be attributed to?
Sorry, Puneet, I didn't understand. What exactly you are alluding to?
In your cash flow statement, if I add up all the construction costs, which is construction-related outflows, project-related outflows, land approval costs, and advance to JV partners, it is about INR 10,000 crore of spend total in the first half.
Right.
Which should ideally be the gap between the end inventory minus the opening inventory, which is actually 14,000. Just the 3,000 gap there, how should one think of that? Anything moving between JV to us or something like that?
Yeah, Puneet. In a certain of our joint venture projects, we have acquired the JV partner stake, due to which their earlier inventories now start getting consolidated in our control account. That's why you can see the jump in the inventory from March to 30th September.
Okay. Puneet, you know. We have given two, three exits of our existing profit-sharing projects. When you give an exit, the JV project starts getting consolidated to our books of accounts. The gross accounting starts happening. Earlier, only one line item used to keep coming in. That is why you will see that shift happening as and when this change in the structure assets.
Okay. Understood. Very helpful. Lastly, just on the interest cash outflow, which is up on Q-on-Q , basis. Any color there.
Yeah. You will see an increased outflow in Q2 because we have NCDs. The interest payments come around quarter two. If you see quarter two of last financial year, you will see a similar interest outflow happening. There is an annual interest payment which happens in quarter two. That is why you will see that interest payment a little higher. In Q3, Q4, you will not see this kind of an interest payment outflow.
Understood. Very helpful. Thank you. Understood. Thank you so much and all the best.
Thank you.
Thanks, Puneet.
Thank you, sir. Our next question comes from the line of Mohit Agarwal from IIFL. Please go ahead.
Yeah, thanks for the opportunity and congratulations on a good set of bookings. It's heartening to see a comeback of the ROE target of 20%. Just wanted two clarifications. Firstly, is this target irrespective of the capital base in FY 2028? That's the first question. Secondly, you're basically committing yourself to deliver INR 4,000 crore-INR 4,500 crore of PAT by FY 2028. How will it be kind of evenly spread between now and FY 2028, or will we see a step jump in profitability in one of the years?
I think there will be a little bit of a step jump in FY 2028, which will then be sustained beyond that. The reason for that is I think a lot of the OCs we expect on some of the newer projects in outright structures will hit that. Of course, I think if you look at net profit growth, it has been considerable over the last few years, but of course, a lot of it is led with not with actual occupation certificate-related profits, which I think you will see in FY 2028. I think there will be reasonable profits between now and then, but certainly, we do expect a step up in that year specifically.
I think on your question on irrespective of equity raise, I think the two ways of answering that, I think as of now, we certainly do not have any plans, and I think it is highly unlikely that there would be any equity raise between now and then. Yes, in that sense. If there is some opportunity or something unexpected, obviously, in this business, equity raise cannot generate a return immediately because of the nature of the industry. I think it is highly unlikely that there would be any equity raise between now and then.
Okay. Thanks for the clarification. Secondly, Guru, on the Worli project, if you could share some color, what has been the initial response like? If you could share some thoughts around what has been the pricing. I have also seen the presentation that you have changed the structure from a 50% profit to 73% area sharing. The reason behind that, and obviously, it will get consolidated, but how does this change the IRRs?
Sure. Thanks so much. Firstly, we are very excited that finally, the project is going to Trilogy, is hitting the market. On a lighter note, I know every investor call, earnings call, this was a question asked to Pritesh. I mean, where is this launch happening? There is a lot of internal excitement. I think in hindsight. There is such a massive upside we've seen from a market re-rating of the location, and this entire Worli road is benefiting that micro market in such a big way that our top-line growth has been humongous. Some of the area share that we've changed is largely to benefit our interest and get higher economic interest because we're also trying to control specific units, specific floors, specific inventory, which is always easier to do when you do a sort of area share structure.
The first part of it, this is more on the second part. The first part of your question, what are we seeing right now? To just give you a sense, we just recently got the RERA. What we're doing a little different here is that, unlike a typical project that we have, where the inventory opportunity is limited and the pricing is also very homogenous, this is quite different for this particular product. Why? Because we have three towers, and each of these towers has their own strong value proposition. There are specific units which get you beautiful sea-face views. There are specific units which give you both, the sea-face view as well as Mahalaxmi Racecourse. Then there are some units which give you more of Mahalaxmi Racecourse sort of view.
It is a very unique proposition, which is why we've kind of done an inventory-by-inventory pricing out here. We also will release inventory gradually to sort of maximize the opportunity of profitability growth. That being said, any launch that we do has always a very exciting number. I do not want to comment on the number we want to target and hit, but this is more of a profit maximization opportunity because we do not see much of a competition. Early days, very frankly, to talk about pricing and all, but just to give you a sense. We will look at something like INR 80,000 onwards to INR 150,000, right? That is the range that is in our mind right now, depending on what inventory when we want to launch.
There are some top set of floors which we will hold for a while unless we see pricing offers coming directly of the range that we want to hit in the life cycle of the project. I'm talking about these are the pricing, not including some of the best inventory that we will hold for ourselves in terms of later launches. Yeah, I mean, super exciting. I've never got so many calls of references and influence to get an inventory, but we've not opened the doors yet for our customers. It just opened last weekend on customer engagement. We've done three micro CP wine and cheese events, explained the product after RERA approval to our channel partners, explained the strategy we wanted to go. I think very, very initial days, but we've got some very exciting response.
Fingers crossed, this is going to be something to watch out, not just for this quarter, but I think it's going to be an important page in the legacy we're trying to create for South Bombay.
Sure. And on the structural change from profit sharing to area share?
I mentioned that it was likely to take upside on controlling what inventory we would like to sell. Because, as I mentioned, the price range is very, very diverse. There is a set of inventory we wanted to have. A plain vanilla structure would have not benefited us. We created like a win-win with our partners and sort of added an allocation of inventory, and area share tends to give you slightly more upside.
I think it makes it also just easier to operate the project. Everyone can sell at the pace they're looking to, at the timing they're looking to. Also, there's a single. Only we will be concerned with managing the project from an execution cost perspective. That also, I think, streamlines decision-making.
Sure. Thanks a lot and all the best.
Just to clarify, we control the inventory, and we will sell that inventory. There is no cannibalization risk. Just to double-click, we in fact make a sum of fee out of it as well. Just to sort of give it complete color, we control all inventory and entire pricing.
I'm sorry, sir, but the question was left at you. However, he can still listen to us.
Let's go to the next question.
Thank you. Our next question comes from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Yeah. Hi, sir. Congratulations on a decent quarter. Our first question is, now, if I look at your H1 numbers, if I annualize these numbers, you are top in all the markets, now buying off INR 5,000 crore in H1. Maybe it makes you the top developer there. MMR, similar thing, NCR, Pune. I just want to understand from here, trajectory-wise, how each of these markets you're looking at growth in the near to mid to near term. How does one look at these markets from your perspective?
I think the growth opportunities, actually, we feel is very strong in each of these markets. I think we've hopefully demonstrated through the growth we've been able to deliver across markets in recent years, whether you look at NCR scaling from having entered that market about 10 years ago to INR 10,000 crore sales the last couple of years. Mumbai, which we thought was not performing after potential a few years ago, has now scaled very nicely. We are quite hopeful of crossing INR 10,000 crore in Mumbai in the current year. Bangalore, similarly, off to a very good start in the first half. Our most recent market, Pune, of course, is another strong performing market where we've been the number one player over the last couple of years. One of the things we're very happy to see is the market entry in Hyderabad and how that has gone for us.
As I mentioned in my opening remarks, we've seen about INR 2,600 crore sales there in two launches that we've done this calendar year. We think that in our first year makes us probably the number two developer in that market by sales value. Of course, there's a lot of future growth potential there. I think there is no constraint in that sense to the growth opportunity before us. As a company, if we look at residential sales on a national level, we are currently last year at about 4.3% of total sales. Clearly, we think that gives us headroom for growth. In no individual market are we even at 10% of the market, which indicates to us that I think there is strong opportunity for growth through diversification of the number of micro markets in each city that we're present in.
We were talking earlier now about something like Worli, which will be our first major launch in that micro market in a long while. We have also made good progress on our Bandra project, which we hope to launch in calendar year 2026. I think we are very confident of that happening. That will give us, again, a new presence in a big micro market. Similarly, we think if you look at the various cities that we are in and Godrej Properties' share in the micro markets that we are already in, and the number of opportunities there are to add new micro markets, I think you will see that the headroom for growth is really very significant over the next several years. Beyond that, we, of course, also have the opportunity to enter new markets, as we have just done with Hyderabad.
There are still large markets that we essentially do not have a presence in any serious way, like Chennai, where also, as you know, through plotted developments, entering the next set of cities, which could over time become opportunities from a group housing perspective. I think the growth plans for the company continue to be robust. I think we have generally indicated we see a medium-term opportunity of 20% kind of growth rate. Of course, there will be different stages of the cycle where we have opportunities, as we have had over the last few years, to go much beyond that 20%. There may be some where it may be difficult to do 20%. Overall, I think over a long period of time, even from current scale, we would be hopeful of delivering that kind of growth.
Sure. The second question is, I mean, though we have seen a phenomenal growth on pre-sales, somehow, when we read the data, collections have been lagging. Deliveries somehow, I think, maybe looks a little bit muted. And thirdly, the profitability, the path to profitability has, I mean, we've seen a tremendous shortfall there. Is it that, I mean, though the sales has been ahead, we are somehow behind in terms of execution, and that's not reflecting in our numbers on deliveries and profitability? Are our projects largely on track from RERA standpoint? Are there delays? Are we finding challenges in execution given that sales is running ahead of the estimates?
If you look at it, we have seen rapid growth across all metrics. We put actually a slide in our investor presentation this quarter that kind of shows the booking value, collections, operating cash flow, deliveries, and profit growth. Booking value, as you rightly said, has been very fast at 55% compounded, but it's not that these other metrics have not been growing fast. If you look at our collection, compounded growth over those three years is 39%, deliveries is 42%, and operating cash flow is 62%. Net profit, I think, honestly, the reported numbers are 58%, but I would agree that a lot of that is accounting related. It's not something that I would pay much attention to in the short term because there are several dislocations for a company that's following the project completion accounting method, which not all of our peers are.
For a project, for a company that is growing fast and following the project completion accounting method, I think it's important to understand how some of this is working. Profitability is being very badly hit in some ways directly due to growth because of things like marketing costs being expensed out in here, whereas you're recognizing revenue recognition on deliveries of projects that were typically four or five years old and typically in joint venture structures. We are quite confident that that visibility will change considerably, as we said, by FY 2028, by when we expect the accounting numbers to catch up to at least some extent, and we expect to be able to deliver the 20% ROE we've talked about. That said, I would say that there are challenges in some ways on the execution side that we're doing everything possible to address.
I think a lot of good work is happening in execution. I think Gurush can talk about that maybe in a minute. There are external challenges, things like the NGT and NCR, which have essentially taken three out of 12 months in a year of construction out in some ways and made things quite challenging. There are external issues like that that we are dealing with. There are some projects that have been delayed, but certainly, I think overall, we feel execution is very much on track. As I said, the growth in execution in terms of deliveries last year was up to 18 million square feet. We expect this year as well to be ahead of our guidance, even though the first half has been a little bit slow. I think the company has scaled well on all parameters in our view.
Bookings clearly come first because you're first selling the project, but certainly it's being backed up by a rapid growth in deliveries and collections as well. We think we'll see more of that in the next couple of years as well. Maybe Gaurav, if you want to just talk a little bit about execution.
Sure. Parikshit, just to give you a bit of a sense, like a year, year and a half back, we kind of started working on deep diagnostics of how do we scale up the execution muscle. As to support and kind of take benefit of the pre-sales growth. Internally, we identified about 14 modules through which this construction speed can be scaled up. Maybe I'll just throw a light on some of them. Otherwise, this can be quite a bit of a session itself. To give you some insights, like something as simple as how do we solve for the labor issues in India? I'm sure you would have read some of the largest engineering EPC companies, how they've been struggling. They said, "What do we do differently?" We kind of deep diagnosed and created our own digital infrastructure system.
Today, give or take, we have almost 1,000,000 laborers on a digital sort of interface through which we are able to kind of do predictive understanding of which laborers are at high attrition risk on what season and how to quickly replenish it. How do we ensure that we are able to create an environment for more laborers to feel us as a preferred workspace for them? Moving from blue-collar workforce management thinking process to more of how employee centricity led culture led practices is what most companies think of for white-collar jobs. Through that, I think we've seen some clear, recognizable, and real outcomes. I gave an example some time back that our labor force has increased from 21,000 thereabout laborers to about 32,000 laborers. Mind you, this is after.
The scale that we built in the last 20-odd years would bring 50% sort of a growth in six months, comes out of outcome of a lot of changes that we brought in. The second thing is bringing more world-class contractors, supply chain systems. We have been very actively working to increase our strength on that. If you see some of our recent project construction contracts have gone to a much larger vendor base than what we used to have say three, four years back. A classic example is we have now L&T working in, say, a project like Reserve. Then we have got someone like KC doing something in Gurgaon. Then we have got Ahluwalia Contracts. You name it, some of the big boys are now working with us. We have also changed how we used to buy procurement in bulk.
We're standardizing many things in terms of tile systems, faucets, and all of this is kind of giving us both economies of scale and predictable supply chain. Then comes finally, it's all about getting your value chain right. I think, to give you a sort of a number metric, all this has led to an 82% Yo Y growth in Q2. If you read our reports for the last two, three years, you would see the growth annually in typically construction flows have been more or less, let's say, 5%-10%. This pivot that we are trying to see in this year quarter on quarter has been very encouraging. Yes, there has been some amount of noise, some very rightfully so coming out of NGT issues. Also, these are some of the projects which were launched before COVID.
Mind you, we lost six months or so not to do anything. We did not have a strategy to bring laborers immediately back then because we were unsure, candidly, due to contamination and risk when vaccination was not there. All of this is behind us. This is a new strategy. To give you a sense, next six to nine months, we'll deliver about 4,000 homes in NCR alone. Yeah, I mean, reasonably confident to say that this is a problem we've understood. This is a problem we've not left it to some sort of a situation.
We've taken a head on, and we will deliver results upon it, which is what you'll see not just this year, but even on the outright projects, which is why after a lot of thoughtful consideration is when we put our neck out and gave you a 20% ROE indication for FY 2028.
Thanks, I'm glad to elaborate. This is the last question for Rajendra. Sir, just on the OC-based revenue recognition this quarter, what was the gross margin? I mean, just like to like, I'm asking that, including the partner JV share, what was the total revenue recognized and what was the total cost against that? Just want to understand the embedded margin there and also if you can help us understand the current resource, what will be the embedded margins?
There were three or four projects. Why don't we take it offline, Parikshit? Maybe Kshitij can help you with the details.
Sure, sir. I'll do that. Thank you.
Thanks.
Thanks.
Thank you, sir. Our next question comes from the line of Akash Gupta from Nomura. Please go ahead, sir.
Hi, sir. Congrats on a good set of results. Thank you for taking my question. My first question is on your thoughts on the real estate demand in Gurgaon, Mumbai, and Bangalore. How are you thinking about pricing, footfalls, and conversions? That's my first question.
I think one of the benefits of Godrej Properties as a true unique platform is having been in the market for close to two decades with a very strong executive team. We can do some sort of an early assessment of risk and opportunities accordingly, flex investments, and inventory management. I'll maybe go a bit deeper into market by market. I think Gurgaon, there was a lot of chatter last year that the market is becoming speculative and risky. I think there was some merit in it, which is why if you see most of our launches that we have done in Gurgaon have not been intentionally sold out because we focus on quality of sale a lot.
I think us and some good developers have been doing similar practices, which is making the market today look far healthier than what it was, say, 12 months back. It is still India's highest performing market, but also one of the highest risk markets where market conditions look to be slightly better than what it was, say, 9-12 months back. Noida, on the other hand, is quite the opposite. It is a very strong market. The land supply itself is heavily regulated, so there is never an oversupply sort of risk. Everybody pays land price upfront now through auction. There is frankly no speculation per se in the market. It is more of a capability of a team to bring high-quality inventory and right product. Very bullish on Noida market. Moving down to.
Pune, I think Pune is one market which frankly hasn't really taken off, though we are the number one player. It is a sort of a price-wise flatish market. It is probably, if you ask me, the underdog of all markets because it has the highest potential because just three, four years back, Pune and Bangalore's price were mimicking each other. Today, Bangalore prices have gone to a whole different league where Pune prices have not really picked up. I think it is sort of an underdog. It is a matter of time this market will fire. Moving to Bombay, I think this is one of my sort of consistent favorite markets because the quality of buyers are very defined, very end-user-centric market, very product-conscious, very developer-conscious. We are seeing consistent sales in good products, not just of us, but of our competition.
I think South Bombay, Western Suburb, and Panvel within the city are the most favored markets. Quite fortunate that we have been able to add a lot of inventory in the last two, three years of good BD work in these markets. Moving to south, I would maybe take Hyderabad first. Hyderabad has done pretty fantastic this year as well. There was a slight stagnancy, I would say, last year, though we were a new entrant, but this year, there is a strong market rebound growth. I feel that this market could surprise everyone in the long term because the quality of infrastructure is one of the best in Indian Hyderabad. Bangalore, I think, has the constraint of high-quality land supply, which kind of limits the potential of abstract supply coming in. It has very strong end-user demand.
All micro markets for Bangalore have been firing for the last six to nine months. You can see our growth is clearly demonstrating that. Probably right now, I would say the best performing market or the uptake we are seeing right now is the Bangalore market.
Got it. Thank you for that. Sir, just looking at your launch value and booking value guidance, I mean, we have achieved 47%-48% of that. I think your second half is seasonally stronger. Is there any upside risk to your launch value guidance or your booking value guidance?
Yes, there is a very strong upside risk. I don't want to jinx it, but I would say with reasonable confidence, we'll beat and exceed our guidance.
Okay. Okay. Sir, my final question is your offtake for projects in Gurgaon, particularly when I see the performance of Godrej Sora, I think we launched 50% and sold 50% of that versus if I see a project in Sector 54, Astra. I think the performance was fairly stronger there. I'm asking you this because we have, I think, a bigger project in Sector 53 again. Just wanted to know your thoughts around Miraya, Sora, and Aaleera. How do you think the performance has been?
Thank you so much. Just to sort of give you a sense of Sora as a project and our strategy behind it, see, when we started launching Golf Course Road products, right, our thought process was quite simple that this is where you have the highest land supply limitation. You can have the highest maximization of profits provided your product excellence is very high. That means use the best of contractors, best of specs because we were able to manage and buy the best of land parcels. Just not focus on inventory sales, but quality of sales because, as I was mentioning some time back, market by market focus, Gurgaon was looking at a relatively much riskier market within the India stack from a property development point of view. Our idea was not to do consciously sold-out projects, but to do extremely strong quality of sales.
When I say quality of sales, meaning that unlike many of our peers, we don't allow multiple units to be bought by a customer. If we do see that there is a speculative tendency, we don't log in that booking. We have detailed KYC checks. Just to give you a sense, the projects that we talk about in Golf Course Road, I'll just give you one more example before Sora is, let's say, Miraya. Miraya, if my memory serves me right, sold about INR 450 crore when it was initially launched. Today, it's about INR 800+ crore. We sold close to about 39% of the inventory. I'm glad to share with you that the profit that we had logged in in MSR, we've done about 62% or 63% of that back.
With almost, let's say, half of the sales than originally we thought, we've almost doubled the profit. I think there's a lot of profit maximization strategy going on. I think in Astra case, it frankly surprises. We had put a very strong aggressive pricing, but because it was bang on the main road, I think there was extraordinary euphoria. We saw both high quality of sales and sort of sales maximization. In Sora, we were not able to build a marketing office at the site. If you're familiar with Gurgaon, we used actually Astra marketing office to sell that product. Yes, the sales cycle becomes a little longer. Frankly, I was expecting a similar like Miraya launch, like a INR 400 crore-INR 450 crore launch. I'm quite happy that the price at which we wanted to sell over.
The life cycle we've been able to achieve at the launch itself. Yeah, this is coming out of not about outcomes. It's coming out of a very thoughtful strategy.
Got it, sir. Thank you so much. Bless us all.
Thank you, sir. Our next question comes from the line of Pritesh from Axis Capital. Please go ahead.
Yeah, thanks for the opportunity. Just on the NCR bit, I mean, we are doing well. Across the markets where we had to grow, Bangalore, Pune, MMR. NCR in the first half seems to be lagging a bit. Do you think we can catch up and match up the INR 10,000 crore run rate that we have clocked in the last couple of years and see launches that we should look forward to in this market? Especially where your Gurgaon, your strategy is being more of quality-led sales. Will other markets or other projects bring in that velocity as well? That's my first question.
I think, first of all, the team has a very exciting set of launches planned. I mean, I'll give you a color of the potential opportunities that we have. One is, we will have phase activation. We have not opened specific cards and specific high inventory. We do a classification internally of A, B, C category and A+ category. In some launches across GPL, we control A and A+ inventory. A lot of exciting inventory will come in Golf Course Road to see continued good traction of sales in Q3 and Q4. That aside, we have a launch coming up in Greater Noida, most likely towards Q4. It's a very exciting project we've done. If you remember, Godrej Majesty, we launched in Q1 and we sold, I think, about INR 9.5 billion then and another INR 3.5 billion from there on.
This is a similar micro market. Quite excited to see this one coming. We have a residential land parcel left in one of our townships in Greater Noida. The total revenue potential is about INR 1,000 crore. That could also hit the market. Very recently, we launched retail in last quarter. You would have seen an INR 410 crore number in that one. This was a ground, first, second, and third floor inventory. First time we were launching a retail of this size. The credit is the team launched only first and second floor, which is a slightly more difficult inventory to sell. We have done a sold-out of those two floors. This got introduced only after Shraddh of last year, for last quarter, which is practically 10 days.
The remaining inventory, the ground and third is more like smaller shops and ground is like the most prime inventory. Likely will be opened up quite soon. That is going to be another very exciting number. We have Panipat acquisition we have done. That should open up. We have a seven and a half acres of super prime land parcel in Golf Course Road that we may choose to launch as and when we feel it is right. The design is very exciting. That will be our last launch of Golf Course Road. We are not in a hurry. We want to do first some good activations of other projects of Golf Course Road and then hit the market. The team has everything in its sight to hit a INR 10,000 crore number. They would deliver growth over the last year number.
Yeah, reasonably confident that they won't. Any team not to hit the very competitive team. It's a healthy competition between different zones. Yeah, I mean, reasonably, I'm confident.
Sure. And while we are in NCR, any update on Ashok Vyad if you want to provide?
No, I think we're on our three stack projects. We have three different updates at the moment. Early, we have a very positive under launch now. Bandra, I think, as I mentioned, has made very good progress, and we hope to launch it in the next few quarters. Ashok Vyad, there continues to be this tree issue, which is affecting NCR overall. Unfortunately, we don't have as positive an update there where we continue to work with all relevant parties on that. We're confident of eventually resolving this. I think, obviously, the changes in the market have made it such that once this project launches, the delay will actually have ended up potentially being of help. No, we don't have immediate visibility on timelines.
Sure. Just one last, in fact, couple. You have embedded EBITDA margins for the sales that we have done in the first half. Secondly, on the land acquisition side, in terms of cost, if you want to give any comments on whether they are stable or still going up. Do they still largely fall into our margin targets? Yeah, those two questions.
On the embedded margin, we decided we prefer to do this on an annual basis. We will certainly continue that practice. On land, it is a bit of a mixed bag. We are seeing some good opportunities, which has allowed us to do 80% of our guidance in the first half. BD lock-in is higher than sales in the first half, which I think is healthy. At the same time, I think there are instances where we are seeing land prices going quite high. There have been recent auctions, for example, of 10-11 acre kind of size parcels in both Hyderabad and Navi Mumbai where the auction value crossed INR 2,000 crore, which did seem quite high to us. I think it is a little bit of a mixed bag, market by market, and also specific project by project. Nothing too concerning now. We do feel we can.
Generate the kind of returns and margins we're looking for on land more generally. Certainly, prices have firmed up over the last couple of years.
Sure. Pretty helpful. That is it from my side. All the best for the second half.
Thank you, sir. The next question comes from the line of Kunal Lakhan from CLSA. Please go ahead.
Yeah, hi. Thanks for taking my question. My first question is on the construction spend. Construction and project-related spend in the second half. We've spent about INR 6,500 crore in the first half. How are we looking at second half in terms of spend?
I mean, we don't really give a projection per se, but I mean, fair to say that we will see a meaningful growth over the last financial year.
Sure, sure. Just to follow up on that, basically, what I was trying to get was. The last year we saw an operating cash flow of INR 7,500 crore on a full-year basis. And this year, we have done about INR 2,100 crore in the first half. How should we look at full-year cash flows? Would we see growth in OCF in FY 2026 over FY 2025, or it will be flattish?
Actually, as I likely said, it depends a lot. There are, to sort of estimate operating cash flows, no brainer. There are only two real variables. One is your inflows, and the second is going to be outflows, which is largely construction and construction-related. I think we have a very high degree of certainty when it comes to collections, right? I mean, that is something. There is a lot of predictable math. Construction, we are seeing a massive upswing, which is to speed up. OC calendar for FY 2028. There is a lot of aspiration internally to speed up. If I want to give you a sense of min-max range, because I know what is going in your mind, could be between INR 6,500-INR 8,500 is somewhere my best guess today. It is not a guidance.
I would say it's my best guess where we land up. Purely depending on how fast we are able to ramp up the construction for profit recognition of the FY 2028.
Sure, sure.
Just to add, if the consistent spend increase, maybe OCF may take a dip in the quarter, but it may help us to give us a board billing milestone, which will definitely up the collection into the next quarter or the coming quarter. It may be a timing mismatch, but as Saurabh said, the min-max is between INR 6,500 million-INR 8,500 million, depending on how the outflows actually pan out.
Yeah, yeah. I mean, the reason I was asking is because if we were trying to push our collections or drive our collections in Q4, that means a lot of this spend will actually happen in Q3 and early Q4. I mean, that's what I was getting. There shouldn't be any spillover of collections or operating cash flow as such, right? Again, like we talked about full-year basis.
From a collection strategy and the uptake that we've, even let's say, whatever we're doing on construction, quality of construction, speed of construction, if we were to consistently do 90% of our plan, we will achieve our guidance and we'll have a very good construction operating cash flow, which is the higher range estimate that I told you. If we're able to maximize the opportunity even further to speed up construction, which would mean that our quarter one, quarter two collections of next year would be good, our OC certainty will become higher for FY 2028, right? That's the only reason why your construction spends could slightly bring the INR 8,500 sort of trajectory of operating cash flow to INR 6,000-INR 6,500, INR 7,000 kind of a trajectory. This is more of a guesstimation I'm just sort of giving you.
is more than fair to say that the confidence on the collection metric is very, very high. The upside risk of Q1 collections will depend on the ability of ARTS to speed up construction even beyond that. It is more of a one quarter over another quarter kind of a number. Frankly, when you run an operating piece as big as this, and when you have significantly higher operating cash flow, you really do not get perturbed between the timing issue of an operating cash flow in this quarter to the next quarter.
Sure. Over a long term, the operating cash flow growth should mirror Saurabh's growth.
Absolutely. Absolutely right. Absolutely.
I think this is the most important metric for the company. Whether we look at incentives or other things, certainly this will be the key focus.
Understood. My second question was on the business development side. We have done 80% of the FY 2026 target. How should we look at business development in the second half? Does that INR 20,000 crore GDV number have a serious upside risk?
I think it does. We've indicated we don't want to miss guidance typically. We do keep numbers that we're confident of meeting. On something like business development, we think it's quite important to keep flexibility. We don't want to ever be in a position where we're saying we're doing business development to meet our guidance. We must be sure that we can generate the kind of returns we're looking to create on each of these investments. I think, broadly speaking, roughly being in line with the sales we're achieving will be kind of what we're looking to do to ensure we can sustain the kind of growth momentum we've seen. Certainly, if you look at Q1, excuse me, H1 sales and H1 BD, they're reasonably close to each other. I would expect probably something similar in the second half.
Understood. If I can squeeze one more. In terms of the Sector 53 second phase launch, how should we look at pricing vis-à-vis the first phase?
I mean, to be very frank, it will be a little challenging for me to really give you a very specific project-level inference, but I could rather help you with the same work. Anytime and every time we launch the next phase of a project, we tend to see how do we want to control if there is any leftover inventory in the previous phase, what's the quality of inventory left? Is it A-plus and A, or is it the lower-grade inventory? If it is any A-plus, we actually first endeavor to liquidate some of that inventory to do a price establishment for the next phase. In case, for some reason, we saw a great sold-out, say, 70%, 60%, 80% of A and A-plus also, then we use that as a price benchmarking and do.
Slight discount to that and increase the A and A-plus of that phase even further. That is how you do a pricing strategy. I will not be able to really frankly comment on a project specifically. I do not have the inventory sheet and the specific details very handy with me. This is something part of our typical pricing strategy, which we do during our discussion with the sales team.
Understood. Thank you so much and all the best.
Thank you.
Thank you. Our next question comes from the line of Sourabh Gilda from JM Financial. Please go ahead.
Yes. Hi. Thanks for the opportunity. Jesh, you have already highlighted a very large pipeline for NCR in terms of launches. In Mumbai, there is, of course, Worli coming up. Can you also highlight other launches, other maybe key launches for Mumbai apart from Worli, and then for other markets as well, like Mumbai, Pune, and a few of our project developments?
Sure. I'll do that. Maybe I'll, because as I said, I've already sort of elaborated on NCR, I'll go maybe to Mumbai next. Apart from Worli, we have launched a project in Indore. We had a second land parcel, which we will, which our endeavor is to actually launch within this particular quarter. That's in the Mangale micro market of Indore, so that should hit. We will launch the sort of a commercial office space opportunity in the Panvel township during the year. It could be this quarter, early next quarter. That's been an interesting launch. We have bought a series of three parcels in Kharghar through auctions to recollect. That should hit the market very soon. Likely, quarter four is what that will hit the market. It's a very interesting project.
The land that Pirojsha was just mentioning back in auctions is close to that as a micro market. In a way, that will see some upside from a pricing point of view. Banka, aspirationally, it's a quarter four. It could be a quarter one sort of a launch. Moving on, maybe a bit to the south, we have a series of launches in Thanisandra micro market. We have a plotted development, which we recently acquired in Doddaballapur just last quarter. Actually, we are aspirationally trying to launch it within this quarter. We have a launch in Chennai, which is in a project near Ezhur that we have. That is going to be another launch. We will have Poshkote launch, which is close to Whitefield micro market. Banaghatta could be a potential launch in quarter four.
We bought a land parcel close to near the new airport road, and that should also hit the market this year. We have phased activations. We launched this project called Godrej MSR City. We launched this project in quarter one, did a fantastic sale of close to INR 2,300-INR 2,400 crore, did another INR 1,000 + crore in quarter two, which is like an INR 3,500 crore year-to-date number. It is one of our hottest selling products, and we have a lot of land and phases left in that. We should be able to launch between one or two phases of that. Moving to Pune and the geography around that, we have a launch coming in Bundwa. This is a micro market. We are not busy, so quite excited about that. We have bought a land parcel in Baroda just last quarter.
We are aspirationally trying to push this as a launch within this quarter. We have a series of launches planned from Upper Kharadi. We bought two lands in Upper Kharadi, which will hit one in this year. We have a tower launch on sort of a classic heavy sold-out project of ours, the Never Green Square. We have a launch planned towards quarter four in Raipur, which is a plotted development opportunity. Hopefully, in quarter four, we're able to push even Ahmedabad launch, which is in Vastrapur. As you can see, we have a massive and superlative launch calendar, much above and beyond what we've given as guidance. If we hit even 70%-80% of that, we should be able to achieve our guidance. If we are able to hit.
Many of it and better sales performance than our initial conservative estimates, we could surprise. That is the kind of action-packed calendar we have.
Yep. Thank you. Thank you for the elaborated response. Just lastly on Worli, you have already highlighted the project details in terms of the location and inventory that you are planning. How are you thinking in terms of competitive intensity in that market? Multiple credible developers have launched quite a few projects in that market over the recent past. What would be our strategy to, yeah?
I think we feel very good about the product we've come up with. The initial market response seems quite positive. Probably better to talk about this next quarter once the launch is actually done. It's underway now. We won't have to wait too long to see the outcome. Everything that we're seeing for now suggests it should be a very successful launch.
Sure. Thank you. Thank you. That's all from us, Jesh.
Thank you.
Thank you, sir. Ladies and gentlemen, due to the time constraint, that was the last question for today. I now hand the conference over to management for the closing comments. Thank you, and over to you, sir.
I hope we've been able to answer all your questions. Do you have anything further that you'd like to add? Please do reach out, and we'd be happy to be of assistance. On behalf of the management, thank you again for taking the time to join us today.
Thank you, sir. Ladies and gentlemen, on behalf of Godrej Properties Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.