Ladies and gentlemen, good day and welcome to the Godrej Properties Q4 FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kshitij Jain from Godrej Properties. Thank you, and over to you, sir.
Thank you, Dorus. Hello, everyone, and thank you for joining us on Godrej Properties Q4 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 risks. 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 would now like to invite Pirojsha to make his opening remarks. Over to you, sir.
Good afternoon, everyone. Thank you for joining us for Godrej Properties fourth quarter financial year 2026 conference call. I'll begin by discussing the highlights of the quarter. We then look forward to taking your questions and suggestions. GPL delivered its best-ever year for business development, bookings, collections, operating cash flow, and earnings in financial year 2026. In terms of bookings, Godrej Properties delivered its highest-ever quarterly bookings in Q4, equaling the previous best-ever quarter in Q4 FY 2025 and growing 21% quarter-on-quarter to INR 10,163 crore. This was achieved through the sale of 4,789 units with a total area of 7,3000,000 sq ft.
Sales in the fourth quarter were driven by strong demand in some key new project launches, including Godrej Aveline in Bengaluru and Godrej Arden in Greater Noida, which each saw sales in excess of INR 1,500 crore, and also by strong sustained sales in several projects, including Godrej Trilogy, which saw sales of over INR 1,000 crore. For financial year 2026, booking value grew 16% year-on-year to INR 34,171 crore, and thereby achieving 105% of our guidance. This was achieved through the sale of 17,513 units with a total area of 27,000,000 sq ft, a year-on-year volume growth of 5%.
This is the highest ever full-year booking value and volume announced by any listed real estate developer in India to date, allowing GPL to remain the largest residential developer in the country in terms of bookings for the third consecutive year. Booking value has grown at a compounded annual rate of 41% over the past three years. Notably, this was the ninth consecutive year in which GPL has delivered growth in bookings, indicating our ability to grow through the cycle. We crossed bookings of INR 7,000 crore and area sold of more than 6,000,000 sq ft in each quarter of the last financial year, demonstrating the consistency made possible by our national presence and strong product portfolio.
The company's sales were well-diversified geographically, with the Mumbai region contributing over INR 10,000 crore, Bengaluru contributing INR 8,801 crore, NCR contributing INR 7,412 crore, Pune contributing INR 3,659 crore, and Hyderabad, a new market for us, contributing INR 2,360 crore. 11 individual projects across six cities generated booking value of more than INR 1,000 crore during the year. In terms of collections, the fourth quarter collections stood at INR 7,947 crore, representing a year-on-year growth of 14% over our previous best ever quarter, and a quarter-on-quarter growth of 86%. For financial year 2026, collections grew by 17% year-on-year and at a three-year compounded annual rate of 30% to INR 19,965 crore.
This is the highest collections ever reported by an Indian real estate developer in a quarter and in a financial year. Strong collections also translated into strong operating cash flow of INR 4,631 crore in the fourth quarter, representing a year-on-year growth of 14% over the previous best ever quarter and a quarter-on-quarter growth of 336%. Financial year 2026 OCF stood at INR 7,830 crore, representing a year-on-year growth of 5%. GPL was able to drive a 62% increase in direct construction spend in financial year 2026, which will help enable the company to maintain strong collections in the current financial year.
GPL also delivered positive net cash flow post business development expenses of INR 628 crore in the fourth quarter, a 6% increase year-on-year. FY 2026 was also our best ever year for business development. Godrej Properties added INR 42,100 crore of future sales potential through portfolio addition, achieving over 200% of guidance and delivering year-on-year growth of 59%. 18 deals were closed with an aggregate area of approximately 33,000,000 sq ft.
This includes six new projects with a total estimated saleable area of approximately 11,000,000 sq ft and an expected booking value of about INR 17,500 crore that were added in the fourth quarter. GPL also ended the year on a strong note with respect to deliveries, achieving 12,100,000 sq ft of projects delivered across nine cities, which was 121% of our annual guidance. This includes 7,400,000 sq ft of deliveries across eight cities in the fourth quarter. Strong deliveries also translated into strong earnings. For the quarter, our total income grew by 47% to INR 3,895 crore. EBITDA grew by 51% to INR 959 crore, and net profit grew by 70% to INR 650 crore.
For the full year, our total income grew by 22% to INR 8,374 crore. EBITDA grew by 43% to INR 2,826 crore, and net profit grew by 32% to INR 1,850 crore. The past financial year was also filled with many important milestones on our sustainability journey. I'm happy to share that Godrej Properties has been included in the leadership index of CDP with an A rating in 2025, and has also been recognized as a supply chain leader in CDP Supplier Engagement Assessment. GPL is also ranked number one globally amongst real estate developers in both the Dow Jones Sustainability Index and the Global Real Estate Sustainability Benchmark.
Our record business development additions, combined with the strong operating cash flow of over INR 15,000 crore that has been generated over the last two years, will enable us to continue building on the strong growth momentum the company has established. In FY 2027, we hope to grow residential bookings to over INR 39,000 crore through the launch of a large number of exciting new projects combined with strong cluster and sales. This is a 20% increase over our guidance for FY 2026. We expect to grow collections by 20% to over INR 24,000 crore. We remain extremely focused on delivering our return on equity target of 20% by FY 2028 by stepping up our speed on execution and project deliveries, which will create rapid growth in operating cash flows as well.
With a robust launch pipeline and strong balance sheet, we are confident of continuing the momentum in financial year 2027 across all key operating metrics. On that note, I conclude my remarks. Thank you all for joining us on the call. We are now happy to discuss any questions, comments, or suggestions you may have.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Yeah, hi. Congratulations to the management team for a great quarter and financial year. My first question is on the previous guidance. In the current environment, we have given a very strong guidance. Just wanted some more color on geographically how we see the growth, some more color on the demand on the end markets? Because if I see your numbers in FY 2026, NCR has seen a degrowth. Even on business development, I think we just started one project in this year. Secondly, Bangalore and Pune, Bangalore has grown well, but again, there are concerns on AI and AI-related disruption and demand similarly, which may touch even Pune sentimentally. How does one look and model the growth given the guidance which you have given, which looks to be quite strong?
Any color on the end markets demand and how do we think FY 2027 will play out for these regions?
I think the idea will be to ensure strong diversification in our growth as we've been able to do the last few years. You rightly pointed out NCR saw a dip in sales last year. We don't think that was actually driven by what was happening in the market. We had a couple of the launches we hope to do in NCR slip out of the year. A large acquisition in Gurugram that we've done, unfortunately, we were not able to get the approvals within the year. That is now slated to be a Q1 of this financial year launch. We're also quite hopeful that Ashok Vihar, our project in Delhi that has been delayed for some years now will also get launched this year. Those will be two important launches.
You also mentioned the BD deal we did in another prime area in Gurgaon. We do feel we have a strong portfolio in NCR and hope to get back to above INR 10,000 crore in sales in NCR as we were the two preceding financial years. I think we've seen outstanding growth the last year and the last few years in both Mumbai and Bangalore, and we look to continue to build on that momentum. I think we had a lot of good business development in Bangalore last year. Our view is that the worry that AI is somehow going to lead to poor residential demand is probably a little bit overdone, as we've seen both, not only in terms of residential demand.
Office demand itself has been very strong, you know, any slight softness in the IT sector has actually been more than made up so far in global capability center demand. Of course, I think with the level of uncertainty on issues like AI and the geopolitical situation currently, I think we will of course have to be watchful and adjust our plan basis what we see. As we look at the year right now, this seems to us a reasonable estimate. We're also very confident of demand in Mumbai, Pune, Hyderabad, which is a new market for us. Has done exceptionally well. Our other markets, which is largely due to our plotted development, has been growing well. We also expect to have launches in group housing in both Ahmedabad and Kolkata.
I think a lot of opportunities, and what gave us confidence to, you know, maintain the guidance, and we have been indicating that the company will seek to grow at 20% a year and will seek to have guidance growing by that amount each year. We're happy to be able to do that this year. I think what gives us some confidence that we can get there is, as I said in my remarks, business development last year actually grew by 59%. A lot of those projects will be available for launch this year. Hopefully our launch calendar will be even stronger in the current financial year than it was last year.
In terms of the sustenance opportunity, we believe the available inventory to sale has also grown by 35% year-on-year because of all of the launches we were able to do last year. Overall, there is a good opportunity to meet these numbers and hopefully even exceed them. As you rightly pointed out, there are, of course, also uncertainties. You mentioned AI. I think I would add to that the global geopolitical situation. If there are any major shifts in demand over the year, we'll of course come back to you guys with what we're seeing. Right now, I think we feel this is quite reasonable, and there could even be opportunities to do better if markets hold up well.
Interesting. My second question was on the if I compare Q4 versus Q1, the issue part of Q1. Given this uncertainty globally, what any color on the footfalls and the conversions? If you can help us on the also understand the premium segment, our luxury housing. Is there any delay in decision-making, deal closures? Are you seeing incremental, the trend that people are elongating their decision-making cycle and which may impact H1, but maybe if things improve, H2 will come back so solidly on an strong for us hope. How does one look at pre-sales where H1 will be a bit muted and then H2 hopefully a strong recovery? If you can give some color on this.
Parikshit, right now H1 looks frankly quite bright for us because we have a pretty strong launch calendar, skewed especially towards H1. This has been sort of a effort of last minute ideas to bring launches fast. I get your point. You have a fair point to say that given the geopolitical risk, what do we see? The thing is in April, we've not seen something really out of the world because whatever sustenance projects are in place, we are seeing reasonable footfalls. Of course, there is a sense of cautiousness in consumers, we are seeing conversions. Our launches will start hitting more towards May end and June is when we would be able to fully appreciate to what extent this geopolitical risk exists right across the sales demand funnel.
Just to give you some very early indications, you know, I'll just give you an example. There was a launch done in Bangalore, which is called Godrej Aveline. If my memory serves me right, we did about INR 1,500 crore over there. Give or take, we've done already INR 250 crore in the month of April, which is by rate of run rate, much better than we've seen in Bangalore. Again, there will be projects that may be slightly more impacted. There may be projects that might surprise, but very difficult to frankly give you a sense of what exactly a Q1 number would look like. Having said that, even if there is, let's assume, some impact, we have enough and more time to cover it up within H1.
Quite cautiously optimistic for Q1, and a bit more surer on H1. Of course, H2, will continue to be good.
Sure. Just the last question, if you can give us some number. Out of the total launches for FY 2026, how much has been on the pre-sales, what was the contribution of sustaining sales, and the new launches for FY 2026?
I think quarter four was largely a very interesting sustenance-driven quarter. We almost had, from me-memory, it was like close to 50 %-odd in quarter four. That was driven by some of the big projects like Worli did about INR 1,100 odd crores. We had Panipat INR 200 plus crores, we had Godrej Reserve then INR 500 crores. At the moment, very difficult to say, what we have done to sort start a good momentum, we have created a pan-India sustenance campaign, we're just hitting the ground as we speak so that all the projects have extreme high focus to move inventory. Very early days of the campaign, just a couple of days back, we've started, we got some good encouraging results.
The idea is to have a consistent, run rate on sustenance. While launches will be launches, sustenance are more predictable inventory, is what we'll continue to focus upon.
For FY 2026? I think the campaign you're talking about is 1% per month, right?
Yeah, I mean, yes, it is designed like that. There's like a 20% upfront, then there are bullet payments every year. And it is a 1%, anchoring sourcing tool is 1%. Again, in project to project it will differ. It's closer to CLP and TLP, somewhere in between. Yes, you're right. The fact is you heard about this campaign means the impact is coming in the market. Give us a few more weeks, and we'll have a better picture.
Last thing is FY 2026, how much is the bookings contribution to sales?
bookings contribution to-
FY 2026 total sustenance.
FY 2026.
Yeah.
Sustenance contribution to total sales is the question or booking value for.
Yeah. Yeah, yeah. I mean, yeah, total sustenance contribution to the pre-sales.
60% would be launches.
60% launches, 40%-
Yeah, 40% would be sustenance.
Okay. Thank you.
Thank you, Parikshit All the best.
Thank you. Our next question is from the line of Puneet Gulati from HSBC. Please go ahead.
Yeah. Thank you so much, and congrats on your performance. My question is if you can also, you know, in your pre-sales, give some color on how should I think about the mix of projects, whether you are inclined more towards m id-premium or more mid-income, and also volume and value growth that you see in the market, and for your pre-sales guidance.
Yeah, Puneet, I think it's fairly decipherable from the. You know, I think every BD deal we do, we announce now an expected booking value from it and an area. You get a pretty exact picture of what we're underwriting in terms of pricing. I think I wouldn't say there's any major shift from last year to this year. Over the last two years, we certainly tried to go into a slightly more premium category of projects, focused very much on kind of making sure we're in the best location within each of the micro markets we're looking at. I think, you know, some of the important projects we added last quarter included one in Golf Course Extension Road in Gurgaon, a very prime located project of good scale in Thane. Those would be some examples.
We're putting out, as I said, the exact price points we expect to be at, through the combination of booking value plus area guidance.
Volume growth, should one assume a, you know, strong volume growth into this year or is it be more value growth driven in some terms?
I think, you know, if you look at the last few years, Puneet, the volume growth over the last five years has compounded at 20% a year, excuse me, against the total sales growth of nearly 40% a year. Volumes have been a meaningful contributor. I would expect a roughly equal split, perhaps between volume and value for the overall growth.
Okay. On your annuity income, you're now talking about potential of INR 1,000 crore with your share being almost some INR 30 crore-INR 50 crore. Any plans of monetizing, and when do you think you'll hit INR 1,000 crore of rentals here?
No, I don't think we have any immediate plans of monetizing this. You know, I think I don't have a clear sense of exactly when we'll get to that INR 1,000 crore milestone you mentioned. Certainly I do see this continuing to go up, and there could also be opportunities to consolidate share rather than divest if we, if we'd like to. I do see this increasing steadily over the next few years.
That's helpful. Lastly, on your, you know, net debt, while it still remains in comfortable range, should one think about FCFE positive for FY 2027?
I think, you know, it's a little uncertain, to be honest, for FY 2027. I think it's quite possible. It'll depend a little bit on the quantum of business development we do. At the guided business development levels, I think it will be FCF positive. Whether we go above it or not will depend on kind of the quality of opportunities and our confidence in them. I think broadly speaking, Puneet, you know, if I talk a little bit, you know, slightly longer term than just this year, very clearly directionally we think business development investments won't need to scale up very dramatically from here. We had taken a step jump increase in BD. We did see the opportunity over the last few years in the early stage of the cycle and when we were on a lower base to grow very disproportionately.
I think Gaurav and the team have done a fantastic job in making that happen. You know, as a result, compounded growth of bookings over the last three years has been over 40%. I think what we're looking at from here is on this much higher base, getting to a kind of consistent 20% growth. For that, the level of business development as a percentage of existing projects and as a percentage of kind of operating cash flow will keep coming down. I expect certainly FY 2028 to be strongly free cash flow positive. I think FY 2027 will depend on kind of ultimately how much business development we do. It could be, but it may not be also.
Okay. That is helpful. Thank you so much, and all the best.
Thank you.
Our next question comes from the line of Kunal Lakhan from CLSA. Please go ahead.
Hi. Thanks for taking my question. Firstly, on the impact of raw material. Firstly, on the demand side, right, are you seeing any impact on the demand side, especially from, say, you know, on the NRI customer inquiries, especially in markets like MNPR? Also like, you know, ultimately, if, is there any silver lining to this war, like in terms of, say, Indian buyers who are investing, in markets like Dubai and, you know, Abu Dhabi are now ultimately looking at, or looking back at Indian markets? That's first. Secondly, also on the overall cost impact of this war, right? Are you seeing any impact on the procurement of materials, in terms of delay or on the cost side also?
Thanks, Kunal. Kunal, on the impact on the demand, I would say, around March last two weeks, we did see some amount of impact. Well, that was the peak of the chaos. Give or take, we could have probably done INR 1,000 odd crores more, and would have loved to even actually deliver 20% growth last year. That was a sort of an internal target. Right now, if you ask me, the situation is of course a little uncertain from a buyer standpoint, but it is not as worse off, I would say, in March, because, you know, people over a period of time tend to normalize a situation. I would say one has to be cautiously optimistic, but relative to the peak stress of March end, it's slightly better.
Again, like I mentioned, we have to be just cautious optimistic and be very steady on the understanding consumer sentiment. The silver lining that you talked about. Second part of the first question, I would say in the short term, it does create some amount of dissonance, you know. In the long term, actually impacts the market in a positive way because I think there were a lot of fence sitters who were looking Dubai primarily as a huge investment hub, and also there were a lot of people who had taken a sort of a property selection purely from an investment point of view to move there. I think that all is going to get revisited significantly.
I don't see a big impact of that in the next three to six months for sure. I do feel that this is a good opportunity that a lot of demand could flow back to many markets within India and across developers. On the cost impact, I would say, you know, we've done some cost estimation, you know, because of the portfolio size and projects at different levels. I would say give or take, cost impact could be between 5%-6% at max. Again, in some projects could be even lower. From a margin point of view, again, project to project could differ. Give or take every quarter this is going to be something like 0.1%-0.2% of margin impact.
Quite reasonable to control with just a small price hike in the next two, three years of that project we can manage that. Yes, I think more fundamentally is the supply side shock. If we see constraints to supply getting created. We did see some of that happening in tiles and all, a fair amount of marbles. You know, things are getting slightly better than what we saw in March. Fortunately, we have good, strong forward contracts that are in most of these input materials. Again, we partner with our vendors, but at the moment it seems fairly manageable. We hope that this situation that we talk about Middle East in the next two to three months, if not earlier, should get fully resolved.
As that happens, I think we'll be pretty much back to normal with some amount of catch-up to be done. Yes, if it continues for 6- 12 months, then I think that's something which has different economic risk than sector specific.
Sure. Sure, Gaurav. Now my next one is to Pirojsha. Pirojsha, you mentioned earlier that, you know, your BD spend in FY 2027, you're not sure whether it will be higher, lower or similar. Right? If you look at your guidance there of INR 20,000 crore in the GDV acquisition, and you know, we're considering like your FY 2026 guidance and the number that you actually achieved was more than 2x. How should we look at the BD guidance that you have given? Like now would you still aim at beating that guidance or you are happy with like achieving say INR 20,000 crore GDV or you'll be just opportunistic like you were there in FY 2026?
Kunal, I think it's really a question of the opportunities we see out there. That's why we don't, you know, focus too much on business development guidance, and have kind of kept it steady the last few years. Look, we're quite keen and we're quite aware of, you know, stakeholders wanting us to start demonstrating kind of free cash positive on a more consistent basis. We were happy to see that last quarter. Very confident again of seeing that in FY 2028, as that's the year where we think both collections and earnings will see a step jump as a lot of these newer projects reach revenue recognition. I think this is kind of a transition year, and when I say it may happen or, you know, I believe me today it will happen right now and perhaps I should just say that.
I think I want to be realistic that if we see very good opportunities, we do think we still have the balance sheet that can support this, and we will, you know, look to add projects. I think certainly as if we only add projects to INR 20,000 crore BD, we'll certainly be free cash positive. If we add something closer to what we did last year, I think we'll be, you know, we'll be about breakeven on free cash, would be my guess. As I said, FY 2028 is really where I expect to generate a lot of cash for business development.
Sure. Sure. Helpful. My last question is on the imputed margin that we have started to put out since the last couple of years. For FY 2026, the imputed EBIT margin is about, it's around 34.5%, which is lower than what we had seen in the last couple of years. Is it a function of the product mix or is there any impact of, you know, increasing costs or overheads that we are factoring in here?
I mean, you know, in a pretty tight band, there will always be a little bit of fluctuation on this. One of the factors, at least versus FY 2025 to keep in mind, is that we had a big contribution from one of our JV projects in Bangalore in FY 2026, where we saw almost INR 4,000 crore sales in that one project. It's a 50/50 JV. The total economic interest for the full year was 88% versus 93% the previous year. A little bit can be because of that. These, you know, I think these minor fluctuations can happen. I think if you recall, we had guided for a 10%-15% sales margin overall, and we're happy that for now the 3rd consecutive year we're at the very top end of that range.
Understood. All right. Thank you so much and all the best.
Thanks, Kunal.
Thank you.
Our next question comes from the line of Gourav Khandelwal from JP Morgan. Please go ahead.
Hi. Good evening. Thanks for taking my questions. I've got a few. I'll take those one by one. Firstly, on this, the 1% payment program, can I understand, is it merely a marketing tool to get more sales? Have you tried this in the past or is this something that you've come up with recently? Especially in this, how does the payment, from a developer or from a buyer standpoint of view, how is the payment different vis-a-vis, let's say, a regular construction linked payment? Is there more downside risk here or is it rather an optionality?
Great question. You know, you know, one of the things I'm learning is, you know, journalists also picks up a lot of things from earnings call and write stories. I mean, just to qualify, this is not a Dubai-style 1% payment plan. If you would recollect, even last year we did a 1% payment, more like a sourcing tool, where essentially, again, project to project it could differ. Let's say you're buying a project which is very close to possession. Essentially you're paying upfront money, say 10%, 20%, 30%, rest in maybe 2- 3 months, and then, for the 2- 3 months or six months could be 1%, then you pay on possession.
Vice versa, let's say you buy something which is in early stage of a project, you would typically pay between 20%-30% or so in the initial period of time. You have 1% per month, and idea is to converge it closer to CLP. Yes, it is slightly better than a construction linked payment plan, but we sort of benchmark a construction linked payment plan, which is to say that 70% of collections usually come, say, in a typical CLP. Here it could be between 60% and 70%, depending on project to project. For a consumer it becomes slightly an easier entry point to evaluate.
Our experience historically has been that it attracts a lot of consumers to walk into a site, and then they decide to choose sometime to move to a normal Construction-l inked Payment Plan, sometime to this or sometime even to down payment plan, because then they get to see pricing difference between all the payment plans. It is not really in the classic sense that you only pay 1% in the life cycle. Yeah, I mean, you don't have the headache to pay bulky payments every other second, third month. You pay 20% typically upfront in 1 - 2 or three months, and then 1% a year and some bullet payments. It's like a BMW scheme that you get to see, or a Mercedes-Benz, you know, lease scheme that you get.
It's something similar, and it's a win-win for consumers as well as for the sales perspective.
Got it. If I can just follow up on this. Does this also then did this have a consideration when you built in a forecast of 20% cash collection guidance this year? Even without this, you would have still been comfortable with your 20% growth guidance on collections?
I think our collections is anyways going to come agnostic to a particular scheme. These are like, you know, like, what do you say, pillars to our overall portfolio plan. Every quarter we do something or other to attract consumers to have better walk-ins. They feel the need to evaluate a product proposition. You know, you've got to excite the market, sometimes you release a scheme which is more financial, sometimes you release a scheme which is more product-like. You get certain freebies and you of course build in a price to adequately do it. From a cash flow planning point of view, almost all the projects I can say, they are always benchmarked to a base payment plan, which is a typical Construction-l inked Payment Plan.
As a rule of thumb, we don't do any sort of, you know, say, typical classic PLP, as it's called, Possession Linked Plan, more than 5%-7% in a quarter. Let's say if we're doing INR 10,000 crores sales in the previous quarter, not more than 5%-6% would be a true PLP scheme. Everything else is either a scheme which is a classic Construction-l inked Payment Plan or maybe a 10% or 15% of that, a few slabs earlier, a few slabs later. That is just enough to keep the site momentum going, keeping the sustainable engine alive, because every consumer wants to feel that what's the best deal for me in this quarter, you know? There has to be a reason to believe, to always evaluate the product.
I hope this answers it.
Got it. Yes, that's very helpful. Thank you. My second question is, of the INR 42,000 crores of GDV that you announced in FY 2026, how much do you estimate would be the total land and related CapEx payments? How much of that is done and how much is still pending? Could you share some color on that, please?
We have paid the major payments. You know, only some milestone link payments are pending. Around INR 1,500 crore is what is pending for the deals which we have signed in 2026.
No, sorry. Out of INR 42,000 crores, the total would be how much? Sorry, I did not get it.
For the entire project, so that's INR 1,500 crores of.
It's pending payment.
-pending payment.
Pending payment, yeah. Got it. Okay. Okay, thanks. My final question to Pirojsha . We recently saw, I'm sure everyone must have seen your interview. In that INR 5 trillion market cap, where does Godrej Properties sit in the broader picture of things?
Well, the picture's quite high. I think we'll refrain from giving company-level guidance on this. I think, you know, perhaps you can get an idea of where we think it sits by the fact that we bought back 5% of the company last year, including most of that in Q4.
Got it. All right. Thank you very much. All the best.
Thank you.
Thank you.
Our next question comes from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah, thanks for the opportunity and congrats on great results for this year. First one is just on the free cash flow, you know, discussions that we were having earlier. You know, we have also given a dividend payout, you know, I mean, we have given a dividend payout for next year. You know, what does it indicate? I mean, does it indicate that, you know, this will be a regular phenomenon now and fundamentally we are much in a better position to generate free cash flow? You know, considering that, you know, we would be paying regular dividends. Yeah, just trying to understand the underlying message here, when we announce this dividend.
Thanks, Pritesh. Yes, I think that is the underlying message. As I mentioned earlier, I think over the last few years, we felt the real opportunity was disproportionate growth. Frankly, we think 20% growth over the last two years, where the market itself has been growing at that kind of rate, would've been kind of underplaying the opportunity. We were very clear we wanted to grow well ahead of market, grow market share. I think made some very timely investments before the cycle turned and during the early part of the cycle that have helped kind of completely reset the scale of the company to kind of 4x- 5x where it was not that long ago.
With that behind us, I think now we think on this higher base that 20% actually is the appropriate growth rate to look at in also a more steady part of the cycle. I think that's what we're after. The level of investment needed to achieve 20% growth is obviously lower than is needed to achieve 40%-50% growth. We will therefore see, I think, a more consistent level of BD investment while our sales, collections and operating cash flows will all grow quite sharply, we think, over the next few years. Therefore, I think the surplus cash available to the company for dividends will increase. We've started with a relatively modest dividend for this financial year, but we'll of course now look to both make these dividends consistent and consistently growing.
Sure, that's helpful. On the guidance part, you know, this is obviously better than what we had last year in terms of the percentage growth, 12.5% last year to now almost 15%. You know, what are we expecting to be better this year? Is it the demand scenario or, you know, we have a better hold on the pipeline that is about to get launched this year and hence, slightly better guidance since last year despite a higher base?
I would actually argue with you guys on a slightly funny way of looking at results sometimes. I think what has actually happened is that a couple of years ago we said we would like to grow guidance 20% a year on year. We've done that now both of the last two years. This year's guidance only looks better because actually, as Gaurav was saying, we think we probably missed about INR 1,000 crore of sales at the end of March. If we had done that, I think last year's growth would in fact have been 20%, and then you guys perhaps would be complaining that our guidance was only 10% higher. Maybe, you know, it's an advantage to us that didn't happen in some ways.
Look, I think what we're saying is that we obviously don't want to constrain ourselves on the upside. If we see the opportunity to grow 55%, as we did in FY 2023 or 84% in FY 2024, we'd like to obviously seize on those opportunities, even if that means that the next year's growth may look a little bit more moderate. I think this idea of 20% growth in guidance is something we are keen to deliver. Obviously each year we hope to do a bit better than guidance. Last year we did 6% better than our guidance, and therefore this year's growth over actuals is 14%.
You know, had we been able to do 20%, as I said, then this year's guidance over actuals would have been 10%. I think that's the way we're thinking about it. In terms of what gives us confidence of overall having a much stronger number this year, as I mentioned earlier, our business development last year grew by 59%, which implies a stronger launch opportunity this year than we had the previous year. Our existing inventory available for sale is also on an opening basis 35% higher this year than it was last year. Of course, there are also additional risks and concerns this year that didn't exist last year, not least of which is this global situation.
We will have to keep, you know, a watchful eye on that and come back to you guys if we're seeing any shifts in the market in either direction. As of now, I think basis what we're seeing, basis the launch opportunity, basis the present, and you know, this is obviously built bottom up, project by project, region by region, and with some buffer for, you know, assumed slippages in launch timelines and things. So far in the last four years, we have been able to meet this sales guidance each year. We're obviously very hopeful of doing that again this year.
Sure, that's helpful. Just one last on the pricing side, since we are doing a lot of sustenance sales as well, you know, how is the price expectations, price acceptance by the consumer, when we are taking those increases? What would be the, you know, outlook on that, as we move ahead in FY 2027?
I think pricing has been, I mean, especially in South and Mumbai, reasonably decent. I would say West is, been marginally better, nothing great. On the Gurgaon side, I don't see there is a good price uptick, and frankly, we are not really looking at that. We focus more on quality of sales. Noida has been a bit of a consistent surprise in the sense that, there's a very strong lack of supply in that market. It gives a sort of a clear demand supply issue, which is why price uptick is still good. Yeah.
Got it. That's helpful. That's it from my side and all the best. Thank you.
Thank you.
The next question is from the line of Abhinav Sinha from Jefferies. Please go ahead.
Hi, just couple of questions. Firstly, on the launch guidance that you are given of INR 480 billion, you already detailed some big launches in NCR. Can you talk about maybe few more projects in other areas and what to watch out for in terms of timing?
Thanks, Abhinav. Actually pretty action-packed year. Apart from the launches Pirojsha talked about, I'll just quickly cover NCR more. We will have a very exciting launch coming up in Greater Noida, Godrej Golf Links, our last residential cluster. This is sort of a sold-out project previously. Retail, it was the last product we had launched, almost probably 90% plus also sold out, so very looking much forward to this one. We will also have a tower activation, phase activation, basically, in Godrej Arden. The launch which happened last quarter has done more than INR 15.8 crore. Likely towards Q3 we'll launch, and we will also launch a phase likely of Godrej Miraya during the later part of the year. In Bombay, again, quite action-packed. We will have Bandra is the most awaited launch, Mumbai, for Bombay in the last many years.
That should come. We will have phase activations in Kharghar and Panvel. We will also launch another tower of Worli. As you would have seen, we've been clocking sales pretty strongly. I think somewhere around Diwali this year, we might open a new phase of Worli. We will also see after very long time a very exciting land parcel coming in Vikhroli, and the teams are quite excited about that. This is a huge project, and towards maybe Q2 or Q3, we would see a launch of this one. We will have a tower activation of Godrej Reserve. The recent acquisition, the INR 7,500 crore top line that we have acquired in Thane, that should also see a launch mostly like towards Q3, late Q3 or Q4.
On south, you know, we've added a lot of projects across the board, so most of we'll see action in the coming months, starting with Kukatpally and Pahargarh. These will be two exciting launches. Bannerghatta in Bangalore will be coming up. We will be launching a second phase of Godrej Regal Pavilion. We'll launch a plotted development of Coimbatore. There are two, three more launches. Like in Hyderabad, we have a launch of new policy land in auction we bought. Moving on to. Again, there'll be some phase activations we look forward in Godrej MSR City and Whitefield. In Pune, we'll have again series of launches starting from Mundhwa, Nagpur. We will open another phase of another parcel in Upper Kharadi.
We will have something, maybe two, three launches in Mahalunge, depending on how many launches we can secure in terms of approvals. We'll have a very exciting launch in Kolkata as well as Raipur. After a long time, we'll have a launch coming in Vastrapur, which is Ahmedabad. I mean, as you can clearly see, we have enough and more to be very, very confident. Like Pirojsha was mentioning that there is a guidance of launch guidance, we tend to keep buffers, some of these may slip. In spite of them slipping, we're very confident to bring the inventory given as guidance and through that drive our launches.
Second question on construction costs. Now we have seen a big reset already, with a 62% jump. From here, should we be thinking about maintaining the current INR 2,000 crore per quarter levels or there is another large jump ahead?
I mean, you know, I would say we would see a consistent growth like the ones that you talked about. I see the percentage will be in double digit. May not be as massive as the one we saw in the last year, but the endeavor would be to push as much as we can so that we can start securing the OC plan for FY 2028. Some of these launches will also determine some of the construction spend. If we're able to ensure that we have a good Q1 and Q2 launches, that will also of course have a good positive upside on the construction. Again, you know, from an operating cash flow, most of these will get covered up from the launch collections itself. Endeavor is to push as much speed of COC spend.
Yeah, I mean, the range that you talked about seems very logically achievable. Yeah, internal targets are slightly more stretched.
Yeah. Logically okay to believe that OCF should now rise faster than customer collections, or you think it's still more in line?
I mean, Abhinav, it actually frankly depends upon the stage of the project and the COC spend of that, right? Because, you know, finally we are a portfolio, say maybe 100 odd companies, 100 odd projects, right? If we are able to see great construction progress in projects which are in later stage of construction, then the OCF conversion is very, very high. If we are able to, for some reason, I'm just giving you a sense of sensitivity on how difficult it is to project these numbers. If we're able to not do that very well, but if we do very well on the mid stage, then that actually happens quite the opposite. Frankly, I don't want to put my neck out and convert it.
Directionally, I can say OCF will continue to grow very strongly, because we've been able to ensure that many of the projects in last year have reached a slab cycle level. Typically, construction is relatively slower in a typically two, three basements till you hit, you know, plinth and above. We've hit second, third floor slab in many of it, which is the typical cash flow accretive sort of stage of a project. I mean, very frankly, all projects for us are equally important to speed construction. Directionally OCF will continue to be strong. I can't give you a number right now. Trajectory-wise, I can say will be stronger than last year.
Okay. Thanks and all the best to the team.
Thank you, Abhinav.
The next question is from the line of Rahul Jain from Elara Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. On the launches of INR 480 billion that you're planning, what is the approval cost that you're budgeting for the full year in FY 2027?
Very, very difficult, Rahul. You know, you know, it will be like, you know, several of the projects, you know, and each project will have a different approval cost. Some we will require some psyche premium to be paid, some FSI to be bought. Very difficult, you know. Why don't we get off, you know, connect offline and, you know, maybe we'll help you with some of the numbers.
Sure, sure. On the collection side, you were essentially guiding for INR 210 billion for FY 2026. You landed at INR 200 billion for the full year. There were obviously INR 10 billion worth of slippages. Does that INR 240 billion that you're guiding in FY 2027, the slippage is baked in or there is upside risk to that number? That's it.
Yeah, I think, you know, a lot of the deliveries ended up being skewed towards sort of even later into Q4 than we were originally planning. We, we of course are disappointed to have missed this INR 21,000 crore guidance. I think INR 24,000 we always would have some buffers in the, in the guidance. I think that some things will change in an industry like real estate is pretty much a given. We do have some buffers. I wouldn't say INR 24,000 is everything going right. We could have perhaps gone a little bit higher, but based off the learning from this year where we ended up missing it by 5%, we wanted to stick with INR 24,000.
We'll hope to do a bit better than that.
Understood, sir. Thanks.
The next question comes from the line of Akash Gupta from Nomura. Please go ahead.
Hi. Am I audible?
You are audible, sir.
Yeah. Hi. Hi, sir. Congratulations on great performance. Actually, my question is twofold. The first is, your launch performance for projects in Kharghar and Kharadi that were launched in 4Q FY 2026, they were slightly on the softer side. I just wanted to know your thoughts on that. Second, for projects in Gurugram, projects like Sora and Mirai, I think we already did roughly 30%-35% at launch, but I don't see that offtake continuing. What's your thought on that? These are my two questions.
Thanks. I think the project Kharghar and Upper Kharadi are exactly part of the bucket of projects which saw impact of lower conversion in the last two weekends of March due to Middle East. This is more of a short-term issue, and the idea is if we had great check pick up, the conversions did take a hold because consumers were expecting that because there's a geopolitical situation, there are some extraordinary deals to clinch, which we don't offer very frankly. I think that's bit of to that. On some of the two projects of Gurgaon that you talked about, there is also, you know, stage of construction. In some one or two projects we've removed the marketing office so that the construction can be complete of that area because there's a basement and logistics part.
I think typically 3- 4 months, once that stage is over, we will put back a sort of a temporary marketing office and again the sales figure will start moving up.
Understood, sir. Thank you so much.
Thank you.
Our next question is from the line of Kunal Lakhan from CLSA. Please go ahead.
Hello, am I audible?
Yes, you are audible, sir.
Yeah, yeah. Okay, sorry. Thanks for taking my question again. On the cash side, I mean, you have cash of about INR 8,000 million. How much of this is in the RERA account? I'm just trying to understand, like, the rationale.
Not able to hear you, Kunal. Could you try again?
Is it better? It's still the same.
I think this is a bit better. Go ahead.
Okay. Just wanted to understand on the cash side, you have a cash of about INR 8,000 crores in our books. How much of this would be in the RERA account?
Around INR 6,100 crores.
INR 6,700 crores in the RERA account. Okay. Okay. Okay, understood. Secondly, on the revenue side, right, you know, I mean, in terms of the revenue bookings, revenue recognition side rather, right? We're still recognizing revenues in line with our sales of say FY 2021, 2022. We've seen some ramp-up in sales from FY 2022 onwards. On the revenue side going into FY 2027 and 2028, particularly FY 2027, could we see a bump in the revenue recognition? When I look at the delivery guidance, right, it's showing maybe versus.
Thanks, sir. Thanks. I think we would see that better bump up in FY 2028.
Okay. Okay. Major bump in 2028.
Those fees will come in, Kunal. You will see a significant P&L revenue recognized into P&L overall.
Well, I mean, even now it's quite healthy. I think maybe it's INR 2,900 crore is revenue linked to all these OCs. Even this year it should be decent. I think the real bump is FY 2028 when our target is to hit 20% ROE.
Kunal, that's obviously as implied. That's why the 2028 is what the year we said from when we will be hitting this 20% ROE. That's the year where we see the significant bump up. Obviously with delivery guidance for the current year higher than last year, we should see positive momentum this year as well. I think a big step jump-in FY 2028.
Another thing is like, you know, all those revenue which are going to get recognized will be off of our own projects, you know. That's why you will also see that bump coming in in 2028.
Yeah, we think perhaps the market hasn't fully appreciated that yet because whilst bookings themselves have grown very sharply, GPL's economic interest, which we show separately, has grown even faster. Over the five years it's been compounding at 55% a year. All of that till now we think starts becoming more and more visible in the P&L. Of course, some of it already has been.
Understood. Understood. One last question, if I may. Pirojsha , you did highlight about Ashok Vihar likely to get launched in FY 2027. Are all the issues, you know, specific to that project or for that market, right? Are they already behind us or what's the current status right now?
No, I wouldn't say they're all behind us. I wouldn't say there's a certainty of it getting launched this year. I think very strong progress is being made. The team on the ground feels that this year we will be able to launch it. I don't think that was the message from them at this time last year. I would not say this is something that we should take for as certain. We're reasonably optimistic of this happening. I think it'll be quite positive if, you know, within a 12-month period, these three significant projects that have been delayed for some time, Worli, Bandra, and Ashok Vihar, all get launched. That's the endeavor.
In some ways, of course, these delays have helped in terms of how the market has moved, but we wouldn't like to see obviously any further delays now.
Sure. Sure. Understood. Thanks again. Thank you so much.
Thanks, Kunal.
Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to the management for closing comments.
I hope we've been able to answer all your questions. If you have any further questions or would like any additional information, we'd be happy to be of assistance. On behalf of the management, thank you once again for taking the time to join us today.
Thank you. On behalf of Godrej Properties, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.