Godrej Properties Q3 Results: 20% jump in PAT despite 17% fall in revenue

Godrej Properties Ltd reported a mixed set of numbers for the December quarter, with profit and operating performance improving despite a sharp fall in revenue. The stock was under pressure after the results and slipped nearly 3 per cent in early afternoon trade.

Profit and operating performance lead the show

The real estate developer reported a net profit of Rs 195 crore for the third quarter of FY26, up 20 per cent from Rs 163 crore in the year-ago period. EBITDA rose 21 per cent year-on-year to Rs 338 crore, compared with Rs 280 crore in the same quarter last year.

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Total income declined 17 per cent to Rs 1,020 crore in Q3 FY26, from Rs 1,222 crore a year earlier. Revenue also saw a sharp drop, falling 48.6 per cent to Rs 498.4 crore from Rs 969 crore in the corresponding quarter last year.

Despite the revenue decline, the company said this was its highest-ever third-quarter and nine-month net profit performance.

Shares slip after results

Godrej Properties shares were trading lower after the earnings announcement. Around 1 pm, the stock was down 2.8 per cent at Rs 1,664.95 on the NSE, reflecting investor concerns over the sharp fall in revenue despite strong profit growth.

Strong bookings support earnings

Booking value remained the key positive for the quarter. Q3 FY26 booking value jumped 55 per cent year-on-year to Rs 8,421 crore. For the first nine months of FY26, booking value rose 25 per cent to Rs 24,008 crore.

The company sold 3,973 homes with a total area of 6.43 million square feet during the quarter. This marked the fourth consecutive quarter with booking value above Rs 7,000 crore.

Godrej Properties said it has achieved 74 per cent of its full-year booking value guidance and remains on track to beat its FY26 target of Rs 32,500 crore.

Collections and cash flow improve

Collections grew 40 per cent year-on-year to Rs 4,282 crore in Q3 FY26. For the nine-month period, collections increased 19 per cent to Rs 12,018 crore.

Operating cash flow surged 73 per cent year-on-year to Rs 1,062 crore in the December quarter. However, operating cash flow for the nine-month period declined 7 per cent to Rs 3,199 crore.

Business additions and other updates

During the quarter, the company added three new projects with an estimated booking value of Rs 8,400 crore. In the first nine months of FY26, it added 12 projects, achieving more than 120 per cent of its annual business development guidance.

The promoters also increased their stake in the company by 0.5 per cent in FY26 so far through open market purchases worth about Rs 300 crore.