New Delhi: Godrej Properties Ltd's promoters have increased their stake in the company by 5 per cent this fiscal through purchases of public shares worth Rs 2,674 crore in the open market, as they are bullish on the growth prospects amid robust demand for residential properties and a strong launch pipeline. Godrej Properties, the real estate arm of the Godrej Group, is one of the leading property developers in the country.
In terms of sales bookings, the company emerged as the biggest listed realty firm during the last fiscal with pre-sales of nearly Rs 30,000 crore. It is set to retain the position even in the current 2025-26 fiscal. At the beginning of the 2025-26 fiscal year, the promoters' group had a stake of 46.67 per cent in Godrej Properties, and the same has increased now to 51.67 per cent. Promoters have bought shares at an average price of Rs 1,775 per share, and they have invested a total of Rs 2,674 crore to buy these shares.
Godrej Properties' share was trading at Rs 1,578.80 apiece on Friday on the BSE, lower than its 52-week high of Rs 2,505 per share. The company's current market capitalisation is over Rs 47,000 crore. When contacted, Godrej Properties Executive Chairperson Pirojsha Godrej said the company has delivered outstanding growth in the past several years. "This has led to Godrej Properties Ltd being the largest residential developer in the country by sales in both 2024 and 2025. Its future growth prospects remain very exciting as evidenced by FY26 being the company's best ever year for business development," he added.
"This growth potential, combined with strong cash flows and operational return on equity, gives us a lot of confidence in the value creation opportunity ahead," said Pirojsha. That apart, Godrej Industries Ltd's promoters too have increased their stake in the company to 74.64 per cent from 69.64 per cent for around Rs 2,000 crore. Godrej Industries owns a stake in Godrej Properties as well. On the operational front, Godrej Properties has performed well during the last few years across all key metrics, including sales bookings (pre-sales), collections from customers, project launches and land acquisitions.
The company became the largest listed real estate developer in the 2023-24 and 2024-25 fiscal years, clocking record sales bookings of Rs 22,500 crore and Rs 29,444 crore, respectively. For the current fiscal, Godrej Properties Ltd has set a target of Rs 32,500 crore of sales bookings, and it is confident of achieving the pre-sales guidance for 2025-26. Already, the company's sales bookings rose 25 per cent to Rs 24,008 crore during the first nine months of this fiscal on the back of strong demand for residential properties.
Post-COVID pandemic, the market share of major listed real estate companies, including that of Godrej Properties, has increased, as prospective homebuyers have become risk-averse and are preferring big brands with a decent track record of executing projects. On the business development front, which means acquisition of land either outright or joint venture with land owners, the company has acquired multiple land parcels so far this fiscal to develop housing projects with a revenue potential of more than Rs 40,000 crore.
The company has done aggressive land buying with the help of internal cash flow and also through funds raised from institutional investors in late 2024. In December 2024, Godrej Properties raised Rs 6,000 crore of equity through the largest ever QIP (Qualified Institutional Placement) by a real estate company in India. The issue was subscribed at Rs 2,595 per share.
In its latest investor presentation, Godrej Properties said, "Since its IPO (initial public offering) in 2010, there have been 5 instances of its stock price declining by more than 45 per cent, including the most recent one in 2025-2026. On average, the 1-year return post these previous lows has been over 100 per cent, and the 3-year return has been over 200 per cent." Godrej Properties Ltd develops group housing projects in Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, Bengaluru and Hyderabad. It offers residential plots across various states. During the 2024-25 fiscal year, the company posted a net profit of nearly Rs 1,400 crore on a total revenue of nearly Rs 7,000 crore.
Regarding the execution of projects, the company has delivered around 70 million sq ft of real estate since 2017-18. Recently, Pirojsha Adi Godrej bought nearly 1.8 per cent stake in real estate firm Arvind SmartSpaces for Rs 40.7 crore from an affiliate of HDFC Capital through an open market transaction. Pirojsha Godrej is the Executive Chairperson of Godrej Properties, Godrej Housing Finance and a Non-Executive Director at Godrej Consumer Products and Godrej Agrovet. The share price of all major real estate companies has declined sharply due to geopolitical tensions in West Asia.
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