Keshav Seth 1 November 2026

Godrej Properties Share Price Target at Rs 2,200: Motilal Oswal Share Research

Motilal Oswal Financial Services has reiterated its BUY call on Godrej Properties with a target price of Rs 2,200, implying about 47% upside from the current market price of Rs 1,498. The target was lowered after the brokerage raised its discount rate to 11.1% and widened its commercial cap rate. September-quarter pre-sales fell 6% to Rs 8,000 crore but met expectations, with sustenance sales supplying 63% of bookings while some launches slipped into the third quarter. Collections jumped 31% to Rs 5,300 crore. A Rs 32,000 crore launch pipeline for the second half underpins the company's Rs 39,000 crore FY27 pre-sales guidance.

BUY Reiterated2QFY27 Results UpdateReal EstateTarget Lowered

Godrej Properties: Motilal Oswal Stays BUY at Rs 2,200 as the Builder Banks on a Launch-Heavy Second Half

Ready inventory carried a quarter in which new launches slipped. The brokerage trimmed its valuation inputs but sees 47% upside as Rs 32,000 crore of projects head to market.

Project site board

Motilal Oswal ref. 2QFY27 / GPL IN

Target value	Rs 2,200
Current price	Rs 1,498
Upside	~47%
52-week range	Rs 1,434-2,352
Market cap	Rs 45,120 crore

Motilal Oswal Financial Services (MOFSL) said Godrej Properties (GPL) delivered an in-line September quarter, as diversified regional demand and steady sales from existing projects offset slipped launches. The stock trades only about 4% above its 52-week low of Rs 1,434, and the brokerage sees that gap as an opportunity rather than a warning.

Quarter's site register

Rs crore	2QFY27	2QFY26	YoY	MOFSL est.
Pre-sales (bookings)	8,000	8,500	-6%	In line
Collections	5,300	-	+31%	16% above
Revenue	1,935	740	+161%	777
EBITDA	-469	-513	Loss narrowed	-74
Other income	637	1,210	-47%	670
Adjusted PAT	146	403	-64%	374 (61% miss)

Revenue and profit are recognised on project completion, so they swing sharply from quarter to quarter. The quarter carried a tax credit, and management said adjustments for the Mahalunge, Pune joint venture and the Oris settlement were largely booked in Q2.

For the first half, revenue more than doubled, up 108% to Rs 2,440 crore, while the operating loss held flat at about Rs 760 crore and profit fell 51% to Rs 490 crore. Booking value fell less than volume, because blended realisation rose 8% while area sold dropped 13%. Management expects stronger reported earnings in the fourth quarter.

The floor plan of demand

No single city carried the quarter. NCR and MMR each held a 24% share and together contributed Rs 3,830 crore. In the plan below, each room's area is drawn to scale with that city's share of Q2 bookings.

NCR

24%

Part of Rs 3,830 cr with MMR

MMR

24%

Part of Rs 3,830 cr with NCR

Bengaluru

20%

Rs 1,560 cr

Pune 12%

Rs 980 cr

Others 11%

Rs 860 cr

Hyderabad 10%

Rs 780 cr

Room areas drawn to scale with each region's share of Rs 8,000 crore Q2 pre-sales. Source: MOFSL.

Sustenance sales, or bookings from projects already on sale, made up 63% of the quarter's value after several launches moved to 3QFY27. New launches added Rs 5,500 crore of value in Q2 and Rs 16,000 crore in the first half. Pricing held firm. Some Mumbai and southern projects rose about 2%, and NCR increases stayed under 1% as the company prioritised end-user demand, with Godrej Golf Links in Noida the standout exception.

Building toward Rs 39,000 crore

Annual pre-sales as towers (Rs crore)

34,200

39,000

38,136

41,310

FY26 actual

FY27 guidance

FY27E MOFSL

FY28E MOFSL

Tower heights drawn to scale. The dashed outline is company guidance. FY26 is the sum of the four quarterly bookings printed in Exhibit 1. Source: MOFSL.

Management called the second half a "robust phase", with a Rs 32,000 crore launch pipeline. It expects the third quarter to be especially strong, since most approvals are already in hand. Guidance implies 14% growth in FY27. MOFSL's own model is slightly more cautious at Rs 38,136 crore, and it keeps its call for a 10% CAGR to about Rs 41,300 crore over FY26-28.

Land acquisition also continued. GPL added a Marine Lines, MMR project worth Rs 6,000 crore in gross development value during Q2. That takes first-half additions to Rs 15,500 crore across four projects and about 90 lakh sq ft, including Rs 9,000 crore in NCR group housing and Rs 500 crore of Chennai plots. The company has already met 78% of its Rs 20,000 crore annual guidance. Deals must clear an IRR hurdle of about 20% and a 15% bookings-to-profit margin. Bengaluru, Noida, South Mumbai, the western suburbs and Thane stay the priorities. Chennai group housing is not a near-term goal.

The payment plan: cash milestones

Like a buyer's construction-linked payment schedule, GPL's cash story runs in stages. The schedule below shows what has been received and what remains due.

Instalment 1 / 1HFY27

Collections of Rs 9,670 crore and operating cash flow of about Rs 1,980 crore. Construction outflows rose 42% as execution sped up.

RECEIVED

Instalment 2 / 2HFY27

Targets Rs 15,000 crore of collections and Rs 7,000 crore of operating cash flow. The company expects to turn free-cash-flow positive in this period.

DUE

Possession / FY27-28

Cumulative collections of about Rs 54,700 crore and operating cash flow of Rs 20,000-21,000 crore over two years. The company targets positive FCF and a 20% reported RoE in FY28, with 1.35 crore sq ft of deliveries planned for FY27.

SCHEDULED

MOFSL forecasts a 17% CAGR in collections to Rs 27,400 crore by FY28. Net debt rose Rs 270 crore quarter on quarter to Rs 7,900 crore because of land additions, but net debt-to-equity stayed comfortable at 0.41 times. The brokerage expects net debt of Rs 8,400 crore in FY27 and Rs 7,500 crore in FY28. Management said it sees no material change in demand despite global uncertainty and weak equity markets.

Revisions and forward estimates

Rs crore	FY26	FY27E (old → new)	FY28E (old → new)
Revenue	5,131	8,662 (unchanged)	12,816 (unchanged)
EBITDA	-417	786 → 701 (-11%)	1,704 → 1,528 (-10%)
Adjusted PAT	1,858	2,582 → 2,267 (-12%)	3,378 → 3,028 (-10%)
EPS (Rs)	61.7	75.3	100.5
P/E (x)	24.3	19.9	14.9
RoE (%)	10.2	11.3	13.5

Pre-sales and collections estimates were left unchanged. Source: MOFSL Exhibit 13 and financial tables.

The valuation deed

MOFSL kept its 15% NAV premium on the residential business for future land deals. It raised its discount rate (WACC) to 11.1% from 10.6% and widened the commercial cap rate to 8.5% from 8.0%. Those two changes pulled the target down to Rs 2,200.

Schedule of Valuation

Sum-of-the-parts, as set out by MOFSL in Exhibit 14

Item	Basis	Rs crore	Rs/share
(i) PV of residential cash flows	Discounted at 11.1% WACC	60,752	2,017
(ii) NAV premium	15% for forthcoming BD	9,113	303
(iii) Less: net debt	FY27E	-8,401	-279
Sale model value	DCF	61,464	2,041
(iv) Vikhroli development management	DCF	2,629	87
(v) Other development management	6x FY28 EV/EBITDA on fees	1,306	43
(vi) Commercial	8.5% cap rate on FY28 EBITDA	1,018	34
Total equity value (30.1 crore shares)		66,416	2,205

Target price, rounded: Rs 2,200 · Upside 47%

The snag list: what could go wrong

Snag 1 / Launch timing

The second-half plan depends on approvals. More slippage would leave guidance resting on existing inventory again.

Snag 2 / NCR execution

Pollution-related construction curbs in NCR could slow work and delay the cash it brings in.

Snag 3 / Cash and leverage

Free cash flow has been negative every year from FY22 to FY26. Continued land buying keeps net debt high until collections catch up.

Editor's Note

The MOFSL report contains several inconsistencies, shown here rather than silently resolved:

"We maintain our estimates": the page-one heading says estimates are unchanged, but Exhibit 13 cuts FY27E/FY28E EBITDA by 11%/10% and adjusted PAT by 12%/10%. Only revenue, pre-sales and collections stay unchanged. TopNews reports the revisions.

EPS growth: the summary box shows EPS growth of 148.6%, 63.2% and 63.0% for FY26-28E. The EPS figures themselves (Rs 46.1, 61.7, 75.3 and 100.5) imply about 34%, 22% and 33%, which match the detailed P&L. TopNews uses the per-share figures.

Operating cash flow: the text puts Q2 operating cash flow at Rs 1,580 crore, while Exhibit 6 shows post-tax OCF of about Rs 900 crore. The two may use different bases (before and after tax), but the report does not reconcile them. The first-half OCF figure of "19.8" is printed without a unit. TopNews reads it as Rs 1,980 crore.

SoTP per share: Exhibit 14 shows total equity value at Rs 2,216 per share and, two lines below, Rs 2,205. Rs 66,416 crore over 30.1 crore shares gives about Rs 2,206, so the Rs 2,216 line appears to be a typo. The Rs 2,200 target is unaffected.

Sources

Motilal Oswal Financial Services (MOFSL), Godrej Properties 2QFY27 results update, Oct. 24, 2026; research analysts Harsh Pathak and Yohan Batliwala, with Guru Charan. Company disclosures and management commentary as cited in the report. The floor-plan, pre-sales towers and payment-plan schedule are TopNews illustrations drawn from the report's printed figures. The report does not print a risk list; the snag list is a TopNews summary of risks drawn from management commentary and the financial tables.

Disclaimer: Investments in securities markets are subject to market risks. Read all related documents carefully before investing. This TopNews Stock report summarises third-party research for information only and is not investment advice; readers should consult a registered adviser before acting.

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