Godrej Propert. Q2 FY27 Results (NSE: GODREJPROP)
Signal: Margin expansion
The read
The quarter shows a modest core-revenue recovery, with revenue from operations up 21.2% YoY to ₹111.83 crore, but the earnings trajectory remains low quality: PAT of ₹80.76 crore was supported by ₹617.37 crore of other income, operating margin remained deeply negative at -359.04%, and H1FY27 operating cash flow was negative ₹579.90 crore. Adjusted EBITDA margin improved 505bps YoY to 29.60% after contracting through Q1FY27, but the improvement needs confirmation from project-led operating profit rather than investment income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹111.83 Cr | +21.2% | -7.7% |
| Net profit | ₹80.76 Cr | +520.8% | |
| EPS | ₹2.68 | +523.3% | |
| EBIT margin | 29.60% |
P&L walk
Standalone revenue from operations increased 21.2% YoY to ₹111.83 crore, while adjusted EBITDA margin improved to 29.60%; however, ₹80.76 crore PAT depended heavily on ₹617.37 crore of other income and operating cash flow for H1FY27 was negative ₹579.90 crore.
Key positives
- Revenue from operations increased 21.2% YoY to ₹111.83 crore, although it declined 7.7% sequentially.
- Adjusted EBITDA margin expanded 505bps YoY to 29.60%, despite declining 363bps from 33.23% in the preceding quarter.
- PAT rose 520.8% YoY to ₹80.76 crore and EPS rose 523.3% to ₹2.68, with EPS broadly tracking PAT.
Key concerns
- Core operating profitability remained weak, with the reported operating margin at -359.04% despite adjusted EBITDA margin of 29.60%.
- Operating cash flow was negative ₹579.90 crore for H1FY27, while inventory increased to ₹33,893.71 crore from ₹28,553.42 crore at March 31, 2026.
- Net debt-to-equity rose to 0.56x from 0.37x YoY, and finance costs increased 4.3% YoY to ₹123.91 crore.
- Revenue from operations declined 7.7% sequentially to ₹111.83 crore, highlighting continuing project-recognition volatility.
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