Godrej Properties Limited (NSE: GODREJPROP) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Kshitij Jain — Investor Relations
Pirojsha Godrej — Executives Executive Chairperson
Analysts:
Unidentified Participant
Presentation:
operator
Sam.
operator
It.
operator
It’s. It. Kind of.
operator
Ladies and gentlemen, good day. You’re connected to Godrej Properties Q3FY26 earnings conference call. The conference call will begin shortly. Please stay connected. Ladies and gentlemen, you have been connected to Godrej Properties Q3FY26 earnings conference call. The conference call will begin shortly. Please stay connected. Ladies and gentlemen, good day and welcome to The Godrej Properties Q3FY26 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 the conference call, please signal an operator by pressing Star then zero on your touchstone phone.
I now hand the conference over to Mr. Shataj Jain from Godrej Properties. Thank you. And over to you, Mr. Jain.
operator
Thank you.
Kshitij Jain — Investor Relations
Good afternoon everyone and thank you for joining us on Godrej Properties Q3FY26 results conference call. We have with us Mr. Pirochsha Godrej, Executive Chairperson, Mr. Gaurav Pandey, Managing Director and CEO and Mr. Rajendra Sitava, CFO of the company. Before we begin this call, I would like to point out that some statements made today in today’s call may be.
Kshitij Jain — Investor Relations
Forward looking in nature.
Kshitij Jain — Investor Relations
These forward looking statements are based on expectations and may involve risk. The outcomes 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 Mr. Godrej to make his opening remarks. Over to you, sir.
Pirojsha Godrej — Executives Executive Chairperson
Good afternoon everyone. Thank you for joining us. For Godrej property third quarter financial year 26 conference call. I’ll begin by discussing the highlights and we then look forward to your questions and suggestions. We’ll first start with looking at the calendar year 25 highlights. GPL delivered its best ever year in calendar year 20 and achieved bookings of rupees 34,171 crore a year on year growth of 19%.
Collections of rupees 18,979 crore a year on year growth of 28%. Operating cash flow of rupees 7246 crore, year on year growth of 20% and earnings of rupees 1582 crore which is a year on year growth of 20%. These healthy growth picks were despite the high base of calendar year 24 in both calendar year 24 and 25. GPL is the largest residential real estate developer in India in terms of both bookings and collections which grew at a 3 year compounded annual growth rate of 44% and 35% respectively. GPL also registered strong volume growth with a compounded annual growth of 24% over three years between calendar year 22 and calendar year 25.
As a result of this growth, GPL has doubled its market share in four years from 2.4% in calendar year 21 to 4.8% in calendar year 25. In this period, GPL also increased its economic interest in booking value to 87% from 50% in calendar year 21. GPL delivered consistent performance throughout calendar year 25, recording booking value of over 7,000 crore in each of the four quarters of the year and has now delivered a booking value of over Rupees five thousand crore in each of the last ten quarters. The company sales were also well diversified geographically with no individual market contributing more than 30% to booking value and with five individual markets contributing more than Rupees 3000 crore each.
GPL as a result achieved the top two ranks amongst listed real estate developers in each of India’s five leading real estate markets of Mumbai, ncr, Bangalore, Pune and Hyderabad. This performance was driven by a broad and diversified portfolio with 11 individual projects each generating booking value in excess of Rs thousand crore during the year. GPL has cumulatively added projects with more than repeat 1 lakh crore sales potential since financial year 23 and has strong visibility for sustained growth in the calendar year 25. GPL added 14 new projects with an estimated salable area of 24.5 million square feet and expected booking value of nearly 28,000 crore.
A detailed operational guidance for financial year 2017 will be provided with our Q4 results but we can expect healthy growth to sustain across key metrics. Coming to the third quarter and nine month performance, Covid Properties delivered another strong quarter in Q3. We delivered our highest third quarter and nine months net profit of Rupees One Hundred and Ninety Five Crore and Rupees Twelve Hundred Crore respectively. A growth of 20% and 18% year on year for the quarter and the nine months. GPL’s booking value for the quarter grew 55% year on year to Rupees 8421 crore. This was achieved through the sale of nearly 4000 homes with a total area of about 6.4 million square feet in the first nine months of financial year 26.
Booking value grew 25% year on year to just over Rupees 24,000 crore. This was achieved through the Sale of 12,726 homes with a total area of nearly 20 million square feet. This is the highest ever Q3 and nine month booking value achieved by Godreach Properties and GTL has as a result achieved 74% of its annual guidance for booking value and remains on track to beat its guidance of rupees 32,500 crore for the financial year. Collections in the third quarter grew 40% year on year and 5% quarter on quarter to rupees 4,282 crore collections in nine months.
FY26 grew 19% to just over rupees 12,000 crores which has resulted in GPL achieving about 57% of its annual guidance on collection. We believe we remain on track to achieve our full year guidance of 21,000 crores for the full year as deliveries and collections this year are significantly skewed towards Q4. In fact in some positive news we think deliveries for the year can actually be well ahead of guidance for the full year collections. While we expect to meet the full year guidance and as a lot of deliveries are going to be in March, there could be some spillover to April, so we certainly expect a very strong quarter and quite hopeful of achieving the full year guidance and also starting the financial year 27.
On a strong note from a collection perspective, operating cash flow in the third quarter grew 73% year on year but declined 11% quarter on quarter to 1,062 crore. Operating cash flow in the nine month period declined 7% to rupees 3199 crore. This was due to a sharp increase in direct construction spend by 66% in the nine months of FY26. We expect to see very robust operating cash flow in Q4 linked to deliveries and the significant ramp up in collections and expect to surpass our FY25.
Pirojsha Godrej — Executives Executive Chairperson
In.
Kshitij Jain — Investor Relations
Terms of business development. We added three new projects with an estimated salable area of 7.3 million square feet and expected booking value of Rupees 8,400 crore in the third quarter. Over nine months GPL has added 12 new projects to an estimated scalable area of 22 million square feet and expected booking value of nearly 25,000 crore, thereby achieving 123% of our annual guidance within the first nine months. I’m also happy to share that Fordridge Properties has ranked number one globally in the real estate and management sector on the S and P Global Dow Jones Best in class indices for 2025 as of the 31st December cutoff.
Hodge Properties has also been included in the Leadership Index of CDP with an a rating in 2025 and has been recognized as a supply chain leader in CDP Supplier Engagement Assessment and has also been included in the A list for the 2024 disclosure cycle. For the quarter, our total income declined by 17% to rupees 1020 crore but EBITDA grew by 21% to rupees 338 crore and net profit grew by 20% to rupees 195 crore. For nine months our total income grew by 7% to rupees 4480 crore. We expect very meaningful total income growth in the fourth quarter given the large number of deliveries.
EBITDA grew by 40% for the nine months to rupees 1867 crore and net profit grew by 18% to rupees 1200 crore. With a robust launch pipeline, strong balance sheet and resilient demand, we are on track to achieve our guidance across all key operating metrics and look forward to building on this momentum in the year ahead. On that note, I conclude my remarks. Thank you all for joining us on the call. We’d now be happy to discuss any questions, comments or suggestions you may have.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press chart and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press chart and two participants are requested to handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Puneet from hsbc. Please go ahead.
Unidentified Participant
Yeah, thank you so much for the opportunity. My first question is broadly on the market side. Do you see any change in the color of the market in terms of demand, inventory pricing now versus a year back?
Pirojsha Godrej — Executives Executive Chairperson
Thanks for the question. Of course a couple of years back I would say there was a clear euphoric stage where practically you would see whether it’s a small developer, mid developer or large developer, everybody was in this process of selling. I think the market is rightly so maturing. So now you have a tendency in different micro markets where I would say buyers are appreciating more about product quality, location. It is gradually becoming what we always believe it to be a more of either an end user market or a very seasoned needed investor. So the froth of the market, which is mostly speculative investors especially I’m talking about Gurgaon, that I see is kind of fading out and rightly so.
But that aside, I would say market is extremely strong. If you see just our own performance Each of the geographies, all of these have been consistently very well. Some of our peers who’ve been launching projects and targeting end users have been also doing quite exceedingly well over the quarter. So market is very good. There is a slight supply degrowth in volume in 2025 which I think is a very marginal C4% which is sometimes when you read from a relative context of demand, people who are in the demand falling is that some micro markets may not have seen the supply which I think is a good thing from a long term point of view because kind of it is the ability for some amount of price uptick to happen in micro market which may be little bit on the overrun side.
So yeah, I mean market seems to be quite healthy and quite good.
Unidentified Participant
Anything on product makes you want to comment in terms of preference changing from more premium to mid income or that’s not visible yet.
Pirojsha Godrej — Executives Executive Chairperson
I don’t think so. Very frankly I would put it slightly different. It’s about being value conscious. So whether you are in premium segment or a luxury segment or even a mixed segment, customers are wanting to know about product. When I say product meaning not just limited to the layout but for the unique proposition that you are building in a particular project and what is the reason why I should buy this particular project? So it’s a very end user thought process but nothing really that you would say that only mid segment or a premium segment or luxury is linger.
I have seen in our portfolio strong demand across segments and you know look at last quarter itself. On one hand we had Panipat launch rate. It’s been our best ever plotted launch in a small city with a thousand plus crore of sales. We’ve never done a lot of development of that side in the north market. And on the other side of the spectrum we saw early launch which became the benchmark of the luxury positioning in the South Bombay market. So if it finally deploys onto your product proposition to the customers.
Unidentified Participant
Okay. And can you also talk about the pace of business development that you want to achieve into next year? Do you want it to slow down or would you accelerate from where you are?
Pirojsha Godrej — Executives Executive Chairperson
We never have given a forward looking guidance over next year but fair to say it will be steady and will be very similar to calibrated strategy that we’ve been following. If you would have noticed three years back we were having a BD strategy with largely in acquisitions across markets because that was different cycle of the market. But if you’ve been noticing in the last 18 months we moved to a very different strategy of buying Land where we feel there is a strong demand coming up and selling fast in markets that we feel overheated up and at the right stage replenishing the inventory.
So to that extent I would say that it will continue to be a calibrated BD strategy. Fortunately for us, we added such great projects across geography that whether we do BD or do not do BD does not really determine our immediate growth plan. We currently hold about 135,000 crores worth of inventory. And within that, if I talk about inventory that is very recent, very fresh inventory, which is from the acquisitions of last year, that itself, give or take, about 65,000 crores. So largely BD will continue to replenish inventory or double down in market where we feel there is a huge upside available.
Unidentified Participant
Okay. And lastly, if you can also talk a bit about how you feel about your leverage position and your market share. Market share definitely sitting close to 5% as per your numbers. Do you think there’s room for more expansion from there or would you largely trend with market?
Pirojsha Godrej — Executives Executive Chairperson
Absolutely. I mean, I would say you’re absolutely right. I mean our market share is just around 5%, actually 4.8% and couple of years back we were 2.4%. But we still slightly scratching the surface. If you go down to cities and you can talk about most of the cities that you’re operating, we are still not present in many micro markets. And in micro market that we are present, we still don’t have that three launches as much as we are selling fast. So I think there’s a huge headroom for us to kind of grow. And from a leverage point of view, I think we probably even captured, I think in an investor presentation, we’re at 0.37 and we endeavor not to cross 0.5 from a governance perspective.
And we have huge comfortable headroom to look at opportunities within that headroom in markets where we feel we can launch fast and sell fast.
Unidentified Participant
Understood. And lastly, if I can just squeeze in one on the operating cash flows to collections, the run rate this year has been slightly slower than what you have delivered in previous years as well. How should one think about it?
Pirojsha Godrej — Executives Executive Chairperson
It’s a good question. Let me just sort of take a step back. If you look at our last collection surface figure, you know, we delivered I think probably around just around 4300 crores and like a 40% y and y growth and we had a fairly strong operating cash flows close to 1,069 crore which was 73% y and y growth. And yes, there has been A marginal decline in operating cash flows. But our collections from nine months pointed with 12,000 crore 19% growth. There’s a 7% drop in operating cash flow. So the reason why there is a ratio that you’re looking differently is because from an operating cash flow perspective our construction spend has gone very strong.
So we’ve seen and I think we talked about in our earnings call a couple of quarters back as well that for this year we would be focusing a lot on improving our execution speed and muscle and, and there’s been a lot of work that has gone in building that muscle and quite delighted to share that. As Dirush was mentioning in his opening remarks, we’ve now done a 66% growth on a nine month performance. And what it’s doing is that on the short term, yes, it may optically drop our operating cash by 7%. Therefore the ratios may not look as consistent.
But what it’s also doing is strengthening our long term projected collection growth but also return equity target that we set for ourselves which is refy28. So I think it’s a bit of a short term adjustment of great construction will lead to some amount of strength. I think the only worry thing would have been if our growth from collection didn’t happen. I think that one can debate how much more we can do. But the growth is happening quarter on quarter and I think we just skip to the operating principles. It’s a matter of time the ratios will again start changing under.
Unidentified Participant
So that’s helpful. Thank you so much and all the best.
Pirojsha Godrej — Executives Executive Chairperson
Thank you so much.
operator
Thank you. The next question is from the line of Abhinav Sinha from Jefferies. Please go ahead.
Pirojsha Godrej — Executives Executive Chairperson
Hi.
Unidentified Participant
A couple of questions and just following up on the previous one. So in nine months we have seen construction cost up by about 35% but the cash inflows are up like 19 odd percent. So when does this number catch up and is construction cost jump on a like for like basis? How is it trending?
Pirojsha Godrej — Executives Executive Chairperson
I think Amitav, you know, if you see typically, you know, from a, I mean sometimes when we look at a portfolio as large as our projects are in different stages of construction, right. I mean we’re not like a six or seven project company. There are multiple projects. So sometimes you will have in a quarter projects which are getting into completion and in such a situation your, you know, your construction spends may not be as high, your inflows may be slightly better. Therefore your operating cash flow for those set of projects could be better and pricey versa.
You may have collected say 20% from a launch in the first three to four months and the next milestone is coming say six months later. And let’s say you’ve done fantastic back to back launches in a particular quarter. So for a six months those projects may not be pumping huge amount of selections. So the point I’m trying to make is when you see from a portfolio perspective, you know, sometimes the numbers may not give you complete picture. I think that probably one one lens that I would recommend looking at it is that from a sequential point of view, is there growth in collection happen up and is the construction spend really going on the right trajectory? I think if directionally they are on the right trajectory, operating cash is just an outcome.
If you suddenly see a lot of ocs, sorry ocs, you will start seeing OCF improving and in quarters where let’s say OCS are lesser, you may see slightly drop in operating cash flow.
Kshitij Jain — Investor Relations
Just to add to this, I think the good news is when I come to the precipice, we think of a large number of OCS. So Q4 we’ve indicated our guidance for the full year for deliveries is 10 million square feet. We’ve only done about half of that in the first nine months and we actually expect to do because of these construction spends more than the 10 million square feet guided. So I think you will see very sharp collections and that will actually result in the OCF to collections ratio being much higher than in the first three months.
So I think you’ll see a big amount of correction in the current quarter itself.
Unidentified Participant
Okay, on the business and how would you think are the underlying margins trending now and also within the same bit in bd? Are you not comfortable buying land again in NCR or Gurgaon or. You would still let a pause there.
Kshitij Jain — Investor Relations
Thanks, Amina. I think the margins we’ve guided to are that we’d like to deliver anywhere between 210 and 15% net profit margin. Last year at the institute level we were slightly above that ratio. But I expect over time through cycles to be operating within that range. I think we think that’s the right range. That will allow us to scale well while also ensuring healthy margins. I think that will imply EBITDA margins in the kind of 25% range or so. And I think what we’re seeing on the land side is reasonably healthy. I think there are instances where we’ve seen some land auctions and other land transactions happening at levels that we are not comfortable with and we’ve lost some of those land deals.
I think what’s Exciting is despite holding our underwriting standards very strong, I think we’re having a good year for business development and have good visibility for a strong Q4 on the business development side as well. So it’s not that we’re not seeing opportunities and I think the advantage of our national model, which we’ve spoken about previously, is that it allows us to pick and choose which market and which deals we think makes the most sense. So if we feel that any market is looking a bit concerning or we’d like to pause and see how things play out in that market, taking a little bit of a break there doesn’t stop us from growing elsewhere.
As we talked about in the opening remarks, we had five different cities contributing more than 3,000 crore of sales last year. So I think we believe market conditions overall remain quite healthy. The market share growth opportunity remains immense and the combination of those two to us indicates that there’s nothing stopping us if we execute well to see strong growth continuing for the next several years. So I think that’s how we’re looking at it. And on Gurgaon Oida things that make sense, I would expect some business development there, but we’re quite cognizant that the market has slowed down a little bit.
So we may look to do a little bit more in other markets in the near term. But certainly all five of these top markets remain priority for us. We think we’ve done a lot of hard and good quality work in establishing ourselves as one of the leading developers in each of these markets. And over time we think they each present an opportunity tactically which market to focus on in a given quarter or given half year. We can continue to adjust and I think that flexibility is one of the strong advantages of the platform we have.
Pirojsha Godrej — Executives Executive Chairperson
Great, thank you.
Questions and Answers:
operator
Thank you. To ask a question, please press chart one. Now the next question is from the line of Pritesh Sheikh from Access Capital. Please go ahead.
Unidentified Participant
Yeah, good evening and thanks for the opportunity. Just firstly sum it off on near term in terms of the launches that we see in Q4 and I think since last couple of quarters we’ve been highlighting about confidence on beating the guidance, whether that still stands true in terms of how market has been in last two, three months or quarters. So first question on that.
Pirojsha Godrej
Yeah, I think very confident on the guidance. So I would maintain what we said in the previous calls as well. In fact, if you see really from a nine month perspective, it’s about 70, 74% of an annual guidance holiday. So very confident on meeting and meeting the guidance to Give you a sense of some of the launches that we have in store for the quarter and even beyond. Just give you a sense of the portfolio. We have a series of launches planned. Very immediately you hear about a launch in Sigma sector of Greater Noida. This was the land we had bought some time back in auctions and this is already hitting the market in this quarter.
Then we will have something soon coming up as a residential cluster in a flagship project of Metanoid called Godreach Golf Springs. This is a sort of a partially developed township, very well in demand. So we endeavor to open one of the final clusters of residential over there. And if you recollect very recently we launched retail and both quarters have done exceedingly well in the retail and that’s part of the same project. Next we would look forward to launching something in Panvel as a commercial first commercial land parcel that we have. It’s a huge township and with the advent of the, you know this entire corridor after the Atal state to and the airport, this has become a bit of a surprise in a portfolio from a demand and price growth point of view.
This is something as a new asset class will open up. We have something lined up in Kharger. This was one of the things we would have declared was an auction land. We had bought three back to back parcel so that should open up soon. Then we have something in Bangalore coming up in Boscote micro market location. We bought something very prime land parcel in the airport road and that should also open up very soon, likely within this quarter. And then on the Pune site massive amount of launches being planned. We bought two parcels in Upper Karadi.
One should hit actually within this quarter. We have something in Manhunter coming up. There’s a sort of a tower launch coming up in one of our highest selling projects ever in Pune which is called Evergreen Square. Then we would like to even open up both our new project opportunity in Raipur as well as a parcel in Ahmedabad in the Masgapur micro market. And then we have series of launches from 7.5 acres of parcel that we bought in Golf Course Road. Probably our best parcel in Golf Course Road. We have some land parcels in Banagata. There are phases left of MSR City.
Then there’s a land in Mundo and another phase will open up. Nagpur is going to come up. Bandra is going to come up very soon. I mean I can spend like an hour and you know, thanks to the incredible work of the BD team of building a 1 lakh 25,000 crore of inventory and Mind you, this is not just random parcels bought as a land aggregation 30, 40 km in city. These are all in demand locations, some of which are readily available to launch in the next one and a half years. So reasonably confident that we’ll deliver the number for this year and hopefully we’ll also continue to show good growth in the coming years.
Unidentified Participant
Thanks. Most of the launches that you Talked about are Q4, right? I mean you mentioned about most of them.
Pirojsha Godrej
Most of them are Q4. Most of them.
Unidentified Participant
Okay.
Unidentified Participant
And. And not Bandar. Sorry, didn’t get.
Kshitij Jain
I just wanted to clarify. Bangkok will be next financial year now.
Unidentified Participant
Yeah, sure.
Unidentified Participant
Okay, okay, fair enough. And so you mentioned about, you know, just a line on FY27 that you know, healthy growth to sust across key metrics in FY27 as well, you know, and that includes the top line growth as well. Right. Apart from cash flows. And PNL obviously will grow because of what we have done in past. But you’re confident about maintaining growth on the pre sales as well.
Pirojsha Godrej
And I want to give a very strong affirmative here.
Unidentified Participant
Yes.
Kshitij Jain
I think barring any very large change in the market which we don’t foresee and very happy with what we’re seeing in the market so far, whether we look at products like royalty, final spectrum seems to be doing quite well. So given that given the kind of business development we’ve done, certainly we would expect good growth including on booking value. I think we’ll also see just how strongly we close this year. Hopefully we can go a bit past our guidance this year as well. But as we have indicated previously, I think the plan of the company is of course to make sure that we continue to grow and our belief has been that there is opportunity irrespective of what happens with the overall market we’ve seen.
For example, I think last year was our ninth consecutive year of booking value growth. Of course half of those deals were in a terrible market pre pandemic. So I think the combination of being the largest residential developer, having a very strong national brand, being present in all major markets across the country gives us a huge opportunity to continue to aim to gain market share. Because having all of those attributes and a top 5% market share even in a worst case scenario, if the market doesn’t grow or even declines a bit, we do see an opportunity to continue to grow through market share gain.
Our current base expectation is that the market will show reasonable growth and that we will grow ahead of market. But let us come back to I think next quarter once we see how this year’s numbers end up what additional business development we’re able to do in the next two, three months. But certainly as of now I think there is good visibility for FY27 growth across these parameters, including sales.
Unidentified Participant
And if I try to dissect this growth across markets this year, it seems like MMR Bangalore Summit of Hyderabad has helped us on growth next year. Which markets? Basically the current pipeline that you have, which is largely the ones that you will carry forward next year, the current pipeline, which market you think can step up further and contribute more on growth.
Kshitij Jain
I think the exciting thing is they all have significant opportunities. If you look at the business development we’ve done recently, it’s reasonably well spread across markets. So if you look at Bangalore, Pune, Hyderabad, Mumbai, fcr, each of them have significant projects in the pipeline that some of which will come this quarter, a lot of which will come in FY27. I think one of the things that has really pleased us about this year, although the market doesn’t seem to have appreciated it as much, is that unlike previous years where our sales were relatively concentrated in a couple of markets, if you look at FY25, we had a spectacular year in NCR in Mumbai, but felt we could have done more in Bangalore and Pune.
I think this year actually if you look at calendar year 25 and also FY25 once it completes, we will have the most well rounded performance that’s ever been delivered. We think in the sector in terms of geographical spread of locations, probably 10,000 crore sales plus in multiple different markets, over 3,000 crore sales in five different markets. I think that gives us a lot of confidence. We have the portfolio, we have the pipeline, we have the strong team. Now I think it comes down to how well we execute on the one end and how strong each of the individual markets are.
But if this is where we stand today, I think all five of these markets could show significant growth next year.
Unidentified Participant
Sure. And just one last on the cash flow side you talked about BD or business development additions being now pretty stable. Could FY27 be the first year where we’ll generate free cash flows even after spending bulk of our internal accruals on business development. Could that be a possibility?
Kshitij Jain
I think Let us come back to you on this question next quarter we haven’t yet done the ground up kind of work to answer that clarity. I think the good news is we have done the ground up for this quarter and I expect this quarter to have good free cash flows post business development. But let us come back to you on that for next financial year.
Unidentified Participant
Sure. That’s it.
Unidentified Participant
Thank you. And all the best.
operator
Yeah, thank you. The next question is from the line of Gaurav Khandelwal from JP Morgan. Please go ahead.
Unidentified Participant
Hi. Thanks for taking my questions. I’ve got a couple of rooms. First question, if I can just understand the scale of deliveries that we are thinking in fourth quarter as well as FY27. And the reason I’m asking this question is because you’ve mentioned in the past that FY28 will be a good year in terms of verization and pnl. But I just want to get a sense of how would FY27 look before a very solid FY28. That’s my first question. I’ll take the second one.
Pirojsha Godrej
Frankly, next financial year. The list of projects is, you know, sort of yet to be worked upon from an OC Canada point of view. But if I were to perhaps talk about quarter four, I do have a list of projects where we, we can tell you about. Just give me a second. I’m just trying to search for the. The note. Yeah, so here are the, you know, some of this, a more exhaustive list and this is very exclusive so I’ll just share part of it. We have series of courses planned in the Pune market and this is specifically on the Mahalungay and the Mahmoudi cluster.
This itself is close to 2.5 million square feet of a portfolio and most of these will come largely in quarter four and some in quarter one. We have something planned in Meridian, we have something planned even in parts of Bombay like Khalif is something we’re looking at. Then we’re looking at in south, a particular phase of RJ and then some aspirational projects which I don’t want to really give you a confirmation right now, but together, give or take, that’s also in couple of million square feet. So essentially we will have a pretty strong quarter four from an OC point of view because the internal targets are significantly, significantly exciting and the ones that actually will spill over will move to quarter one easily meeting after a guidance, you know, very comfortable on the guidance part, but very few years we have there, you know, in the quarter one itself we’ll have a good head start.
So yeah, so most of it should come in quarter four and some should move to quarter one. But even if we miss few of the ones that we feel very confident about, we’ll be easily far ahead of our guidance.
Unidentified Participant
Got it. Thanks, that’s very helpful. The question is a more broader question in some of your Markets which are especially more have a high beta to it, its services, Bangalore, Hyderabad, so to say, are you seeing any difference in terms of the customer footfall, customer conversion rate? And do you think this entire weakness in the software spaces, its spaces would ultimately translate to lower demand? In some of these reports.
Kshitij Jain
We are seeing exceptional outcomes in both the markets you referenced. Of course, Hyderabad were a relative newcomer, but we have in our first year there, which was Galileo 25 sold about 3,000 crore worth of homes just across two projects. We’ve also added several new land parcels so hope to be able to build on that momentum. But I think we’re very, if anything, pleasantly surprised on the upside with how well Hyderabad has done for us last year. Bangalore is also having a breakout year for us. We think we were perhaps about the largest developer in the city in the first nine months with more than 100%.
So I think that both of those markets have done very well. We also have a reasonable amount of commercial development, including in Bangalore and are seeing leasing trends from that. And I would say that actually leasing is having one of its best ever years. So of course there are risks to IT services, but there are other things that are growing very fast. As you all know, I think global capability sectors have seen explosive growth in demand these last couple of years and it’s a sector that feels again like it’s just at the start of its potential.
I also think that the recent news from this week on the US FDA getting clear is from a sentiment perspective, a big boost. I think there was a little bit of uncertainty that that created. So I think this fate of new free trade agreements, first with Europe and now with the US we’ll add a lot of clarity, we’ll add a lot of confidence. And India seems like a natural location for many businesses to set up these gcc. So I expect continued momentum. Of course, hard to know exactly what the impact of AI on job creation is going to be over the medium term.
And I think we’re all going to have to wait and watch. But if I was guessing as of now, I’d say for India this will actually not be something that destroys a lot of jobs but creates a lot of problems both for commercial demand and residential demand. I would admit that there is some amount of uncertainty about that forecast and we’ll have to wait and see. But certainly on the ground as of now, both residential demand as well as importantly, commercial leasing has been an exceptionally strong year.
Unidentified Participant
That’s very clear. Thank you. Those were all my questions.
Kshitij Jain
Thank you.
operator
Thank you. The next question is from the line of Murtaza from Kotak securities. Please go ahead.
Unidentified Participant
Yeah Aisha, my question is on the balance sheet and cash flow when I look at the period from March to December which is the nine month period, the inventory increase is almost of the order of about 19,000 crore. And when I look at the cash flow, the construction cash flow is about 5,000. Land is about another 5,400 which is about 10,000. So how do you reconcile this? The cash flow of about 10,000 versus the inventory increase of almost about 19,000. Should we also take the project related outflow of 5,000 crore? Would that still leave some gap? And should the project related outflow be considered as part of the GD partner share of collection? So just trying to reconciling you know these two sets of numbers which is the cash flow and the balance sheet.
Kshitij Jain
The inventory movement Murtaza is more because you know we are consolidating and we are giving exit to our JVs. And those JVs get consolidated into our books, you know. So you must have you know read you know a lot of JVs. We have exited in the past few quarters, in last three quarters. So when this exits happen and we take full control those get consolidated into their inventory also gets consolidated into our book. That’s why the movement you see is more a of of that, you know. And then also there are new projects which get added, you know.
Like you know, if we get into area share kind of a project, you know, you have to do a gross accounting, you know. So it goes and sit into inventory whereby there is no equivalent cash outflows in the cash flow statement. So always there is going to be a difference between the actual cash flows and the inventory movement.
Kshitij Jain
What you see in the value and.
Unidentified Participant
On the question on the other project related outflow which is what you put.
Unidentified Participant
As most of the other project related.
Kshitij Jain
Outflows are on account of taxes, you know when because we give more of a gross kind of a cash flow, you know. So when we do a gross gross cash flows, you know there are gsc, there are certain taxes, there are JVP related outflows. All those get captured into other project related outflows, you know. So that’s why you see that moment, you know. Because like if you do a collection and if you do a sales, you know you have to collect 5%. That 5% GST outflows get classified in.
Pirojsha Godrej
Other project related losses.
Unidentified Participant
Sure, sure. Thank you so much sir.
operator
Thank you. Participants who wish to ask questions may please press char and one at this time the next question is from the line of Parvez Gazi from Nirvama Group. Please go ahead.
Unidentified Participant
Hi, good afternoon and thanks for taking my question. So two questions from my side. You mentioned that our demand trend seems to have now stabilized and the frenzy, at least from a speculative activity point of view, is no longer there. Has the same kind of stabilization being seen on the business development, competitive intensity. Also, can you get land at, you know, better eras today compared to, let’s say, where things were one year back? That’s the first question. And second, your views on price hikes, let’s say in FY27 would be great. I mean, what kind of price appreciation.
Unidentified Participant
Can we see going.
Unidentified Participant
Thank you.
Pirojsha Godrej
Thanks for the question. You know, it’s a mixed buy. I think rightly captured in one of his earlier answers that, you know, there’s sometimes there are auctions, right, where we have consciously not gone beyond a particular price threshold on buying the land because we didn’t feel that there was a fair market valuation for that. But at the same time there are enough and more opportunities is clicked. Where we found there is a lot of opportunity for us to get into what usually happens out of our experience of doing so many deals, practically SSCR average almost one or two deals we’ve been concluding every other month is that there are points of opportunities when competition intensity is slow and the land valuation start falling down because land owners feel little jittery.
So just give you one simple example. If you look at markets like Gurgaon right now. So Gurgaon market from a land point of view became extremely high 18 months back. And if you see practically we have not done any acquisition in Gurgaon because there was a lot of, you know, a lot of few deals and a lot of buyers wanting to buy that. But after that we’ve seen that the land valuations have started falling down quite attractively and this is the time to start looking at opportunities, start being looked at. Even at very low underwriting, is there great profits to be made? So I think it’s just a game of patience and just going when the opportunity feels very well.
And you know, we’ve got a, you know, at any time, 30 to 35 term sheet, live term sheet, we operate and we just have to do a handful of them. So these that we feel very confident after diligence that okay, market rates seems very confident, cost sheet looks very good, diligence looks all great is when we have to go. So yes, there are times when you see a bit of a reserveness and you just have to stay out of that market for that period of time with patience and when the opportunity starts to be very attractive, you need to take a position and buy that.
Unidentified Participant
Sure.
Pirojsha Godrej
And on price appreciation I think price appreciation if you. In fact what I was quite surprised that even the previous quarter with the exception probably the Pune market, we’ve seen price hikes more or less in most of our portfolios. So yes there is available but yes, the degree of current price hikes are more subdued but they are available and I think going forward again it will be calibrated. So locations where you don’t have competing supply coming in. There is a term I internally use for qualified supply. So let’s say you’re launching a project in a ticket size 6 crore, 7 crore.
Not every project in that will be a qualified supplier for an end user, for a speculator maybe. But for an end user they would like to see the brand, they would like to see whether this developer has the competence and financial capability to complete the project which is very characteristic of markets when they start maturing. So I would say one has to look at price hike in future in where qualified supplier, that means peer group which is very good wherever they are not launching projects and there is control supply, we would continue to see some decent hike.
But yes there is going to be moderation in price going forward and it will be a bit of project specific call that we have to take.
Unidentified Participant
Sure.
Unidentified Participant
Thanks and all the best.
Pirojsha Godrej
Thank you.
operator
Ladies and gentlemen, due to time constraints that was the last question. I now hand the conference over to the management for closing comments.
Kshitij Jain
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, I once again thank you for taking the time to join us today.
operator
Thank you. On behalf of Godrej Properties. That concludes this conference. Thank you for joining us and you may now disconnect your lines.