Godrej Properties Limited (NSE: GODREJPROP) Q4 2026 Earnings Call dated May. 04, 2026
Corporate Participants:
Kshitij Jain — Investor Relations
Pirojsha Godrej — Executive Chairperson
Gaurav Pandey — Managing Director and Chief Executive Officer
Rajendra Khetawat — Chief Financial Officer and Executive Vice President of Finance & Accounts
Analysts:
Parikshit Kandpal — Analyst
Puneet Gulati — Analyst
Kunal Lakhan — Analyst
Gourav Khandelwal — Analyst
Pritesh Sheth — Analyst
Abhinav Sinha — Analyst
Rahul Jain — Analyst
Akash Gupta — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Godrej Properties Q4FY26 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 this conference, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded and I now hand the conference over to Mr. Shitaj Jain from Godrej Properties.
Thank you. And over to you sir.
Kshitij Jain — Investor Relations
Thank you Doctor. Hello everyone and thank you for joining us on Godrej Properties Q4FY26 results conference call. We have with us Mr. Grocha Godrej Executive Chairperson, Mr. Gaurav Pandey, Managing Director and CEO and Mr. Rajendra Ketawat, CFO of the company. Before we begin this call, I would like to point out that some statements made in today’s call may be forward looking in nature. The forward looking statements are based on expectations and may involve risk. The outcome 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 Virocha to make his opening remarks over to introduce.
Pirojsha Godrej — Executive Chairperson
Good afternoon everyone. Thank you for joining us for Godrich Property’s fourth quarter financial year 2026 conference call. I’ll begin by discussing the highlights of the quarter. We then look forward to taking your questions and suggestions. GPL delivered its best ever year for business development, bookings, collections, operating cash flow and earnings in financial year 26. In terms of bookings, Goodrich Properties delivered its highest ever quarterly bookings in Q4 equaling the previous best ever quarter in Q4FY25 and growing 21% quarter on quarter to Rupees 10,163 crore.
This was achieved through the sale of 4,789 units with a total area of 7.3 million square feet. Sales in the fourth quarter were driven by strong demand in some key new project launches including Godrej Abilene in Bengaluru and Godrej Arden in Greater Noida which each saw sales in excess of 1500 crore and also by strong sustenance sales in several projects including Godrej Trilatery which saw sales of over 1000 crore for financial year 26. Booking value grew 16% year on year to rupees 34,171 crore and thereby achieving 105% of our guidance.
This was achieved through the sale of 17,513 units with a total area of 27 million square feet a year on year, volume growth of 5%. This is the highest ever full year booking value and volume announced by any listed real estate developer in India today, allowing GPL to remain the largest residential developer in the country in terms of bookings for the third consecutive year, booking value has grown at a compounded annual rate of 41% over the past three years. Notably, this was the ninth consecutive year in which GPL has delivered growth in bookings, indicating our ability to grow through the cycle.
Moreover, we crossed bookings of Rupees seven thousand crore, an area sold at more than six million square feet in each quarter of the last financial year, demonstrating the consistency made possible by our national presence and strong product portfolio. The company sales were well diversified geographically with the Mumbai region contributing over 10,000 crore, Bengaluru contributing 8,801 crore, NCR contributing 7,412 crore, Pune contributing 3,659 crore and Hyderabad a new market for us contributing 2,360 crore.
Eleven individual projects across six cities generated booking value of more than rupees thousand crore during the year. In terms of collections, the fourth quarter collections stood at rupees 7,947 crore representing a year on year growth of 14% over our previous best ever quarter and a quarter on quarter growth of 86%. For financial year 26, collections grew by 17% year on year and at a three year compounded annual rate of 30% to rupees 19,965 crore. This is the highest collections ever reported by an Indian real estate developer in a quarter and in a financial year.
Strong collections also translated into strong operating cash flow of rupees 4631 crore in the fourth quarter representing a year on year growth of 14% over the previous best ever quarter and a quarter on quarter growth of 336%. Financial year 26 OCF stood at Rupees 7830 crores representing a year on year growth of 5%. GPL was able to drive a 62% increase in direct construction spend in financial year 26, which will help enable the company to maintain strong collections in the current financial year.
GPL also delivered positive net cash flow post business development expenses of rupees 628 crore in the fourth quarter, a 6% increase year on year. Financial year 26 is also our best ever year for business development. Forage properties added rupees 42,100 crore of future sales potential through portfolio addition, achieving over 200% of guidance and delivering year on year growth of 59%. 18 deals were closed with an aggregate area of approximately 33 million square feet. This includes six new projects with a total estimated saleable area of approximately 11 million square feet and an expected booking value of about 17,500 crore that were added in the fourth quarter.
BPL also ended the year on a strong note with respect to deliveries, achieving 12.1 million square feet of projects delivered across nine cities which was 121% of our annual guidance. This includes 7.4 million square feet of deliveries across eight cities in the fourth quarter. Strong deliveries also translated into strong earnings for the quarter. Our total income grew by 47% to rupees 3895 crore, EBITDA grew by 51% to Rs. 959 crore and net profit grew by 70% to rupees 650 crore. For the full year.
Our total income grew by 22% to Rs. 8374 crore, EBITDA grew by 43% to rupees 2826 crore and net profit grew by 32% to rupees 1850 crore. The past financial year was also filled with many important milestones on our sustainability journey. I’m happy to share that Code Ridge Properties has been included in the Leadership Index of CDP with an a rating in 2025 and has also been recognized as a supply chain leader in CDP Supplier Engagement Assessments. TPL is also ranked number one globally amongst real estate developers in both the Dow Jones Sustainability Index and the Global Real Estate Sustainability Benchmark.
Our record business development additions combined with the strong operating cash flow of over 15,000 crore that has been generated over the last two years will enable us to continue building on the strong growth momentum the company has established in financial year 27. We hope to grow residential bookings to over rupees 39,000 crores through the launch of a large number of exciting new projects combined with strong custom sales. This is a 20% increase over our guidance for financial year 26. We expect to grow collections by 20% to over rupees 24,000 crore.
We remain extremely focused on delivering our return on equity target of 20% by financial year 28 by stepping up our speed on execution and project deliveries which will create rapid growth in operating cash flows as well. With a robust launch pipeline and strong balance sheet, we are confident of continuing the momentum in financial year 27 across all key operating metrics on that note, I conclude my remarks. Thank you all for joining us on the call. We’re now happy to discuss any questions, comments or suggestions you may have.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Parikshit Khanpal from HDFC Securities. Please go ahead.
Parikshit Kandpal
Yeah hi. Congratulations to the management team for a great quarter and financial year. My first question is on the previous guidance in the current environment. We have given a very strong guidance. Just wanted some more color geographically how we see the growth, some more color on the demand and then markets because if I see your numbers in FY26 NCR has seen a degrowth and even on business development I think we’ve just started one project in this year. Secondly Bangalore and Pune. Bangalore has grown well but again there are concerns on air related disruption in demand similarly which may touch even Pune sentimentally.
So how does one look can model the growth given the guidance which you have given which looks to be quite strong. So any color on the end markets demand and how do we think FY10 economy play out for these regions?
Pirojsha Godrej
Yeah, I think the idea will be to ensure strong diversification in our growth as we’ve been able to do the last few years. You rightly pointed out NCR saw a dip in sales last year. We don’t think that was actually driven by what was happening in the market. We had a couple of the launches. We hope to do an NCR snip out of the year. So a large acquisition in Gurgaon that we had done. Unfortunately we’re not able to get the approvals within the year. That is now slated to be a Q1 of this financial year launch.
We’re also quite hopeful that Ashok Bihar project in Delhi that has been delayed for some years now will also get launched this year. So those will be two important launches. You also mentioned the BD deal we did in another prime area in Gurgaon. So we do feel we have a strong portfolio in NCR and hope to get back to about 10,000 crores in sales in NCR as we were the two preceding financial years. I think we’ve seen outstanding growth the last year and the last few years in both Mumbai and Bangalore and would look to continue to build on that momentum.
I think we had a lot of good business development in Bangalore last year. Our view is that the worry that AI is somehow going to lead to forex central demand is probably a little bit overdone as we’ve seen both not only in terms of residential demand, office demand itself has been very strong and any slight softness in the IT sector has actually been more than made up so far in global capability center demand. Of course I think with the level of uncertainty on issues like AI and the geopolitical situation currently, I think we will of course have to be watchful and adjust our plans basis what we see.
But as we look at the year right now, this seems to us a reasonable estimate. We’re also very confident of demand in Mumbai, Pune, Hyderabad, which is a new market for us, has done exceptionally well. Our other markets, which is largely due to our plotted development, has been growing well. We also expect to have launches improve housing in both Ahmedabad and Calcutta. So I think a lot of opportunities and what gave us confidence to maintain the guidance and we have been indicating that the company will seek to grow at 20% a year and will seek to have guidance growing by that amount each year.
We’re happy to be able to do that this year. I think what gives us some confidence that we can get there is, as I said in my remarks, business development last year actually grew by 59%. A lot of those projects will be available for launch this year. So hopefully our launch calendar will be even stronger in the current financial year than it was last year. Also, in terms of the sustenance opportunity, we believe the available inventory for sale is also growing by 35% year on year because of all of the launches we were able to do last year.
So overall there is a good opportunity to meet these numbers and hopefully even exceed them. But as you rightly pointed out, there are of course also uncertainties. You mentioned AI. I think I would add to that the global geopolitical situation. So if there are any major shifts in demand over the year, we’ll of course come back to you guys with what we’re seeing. But right now I think we feel this is quite reasonable and there could even be opportunities to do better if markets hold up. Well,
Parikshit Kandpal
My second question was on the If I compare Q4 versus Q1, the initial part of Q1, so given this uncertainty globally, so are we any color on the footfalls and the conversions? And if you can help us also understand the premium segment or luxury housing, is there any delay in Decision making deal closures. Are you seeing incremental the trend that people are elongating the decision making cycle and which may impact H1. But maybe if things improve, H2 will come back solidly. I mean strong for us. So how does one look at three years where H1 will be depleted and then H2 will see a strong recovery.
Gaurav Pandey
So Parikshit, right now H1 looks frankly quite bright for us because we have a pretty strong launch calendar skewed especially towards H1. This has been sort of a effort of last year in the ideas to bring launches fast. But I get your point. You have a fair point to say that given the geopolitical risk, what do we see now? The thing is in April we’ve not seen something really out of the world because whatever substance projects are in place, we are seeing reasonable footfalls. Of course there is a sense of cautiousness in consumers, but we are seeing conversions.
Our launches will start hitting more towards May end and June is when we will be able to fully appreciate to what extent this geopolitical risk exists. Right. Customer sales, demand funnel. But just to give you some very early indications, you know they were launched. I just give you an example. There was a launch done in Bangalore which is called Godrej Avileen. If my memory serves me right, we did about 1500 crore over there, give or take. We’ve done already 250 crores in the month of April which is by rate of run rate much better than we’ve seen in Bangalore.
So again there will be projects that may be slightly more impacted. They miss projects that might surprise but very difficult to frankly give you a sense of what exactly Q1 number would look like. But having said that, even if there is, let’s assume some impact. We have enough and more time to cover it up within H1. So quite cautious, cautiously optimistic for Q1 and a bit more surer on H1. And of course H2 will continue to be good.
Parikshit Kandpal
I guess the last question, if you can give us some number. So out of the total launches for FY26, so how much has been on the three sales? What was the contribution of sustaining sales and the new launches for FY26?
Gaurav Pandey
I think quarter four was largely a very interesting sustenance driven quarter. We almost had memories of like close to 50 odd percentage in quarter four and that was driven by some of the big projects like burley did about 1000 plus 1100 odd crores. We had Panipat 200 plus crores and we had reserved on 500 crores at the moment, very difficult to say. But what we have done to start a good momentum, we have created a pan India sustenance campaign and we just hitting the ground as we speak so that all the projects have extreme high focus to move inventory.
So very early days of the campaign, just a couple of days back we started, we got some good encouraging results and the idea is to have a consistent run rate on sustainance by launches will be launches but sustain is a more predictable inventory is what we continue to focus upon.
Parikshit Kandpal
And for FY26 I think the campaign you’re talking about is 1% per month, right? Yeah, I mean it is,
Gaurav Pandey
Yes, it is designed like that. So there’s like a 20% upfront and there are bullet payments every year and IT is a 1% anchoring sourcing tool is 1% again in project to project. It will differ. It’s closer to CLP and TLP somewhere in between. And yes, you’re right. The fact is you heard about this campaign means the impact is coming in the market. So give us few more weeks and we’ll have a better picture.
Parikshit Kandpal
Last thing with FY26, how much is the obtained contribution to sales? Bookings Contribution. Sustenance contribution to total sales is the question or the booking value?
Gaurav Pandey
I mean. Yeah, so total 60 Would be launches.
Parikshit Kandpal
60 Launches?
Gaurav Pandey
Yeah. 40% would be sustenance.
Parikshit Kandpal
Okay, thank you, thank you,
Operator
Thank you. Our next question is from the line of Puneet Gulati from hsbc. Please go ahead.
Puneet Gulati
Yeah, thank you so much and congrats on your performance. My question is if you can also in your pre sales give some color on how should I think about the mix of projects, whether you are inclined more towards mid premium or more mid income and also volume and value growth that you see in the market. And for your preset guidance,
Pirojsha Godrej
Puneet, I think it’s fairly decipherable from the. You know, I think every BD deal we do, we announce now an expected booking value from it and an area so you get a pretty exact picture of what we’re underwriting in terms of pricing. I think over. I wouldn’t say there’s any major shift from last year to this year, but over the last few years we certainly tried to go into a slightly more premium category of projects focused very much on kind of making sure we’re in the best locations within each of the micro markets we’re looking at.
So I think some of the important projects we added last quarter included one in golf course Extension Road in Gurgaon, a very prime located project of good scale in Thane. So those would be some examples. But in terms of the we’re putting out, as I said, the exact price points we expect to be at through the combination of booking, value plus area guidance
Puneet Gulati
And volume growth. Should one assume a strong volume growth into this year and or is it more value growth driven in some sense?
Pirojsha Godrej
I think if you look at the last few years, the volume growth over the last five years has compounded at 20% a year, excuse me, against the total sales growth of nearly 40% a year. The volumes have been a meaningful contributor. So I would expect a roughly equal split between volume and value for the overall growth.
Puneet Gulati
Okay, and on your annual income you’re not talking about potential of 1000 crore with your share being almost 30 to 50 crores. Any plans of monetizing and when do you think you’ll hit thousand crore of rentals here?
Pirojsha Godrej
I don’t think we have any immediate plans of monetizing this, but you know, I think I don’t have a clear sense of exactly when we’ll get to that thousand crore milestone you mentioned, but certainly I do see this continuing to go up and there could also be opportunities to consolidate share rather than divest if we’d like to. So I do see this increasing steadily over the next few years.
Puneet Gulati
That’s helpful. And lastly on your net debt, while it still remains in comfortable range, should one think about FCE positive for FY27?
Pirojsha Godrej
I think it’s a little uncertain to be honest. For FY27 I think it is quite possible. It will depend a little bit on the quantum of business development we do at the guided business development levels. I think it will be FCS positive and whether we go above it or not will depend on the quality of opportunities and our confidence in them. But I think broadly speaking, Puneet, let’s talk a little bit slightly longer term than just this year. Very clearly we think business development investments won’t need to scale up very dramatically from here.
We had taken a step jump increase in bd. We did see the opportunity over the last few years in the early stage of the cycle and when we were on a lower base to grow very disproportionately. I think Aurav and the team have done a fantastic job in making that happen and as a result compounded growth of bookings for the last three years has been over 40%. But I think what we’re looking at from here is on this much higher base getting to a kind of consistent 20% growth for that the level of business development as a percentage of existing projects and as a percentage of kind of operating cash flow will keep coming down.
So I expect certainly FY28 to be strongly free cash flow positive. I think FY27 will depend on kind of ultimately how much business development we do. It could be, but it may not be also.
Puneet Gulati
Okay, thank you so much and all the best.
Pirojsha Godrej
Thank you.
Operator
Our next question comes from the line of Kunal Lakhan from clsa. Please go ahead.
Kunal Lakhan
Hi, thanks for taking the question. Firstly on the impact of Iraq war, Firstly on the demand side, are you seeing any impact on the demand side especially from say you know, on the NRI customer inquiries, especially in markets like NNTR and also like, you know, ultimately if is there any silver lining to this war like in terms of say Indian buyers who are investing in markets like Dubai and Abu Dhabi are now ultimately looking at looking back at Indian markets. That’s first. And secondly also on the overall cost impact of this war, are you seeing any impact on the procurement of materials in terms of delay or on the cost side also?
Gaurav Pandey
Thanks Kunal. Kunal. On the impact on the demand, I would say around March last two weeks we did see some amount of impact but that was the peak of the chaos and give or take you could have probably done a thousand odd crores more and would have loved to even actually deliver 20% growth last year. That a sort of an internal target. And right now if you ask me, the situation is of course a little uncertain from a bias standpoint. But it is not as worse off I would say March because you know, people over a period of time tend to normalize a situation.
So I would say one has to be cautiously optimistic but relative to the peak stress of March end, it’s slightly better. And but again like I mentioned, we have to be just cautious, optimistic and be very steady on the understanding consumer sentiment. The silver lining that you talked about. Second part of the first question, I would say in the short term it does create some amount of dissonance but in the long term actually impacts the market in a positive way because I think there were a lot of sense that were looking Dubai primarily as a huge investment hub and also there were a lot of people who had taken a sort of a property selection purely from an investment point of view to move there.
I think that all is going to get revisited significantly. I don’t see a big impact of that in the next three to six months for sure, but I do feel that this is a good opportunity that a lot of demand could Flow back to many markets within India and across developers. On the cost impact, I would say we’ve done some cost estimation because of the portfolio size and projects at different levels. I would say give or take our cost impact would be within 5% to 6% at max. Again in some projects could be even lower from a margin point of view.
Again project to project could differ. But give or take every quarter this is going to be something like 0.1% to 0.2% of margin impact. So quite reasonable to control with just a small price hike in the next two, three years of that project. We can manage that. But yes, I think more fundamentally is the supply side shock if we see constraints to supply getting created. We did see some of that happening in tiles and all at some of the marbles. But things are getting slightly better than what we saw in March and fortunately we have good strong forward contracts done in most of these input materials.
So again we partner with our vendors. But at the moment it seems fairly manageable and we hope that this situation that we talk about Middle east in the next few two to three months if not earlier should get fully resolved. And as that happens I think we pretty much back to normal with some amount of catch up to be done. But yes, if it, if it continues for 612 months then I think that’s something which, which has different economic risk than sector specific.
Kunal Lakhan
Sure, sure Gaurav, very helpful. My next one is to Kalusha. Kalusha, you mentioned earlier that you know your bg spend in FY27. You’re not sure whether it will be higher, lower or similar. But if you look at your guidance, right of 20,000 crore of GDD acquisition and we’re considering like your FY26 guidance and the number that you actually achieved was more than 2x. How should we look at the BD guidance that you have given? Like would you still aim at beating that guidance or you are happy with like achieving say 20,000 crore GD or you’ll be just opportunistic that you were there in five minutes?
Pirojsha Godrej
Kunal, I think it’s really a question of the opportunities we see out there. That’s why we don’t focus too much on business development guidance and have kind of kept it steady the last few years. Look, we’re quite keen and we’re quite aware of stakeholders wanting us to start demonstrating kind of free cash positive on a more consistent basis. We’re happy to see that last quarter, very confident again of seeing that in FY28 as that’s the year where we think both collections and earnings will see a step jump as a lot of these newer projects reach revenue recognition.
I think this is kind of a transition year and when I say it may happen, it will happen. Right now perhaps I should just say that. But I think I want to be realistic that if we see very good opportunities, we do think we still have the balance sheet that can support them and we will look to add project. So I think certainly if we only ADD projects with 20,000 crore BB, we’ll certainly be free cash positive. If we add something closer to what we did last year, I think we’ll be, you know, we’ll be about breakeven on free cash would be my guess.
And As I said, FY28 is a year where I expect to generate a lot of cash post business development.
Kunal Lakhan
Sure, sure. Helpful. My last question is on the imputed margin that we we have started to put out since the last couple of years. For FY6 the imputed EBIT margin is about 24 and a half percent which is lower than what we had seen in the last couple of years. Is it a function of product mix or is there any impact of, you know, increasing costs or overheads that we are factoring in here?
Pirojsha Godrej
I think in a pretty tight band there will always be a little bit of fluctuation on this. One of the Factors at least versus FY25, keep in mind is that we had a big contribution from one of our JV projects in Bangalore in FY26 where we saw almost 4,000 crore sales in that one project, the 50:50 JV. So the total economic interest for the full year was 88% versus 93% the previous year. So a little bit can be because of that. But I think these minor fluctuations can happen. I think if you recall we had guided for a 10 to 15% PAT margin overall.
And we’re happy that for now the third consecutive year we’re at the very top end of that range.
Kunal Lakhan
Understood. All right, thank you so much and all the best.
Pirojsha Godrej
Thanks a lot.
Operator
Thank you. Our next question comes from the line of Gaurav Khandelwal from JP Morgan. Please go ahead.
Gourav Khandelwal
Hi, good evening. Thanks for taking my questions. I’ve got a few. I’ll take those one by one. Firstly on this, the 1% payment program can I understand, is it merely a marketing tool to get more sales? Have you tried this in the past or is this something that you’ve come up with recently and especially in this how does the payment from a developer or from A buyer standpoint of view, how is the payment different vis a vis, let’s say a regular construction link payment? Is there more downside risk here or is it rather an optionality?
Gaurav Pandey
Great question. One of the things I’m learning is journalists also picks up a lot of things for money’s call and write stories. I mean just to qualify. This is not the Dubai style 1% payment plan. If you would recollect, even last year we did a 1 pay per cent more like a sourcing tool where essentially again project to project it could differ. So let’s say you’re buying a project which is very close to possession. So essentially you’re paying upfront money, say 10, 20, 30% rest in maybe two, three months and then for the two, three months or six months could be one person, then you pay on possession.
Why say what’s that? You buy something which is an early stage of a project, you would typically pay between 20 to 30% also in the initial period of time, then you have 1% per month. And idea is to converge it closer to clp. So yes, it is slightly better than a construction linked payment plan. But we sort of benchmark a construction link payment plan which is to say that 70% of collections usually come say in a typical CLP. Here it could be between 60 and 70% depending on project to project. But for a consumer it becomes slightly an easier entry point to evaluate.
And our experience historically has been that it attracts a lot of consumers to walk into a site and then they decide to choose sometime to move to a normal construction link payment plan, sometime to this or sometimes even to down payment plan because then they get to see pricing difference between all the payment plans. So it is not really in the classic sense that you only pay 1% till the life cycle. But yeah, I mean you don’t have the headache to pay bulky payments every other second, third month.
You pay 20% typically upfront in one to two or three months and then 1% a year and some bullet payments. It’s like a BMW scheme that you get to see or a Mercedes lease scheme that you get to something similar. And it’s a win win for consumers as well for the sales perspective.
Gourav Khandelwal
Got it. And if I can just follow up on this, that is also then did this have a consideration when you built in a forecast of 20% cash collection guidance this year or even without this you would have still been comfortable with the 20% growth guidance on collections.
Gaurav Pandey
I think collections is anyways going to come agnostic to a particular scheme. See these Are like, you know, like what do you say? Fillers to our portfolio plan. Every quarter we do something or other to attract consumers to have better walk ins they feel the need to evaluate a product proposition. You got to excite the market and sometimes you release a scheme which is more financial, sometimes you release a scheme which is more product. Like you get certain freebies and you of course build in a price to adequately do it.
From a cash flow planning point of view, almost all the projects I can say they are always benchmarked to a base payment plan which is a typical construction link payment plan. As a rule of thumb, we don’t do any sort of, you know, say TIP is a classic PLP as it’s called position link plan, more than 5 to 7% in a quarter. So let’s say if we’re doing 10,000 crores plus sales in the previous quarter, not more than 5, 6% would be a true PLP scheme. Everything else is either a scheme which is a classic construction link payment plan or maybe a 10% or 15% of that a few slabs earlier, a few slabs later.
And that is just enough to keep the site momentum going, keeping the substance engine alive. Because every consumer wants to feel that what’s the best deal for me in this quarter. So there has to be a reason to believe to always evaluate the product. I hope this answers it.
Gourav Khandelwal
Got it? Yes, that’s very helpful, thank you. My second question is of the 42,000 crores of GDV that you announced in FY26, how much do you estimate would be the total land and related capex payments? How much of that is done and how much is still pending? Could you share some color on that please?
Rajendra Khetawat
So we have paid the major payments, you know, only some milestone link payments are pending. So around 1500 crores is what is pending. For the deals which we have signed in 26.
Gourav Khandelwal
No, sorry. Out of 42,000 crores the total would be how much? Sorry, I did not get it.
Rajendra Khetawat
So for the, for the entire 40, that’s 1500. Yeah,
Gourav Khandelwal
Got it. Okay. Okay, thanks. And my final question to approacha. So we recently saw, I’m sure everyone must have seen your interview. In that 5 trillion market cap, where does Baudrich properties sit in the broader picture of things?
Pirojsha Godrej
It’s just quite high. I think we refrain from giving company level guidance on this. But I think perhaps you can get an idea of where we think it sits by the fact that we bought back 5% of the company last year including most of that in Q4
Gourav Khandelwal
Got it. All right, thank you very much. All the best.
Pirojsha Godrej
Thank you.
Operator
Our next question comes from the line of Pritesh Sheth from Access Capital. Please go ahead.
Pritesh Sheth
Yeah, thanks for the opportunity and congrats on great results for this year. First one is just on the free cash flow discussions that we are having earlier. We have also given a dividend payout. I mean, we have given a dividend payout for next year. What does it indicate? Does it indicate that this will be a regular phenomenon now? And fundamentally, we are much in a better position to generate free cash flow, we know, considering that we would be paying regular dividends. So just trying to understand the underlying message here when we announce this dividend.
Pirojsha Godrej
Thanks, Pritesh. Yes, I think that is the underlying message. As I mentioned earlier, I think over the last few years we felt the real opportunity, opportunity was disproportionate growth. Frankly, we think 20% growth over the last few years, where the market itself has been growing at that kind of rate, would have been kind of underplaying the opportunity. So we were very clear we wanted to grow well ahead of market, grow market share, I think made some very timely investments before the cycle turned and during the early part of the cycle that have helped kind of completely reset the scale of the company to kind of for 5x where it was not that long ago.
With that behind us, I think now we think on this higher base that 20% actually is the appropriate growth rate to look at in also a more steady part of the cycle. So I think that’s what we’re after. The level of investment needed to achieve 20% growth is obviously lower than is needed to achieve 40 to 50% growth. We will therefore see, I think, a more consistent level of BD investment while our sales, collections and operating cash flows will all grow quite sharply, we think, over the next few years.
Therefore, I think the surplus cash available to the company for dividends will increase. We’ve started with a relatively modest dividend for this financial year, but will of course now look to both make these dividends consistent and consistently growing.
Pritesh Sheth
So that’s helpful. And on the guidance part, this is obviously better than what we had last year in terms of percentage growth. 12 and a half percent last year to now, almost 15%. What are we expecting to be better this year? Is it the demand scenario or we have a better hold on the pipeline that is about to get launched this year and hence slightly better guidance since last year despite a higher base.
Pirojsha Godrej
I would actually argue that you guys have a slightly funny way of looking at results sometimes. I think what has actually happened is that a couple of years ago we said we would like to grow guidance 20% a year, year on year. We’ve done that now both of the last two years. So this year’s guidance only looks better because actually, as Gaurav was saying, we think we probably missed about 1,000 crore of sales at the end of March. If we had done that, I think last year’s growth would in fact have been 20%.
And then you guys perhaps would be complaining that our guidance was only 10% higher. So maybe, you know, it’s an advantage to us that didn’t happen in some ways. But look, I think what we’re saying is that we obviously don’t want to constrain ourselves on the upside. So if we see the opportunity to grow 55% as we did in FY23 or 84% in FY24, we’d like to obviously seize on those opportunities. Even if that means that next year growth may look a little bit more moderate. But I think this idea of 20% growth in guidance is something we are keen to deliver.
And obviously each year we hope to do a bit better than guidance. So last year we did 6% better than our guidance. And therefore this year’s growth over actuals is 14%. But, you know, had we been able to do 20%, as I said, then this year’s guidance over actual would have been 10%. So I think that’s the way we’re thinking about it in terms of what gives us confidence of overall having a much stronger number this year. As I mentioned earlier, business development last year grew by 59%, which implies a stronger launch opportunity this year than we had the previous year.
And our existing inventory available for sale is also, on an opening basis, 35% higher this year than it was last year. Now, of course, there are also additional risks and concerns this year that didn’t exist last year, not least of which is this global situation. So we will have to keep a watchful eye on that and come back to you guys if we’re seeing any shifts in the market in either direction. But as of now, I think this is what we’re seeing basis the launch opportunity, basis, the presence. And you know, this is obviously built bottom up, project by project, region by region, and with some buffer for, you know, soon slippages in launch timelines and things.
So so far in the last four years, we have been able to meet the sales guidance each year. Obviously very hopeful of doing that again this year.
Pritesh Sheth
That’s helpful. And just one last on the pricing side since we are doing a lot of sustainable sales as well, how is the price expectations, price acceptance by the consumer when we are taking those increases and what would be the outlook on that as we move ahead in FY7?
Gaurav Pandey
I think pricing has been, I mean especially in south and Bombay, reasonably decent and I would say Westy has been marginally better. Nothing great. And on the Gurdwar side I don’t see there is a good price uptake and frankly we are not really looking at that. We focus more on quality of sale. Noida has been a bit of a consistent surprise in the sense that there’s a very strong lack of supply in the market. So it gives a sort of a clear demand supply issue which is why price uptake is still good.
So yeah,
Pritesh Sheth
Got it. That’s helpful. That’s it from my side and all the rest. Thank you. Thank you.
Operator
The next question is from the line of Abhinav Sinha from Jefferies. Please go ahead.
Abhinav Sinha
Hi. Couple of questions. So firstly on the launch guidance that you’re given a 480 billion, you already detailed some big launches in NCR but can you talk about maybe few more projects in other areas and what to watch out for in terms of timing.
Gaurav Pandey
Thanks Abhinav. Actually pretty action packed year apart from the launches Pirusha talked about. I’ll just quickly cover NCR more. We will have a very exciting launch coming up in Greater Noida. Godrej Golf Links, our last residential cluster. This is sort of a sold out project. Previously retail was the last product we had launched almost probably 90% plus also sold out. So very looking forward to this one. We will also have a tower activation, phase activation basically in Godrej Arden. The launch which happened last quarter has done more than 1500 crores.
So likely towards quarter three we launch and we will also launch a phase likely of Mirai during the later part of the year in Bombay. Again quite action packed. We will have Bandra is the most awaited launch for Bombay in the last many years. That should come. We will have phase activations in Kargal. We will also launch at the tower of Verli. As you would have seen we’ve been clocking sales pretty strongly. So I think somewhere around Diwali this year we might open a new phase of Verli. We will also see after very long time a very exciting land parcel coming in Vikroli and the teams are quite excited about that.
This is a huge project and towards maybe quarter two or quarter three we would see a launch of this one. Then we will have a tower activation of Godrej reserve and the recent acquisition the 7,500 crore top line that we have acquired in Thane that should also see a launch in towards mostly like towards Q3 late Q3 or Q4 on south. You know we’ve added a lot of projects across the board so most of will see action in the coming months starting with Kukatapalli and Kadah Agra. These will be two exciting launches.
Banaghatta in Bangalore will be coming up. We will be launching a second phase of Regal Pavilion. We launched a plotted development of Coimbatore and there are two, three more launches like in Hyderabad. We have a launch of new policy land in auction we bought moving on to. And again there will be some phase activation. We look forward in MSR and Whitefield in Pune we’ll have again series of launches starting from Mundua Nagpur. We will open another phase of another parcel in Upper Karadi. We will have something maybe 2, 3 launches in Mahalungay depending on how many launches we can secure in terms of approvals.
And we’ll have a very exciting launch in Calcutta as well as Raipur. After a long time we’ll have a launch coming in Vastarapur which is Ahmedabad. So I mean as you can clearly see we have enough and more to be very very confident. Like virusho was mentioning that there is a guidance of launch guidance and we tend to keep buffers of some of these may slip but in spite of them slipping we are very confident to bring the inventory given as guidance and through that drive our launches.
Abhinav Sinha
So second question on construction costs. So now we have seen a big reset already with a 62% jump from here. Should we be thinking about maintaining the current 2000 crore per quarter levels or there is another large jump ahead?
Gaurav Pandey
I mean you know I would say we would see a consistent growth like the ones that you talked about. And I see the percentage will be in double digit. May not be as massive as the one we saw in the last year. But the endeavor would be to push as much as we can so that they can start securing the OC plan for FY28. And some of these launches also determine some of the construction spend. So if we’re able to ensure that we have a good Q1 and Q2 launches that will also of course have a good positive upside on the construction.
But again from an operating cash flow most of these will get covered up from the launch collections itself. So yeah endeavor is to push as much speed of COC spend. But I mean the range that you talked about seems very logically achievable, but the internal targets are slightly more stretched.
Abhinav Sinha
So logically, okay to believe that OCF should now rise faster than customer collections or you think it’s still more in line.
Gaurav Pandey
I mean it actually frankly depends upon the stage of the project and the CoC spend of that. Right. If we see, because you know, finally we are a portfolio, say maybe 100 odd companies, 100 odd projects. Right. So if we are able to see great construction progress in projects which are in later stage of construction, then the OCF conversion is very, very high. And if we are able to, for some reason, I’m just giving you a sense of sensitivity on how difficult it is to project these numbers. If we’re able to not do that very well, but it should do very well on the mid stage, then that happens quite the opposite.
So frankly I don’t want to put my neck out and convert it. But yeah, directionally I can say OCF will continue to grow very strongly because we’ve been able to ensure that many of the projects in last year have reached a slab cycle level. So typically construction is relatively slower in a typically two, three basements till you hit plinth and above. Now we’ve hit second, third floor slab and many of it which is the typical cash flow accretive sort of stage of a project. But I mean very frankly all projects for us are equally important too speed construction.
But directionally OCF will continue to be strong. But I can’t give you a number right now, but trajectory by the kids will be stronger than last year.
Abhinav Sinha
Okay, thanks and all the best to the team.
Gaurav Pandey
Thank you. Vinav.
Operator
The next question is from the line of Rahul Jain from Elara Capital. Please go ahead.
Rahul Jain
Hi sir, thank you for the opportunity. On the launches of 480 billion that you’re planning, what is the approval cost that you’re budgeting for the full year in FY27?
Rajendra Khetawat
Very difficult, Rahul. You know, it will be like, you know, several of the projects, you know, and each project will have a different approach. Some we will require some premium to be made, some FSI to be bought. So very difficult, you know. But why don’t we get off, you know, connect offline and you know, maybe we’ll help you with some, some of the numbers.
Rahul Jain
Sure, sure. And on the collections fund you were essentially guiding for a 210 billion for FY26 you landed at 200 billion for the full year. So there were obviously 10 billion worth of slippages. So does that 240 billion that you’re guiding in FY27, the slippage is baked in or there is upside risk to that number?
Pirojsha Godrej
Yes. I think a lot of the deliveries ended up being skewed to us sort of Even later in Q4 than we were originally planning. So I think there is a little bit of slippage because of that. We of course are disappointed to have missed this 21,000 crore guidance. I think 24,000. We always would have some buffers in the guidance. I think that some things will change in MBA industry like real estate is pretty much a given. So we do have some buffers. So I wouldn’t say 24. Is everything going right? We could have perhaps gone a little bit higher but based on the learning from this year where we ended up missing it by 5%, we wanted to stick with 24,000.
But we’ll hope to do a bit better than that.
Rahul Jain
Understood, Sir. Thanks.
Operator
The next question comes from the line of Akash Gupta from Nomira. Please go ahead.
Akash Gupta
Hi, am I audible?
Operator
You are audible, sir.
Akash Gupta
Yeah. Hi sir. Congratulations on great performance. Actually my question is twofold. The first is your launch performance for projects in Kharger and Karadi that were launched in 4Qfy 26. They were slightly on the softer side, so I just wanted to know your thoughts on that. And second, for projects in Gurgaon, projects like Sora and Mirai, I think we already did roughly 30, 35% at launch but I don’t see that offtake continuing. So what’s your thought on that? So these are my two questions.
Gaurav Pandey
Thanks. I think the project Kargal and Apar Karadi are exactly part of the bucket project which saw impact of lower conversion in the last two weekends of March due to Middle east something that. So this is more of a short term issue and the idea is in fact we had great check pick up conversions did take a hold because consumers were expecting that because there’s a geopolitical situation. There are some extraordinary deals to cling which we don’t offer very frankly. So I think that’s better for that.
On some of the two projects of golf course, what I talked about, there is also in a stage of construction. So in some one or two projects we’ve removed the marketing office so that the construction can be complete of that area because there’s a basement and logistics part. But I think typically three to four months. Once that stage is over we will put back sort of a Temporary marketing office. And again the sales figure will start moving up.
Akash Gupta
Understood, sir. Thank you so much.
Operator
Our next question is from the line of Kunal Lakhan from clsa. Please go ahead. Kunal, your line has been unmuted. You may proceed with your question.
Kunal Lakhan
Hello. Am I audible?
Operator
Yes, you’re audible.
Kunal Lakhan
Thanks for taking my question again. So on the cash side and we have cash up about if you are a billion, how much they should not. Not able
Pirojsha Godrej
To hear you to now could you try again?
Kunal Lakhan
Is it better? Is it still the same?
Pirojsha Godrej
I think this is a bit better. Go ahead.
Kunal Lakhan
Okay. So just wanted to understand. On the cash side we have a cash of about 8,000 crores all in a book. How much of this would be in the RERA account?
Gaurav Pandey
And around 6,000. The 6,007 included in the account.
Kunal Lakhan
Okay. Okay. Okay. Understood. Secondly, on the. On the revenue side, right. You know, I mean in terms of the revenue bookings that we are revenue recognition side rather.
Gaurav Pandey
Right. We’re still recognizing revenues in line with our sales of the FY21 22. And we have seen some ramp up in sales from FY23 onwards.
Kunal Lakhan
On the revenue side going into FY27 and 28. Particularly FY27. Could we see a bump in the revenue recognition? Because when I look at the delivery guidance, right. It’s showing maybe.
Gaurav Pandey
Thanks. I think we would see that data bump up in FY28.
Kunal Lakhan
Okay. Okay. Major bumps.
Rajendra Khetawat
The OCS will come in, Kunal. So you will see a significant P L revenue recognized into a pnl. Well,
Gaurav Pandey
I mean even now it’s quite healthy. I think 2900 crores is revenue linked to all these OCS. But. And even this year should be decent. But I think the real bump is FY28 when we. When our target is to hit 20% going.
Pirojsha Godrej
And Grant that obviously implies that why the 28th is what the year we said from when we will be hitting this 20% ROE. Because that’s the year where we see the significant bump up. But obviously with delivery guidance for the current year higher than last year, we should see positive momentum this year as well. But I think a big step jump in effort. Another
Rajendra Khetawat
Thing is like, you know, all those revenue which are going to get recognized will be off of our own project. You know. So you know, that’s why you will also see that bump coming in 2018.
Pirojsha Godrej
Yeah, we think perhaps the market hasn’t fully appreciated that yet. Because while bookings themselves have Grown very sharply, GPL’s economic interest we show separately has grown even faster. Over the five years it’s been compounding at 55% a year. And all of that will now, we think, start becoming more and more visible in the pnl. And of course, some of it already has been.
Kunal Lakhan
Understood. Understood. And one last question if I may. You did highlight about Ashok Vihar likely to get launched in FY27. Are all the issues specific to that project or for that market? Right. Are they already behind us or the current status right now?
Pirojsha Godrej
No, I wouldn’t say they’re all behind us and I wouldn’t say there’s a certainty of it getting launched this year. But I think very strong progress being made and the team on the ground feels that this year we will be able to launch it. I don’t think that was the message from them at this time last year, but I would not say this is something that we should take as certain. But we’re reasonably optimistic of this happening and I think it will be quite positive if within a 12 month period these three significant projects that have been delayed for some time, Worli Bandra and Ashok Piyar, all get lost.
And that’s the endeavor in some ways. Of course the delays have helped in terms of how the market has moved. But we wouldn’t like to see obviously any further delays now.
Kunal Lakhan
Sure, Understood. Thanks again. Thank you so much.
Pirojsha Godrej
Thanks, Anand.
Operator
Ladies and gentlemen, we will take that as a last question for today. I would now like to hand the conference over to the management for closing comments.
Pirojsha Godrej
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 able to. On behalf of management, thank you once again for taking the time to join us today.
Operator
Thank you. On behalf of Godrej Properties, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.