Are Godrej Propert. latest results good or bad?

The latest financial results for Godrej Properties for the quarter ended September 2025 present a complex picture. The company reported net sales of ₹740.38 crores, reflecting a significant quarter-on-quarter increase of 70.37% from ₹434.56 crores in the previous quarter. However, this figure is still 32.28% lower than the same quarter last year, indicating ongoing challenges in revenue generation.
In terms of profitability, Godrej Properties recorded a net profit of ₹405.08 crores, which is a year-on-year increase of 20.84%. However, this represents a decline of 32.50% compared to the previous quarter. The operating performance, however, raises concerns, as the company posted an operating loss (PBDIT excluding other income) of ₹512.74 crores, resulting in a negative operating margin of 69.25%. This marks the weakest operational performance in recent quarters and highlights significant operational inefficiencies.

The financial results also indicate a heavy reliance on other income, which surged to ₹1,209.67 crores, accounting for over 200% of profit before tax. This dependency on non-operating income raises questions about the sustainability of earnings and suggests that the core development business is under considerable strain.

The company's return on equity (ROE) stands at 8.09%, which is below the sector average, reflecting challenges in capital efficiency. Additionally, Godrej Properties has seen a notable decline in its shareholding pattern, with promoter stakes decreasing significantly, indicating potential concerns about investor confidence.

Overall, while the quarter shows some positive trends in terms of sequential sales growth, the underlying operational challenges and reliance on non-operating income suggest that Godrej Properties is navigating a difficult landscape. The company saw an adjustment in its evaluation, reflecting these complexities in its financial performance.