Indian Real Estate FY25: Execution-Focused Developers to Lead Again in FY26
In FY25, India’s top real estate firms prioritized free cash flow, lean balance sheets, and premium launches. FY26 outlook looks even more disciplined.
Investor Deep Dive Covering the Top 7 Developers
An analysis of the Indian real estate sector based on Q4-25 management commentary from the seven largest listed developers, highlighting the industry’s shift from cyclical swings to strategic, execution-led growth.
DLF (NSE: DLF)
Godrej Properties (NSE: GODREJPROP)
Macrotech Developers / Lodha (NSE: LODHA)
Oberoi Realty (NSE: OBEROIRLTY)
Prestige Estates (NSE: PRESTIGE)
Brigade Enterprises (NSE: BRIGADE)
Phoenix Mills (NSE: PHOENIXLTD)
1. Sector Snapshot: A Year That Recast the Real Estate Playbook
FY25 marked a shift from momentum-driven optimism to disciplined execution across India's top developers. Management commentary across earnings calls reflects a sector that has matured — financially, operationally, and strategically.
✅ Record Presales Across the Board
DLF: ₹21,000+ Cr sales — their highest ever
Godrej: ₹29,444 Cr (+31% YoY), largest among listed peers
Lodha: ₹17,600 Cr, with five ₹4,000 Cr+ quarters
Prestige: ₹6,957 Cr in Q4; full-year guided ₹24,000 Cr
Oberoi: Strong FY25 on 2× YoY booking growth
Brigade: Highest-ever presales; 54% from new launches
Phoenix Mills: Retail consumption at ₹13,750 Cr (+21% YoY)
✅ Margins & Cash Flow Prioritized Over Scale
EBITDA margins held ~30–35%
DLF posted ₹6,200 Cr in operating cash surplus
Brigade (+36% OCF YoY), Godrej (+73%), Lodha and Oberoi saw cash-led earnings growth
✅ Balance Sheets Stronger Than Ever
DLF net debt nearly wiped out in residential
Lodha (0.2x net D/E), Godrej near zero
Developers funding expansion from cash, not leverage
✅ Annuity Income Matures into Core Portfolio Pillar
Phoenix: ₹1,951 Cr rental income (+18% YoY)
DLF: ₹6,700 Cr annual rental target by FY26
Oberoi, Brigade, and Prestige expanding Grade A retail/office exposure
🔍 Investor Lens
Valuation upside now hinges on margin durability, cash conversion, and execution—not sales hype.
2. Demand: Depth, Not Just Direction
Developers reported not just higher bookings — but more sustainable conversions, across geographies and price points.
✅ Booking Velocity Was Healthy and Sticky
Godrej: ~50% of bookings outside Mumbai
DLF: Sold out multiple Gurgaon and Privana phases pre-launch
Oberoi: EOIs exceeding supply in Borivali, Adarsh Nagar launches
📍 Geographic Expansion Is Smart, Not Scattershot
Lodha: Deeper into Pune, Upper Thane, South Mumbai
Brigade: Expanding in Chennai and Hyderabad
DLF: Multi-city with launches in Goa, Mumbai, Gurgaon, Taramani
🏗 Launch Visibility Anchored FY26 Guidance
Godrej: ₹40,000 Cr in launches
DLF: ₹17,000 Cr guided, including premium projects
Oberoi, Prestige, and Brigade planning phased execution in H2
🔍 Investor Lens
Focus on developers with phased launch strategies and stable conversion metrics.
➡️ DLF, Oberoi, and Lodha stand out with >8% conversion efficiency.
3. Profitability: Margins Built to Last
✅ Gross & EBITDA Margins Held Strong
DLF: ~30%+ residential EBITDA margin; 10.2% ROE
Oberoi: ~50% margins on premium inventory
Lodha: ~33% even with higher JDA share
Godrej, Brigade: Margin expansion via premiumization
🧾 Land Strategy Reflects Capital Discipline
JDAs deployed selectively: Lodha, Godrej, Prestige
DLF and Oberoi use owned land for margin-rich launches
Phoenix expanding via densification in High Street Phoenix, Hebbal
🔁 Cash-Led Execution Is the Norm Now
Godrej and Brigade led in OCF-to-revenue growth
DLF’s surplus allows FY26 project scaling without leverage
Phoenix and Oberoi moving to platform-led monetization
🔍 Investor Lens
Don’t just screen on EBITDA — track cash-backed earnings and ROCE trends to isolate real performers.
4. Commercial & Retail: Core Earnings, Not Optional Upside
This is where annuity value is now real — and rising.
✅ DLF Scaling Grade-A Rentals
₹6,700 Cr rental exit income guided by FY26
4.6M sq. ft. office + 1.4M sq. ft. retail under delivery
Vacancy <6%; rental losses just 4% of potential
✅ Phoenix Mills Retains Leadership
Retail rental: ₹1,951 Cr; EBITDA: ₹2,161 Cr
Office leasing in Pune, Chennai, Bangalore ramping up
Revenue-share models gaining adoption
✅ Oberoi, Brigade, Prestige Building Rental Base
Oberoi’s Sky City Mall gaining organic brand traction
Brigade and Prestige malls reported 80–90% occupancy
DLF Downtown Gurgaon and Chennai (Taramani) to drive multi-phase scale
🔍 Investor Lens
Retail + commercial monetization is now trackable by:
Exit rentals
Pre-leasing velocity
Tenant retention quality
➡️ DLF, Phoenix, and Oberoi are leaders on asset stability and yield potential.
5. Risk Radar: Granular, Not Generic
⚠️ City-Level Bottlenecks
Approval delays in Bangalore and Hyderabad (Brigade, Prestige)
Fit-out lag in Phoenix and Oberoi delaying full rental absorption
⚠️ Micro-Market Oversupply
Hyderabad flagged for 9 quarters of unsold inventory
New launches calibrated unless pre-commitments are strong
⚠️ Inflation Watch
Cement and labor costs stable, but FY26 H2 may see cost creep
⚠️ Execution Bandwidth
DLF, Lodha and Prestige have multi-site launches; execution timelines need close tracking
🔍 Investor Lens
Stress-test launch-to-cash cycles by city.
➡️ Stick to players with proven speed of approvals, sales-to-collections, and regulatory clearance efficiency.
6. FY26 Playbook: Picking Execution Over Exposure
🎯 What Will Matter Most
Pre-sold inventory + clear construction timelines
OCF acceleration without balance sheet bloating
Rental asset ramp-up: From footfall to EBITDA
📌 Developer Differentiators
DLF: Institutional-grade governance, annuity growth
Godrej: National footprint, strong cash cycle
Lodha: Capital-light scale, high conversion
Oberoi: Margin supremacy, low debt
Prestige: Market-share gainer, expanding outside base
Brigade: Balanced annuity + resi mix
Phoenix Mills: Retail yield machine, office upside coming
7. Final Word: From Real Estate to Real Compounding
India’s listed developers have structurally evolved.
Presales are consistent, not cyclical
Margins are managed by design, not pricing luck
Retail and office add durability to P&L
Land strategy is governed by IRR, not speculation
🧩 FY26 will reward developers who combine free cash flow, high-margin execution, and annuity ramp-up — not just those who sell fast.
Bottom Line for Investors:
It’s no longer about “playing the sector.”
It’s about identifying the developers who’ve made real estate an investable business — not just a sales engine.
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