Gera Developments forecasts 73% revenue jump to ₹1,465 crore in FY27
Gera Developments expects revenue from operations to rise 73% year-on-year to ₹1,465 crore in FY27, with a gross margin of 24% and EBITDA margin of 12%. The developer also projects area under development to grow 15% to 83.64 lakh sq ft, and gross debt to fall to ₹432 crore.
Gera Developments expects its revenue from operations to increase about 73 per cent year-on-year to ₹1,465 crore in FY27, from ₹848 crore in FY26, chief executive officer Gulzar Malhotra told ETRealty. The developer is targeting a gross margin of around 24 per cent and EBITDA margin of 12 per cent during the current financial year, even as higher construction costs put pressure on margins in projects where a significant portion of inventory has already been contracted.
Its area under development is expected to increase to 83.64 lakh sq ft in FY27 from 72.41 lakh sq ft in FY26, representing an increase of around 15 per cent. During the first half of FY27, Gera Developments launched around 20 lakh sq ft across new phases of projects including Gera World of Joy, Joy on the Treetops, Imperial, 343 Crest and Gera Royale. For the next two quarters, the company has a launch pipeline of around 30 lakh sq ft with a potential value of approximately ₹3,000 crore, largely comprising future phases of projects already under development, according to Malhotra.
Malhotra said construction material costs have been the primary challenge during the year, particularly across ready-mix concrete, aluminium and steel. RMC prices at one stage increased by as much as 40 per cent before moderating, while current levels remain around 20 per cent above the earlier baseline in some cases. The company expects the overall increase in construction costs to eventually stabilise at around 7-8 per cent. Projects where inventory has largely been sold but substantial construction remains could see margin compression of around 2-3 percentage points, he said. Since prices for existing customers are locked, the company plans to offset higher costs through price revisions on unsold inventory and future launches.
The company's current FY27 projection nevertheless assumes a 24 per cent gross margin and 12 per cent EBITDA margin, with management seeking to protect overall profitability despite input-cost escalation.
Gera Developments expects gross debt to reduce to ₹432 crore in FY27 from ₹544 crore in FY26. Its gross debt-to-equity ratio is projected to improve to 0.55 from 0.62 in the previous financial year. Net debt, however, is projected at ₹369 crore in FY27 compared with ₹332 crore in FY26, according to the financial data shared by the company. Residential will remain its primary business, although it will selectively undertake for-sale commercial developments, typically in the five-seven lakh sq ft range.
Separately, the company has introduced The Gera Advantage, a customer-support programme covering the period from purchase to possession and extending into the post-handover phase. The programme includes EMI support in case of involuntary job loss, short-term financial assistance linked to a buyer's contribution, support during medical emergencies and annual preventive home-maintenance checks for seven years after occupancy.
