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Gera Developments expects FY27 revenue to rise 73% to ₹1,465 crore; gross margin seen at 24%

Gera Developments is forecasting a revenue boost of roughly 73% year-on-year, projecting a ₹1,465 crore for FY27. The company is committed to sustaining a 24% gross margin and a 12% EBITDA margin, despite the challenges of escalating construction costs. To combat this, they will adjust pricing on unsold properties.

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.

Launch pipeline of around 30 lakh sq ft

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 the company's focus remains on bringing these projects to market on schedule while simultaneously building inventory for the next financial year.

The developer delivered around 16-18 lakh sq ft during the first six months of FY27. It is also scheduled to deliver a 65,000-70,000 sq ft retail-commercial component at Island of Joy towards the end of the financial year.

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.

Construction costs put pressure on margins

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% EBITDA margin, with management seeking to protect overall profitability despite input-cost escalation.

Gross debt projected at ₹432 crore

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.

Expands customer support programme

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.