Top real estate developers are expected to report improved earnings and resilient presales growth, even as overall housing sales across major Indian cities declined during the July–September quarter (Q2) of 2025–26.

Illustration: Dominic Xavier/Rediff

The anticipated earnings growth in what is typically a subdued quarter is credited to steady sustenance sales, improved collections, the strong positioning of listed dev­elopers, and sustained demand for premium homes.

“Earnings will progressively improve as revenue recognition aligns with project completions and milestones.

“Developers with near-complete inventory and strong execution pipelines are positioned to see better numbers in the coming quarters,” said Vijay Agrawal, managing director and sector lead, infrastructure, at Equirus Capital.

According to a report by Anarock, housing sales across the top seven Indian cities fell 9 per cent year-on-year (Y-o-Y) in Q2 to 97,080 units amid affordability pressures, rising costs, and uneven demand.

However, large listed developers are expected to report healthy financial performance despite the sector-wide decline.

Anuj Puri, chairperson, Anarock, said the financial results of leading players are likely to remain strong due to better sales momentum, robust collections, and a favourable product mix.

“Higher booking volumes and better cash flows will give them more operating leverage, which will lead to higher margins in the next few quarters.

“They have pricing power and can weather slowdowns with their strong balance sheets, brand value, and easy access to capital,” he said.

The second quarter of the financial year is generally a seasonally muted period for housing due to Shradh Paksha (considered inauspicious for purchases), the monsoon, which affects site visits, and developers restricting launches.

“All of these factors impact buying decisions for new houses and the velocity of presales for developers.

“During the rains, construction progress typically slows compared to other quarters,” analysts at HSBC observed.

They added that volume demand improved Y-o-Y in Q2, albeit on a low base impacted by elections last year.

Launches remained subdued as developers avoided inauspicious days and faced approval-related delays.

Akshay Shetty, research analyst, Mirae Asset ShareKhan, said, “Demand for large, branded developers remains resilient, particularly in the premium and luxury segments.

“Companies with launches are expected to deliver strong presales in Q2, while those without launches may register moderate growth.”

Mumbai-based Macrotech Dev­e­lopers (Lodha) reported 7 per cent growth in presales for Q2, at Rs 4,570 crore, amid limited launches.

Bengaluru-based Prestige Estates Projects posted sales of Rs 6,017.3 crore, up 50 per cent Y-o-Y, driven by its Mayflower at The Prestige City project in the National Capital Region (NCR) and three plotted development projects in Bengaluru.

NCR-based DLF is also expected to post a surge in presales following the success of its maiden Mumbai project, which sold out within days of launch, along with sustained sales across its luxury portfolio in Gurugram.

Godrej Properties is likely to report another strong quarter, supported by a combination of launches and steady sales from ongoing projects.

Analysts expect its presales to range between Rs 6,000 crore and Rs 9,000 crore.

Oberoi Realty, however, may see a decline in presales due to the absence of launches during the quarter. Its sales were largely driven by ongoing projects.

A report by Motilal Oswal Financial Services estimates that top realty companies will record strong growth in earnings before interest, tax, depreciation, and amortisation (Ebitda) in Q2.

Revenue recognition across its coverage universe is projected at Rs 17,200 crore (up 23 per cent Y-o-Y), with Ebitda of Rs 5,300 crore (up 44 per cent Y-o-Y) and a margin of 31 per cent.

Adjusted profit after tax (PAT) is likely to rise 29 per cent Y-o-Y to Rs 4,400 crore, with an adjusted PAT margin of 26 per cent.

Analysts said developers’ launches have received robust responses, enabling them to sell a sizeable portion of their new projects.

Sustenance sales have also remained supportive, backed by strong collections.

Agrawal noted that developers continue to maintain sufficient inventory of launched projects, which typically sell out over two to three years.

“Given current market sentiment, developers have slowed down launches but are focusing on selling existing inventory.

“This shift has maintained presales momentum,” he added.