SOBHANSEMay 09, 2026

Sobha Limited

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18analyst exchanges

3executives

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Management on call

Jagadish Nangineni

MANAGING DIRECTOR – SOBHA LIMITED

Yogesh Bansal

CHIEF FINANCIAL OFFICER – SOBHA LIMITED

Adhidev Chattopadhyay

ICICI SECURITIES LIMITED

Key numbers — 40 extracted

INR8,136 crore

6 has been an exceptional year for the company. Our real estate sales reached an all-time high of INR8,136 crores, with strong and consistent average quarterly run rate of approximately INR2,000 crores. We ha

INR2,000 crore

e high of INR8,136 crores, with strong and consistent average quarterly run rate of approximately INR2,000 crores. We have achieved an average price realization of INR14,675 per square feet compared to INR13,

INR14,675

rly run rate of approximately INR2,000 crores. We have achieved an average price realization of INR14,675 per square feet compared to INR13,412 previous year, which is reflecting a growth of around 9.4%.

INR13,412

crores. We have achieved an average price realization of INR14,675 per square feet compared to INR13,412 previous year, which is reflecting a growth of around 9.4%. From here, we expect to grow at a simi

9.4%

4,675 per square feet compared to INR13,412 previous year, which is reflecting a growth of around 9.4%. From here, we expect to grow at a similar rate as last year. Last year, we have done about 30% g

30%

9.4%. From here, we expect to grow at a similar rate as last year. Last year, we have done about 30% growth in terms of sales and similar rate is what we expect this FY ‘27 as well. Bangalore reco

INR4,500 crore

is what we expect this FY ‘27 as well. Bangalore recorded its highest ever annual sales of about INR4,500 crores, with both new launches and sustenance sales also doing well during the year. NCR region deliver

INR2,450 crore

ales also doing well during the year. NCR region delivered the highest ever annual sales of about INR2,450 crores with our expansion into Greater Noida. Both Bangalore and NCR together contributed about 85% of

85%

0 crores with our expansion into Greater Noida. Both Bangalore and NCR together contributed about 85% of our sales. Kerala region maintained steady momentum with about INR800 crores and other regions

INR800 crore

together contributed about 85% of our sales. Kerala region maintained steady momentum with about INR800 crores and other regions contributing about INR400 crores. In terms of project launches, we launched

INR400 crore

a region maintained steady momentum with about INR800 crores and other regions contributing about INR400 crores. In terms of project launches, we launched about 6.04 million square feet during FY ‘26. Some

6.04 million

other regions contributing about INR400 crores. In terms of project launches, we launched about 6.04 million square feet during FY ‘26. Some of the planned launches were delayed due to multiple factors, bot

Guidance — 20 items

Jagadish Nangineni

opening

“From here, we expect to grow at a similar rate as last year.”

Jagadish Nangineni

opening

“Last year, we have done about 30% growth in terms of sales and similar rate is what we expect this FY ‘27 as well.”

Jagadish Nangineni

opening

“In terms of project launches, we launched about 6.04 million square feet during FY ‘26.”

Jagadish Nangineni

opening

“Having said that, in April ‘26 itself, we successfully launched our project in Gurgaon, which is SOBHA Crescent Phase 1.”

Jagadish Nangineni

opening

“Looking ahead, we plan to launch in this financial year, at least about, again, more than 50%, close to about 10 million square feet is what we look to launch across Bangalore, Gurgaon, Hyderabad, Thrissur, and Pune.”

Jagadish Nangineni

opening

“That we will be able to do in the next year.”

Jagadish Nangineni

opening

“Overall, we have a pipeline of 20.67 million square feet in various stages of design and approval, which we plan to launch in the next 6 to 8 quarters, of which about 10 million we expect to launch in this FY ‘27 itself.”

Jagadish Nangineni

opening

“We expect to maintain a similar run rate with these businesses as well with improved profitability.”

Jagadish Nangineni

opening

“On the project completion front, for the real estate, we delivered 1,087 homes during the fourth quarter and taking the total to 3,188 homes, equivalent to 5.4 million square feet for the year.”

Jagadish Nangineni

opening

“We are accelerating our delivery, and we hope to achieve at least similar growth in the next year as well.”

Risks & concerns — 10 flagged

So how are you seeing -- are you seeing any slowdown in the mix from the IT/ITeS as a whole in your presales?

— Parikshit Kandpal

I understand the concern with respect to the both the macro and specifically related to AI and its impact.

— Jagadish Nangineni

While that’s a concern that’s existing across the industry, on the ground, what we are seeing from a, which are our leading indicators, which is visible for us, there doesn’t seem to be a big slowdown or anything of that sort.

— Jagadish Nangineni

If there are any concern in future because of any other reasons, we’ll have to wait and see, Parikshit.

— Jagadish Nangineni

So that should not be a concern from a business development and visibility of the project launches perspective.

— Jagadish Nangineni

And of course, there is a concern related to the macro environment related to how the basis the geopolitical events that are occurring and unfolding.

— Jagadish Nangineni

So the impact of that immediately over the course of the whole projects is yet to be estimated.

— Jagadish Nangineni

So once we get a probably much better sense of it in the next 3 to 6 months, then we will be able to get a good handle in terms of the impact of that.

— Jagadish Nangineni

And as you know, in March, things were quite, I mean, everyone is quite uncertain as how things were going to pan out.

— Jagadish Nangineni

It’s the launch what we did, like I mentioned, was in an uncertain environment.

— Jagadish Nangineni

Q&A — 18 exchanges

Congratulations on a decent quarter. So the sales were low expectation. I mean, our expectation was more like INR10,000 crores. I understand one of the launch got postponed in Gurgaon. So just wanted to understand if we have a 10 million square feet [inaudible 0:11:43]

Management

Am I audible now? Is it better?

Management

So, Jagadish, my question was on the launch of INR15,000 crores, about 10 million square feet and 15,000 realization. So if you can highlight some of the key launches in Q1, Q2, Q3, Q4, so how will these launches be phased out and some of the key launches if you can highlight for us?

Jagadish Nangineni

Right. Good evening, Parikshit. So, some of our key launches for this financial year would be our Phase 1 of our Hoskote project, which we are expecting to launch in the first quarter. And along with that, we have already -- like I mentioned in the opening comments, we are -- we have already launched Phase 1 of our Gurgaon project. Both these put together itself will be about close to 6.1 million, 6.2 million square feet. In addition to that, then in Q2, we have a couple of launches in Kerala, which are in Calicut and in Thrissur. In addition to those, we expect to launch a couple of more proj

Congrats on good performance. My first question is with respect to the gross margins and EBITDA. They still seem to be a bit lower than what you’ve been guiding historically. When should we see expansion of this margin? And any particular reason you would like to highlight for this quarter?

Jagadish Nangineni

Yes. Good evening, Puneet. The gross margin, like I was mentioning, is, will start coming through with the project completions that we have on the ongoing projects, which are scheduled to start getting completed in end of Q2 and Q3. And that’s where , we think that the gross margins will significantly see, start looking, there will be an uptick on that. So as we progress during this financial year, FY ‘27, Q3 and Q4 should start looking far better, and you would start seeing the EBITDA margins that we have been projecting, of course, for the entire remaining revenue to be recognized. But those

Jagadish, congratulations for a strong year. My first question is on -- again, on the Hoskote launch, if you can give us some more color on the total size of the project and break it up between Phase 1, Phase 2, the GDV? And then where are we in terms of the approvals both on the design and also the RERA time lines?

Yogesh Bansal

Right. Thank you Girish. So this project will be about 5.3 million square feet, only residential portion. So that’s, we should be able to receive our RERA in Q1 itself and launch the project. So we are in very advanced stages of the launch. So -- and the overall GDV for the project should be about INR7,000 crores. So it’s a large launch for us. And we expect to see sustained demand for this kind of project. Okay. Okay. And second question, in terms of -- just wanted your outlook or how to look at business development heading into fiscal ‘27? Right? In the PPT, you also mentioned about your key

Congratulations on the excellent results. So I just wanted to know how is the performance to the new launches in SOBHA Rivana and Crescent? I mean, how much you have sold till date in these projects?

Jagadish Nangineni

So thank you, Biplab. Rivana, like I mentioned last quarter, which we launched, I mean, towards the last week of the quarter, we did quite decent in terms of considering the uncertainty around that time. And we are seeing positive sustenance sales as well. So whatever we launched, we sold about 25% of that. In Crescent, which we launched in April 1st -- in the month of April, so we did roughly about 50% of the sale there, so which is quite encouraging. So both have started out really well. And since we have the inventory in both places, we can continue to see good momentum. Sir, in terms of ru

Congratulations for decent set of numbers. So my first question is on the guidance. Like, do we have any specific guidance for presales and average selling price for FY ‘27, ‘28? If yes, then it would be helpful if you can share.

Jagadish Nangineni

I have mentioned this in my opening remarks. So I think this year, we have achieved about 30% growth in our presales and similar is what we can expect in FY ‘27 as well. Okay. And the next question is like can you share the geography-wise or across the market-wise, the demand momentum and the average price or price momentum considering your last quarter performance, specifically in Bangalore and the other new cities which you expanded? Yes. So from a pricing point of view, it’s quite stable for the last 3 to 4 quarters, and we expect the stability in terms of pricing to continue. And hence, it

First question again on Rivana, just harping a bit on the response that we got versus what we have got in Crescent. And what we had heard is Noida as a market is doing better than what we see in Gurgaon. On that backdrop, your response of 25% sales at launch, what do you think could have been better in terms of, to get a better response versus what we have seen for other peers? Even we had got some pricing feedback that it start higher than what was expected. So was it intentional in terms of pricing that project higher to get a very sustenance kind of a response, sustenance kind of sales from

Jagadish Nangineni

Yes. So on Rivana, one should understand that it is, it was launched in the last week of the month of March. So typically, we do have a preparation phase after we receive RERA. And this we had launched, I mean, the timing difference between once we get RERA and the launch, it has been quite low because we wanted to launch in this, in FY ‘26 itself. So hence, the value that we are seeing is not a typical launch, but it’s a launch given the timing difference between the RERA receivable and the actual launch events. So hence, we can see that it’s not -- we don’t need to view it only as a launch s

Sir, my question is on the demand. So how do you read the demand across markets, NCR and Southern India, especially in Bangalore in light of the AI concerns which people have, which -- and large part of our client used to be IT/ITeS. So how are you seeing -- are you seeing any slowdown in the mix from the IT/ITeS as a whole in your presales? If you can give some color, how do you perceive the demand?

Jagadish Nangineni

Yes. I understand the concern with respect to the both the macro and specifically related to AI and its impact. While that’s a concern that’s existing across the industry, on the ground, what we are seeing from a, which are our leading indicators, which is visible for us, there doesn’t seem to be a big slowdown or anything of that sort. There seems to be a continued interest in the projects. And like I have been mentioning in the previous calls, from a ticket size point of view, we are within a certain ticket size of about below INR3 crores or so. The demand seems to be quite robust. So hence,

Can you also talk about what you are seeing in terms of approval process in Bangalore? And there was also a potential FSI law change which was supposed to come, where is it in the pipeline now?

Jagadish Nangineni

Right. Puneet, from an approvals process, there is no significant change either in positive or negative. So it’s quite stable in terms of approval environment is concerned. From a new additional FSI that might come in Bangalore, that is still -- it’s still an ongoing matter that’s in various forums. And we believe that it will come through at some point of time. And once it comes through, then we’ll have to bake that into our plans in terms of development potential for the lands that we hold or how we develop. So that’s the exact clarity of that is yet to emerge from the last time that we had

Congratulations on great performance. Sir, my question is more again from the demand perspective. Just wanted to know your thoughts on the, number one, footfalls and consequent conversions? And then are you seeing timelines extending due to this war impact? Second is from a labor standpoint, are you seeing any shortage? And then third is from the inflation standpoint. How much cost increases are you seeing? How much margin impact will that have? And then, how are you planning to offset that through price increase? These are my 3 questions.

Jagadish Nangineni

Good questions, Akash. So first, on the demand side, see, like I said, from a leading indicators point of view, which is our inquiries and visits, they seem to be quite stable across all our projects, which are in sustenance. And last year and even this year in some of the launches, the, at the time of launch, the kind of momentum that we are seeing is far superior than what we had seen earlier. And hence, we, as of now, things look quite positive in terms of continued demand. So if, and in the sustenance project also, there seems to be a continued interest. So on both these parameters, things

Sir, what would be the GDV of the Mumbai deal pipeline, the two deals that you mentioned earlier, the redevelopment and outright?

Jagadish Nangineni

Both the new projects both put together should be about INR2,000 crores, Biplab. That’s quite big. And second question is, sir, you mentioned SOBHA Rivana till date sold INR500 crores and Crescent INR1,100 crores in terms of presales till date. So does this indicate that Crescent has received a stronger market response compared to Rivana? I thought it would be the other way around. Right. Like I mentioned, Biplab, it is a function of also the time that we have given from, for us to prepare in terms of launch. So it’s, I don’t see it as too, I mean, linked in terms of responses. Both are doing

So my first question is of the 10-odd million square feet that we plan to launch in FY ‘27, what would be the GDV of these projects?

Jagadish Nangineni

So if you take an average pricing of about what we have done this time, which is about INR4,700 and similar maybe around INR15,000, that would be about INR15,000 crores. Sure. And we have either released or unreleased inventory of about INR1,200 crores, INR1,300- odd crores in our existing projects. So is that the fair way to look, we’ll have maybe close to about INR27,000, INR28,000 crores. That’s right. That’s right, Parvez.

Sir, just wanted to understand, in this 30% growth and also continuing with last question, so how much would be coming from the sustenance and how much would be expected from the new launches, specifically because Hoskote will be a significant portion of our new launch. So you did indicate that you will accelerate the launches if required. So just to understand the sensitivities to this growth?

Jagadish Nangineni

Right. The ability to generate sales from new launches is also dependent on the timing when we launch the project, right? So the earlier we launch during, in the year, the higher would be the contribution from those new launches during the year. Last year, we did, I mean, this year, FY ‘27, we expect roughly about 45% to 50% from sustenance and 50% to 55% from new launches.

Just one question on Rivana, sir. So you said that you had a very limited window. So out of 2,000, you have sold about 25% until now, until May. So have you seen again like come back in that project? Do you think that you still, I mean, you achieved 50% or more in this project now?

Jagadish Nangineni

We are seeing good sustenance sales more, Parikshit. It’s the launch what we did, like I mentioned, was in an uncertain environment. But we are looking, we are seeing good response from a sustenance sales point of view. It’s not at the same level as a launch one. But at the same time, as you know, generally, the level of interest and the momentum that’s created in launch is not necessarily followed through. So in this case, we have started, generally, we see a big falloff after the launch. But here, we are seeing good continued interest. So I would not say that it is going to continue in the s

Okay. So the Hoskote is about INR7,000 crores of GDV. So Phase 1 is how big? And typically, Jagadish, we have seen [inaudible 0:54:01] response initially. So how do you think, because you have already been collecting EOIs for some time now, I remember from March end of sometime in that period [inaudible 0:54:19] So if you can give some color on this?

Jagadish Nangineni

Yes. I understand, Parikshit. The phases of the launches is also dependent on the kind of demand that comes through. And we have the mix of the product across multiple towers. Basis the demand across these, the unit size mix, we will continue to open new towers, which is typically done in any large project. Here also, we would follow the same. First is the dependency of the opening of phases and the towers is on, purely on demand and also the construction schedule that we follow. So that we are going to follow. And here to start with at least half of it, we should be releasing. And if the dema

Thank you, everyone, for participating in the call. I hope we were able to answer most of the questions appropriately. In case of anything more, please reach out to us. We, as a company, we have seen a good last year, and we are quite confident of the next couple of years also with great visibility across all parameters. While we are doing this, our aim is to continue to build on the strong foundation and the brand that we have built. And that is on execution across the team members and our team is doing a fantastic job on all the parameters. We hope to continue our good performance in the com

Management

Thank you.

Management

Speaking time

Jagadish Nangineni

Moderator

Parikshit Kandpal

Biplab Debbarma

Puneet Gulati

Girish Choudhary

Yogesh Bansal

Fenil Brahmbhatt

Pritesh Sheth

Akash Gupta

Opening remarks

Jagadish Nangineni

Thank you, Adhidev. Good evening, everyone, and thank you for joining us on this call for Q4 FY ‘26. In today’s call, we’ll briefly go through the operational highlights of the year and a little bit about the future. FY ‘26 has been an exceptional year for the company. Our real estate sales reached an all-time high of INR8,136 crores, with strong and consistent average quarterly run rate of approximately INR2,000 crores. We have achieved an average price realization of INR14,675 per square feet compared to INR13,412 previous year, which is reflecting a growth of around 9.4%. From here, we expect to grow at a similar rate as last year. Last year, we have done about 30% growth in terms of sales and similar rate is what we expect this FY ‘27 as well. Bangalore recorded its highest ever annual sales of about INR4,500 crores, with both new launches and sustenance sales also doing well during the year. NCR region delivered the highest ever annual sales of about INR2,450 crores with our expan

Yogesh Bansal

Good evening, everyone. I am pleased to present our financial performance for the fourth quarter and financial year ‘25-’26. In FY ‘26 was characterized by strong operating execution and disciplined capital allocation. We delivered record sales, while strengthening liquidity and reducing leverage, ending the year in a net debt negative position. Our focus remains constant, accelerate collection, fund the construction and land investment through operating cash flow and improve the quality of earnings through lower finance cost. I will briefly walk you through our cash flow performance, covering both the quarter and year trend along with our outlook. And then I will move on P&L. During the quarter from all businesses, we collected INR1,990 crores and for the full year, total collection was INR7,798 crores, recording a healthy 26.1% growth over last financial year. In Q4, real estate collections stand at INR1,807 crores and for financial year ‘26, INR7,067 crores. Contractual and manufact

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