AI assistant
Sobha Limited — Call Transcript 2026
May 9, 2026
61956_rns_2026-05-09_a701dada-7088-4042-95a9-6271dd87def2.pdf
Call Transcript
Open in viewerOpens in your device viewer
SOBHA
Date: May 09, 2026
| BSE Limited
Department of Corporate Services
PJ Towers, Dalal Street
Mumbai – 400 001
Scrip Code: 532784 | The National Stock Exchange of India Limited Exchange Plaza, Plot No C/1, G Block
Bandra Kurla Complex
Mumbai – 400 051
Scrip Code: SOBHA |
| --- | --- |
Dear Sir/Madam(s),
Sub: Transcript of Meeting with Analysts/ Institutional Investors
In continuation to our letter dated April 30, 2026, please find enclosed herewith the transcript of the conference call held on Tuesday, the 05th day of May, 2026 with the Analysts/ Institutional Investors to brief the Operational and Financial performance of the Company for the quarter and financial year ended March 31, 2026.
We request you to take the aforesaid information on record in terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the same is available on the website of the Company.
Yours sincerely,
FOR SOBHA LIMITED
Bijan Kumar Dash
Digitally signed by
Bijan Kumar Dash
Date: 2026.05.09
12:41:06 +05'30'
Bijan Kumar Dash
Company Secretary & Compliance Officer
Membership No. ACS 17222
SOBHA LIMITED
Regd & Corporate Office: SOBHA Limited, Sarjapur - Marathahalli, Outer Ring Road (ORR), Devarabisanahalli, Bellandur Post, Bengaluru - 560103, Karnataka, India.
CIN: L45201KA1995PLC018475 | Tel: +91 80 49320000 | www.sobha.com | Email: [email protected]
Page 1 of 15
SOBHA
“SOBHA Limited
Q4 FY ‘26 Earnings Conference Call”
May 05, 2026
SOBHA
ICICI Securities
CHORCHELL
MANAGEMENT: MR. JAGADISH NANGINENI – MANAGING DIRECTOR – SOBHA LIMITED
MR. YOGESH BANSAL – CHIEF FINANCIAL OFFICER – SOBHA LIMITED
MODERATOR: MR. ADHIDEV CHATTOPADHYAY – ICICI SECURITIES LIMITED
SOBHA
SOBHA Limited
May 05, 2026
Moderator:
Ladies and gentlemen, good day, and welcome to SOBHA Limited Q4 FY ‘26 Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Adhidev Chattopadhyay from ICICI Securities. Thank you, and over to you, sir.
Adhidev Chattopadhyay:
Yes. Good evening, everyone. On behalf of ICICI Securities, I’d like to welcome everyone on the SOBHA Limited call today. From the management, as always, we have with us Mr. Jagadish Nangineni, the Managing Director; and Mr. Yogesh Bansal, the Chief Financial Officer. I would now like to hand over the call to the management for their opening remarks. Over to you. Thank you.
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 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 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, both external and internal. Having said that, in April ‘26 itself, we successfully launched our project in Gurgaon, which is SOBHA Crescent Phase 1. It has received good response.
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. That we will be able to do in the next year. 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.
Our non-real estate business, which include manufacturing, contracting and retail have continued to perform steadily. These businesses also play a critical role in strengthening our
Page 2 of 15
SOBHA
SOBHA Limited
May 05, 2026
backward integrated model and ensuring consistent delivery of world-class quality. We expect to maintain a similar run rate with these businesses as well with improved profitability.
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. This, again, has seen an increase of about 19% compared to previous year. We are accelerating our delivery, and we hope to achieve at least similar growth in the next year as well. In terms of revenue recognition and margins, we witnessed significant improvement in the fourth quarter, primarily driven by receipt of occupancy certificates, which got delayed in the third quarter earlier.
We currently have an unrecognized real estate revenue of about INR18,600 crores as we have shown in our investor presentation as well that we expect an EBITDA margin of at least about 30% plus there. The projects that are nearing completion and expected to be recognized in the next 12 months are likely to deliver higher margins in the range of 24% to 26%, significant improvement from this year.
And hence, we expect significant improvement in our P&L even in FY '27 with improving margins over the quarters and probably a little bit higher towards the end of Q3 and Q4. In conclusion, the company has built a strong foundation supported by record sales performance, robust launch pipeline and steady operational execution and clear visibility of margin expansion. And we believe we are very well positioned to sustain this growth momentum in FY '27 and beyond.
With this, I'd like to hand over the call to our CFO, Mr. Yogesh Bansal, to take you through the financial details.
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 manufacturing contributed INR183 crores in Q4 and INR732 crores during full financial year. At net operating cash flow level, we generated INR366 crores in the quarter and INR1,637 crores in full year, registering growth of 39.4% over FY '25. As on 31st March 2026, gross debt stood at INR1,002 crores, while cash and cash equivalents was INR1,802 crores, maintaining a net cash position.
Page 3 of 15
SOBHA
SOBHA Limited
May 05, 2026
Coming to P&L. For the quarter, we recorded a total income of INR2,030 crores, taking the full year FY ‘26 total to INR5,384 crores. Revenue recognition strengthened during the quarter, aided by clearance for completion certificate for multiple projects. EBITDA for Q4 was INR194 crores, with EBITDA for FY ‘26 is INR503 crores. PAT Q4 was INR92 crores and FY ‘26 was recorded INR193 crores.
Gross debt reduced to INR1,002 crores and cash equivalents were INR1,800 crores, resulting in negative net debt of INR800 crores. The cash balance provides resilience through cycles and enable us to fund launches, construction movement and land investments. A combination of strong collection, lower cost of funds and a net debt negative position strengthen our ability to execute our development pipeline with a disciplined financial posture.
Looking ahead, company confidence is underpinned by strong operating momentum and high visibility across P&L performance, revenue, cash flow and land availability. Revenue yet to be recognized from sales done till 31st March stands at INR18,647 crores. For a cash standpoint, projected marginal cash flow from completed and ongoing is estimated INR9,560 crores and forthcoming project add an additional projected marginal cash flow of INR8,699 crores.
We are aiming in FY ‘27 net cash -- net operating cash flow close to INR2,000 crores. As we scale, our priority remains the same, strengthen our balance sheet, improve cash flow and maintain speedy execution. With this operating framework, we believe SOBHA is well positioned for sustained long-term value creation. Once again, thank you all for your participation. With this, we can now open the call for questions.
Moderator: Thank you very much. The first question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Parikshit Kandpal: 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]
Moderator: I’m sorry to interrupt. Your voice is muffled. Can you use your handset mode, please?
Parikshit Kandpal: Am I audible now? Is it better?
Moderator: Yes. Please proceed. Thank you. Yes, please proceed, sir.
Parikshit Kandpal: 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.
Page 4 of 15
SOBHA
SOBHA Limited
May 05, 2026
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 projects in Bangalore. Essentially, one of the projects that we earlier launched as a Row House project in Bangalore, we cancelled that project and we are relaunching it with apartments that we plan to launch it towards the end of the year. So, these would be the main launches, taking all of this together to about 10 million square feet.
In addition to that, there are a couple of more, which are tentative, which might come towards the end of the year, which is, one project in Pune and one project in Chennai. So, both these, if they also come through, then we can achieve slightly higher in terms of launches.
Parikshit Kandpal:
Okay. Sir, on the project Rivana, so what exactly happened? I mean, this is a large project and you were expecting very strong sales from this. So what I understand on your presentation, you have given about INR600 crores of sales from NCR. So if you can highlight what was the inventory which was opened and how much since you have clocked and how has been the momentum in Q1 from this project? So how do you rate the response to this project given that Q4 end, we had this geopolitical issue. So if you can highlight a bit on this.
Jagadish Nangineni:
Yes. Like you would have seen, Parikshit, that Rivana is a large project. It’s about 2.5 million square feet, 1,384 units. We launched our Phase 1 there, which is 684 units. We, in the first few weeks of the launch, we did about 25% of the sales, whatever we launched.
And due to the good location and also the scale of the project, there is continued interest in the project, and we’ll see a steady momentum from here. We have all the infrastructure in terms of sales preparation and the team in place. So hence, we would see a good, continued, sustained sales in the project. We are quite confident of it. And in fact, we have started our execution of the project as well.
Parikshit Kandpal:
And the last question, sir...
Moderator:
Sorry to interrupt Parikshit, please rejoin the queue for more questions. Thank you. Next question is from the line of Puneet Gulati from HSBC.
Puneet Gulati:
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
Page 5 of 15
SOBHA
SOBHA Limited
May 05, 2026
entire remaining revenue to be recognized. But those bits will start kicking in and then hence, the higher profitability will be visible.
Puneet Gulati:
Okay. My second question is, number one, you had this Row House plan, which you converted to apartment. How should we think about this in the scheme of what you are viewing in the market?
Jagadish Nangineni:
Well, it's, I think it's a strategic call that we have taken given the extent of the land that we had and the kind of development one can plan there. So hence, and given the kind of ticket sizes that we will be able to, through which we'll be able to achieve higher sales momentum, this seem to be a much better utilization of the land and hence, we are making that attempt to change, which would give for the same land probably, will get better both realization and overall margins as well. So from that perspective, it's a very positive change, which will add to the overall sales numbers, sales value and the margins.
Puneet Gulati:
Understood. And lastly, if you can just talk about what should we calculate for...
Moderator:
Sorry to interrupt Mr. Gulati. Please rejoin the queue, sir, for more questions. Next question is from the line of Girish Choudhary from Avendus Spark.
Girish Choudhary:
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.
Girish Choudhary:
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 markets will be Hyderabad and also Mumbai, but what we can see is that there is a minimal land parcels or projects there in Hyderabad and Mumbai. So firstly, how to look at the business development in terms of the key areas? And also from a cash flow point of view, what can -- I mean, what's your budgeted outlook for the land?
Jagadish Nangineni:
Right. So from a BD point of view, we are continuously adding, of course, new projects. And hence, you can keep seeing that our, despite our sales year-on-year, the potential launches that we can do, they continue to remain roughly around 16 to 20 million square feet every, at any point of time. So the business development, like you would have seen that last year, we have spent close to about INR1,150 crores, INR1,160 crores on land.
I think with the kind of cash flow that's being generated, there are certain, some more pending land payments for the existing lands. And post that, I think, we should be able to do continuous business development in these locations. So Hyderabad, while we plan to do that, we are just,
Page 6 of 15
SOBHA
SOBHA Limited
May 05, 2026
we are hoping to launch our second project this financial year. We are on the approval stage. And we are continuously looking at new opportunities in Hyderabad as well.
Girish Choudhary:
So from a cash flow point of view, can we look at the similar INR1,100 crores, INR1,200 crores kind of a spend in fiscal ‘2??
Jagadish Nangineni:
Yes. That is exactly what I was alluding to. So not only that we are, we have done that and a lot of the payments that are required for, pending payments for the existing lands. Once those bids are also done, which should, we should be able to do it by in the first half, then most of the additional cash flow will be going into new business development.
Moderator:
Next question is from the line of Biplab Debbarma from Emkay Global.
Biplab Debbarma:
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.
Biplab Debbarma:
Sir, in terms of rupees crore, how much in this project?
Jagadish Nangineni:
In Crescent, it’s about INR1,100 crores.
Biplab Debbarma:
And Rivana?
Jagadish Nangineni:
Rivana, it’s about INR500 crores.
Biplab Debbarma:
And sir, what is the current deal pipeline visibility in MMR and Noida, Greater Noida?
Jagadish Nangineni:
So in MMR, we are pursuing a couple of projects, which we should -- we should be able to conclude during this year, which one is a redevelopment project and one is we are trying to buy a land. Both are small projects, but at the same time, it will give us a good understanding of how we can operate and scale in Mumbai. And our current view, the way we are operating in Mumbai is that we will continue to see how we are performing and also getting to learn the nuances of the market.
While we are doing that, in Noida, we have seen significant demand for our product and which we have done well. We have already launched 2 projects there. So we have additional, 2 to 3 additional clients that we are actively pursuing. And we hope if we can conclude at least one of them, then in this year, in addition to what I have mentioned, if everything works, then probably we can launch that project too.
Page 7 of 15
SOBHA
SOBHA Limited
May 05, 2026
Moderator: Next question is from the line of Fenil Brahmbhatt from Choice Institutional Equities.
Fenil Brahmbhatt: 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.
Fenil Brahmbhatt: 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?
Jagadish Nangineni: 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’s more -- the increase would come more from volume rather than price increases.
And both in terms of NCR and in Bangalore, both seem to be on a similar path, which is where the demand also has stabilized and in fact, even the pricing has stabilized. So given both these, there is a lot of certainty in terms of how things will pan out from a pricing point of view for us and for the industry. And hence, we should be able to continue to see the demand momentum continue.
Moderator: Next question is from the line of Pritesh Sheth from Axis Capital.
Pritesh Sheth: 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 this project?
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 sale and hence, determine how it’s going. But post that also, our sustenance sales also seem to be quite good.
And with the current kind of momentum, we should see good sustenance sales and which is, frankly, it’s something that, which is we are quite fine with it. And considering that this is a large project and over the period, we can potentially see certain price increases as well. So we are
Page 8 of 15
SOBHA
SOBHA Limited
May 05, 2026
quite okay with the kind of sales momentum that we have seen given the time frame between the RERA receival and the launch date.
From a pricing point of view, I think it's quite consistent with our typical pricing policy. And this sector being slightly better in terms of the existing infrastructure, etc, and what we have done in the previous launch in Greater Noida, which is in SOBHA Aurum, Sector 36, there is a small difference in the pricing, but that should be okay, and it's quite well accepted and it's doing well.
Pritesh Sheth:
Sure, sure. Got it. That's helpful. And just second, on Hoskote, you talked about the residential portion. Are we also planning to build any rental yielding assets in Hoskote considering we have a large 100-acre land parcel is part of first phase and overall 250-300 acres. So your thoughts on building a rent yielding assets in Hoskote?
Jagadish Nangineni:
Absolutely, that is one of the plans. But however, with Phase 1, that what we are developing, it's largely residential. We have a small bit of retail and commercial space, but that's about less than 6-7% of the overall development. But we do intend to have a commercial developments in Phase 2 and 3. The exact design mix and the actual development, it's still under design stage. So once we have that clarity, then we will definitely showcase that that's part of the future development and how much of it is going to be commercial/retail.
Moderator:
Next question is from the line of Parikshit Kandpal from HDFC Securities.
Parikshit Kandpal:
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, there is, from probably the demand side, it might not be on a very high increased path, which we had seen in between '21, '22, '23, but the demand seems to be steady as of now.
With respect to how it actually unfolds in terms of how things are going to happen in the future with respect to AI and any of the other technology or any other macro aspects, that we'll have to wait and watch. But what I believe is that currently, the demand seems to be quite good. In NCR as well for the right kind of pricing of the product, there seems to be a good demand, which is witnessed in both of our launches. So from actual real outcomes perspective, it seems to be
Page 9 of 15
SOBHA
SOBHA Limited
May 05, 2026
positive. If there are any concern in future because of any other reasons, we’ll have to wait and see, Parikshit.
Parikshit Kandpal:
Okay. And sir, just on the business development, INR1,100 crores was spent. So how much was the GDV addition in FY ‘26? And what kind of GDV addition we are looking for FY ‘27 in value terms?
Jagadish Nangineni:
Like you know, Parikshit, we don’t generally give out a guidance on the business development. Our aim is to at least have a pipeline of at least about 10 million square feet every year, and that’s what we would continue to work upon. And currently, like you have seen, we have about 20 million square feet, which is 2 years of new launches. So we are quite good in terms of visibility for the next 2 years.
And we continue to generate good cash flow from operations, and that will be deployed. And I think that’s good enough for us to sort of add to the pipeline of our current projects. So we are quite confident in terms of how we go about it. So that should not be a concern from a business development and visibility of the project launches perspective.
Parikshit Kandpal:
Makes sense. And sir, just one last question, if I may. This INR52 crores of rental, which you currently are talking, so our earlier strategy, I think we tried with the APMC to ramp up the rental, but it did not pick up anyway, I think that shell. So now next 4-5 years, how do we look at this rental trajectory going given in Hoskote, we are evaluating some of the commercial assets on an ownership basis. So any sense, any color on how do you think about the annuity business from here on? And potentially 3-4 years, how big this could be on an annualized basis?
Jagadish Nangineni:
Right. It’s a very important decision and discussion that we are having in terms of how to build our rental portfolio. See, as of now, we are not developing any of the rental, any new projects right immediately. And hence, we, although we have opportunities for that in a few areas, like Hoskote and like in Gurgaon, we have a commercial project. So these lands, we can definitely build towards building rental.
And we can, the rental portfolio is going to see a significant increase from this current rental. So as of now, I think we are in a stage where we think that we should be able to build at least about 2 million square feet additionally in the coming few years for which land is already available either in Hoskote or in Gurgaon and small other developments that we are doing in Gurgaon also.
So hence, clear visibility right now, we have about 2 million to 2.5 million square feet. Going forward, if we decide to have this as a separate vertical and strategy for that, we would start working on it. Our current focus is on building the residential portfolio and getting all these launches on time and achieve a better value from a presales and improving our profitability, while that’s happening. So this one is something that we are looking at it, and we should start getting better traction in the next couple of quarters in terms of visibility, how we go forward.
Moderator:
Next question is from the line of Puneet Gulati from HSBC.
Page 10 of 15
SOBHA
SOBHA Limited
May 05, 2026
Puneet Gulati:
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 a conversation. So we'll wait and watch. And as and when it gets -- the clarity emerges, then we can let you know.
Moderator:
Next question is from the line of Akash Gupta from Nomura.
Akash Gupta:
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 seem to be quite good. 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. But when we actually look at the ground reality, it seems to be quite stable. Second, in terms of the labor shortage, what you had discussed, what you had just asked, So that, it's, of course, the, everyone throughout the industry has faced a labor shortage or issue because of the elections that has occurred in the four states. So that, I think, it is a brief interruption to the steady flow of the requirement. But I think once this stabilizes, then we are back to normal in terms of the number of people working at the site. Third is with respect to the price increases and how it might impact us.
There is, of course, surely, there is a significant price increases for a short while in some of the commodities and in some of the other materials. So the impact of that immediately over the course of the whole projects is yet to be estimated. It's a little dynamic situation. And we'll have to wait and see as how long this, the current issues will continue. And hence, how much of that will be, will actually come and hit us in terms of margins. Because typically, for any of the
Page 11 of 15
SOBHA
SOBHA Limited
May 05, 2026
projects, we do have a little bit of escalation that we take into account. It doesn't look like we have gone past those escalations.
However, like I said, it's entirely dependent on the duration of this uncertainty, price increases. Is it like short-term, medium-term or it's going to be a permanent feature? 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. While that's the case, how much we'll be able to increase prices and hence, there is an offset, that's always the case.
Again, we had done that earlier in the past when it was COVID, where there was significant pricing, cost increases and hence, correspondingly, we could take price increases in new projects. This time, we will have to see the demand and supply situation also. And hence, we'll have to take a call.
So it's not as simple as last time wherein the demand was quite robust, and it was, there was a pent-up demand as well, which we could capture. But this time, again, this is an event-led inflation and whereas demand seems to be quite stable. So it all depends on, again, demand supply and how we can react to that. So it's currently wait-and-watch mode for us. We will take a call once things get cleared.
Akash Gupta:
Understood, sir. And sir, just one question for particularly for your Gurgaon project. I mean, due to the war in the Middle East, are you seeing any, I mean, better-than-expected demand from the Middle East, particularly for your Gurgaon project, just from an investment perspective? Is there any change that you're picking up?
Jagadish Nangineni:
The reasons for investment in Middle East and reasons for investment in local markets might be quite different. So immediately, we have not seen anything, any huge changes. But we do see some changes in our Kerala market where there is, the inquiry flow is slightly better, considering a majority of the demand comes from Middle East. And there, we can see that there can be slightly better opportunities for us to capitalize on the more or renewed interest in India.
Moderator:
Next question is from the line of Biplab Debbarma from Emkay Global.
Biplab Debbarma:
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.
Biplab Debbarma:
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.
Jagadish Nangineni:
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 pretty well. So, and we had quite a good preparation for both the projects. And frankly, one of the aspects that has actually impacted us is the timing, which is in March versus
Page 12 of 15
SOBHA
SOBHA Limited
May 05, 2026
April. And as you know, in March, things were quite, I mean, everyone is quite uncertain as how things were going to pan out. So given that, I think it's a quite, we started out quite positively, and that should continue.
Moderator:
Next question is from the line of Parvez Qazi from Nuvama Group.
Parvez Qazi:
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.
Parvez Qazi:
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.
Jagadish Nangineni:
That’s right. That’s right, Parvez.
Moderator:
Next question is from the line of Muralikrishnan from Sundaram Mutual Fund.
Muralikrishnan:
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.
Moderator:
Next question is from the line of Parikshit Kandpal from HDFC Securities.
Parikshit Kandpal:
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 same momentum, but I see a very good sustained sales. And for this project to do well, the kind of,
Page 13 of 15
SOBHA
SOBHA Limited
May 05, 2026
given the scale of the project in Greater Noida, a good sustenance sales will really help in terms of the continued interest.
And frankly, we are quite prepared for that in the, during the year. So based on how things progress during the year, we would launch the Phase 2 or subsequent towers of the project during the year, during the course of the year. And at any point of time, whenever we launch a new tower or another phase, again, we can see a spurt in the demand there.
Parikshit Kandpal: Okay. A question on Hoskote [inaudible 0:53:50]
Moderator: I’m sorry to interrupt. Sir, can you repeat your question? You’re not audible.
Parikshit Kandpal: 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 demand is quite good, then we would immediately release the subsequent ones also, because we get RERA for the entire project at once.
Parikshit Kandpal: So about INR3,500 crores is what will potentially come as a launch depending on the demand, and it can be upsized as the demand, actual demand translates into numbers. Is it right?
Jagadish Nangineni: Yes, absolutely. You’re right.
Parikshit Kandpal: And any initial comment on how has been the EOI here? Because this has been out in the market for some time. So how are you seeing and it’s a large project. So typically township projects see a good traction. So any initial sense on how the footfall and the EOI has been for this project?
Jagadish Nangineni: No, it’s, there is good interest in the project given the scale of the project, right. And large communities are a differentiating factor for a lot of customers in cities like Bangalore. So this would also, I believe, attract good set of customers who are interested in such large developments. So initial interest seems to be good. Our first focus is to get all the approvals right and then start the actual sales process with solid preparation, which is underway. So we’ll get to know the, how things progress and how we, the momentum that’s created. And that’s obviously it’s going to flow into our operational update at the end of the quarter.
Parikshit Kandpal: Then this should be at least INR3,500 crores to INR4,000 crores quarter, which was, Gurgaon has done INR1,100 crores, [inaudible 0: 57:07] should add INR1,200 crores to INR1,300 crores
Page 14 of 15
SOBHA
SOBHA Limited
May 05, 2026
and sustenance of about INR1,000 crores. So should be at least INR3,000 crores-plus [inaudible 0:57:12] this quarter, at least?
Jagadish Nangineni:
We hope so. I mean, I really hope what you are estimating comes true. So our job is to make sure all the preparation and everything happens. And then whatever result comes, we'll aim for the best result, Parikshit.
Moderator:
That was the last question for today. I would now like to hand the conference over to the management for closing comments.
Jagadish Nangineni:
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 coming future as well. Thank you for listening, and I wish you all the very best.
Moderator:
Thank you very much. On behalf of ICICI Securities Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.
Jagadish Nangineni:
Thank you.
Page 15 of 15