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Informist, Tuesday, Jul. 21, 2026

 

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--Sobha Ltd: Have 14.94 mln sq ft of unsold inventory end Jun
--CONTEXT: Comments by Sobha Ltd management in post-earnings analyst call
--Sobha Ltd: Have INR 205.56 bln revenue yet to be recognised
--Sobha Ltd: Expect FY27 to be similar to FY26 in terms of revenue
--Sobha Ltd: Net cash outflow of INR 1.49 billion in Apr-Jun
--Sobha Ltd: Improving collections, cash generation priority for FY27
--Sobha Ltd: Retain pre-sales target at 30% for FY27
--Sobha Ltd: To complete three projects in Jul-Sept
--Sobha Ltd: Bought new land in Mumbai, Greater Noida
--Sobha Ltd: Have spent INR 3.70 bln for land acquisition so far FY27
--Sobha Ltd: Demand scenario seems stable amid new launches
--Sobha Ltd: Bought 1.30 acres of land in Mumbai for INR 1.80 bln
--Sobha Ltd:Gross develop value for  Mumbai, Noida ops INR 27 bln-INR 30 bln
--Sobha Ltd: To complete Greater Noida Project in FY27
--Sobha Ltd: Aim to complete 6-6.5 mln sq ft of projects in FY27
--Sobha Ltd: Project cost to absorb 60% minimum wage hike in Karnataka
 

 

By Adhithya Aji and Kabir Sharma 
 

MUMBAI – Realty major Sobha Ltd. plans to complete projects spanning 6.0-6.5 million square feet in 2026-27 (Apr-Mar), representing a 20% year-on-year growth from the 5.84 million square feet completed in FY26, the company's management said in a post-earnings conference call. The management said the company expects to absorb the impact of the 60% hike in minimum wage in Karnataka within its budgets allocated for its projects. 

 

"... we are still under the evaluation phase," the management said about the wage hikes in the state. "... that is (60% wage hike) above the minimum wage. However, it would have a little bit of impact on our overall costs," the management said. Sobha Ltd. has four projects planned in Bengaluru in FY27, comprising about 3 million square feet. For the June quarter, the city contributed 56.5% to total sales and reported a sales value of INR 20.67 billion. 

 

"We currently have a forthcoming launch pipeline of about 20.77 million square feet across 17 projects," Sobha Ltd. Managing Director Jagadish Nangineni said. The Bengaluru-based real estate company is confident of launching nine of these 17 projects in FY27, aggregating approximately 8.2 million square feet, the management said. Apart from the four projects in Bengaluru, the company aims to launch two in the National Capital Region, two in Kerala, and one in Hyderabad. "This pipeline provides us with confidence in sustaining the growth momentum over the medium term," Nangineni said.

 

For the June quarter, the company had an unsold inventory of 14.94 million square feet. At the end of the quarter, the company had revenues of INR 205.50 billion that are yet to be recognised from the sales that have already been done. "We would see margin expansion as we complete the projects that we have sold from FY28," Nangineni said. For FY27, the revenue is expected to be similar to FY26.

 

For the current financial year, the management's priority is to improve collections and cash generation. The management retained its pre-sales guidance at 30% for FY27. "... if all the launches happen within time, probably we can do slightly better than that. But as of now, I think we continue to aim for that (30%) in terms of pre-sales," the top management said.

 

In the June quarter, Sobha Ltd. bought land parcels for new projects in Mumbai and Greater Noida. The company acquired 1.30 acres of land in Mumbai for INR 1.80 billion. The company estimates a gross development value of INR 27 billion–INR 30 billion from both the Mumbai and Greater Noida projects combined. The Greater Noida project is a joint development which is expected to be completed by FY27, while the company did not give a time period for the Mumbai project.

 

So far in the current financial year, the company spent INR 3.70 billion on land acquisitions, which is sharply higher than the normal INR 1 billion spent every quarter, the management said. The management said the demand scenario is stable going ahead. "... we believe that it is a reasonably good demand scenario. What we would like to see is how the supply is going to come up," the management said.

 

For the June quarter, Sobha Ltd. reported a consolidated net profit of INR 508.46 million, which rose nearly fourfold on year. The company's revenue grew 50% on year to INR 12.78 billion. On Tuesday, the company's shares ended almost flat at INR 1,456.30 on the National Stock Exchange. The company announced its June quarter results after market hours on Monday. End

 

Edited by Saji George Titus

 

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