India · Delayed Price · Currency is INR Sobha Earnings Call Transcripts
Fiscal Year 2026
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Record sales and collections drove strong FY26 results, with robust launches and margin expansion expected in FY27. Key markets like Bangalore and NCR led growth, while a healthy launch pipeline and disciplined capital allocation support continued momentum.
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Record sales and strong cash flows marked the quarter, with robust demand in Bangalore and NCR and successful expansion into Mumbai. Revenue recognition was delayed due to procedural issues, but margin expansion and growth visibility remain strong, supported by a healthy project pipeline.
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Q2 FY26 saw robust sales and collections, with strong contributions from Bangalore and a healthy project pipeline. Margins are expected to improve as higher-margin projects complete, and future cash flow visibility remains strong. Regulatory and cost pressures are being managed proactively.
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Q1 FY26 saw record real estate sales above INR 2,000 crores, driven by strong launches and robust demand, especially in Greater Noida. Margins were impacted by delayed OCs in Bangalore, but future quarters are expected to see improvement as deferred revenue is recognized.
Fiscal Year 2025
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Achieved record launches and collections in FY25, with sales up 23% and net debt negative for the first time. Targeting 30-35% sales growth in FY26, driven by diversified launches across 14 cities and a strong project pipeline. Margin improvement and steady demand expected.
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Q3 FY25 saw robust sales and revenue growth, led by Bangalore and strong own-project performance. Margins were impacted by one-time contract losses, but improvement is expected as high-margin real estate revenue is recognized. Rights issue proceeds are being used for debt reduction and growth capital.
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H1 FY25 saw robust sales and revenue growth, with Kerala achieving record performance and a strong launch pipeline in place. Rights issue proceeds reduced net debt and will fund expansion, while margins in contracts remain under pressure but are expected to improve. Guidance for FY25 sales remains at INR 8,500 crores, contingent on timely launches.
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Q1 FY25 delivered record sales and collections, driven by new launches and strong NCR performance. Rights issue of ₹2,000 crores strengthens expansion plans, with a robust launch pipeline and improving margins expected as revenue recognition accelerates.