Ladies and gentlemen, good day and welcome to the Sobha Limited Q4 FY25 results 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 the conference over to Adhidev Chattopadhyay. Thank you, and over to you, sir.
Good evening, everyone. On behalf of ICICI Securities, I'd like to welcome everyone to the Sobha Limited call. From the management, we have with us, as always, Mr. Jagadish Nangineni, the Managing Director, Mr. Yogesh Bansal, the Chief Financial Officer. Now, I'd like to hand over the call to the management for their opening remarks. Over to you, sir. Thank you.
Thank you, Adhideep. Good evening, everyone who have joined the call today. We are pleased to connect with you today for our Q4 FY2025 financial results. We have already shared the details of our operational updates of the company in the first week of April. The investor presentation based on the financial results also can be downloaded from our website. In today's call, I'll quickly take you through the operational highlights for the year and the quarter. Our CFO, Mr. Yogesh Bansal, will take you through the financials. Some of our key highlights this financial year have been our completion of rights issue of INR 2,000 crore, increasing our capital base, expansion into two new markets, which are Mumbai and Greater Noida, and completion of our migration to new ERP across businesses.
These are, in addition to our constant efforts to improve our delivery capability at speed and scale through people and technology. With the new financial strength, clear visibility to the future in terms of new project launches, it is indeed an exciting time for us to move ahead into FY26 and beyond. The residential demand environment seems to be steady at the moment, despite witnessing certain global political and economic uncertainties that have hit us in the past few months in this year. Our demand, as you all know, is directly correlated to the economic growth of the country and the job creation in the respective cities. As long as that is in the growth phase, it is up to us to capture the demand in the marketplace. In FY25, we launched 8.76 million sq ft over eight projects in four cities.
This is our highest area of launch as till date. In Q4 2025 alone, we launched two projects: Sobha Town Park in Bangalore with a total saleable area of 3.67 million sq ft, and Bird Song, a plotted development project with a saleable area of 0.44 million sq ft. For the next year, we continue to have a strong residential pipeline of 18.56 million sq ft across 18 projects in nine cities. We aim to launch these projects in the next six to eight quarters. In this financial year alone, which is FY 2026, if everything works well, we will be able to launch at least half of this pipeline. In a more optimistic scenario, we can cross the double digit in terms of million sq ft launches.
We expect to launch our first project in Greater Noida this quarter, which is Q1 of FY 2026, and Mumbai in the third quarter. Of course, these timelines are subject to unknown variables that sometimes do come up. Both these launches will take our footprint to 14 cities in the country. These launches, combined with our current inventory, give us a good chance to achieve higher sales in . During FY2025, our total real estate sales stood at INR 6,277 crore, with Bangalore contributing about 58%, 20% from Gurugram, and 13% from Kerala. Sobha's share of the total sales is roughly about 79% of this, at about INR 4,961 crore. The average realization stood at INR 13,412 per sq ft, which is higher by about 23% as compared to FY2024. During the quarter, the last quarter, which is Q4, our total real estate sales were at INR 1,836 crore.
We expect to achieve at least a growth of 30% plus this year, which is in FY26, which we aim to do in FY25 and move towards the goal of reaching the five-digit sales number by FY26. On the project completion front, we completed 4.54 million sq ft, 3,008 units, in 36 hours during the year. We expect to also increase this by at least 20% next year, with 5.5 million sq ft in FY26. On the contract manufacturing and retail side, we concluded the year with a revenue of about INR 661 crore, and we expect to grow at least 10% with enhanced profitability next year. We have good visibility of order book to achieve this and hope to build the order book during the year as well. With this brief, I hand over the call to Mr.
Yogesh, our Chief Financial Officer, to provide color on the financial performance, post which we shall open the floor to take questions.
Good evening, everyone, and thank you for joining us today. I'm pleased to share our financial performance for the fourth quarter and financial year 2025. In FY2025, we have completed INR 2,000 crore sized ITC successfully and received INR 1,996 crore, and balance INR 4 crore was outstanding as of 31st March. Part of that we have received in ourselves. Starting with cash flow, in FY2025, total operational cash flow was INR 6,184 crore. Real estate collection grew up by 10% as compared to last year, FY2024, and contributed 89% to overall operational cash flow. In Q4, real estate collection grossed INR 1,500 crore, which is the highest ever. As of 31st March, from all our completed and ongoing projects, we expected INR 24,120 crore of future inflow from all sold plus unsold units.
Against that, our cost to complete is expected to be INR 13,580 crores, thereby generating margin cash flow of INR 10,500 crores at project level. Along with this, our forthcoming projects of 19.3 million sq ft, expected to be launched over the next six to eight quarters, shall generate another INR 7,200 crores of marginal cash flow. We entered the year with a gross debt of INR 1,131 crores and a strong cash balance of INR 1,761 crores. For the first time in history, we are right now net debt negative. Our average borrowing costs have also started to come down. It was 9.12% in Q4. On P&L side, for the full year, total income was at INR 4,163 crores, 29% growth over last year. EBITDA was INR 418 crores. We generated PAT of INR 95 crores with a margin of 2.3%. In coming year, margins are expected to improve significantly.
Our current balance revenue to recognize from already sold units as of 31 March is INR 15,873 crore, which is Sobha share, and we expect project-level EBITDA margin of 33%. This revenue is dependent on recognition of 17.9 million sq ft of saleable area. As we ramp up our construction, this entire recognition will come over the next three to four years. With this, we can now open the call for questions. Once again, thank you for your participation.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hands up while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Yeah, hi, Jagadish. I just wanted to clarify, did I hear it correctly that you said we will cross INR 10,000 crore of sales in FY26?
Good evening, Parikshit. What our plan is, what I have guided is at least 30-35% of what we have done in FY2025 and move towards the five-digit number in FY2026. If it is possible in FY2026, nothing like it, but at least this is what, considering the new launches that we have and some of the inventory that we already have with us. I think at least we should be able to do 30-35% this year. If we can move towards 10,000 this year itself, nothing like it. It also depends on the timing of the new launches that we plan to do. If that works well, then surely we should aim towards that.
The second question was on the launches. If you can help us understand at least the near-term launches which are in the significant stages of approval, at least in Q1 and Q2, that will be helpful.
Yeah. In Q1, we have the launches from our first launch in Greater Noida, which is in Sector 36. We have Marina One, which we have under four towers, just about 920,000 sq ft. The Greater Noida launch is about 0.7 million sq ft. These two would be large ones. If one launch in Bangalore, which is of about 0.6 million sq ft, is also possible, we are hoping that it can work. If there is a miss, then that will go with the first few weeks of July. That is in Q1. Q2, again, we have a small launch in Gurugram, which is a commercial one where we are launching service apartments. A small project in Bangalore, again, which is about 0.5 million sq ft. Another project in Bangalore, which is about 0.3 million sq ft.
If everything works well again, there is one more project in Trivandrum which we can do at 0.25. Both first two quarters together, I think we should be looking at about 3-3.5 million sq ft.
This cumulative, Jagadish, would be approximately about INR 5,000-6,000 crores, and these will be all single-phase launches?
Yeah. I mean, we would launch all of them. And again, like any other project, we would do the phasing based on the pace of sale. But yeah, both put together, it should be around INR 5,000 crore overall.
Okay. And just one last question, Adhidev, on this business development. We have spent close to about INR 945 crores in FY 25 versus INR 382 crores which was spent in FY24. I also see that Noida now, we have, the area has increased to 3 million sq ft. If you can help us understand how much has been the new business development, both outright and JDA in FY25, and particularly in Noida, why has this land money increased and what has been the addition there?
Right. We have in this overall business development that we have done, we have added about close to 10.5 million sq ft last year, which would have an average, even at an average value of about INR 15,050, the overall value should be about INR 15,000 crore. In that, a mix of JDA and outright, overall, again, our share of the whole revenue in that again will be about, again, 80-20.
Okay. Noida, this increase in Noida anyway?
Yeah. Apart from the first plot that we have taken in Greater Noida in the authority auction, we have done one more small transaction in Greater Noida, which is a joint development, the details of which we will be able to further give details in a month or so.
Okay. This 15,000 which you have taken over, if you can give a broad split, I mean, if they include your own land or own land would be over and above this in FY2025 which you have cleaned up. Also, geographically, how is this 15,000 divided?
Yes. I mean, of course, own land consolidation is a small bit in this. In addition, what I have said is this 10.7 million sq ft is actually entirely new developable area that we can target. A small part of it will be coming even from our existing land bank where we have incrementally invested to make it contiguous and also add to the current landmark.
Geographical breakup?
Geographical breakup, again, about roughly 50% of that is in NCR, which is in both Gurugram and Noida. About roughly 40% is in Bangalore. The remaining 10% is in Chennai, Pune, and Kerala.
Okay. Sure, Adhideep. Thank you, and wish you the best.
Thank you, Parikshit.
Thank you very much. The next question is from the line of Dhruvesh Sanghvi from Prospero Tree Asset Management LLP. Please go ahead. Mr. Dhruvesh , please go ahead.
Am I audible? Hello?
Yes, sir, you're audible.
Yeah. First, congratulations for the five-digit guidance. I mean, very pleasant to hear that you are retrained with condition. Secondly, just want to understand, Yogesh Ji, I think mentioned about 33% margin. If you can expand what you are saying because maybe I missed out, or was he saying that in the next eight quarters, we will have our reported margin go towards 30% plus?
Druvesh, even in the investor presentation, we have given that we have roughly about INR 16,000 crore of revenue to be recognized, right? This revenue that is to be recognized has an embedded project-level EBITDA margin of 33%. That is what Yogesh has been saying. This revenue, we would recognize as the projects complete, of course, which I think is going to happen in the next three to four years. As and when they, and it would be an increasing function in terms of the margin getting recognized because there is still a small mix of lower margin projects which need to be recognized, which will gradually phase out in the next year or so. A higher margin would begin in the future, which is currently what we have. This 33% is the average of the entire lot of the unrecognized revenue.
The line to the current participant is disconnected. We'll move to the next participant. The next question is from the line of Puneet Gulati from HSBC. Please go ahead.
Yeah, thank you so much, sir. And good luck for this year. My first question, continuance of this EBITDA guidance of 33% on project level, how much of overhead should we build in from here? And do you think this is conservative because you also have a lot of backward integration? How should one think about the benefits of backward integration into your margins versus the sales velocity?
Yeah. Thank you, Puneet. Puneet, the guidance or let's say estimate of overhead is a little tougher to sort of get to because if you include sales and marketing costs as part of the overhead, that's available year on year, right? Because as we do better in sales in subsequent years, the cost of sales and marketing increases, which needs to be recognized on a P&L in that area itself. Hence, the overhead significantly increases. Otherwise, if you take that out, then it should be reasonably constant. That should be about 7%-8%, but only the other overheads, non-sales and marketing. There would be a small percentage of interest also that would be embedded.
If you just deduct these after the project level, if you're asking what are the other costs that need to be taken into account, these three would be the one, which is standard corporate overhead, second, sales and marketing for that year, and of course, the interest that is embedded in the project.
Understood. A couple of quarters back, you talked about margins improving dramatically. We haven't seen that in the second half. Is that something one should expect in 2026, or is it still some while away?
I think the project, the margin should start improving this financial year, definitely, because it's fairly clear that whatever the margin loss that we have encountered in the contractual space, that's largely completed. Hence, now the majority of the entire revenue and corresponding margins will be from real estate. Even here, like I was saying, there are a few projects, which are few of them, mainly non-Bangalore projects, where we had incurred significant increase in cost. There will be some kind of lower margin projects either, which we will be recognizing in the next year or so. Apart from those, the rest of the projects seem to be very well within a good margin on the margin front. Hence, I think FY 2026 will have a mix of those, and hence it might drag a bit.
Otherwise, going forward, that should not be the case anymore.
Understood. Your 33% EBITDA margin again, is a blend of those low margin projects and the high margin projects?
Yes. Yes. That is why I was saying that it is going to be an increasing function. Hopefully, it should even become, I mean, we might start with a little lower and end with much higher.
Right. Versus 33, which is more for historical projects, what are the margin expectations you have from your current sales?
Current sales, again, the EBITDA margin should be now in the new one should be closer to 40% is what our sense is. If it's our own land in some of the places, that also will add to those margins. If it's in a typical joint development and recent acquisition, then we should be in the range between, again, closer towards 40%.
Okay. That's helpful. Lastly, if you can talk a bit about your new financial strength with lots of cash, how aggressive should we see you going and getting new business development, or would you like to keep some cash on the sidelines?
Yeah, that's a good question. We have, in fact, in the anticipation of this, we have already started, and you have seen some of the investments that we have done in NCR and in some places in Bangalore also. We have done these investments. I think now the focus for us in terms of new business development would be, again, more concentrated towards Bangalore, NCR, maybe a little bit in Hyderabad and Mumbai. It is going to be highly opportunistic. The kind of opportunities that we can really pursue now is slightly wider. I do not have a clear guidance in terms of how much we are going to deploy, but the fact is that we are in a good position to capture any good opportunity that can come by.
That is what we have done in our entry into Greater Noida and a little bit investments that we are doing, and that current opportunities that we are pursuing in Mumbai are all based on that. Having said that, we already do have a good pipeline in terms of new launches, and you have seen that even from our existing land bank, there is enough for us to sort of launch and monetize those. There also, we have some kind of cash outflow to monetize and take it to the project level. Hence, our usage of cash will be in three buckets. One is for pursuing opportunities in these focused cities. Second is to get our existing land bank into monetizable state.
Third is some of the, if we have to require to invest in any of the other land banks, future land banks, where some investment is required to actually monetize them, not necessarily develop into a project, but monetize them, they also would invest in.
That's helpful. Lastly, if you can talk a bit about your Gurugram strategy last year versus this week, any thoughts on how you would want to accelerate that part of the market?
Yes. Last year, although Gurugram has contributed close to 20% of our sale and we did the highest-ever sale there, we definitely expected to do much better. We have been discussing over the calls in the previous quarters how we are going to turn it back again. This year also, we think that we can achieve much better than what we have done, almost, hopefully, at least 60-70% higher than what we did this year. Things have been progressing well since the last few months in terms of sales in Gurugram. My view is that with the progress of the project and with the understanding of the people, of the customers in terms of value that we create, there is an increased interest and enhanced sales that we are seeing.
We have a new set of projects also lined up, two to three of them. That will also generate much higher interest. Those projects that we have designed, and we are quite mindful of the ticket sizes, that has been probably one of the issues that we faced in the last year. Considering, one, the slight good pickup and good interest being seen, consistent interest being seen in the current projects and the new pipeline that is coming in, both should contribute well for Gurugram. We fundamentally believe that Gurugram has very good potential. We have established a good reputation. We have a good operational presence there. We will continue to invest there, and we are putting our best effort to make sure that scales up from an overall medium to long-term point of view also.
That's very good. Just lastly on the plan to monetize Hoskote and Hosur, what should be the timeline for that?
Hosur, I think I have mentioned in my previous call, Hosur, one of the land parcels that we have in which we plan to monetize through a project development, the change of land use has already come. Hence, we are in the design and the approval phase right now. That is about 40 acres. Remaining parcels of the land in Hosur, we have clearly identified that they will be monetized. In addition to that, the Hoskote land, Hoskote land is also in design and approval phase. We are hopeful that that should be launched in the next 12 months' time horizon, if not earlier.
Understood. That's helpful. Thank you so much and all the best.
Thank you, Puneet.
Thank you very much. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Thanks for the opportunity. Firstly, if I look at the guidance of 30-35% growth, that's probably similar to where we guided for last year, right? How would this year be different versus last year? Is it on the launch timeline, the confidence that we have on launches, maybe a slight change in demand environment? What's going to drive this and this INR 10,000 crore number that you are aiming for?
Yes, Pritesh . The launch timeline's visibility for us is slightly better this year, no doubt about it. The launches are also more diversified in the sense they are in many more cities and with varied customer sets and also ticket sizes. Hence, the diversity in the kind of new launches that we are getting in should definitely help us in achieving a much better number than what we have done last year. Last year, if you remember, the launches that we did were slightly concentrated in larger ticket sizes. That did not, although we launched it early in the year, really help us add to the whole sale value. In fact, 50% of last year's sale is also from the new launches, but some of those launches have happened a little later in the year.
A phased approach of launches and clear visibility should definitely help, number one. Number two is we are starting out with a reasonable inventory across cities. That should also help us in achieving our number. It is more to do with a steady demand environment and diversified launches that we are doing and hopefully timely launches as well.
Sure. Since you mentioned about ticket size, have we also course-corrected there in terms of every market we are presenting? That what kind of right ticket size and right pricing is needed for those projects? Should we be, as an analyst, should we be fairly confident about your pricing strategy and product strategy for launches going ahead?
Yeah. I mean, like I mentioned earlier as well, it's not that we have deliberately aimed for a certain ticket sizes. Those launches that we have done last year were all of them came up in a certain time frame, which was coincidental. Otherwise, our core bread-and-butter business has always been a three-bedroom, two, three, and four-bedroom apartment. That continues to be the case even in the future, and particularly large projects, we have a good mix of products. That's one. Second is from a pricing point of view, also we would continue to adapt the same methodology which we have been doing, which is essentially at least one, protecting margins. Also, second is making sure that the project sales are done at least there is a we complete the project sales much ahead in terms of the project lifecycle or completion lifecycle.
Both put together, the higher inventory that we have will definitely contribute to the higher state is what my point is.
Sure. Second, on the launches, 8-9 million sq ft is what you are aiming to launch this year. If you can provide a breakup across the markets. You in general gave a breakup of first-up launches, but broader full-year number, how should these launches be across the markets?
From a launches point of view, I think roughly about 40% plus will be in NCR, which is in Greater Noida and Gurugram. Roughly about 15% is in Bangalore. About 10% is in Chennai, 5% in Mumbai, and the rest of the locations carry the remainder.
Sure. Here, I mean, Noida will launch both the projects? Both the projects that we have this year?
Yes. Yes. We hope to launch both the projects.
Okay. Perfect. And I.
First one being in this quarter, hopefully. The remaining, the other one, we aim to do it by in this calendar year. If not this calendar year, definitely this financial year.
Got it. And just one last, I see Gurugram, we have added a 15-acre land, which was not there last time. I'm sure it is new acquired land. I just want to know the location of that land, where it is located within Gurugram.
Sorry, Pritesh , we have not done any new land acquisition. If there is anything like that, we should go through that and then come back to you. That might be from our earlier project, which is an international city, which we are planning to develop as floors. That might be the case, but let me have a look at it and then come back to you again.
Maybe. Yeah. Okay. Okay. Thanks. That's it from my side and all the best.
Thank you, Pritesh .
Thank you very much. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead.
Good afternoon, Jagadish and good afternoon, team. My first question is on Gurugram. Sir, Gurugram, are we restricting ourselves mostly in Dwarka Expressway, or do you have projects that are coming up, say, in other parts of Gurugram? Also, our strategy seems to be very different from other developers in the last three, four years that we have seen, whereas all the developers that we track or we have seen are trying to sell everything on launches, at least what they are saying. Whereas we seem to use a different strategy. We try to sell over the project lifecycle. My first question is this on Gurugram.
Yes. Thank you, Biplab . So on the project portfolio in Gurugram, we have currently three projects, which is one is Aranya, which is in Sector 80. In fact, it's not on Dwarka Expressway, it's on main NHA. Second one is Altus, which is a, again, mixed-use apartment project. It's in Sector 106. That's on Dwarka Expressway. See, the current ongoing projects, the mix has, we have changed it from pure Dwarka Expressway, which was earlier the case. Now we have these two. Adding to those will be two other projects, at least. One is in Sector 63, which is on the other side of the way, which is sort of an extension of Gospos Road. That will be a new location for us. In addition to that, we have a couple of other projects, which are, again, in Dwarka Expressway.
The range of projects that we have in location is reasonably diversified now. That is one. Second is, to your point of the sales strategy or the pace at which people are selling in Gurugram or other players versus us, I mean, the difference is clearly very stark. It is the way we price it and the way we give out our payment plan, all of it is in the interest of making sure the cash flow of the project is intact. We have been present in Gurugram for close to 14 years. One of the things that we have seen is any short-term investor-led bookings, there is a possibility that it might lead to cash flow issues in case of any steadiness or slowdown in the market. That we would definitely like to avoid.
Hence, due to that nature, and second is our pricing being slightly premium, both these take out a large chunk of the market, which is pure investor market. Hence, you might see that the volumes are lower. Largely, we have also seen that our sales cycle and the project cycle are similar, which means that we do sell out the project prior to the completion of the project. Hence, that should not be an issue from a project cash flow and project profitability point of view. Yes, I mean, we do hope that we can increase the pace of sale. We are taking some learnings from what has been done last year and improving upon those. If those also work, then we should see a pickup in our sales also.
Okay. That's good, sir. My second is more of a clarification needed. In the slide number 17, the area in ongoing and upcoming for Gurugram and Noida, I'm just trying to decipher it. Are you saying in Gurugram, in the ongoing portion, we have only 0.02 million sq ft of SBA? I mean, I'm just trying to interpret this in ongoing and forthcoming for Gurugram and Greater Noida.
Greater Noida is a new location for us. This is.
That's a 3.1, sir?
Yeah. That's the 3.1 that's forthcoming. We do not have anything which is ongoing or completed. Gurugram, ongoing, which is essentially ongoing, I think this is a mistake, but we will correct it.
Okay. That's fine, sir. On the forthcoming in Gurugram, that is 4.08. Are you saying that the main projects you just now mentioned that are coming this quarter and two projects in Sector 63 and Dwarka, this together would be 4.08 million sq ft forthcoming in Gurugram?
Yes. In Gurugram, there are four projects which are in forthcoming. One is the sector 63. Second is one mixed development that we are planning to do in sector 106. Third is we have a commercial project, which we plan to sell part of it, retain the retained portion of it. The fourth is sector 99, where we have another project. There are four projects in that. In addition to that, we have a small portion in, I mean, we have our own land in International City, which is a plotted development that we are debating between doing a plotted development and sell, or we can do a, we can do floors and do the project. That also, once we decide, then that also will come up to us.
FY 26-27, we would see significant supply coming from NCR. Am I right, sir?
Yes. In 2025-2026 itself, we can see, like I said in the to an earlier question, about 45% of the new launches that we are going to do are from NCR.
Okay, sir. Great. All the best for FY 2026.
Thank you. Thank you, Biplab .
Thank you very much. The next question is from the line of Parvez Qazi from the VAMA Group. Please go ahead.
Hi. Good afternoon. Thanks for taking my question. Two questions from my side. First, wanted to get your views on the demand scenario. It would be great if you could expand on that, and especially across various ticket sizes or segments. Now, I think about 45% of our sales is coming from ticket sizes INR 3 crore and above. What is the demand across these various ticket sizes? Second is on the pricing front. I mean, how do we see the pricing scenario? I think everyone in the industry has seen very sharp price increase, partly due to product mix. Of our 23% increase in realizations in FY 2025, what would have been the like-to-like or organic price increase? How do we see like-to-like price increase in FY 2026? Thank you.
Good questions, Parvez. To start with, from a demand point of view, we have three large markets. Of course, our launches are in many more cities this time. Bangalore, NCR, and Kerala, all three are slightly different. Bangalore is largely end-user-driven. There, the demand seems to be at least steady from the leading indicators, which is from inquiries and from the site visits point of view. However, of course, any macro events that do occur, which are negative in nature, typically impact negatively into the customer sentiment. One of the first things one tends to do is to put a brake on the discretionary spending, which was temporarily we could see in the first two months of this financial year. Otherwise, it is back to being steady.
I think from a demand standpoint, in Bangalore, it seems to be very much consistent with what we have seen last year. Second, in the same market, from a pricing point of view, like-to-like pricing, probably we might not increase the price as we have done in the last couple of years. Hence, we can see a steady pricing environment. Going forward, probably in the next few years, you would probably see inflation-led price increases. That is largely in Bangalore. Similar would be the case in NCR as well. Although we are seeing from a demand point of view, there as well, Gurugram seems to be reasonably steady. From Kerala, which has a different set of customers, the kind of demand is mainly driven from the NRIs. There also, there seems to be good continuity interest in our projects.
The pricing there also has been steady, but new launches, what we are doing, are slightly higher than what we had done earlier. Even in those, there seems to be a good interest from the customers.
Sure. Thanks and all the best, Jagadish .
Thank you, Parvez.
Thank you very much. The next question is from the line of Girish Choudhary from Aletheia Spark. Please go ahead.
Hi, Jagadish . Yeah. Firstly, on operating cash flow, I just wanted to check how do you see the trajectory for fiscal 2026? This year, we saw from operating cash flow point of view, around INR 1,174 crore, which was some 7-8% growth. Yeah.
No, I think from an operating cash flow, also it should be similar or better. In fact, it should be, we should aim to achieve at least 10% growth on the operating cash flow. We should try to aim because on the back of sales that we have done in the previous years, the construction.
[foreign language] . The person you are speaking with has put your call on hold. Please stay on the line. [foreign language] ,
The line for the management seems to have disconnected.
Raisha, we are still here.
Oh, okay, sir. Okay, sir, you can continue.
I think there is a difference from the line of Girish. Probably we can take the next question.
Okay, sir. The next question is from the line of Kunal Lakhan from CLSA Limited. Please go ahead.
Hi. Thanks for taking my question. Just on an earlier question, just trying to read between the lines here, you said that the Gurugram demand is reasonably steady. Would you say it's reasonably steady currently versus, say, euphoric last year? Or how do you like to elaborate that?
Yeah. I mean, last few years, the demand has been euphoric in Gurugram, in other cities as well, Kunal. Actually, the characteristics roughly remain the same, which is now we are in an environment where there is pricing increase, right, is largely stabilized. Initially, it was a cost-led increase, then there is a demand-led increase. Now the demand seems to, the pricing seems to have stabilized. Also, since the supply also has caught up, the price increases, I would say, would largely be inflationary going forward, at least in the visible year or so. Considering that, the demand environment, specifically in cities like Gurugram, there is a significant chunk that comes from investors as well. The long-term investors and end-users' demand continue to be steady. A part of short-term investors might be impacted with this nature.
Otherwise, which actually what matters to us or to any developer would be a customer who is not leveraging and playing on the price increases, but actually would like to keep the investment that one does. From that sense, the steadiness of the demand should continue.
Sure. Just on that, right, I understand speculative demand may just beam down. But say even the end-user demand, right, with say the 20%-25% growth in prices that we saw annually in the previous years, with that now slowing down, and then obviously the FOMO effect for end-users reducing, would you see slowdown in the end-user demand also? Are you sensing that in the footfalls or inquiries?
Yeah. Like I said, the leading indicator, which is our inquiries, yeah, visits to our project site, those seem to be quite steady. I have not seen any big changes there. Hence, the confidence that the demand seems to be quite steady right now.
Sure. Sure. On the Bangalore market, right, the approval issues that we had in the last year due to the EKATA issue, is it fully resolved or is there still some deadlock there?
EKATA is an evolving phenomenon. As we progress with the time, the adaptation to the new system is continuing to take place both for inside the government and for the end-users or developers. Unless there are some exceptional cases, in the sense use cases, things seem to be getting resolved much faster. Hence, that part of one small area of KATA-related timeline should get better.
On the approval side of the department, I think, is that normalized there or is it still?
Yeah. During the approvals, Kunal, KATA is also a part of the process. That side, which there were certain delays experienced by the developers, those I think would slowly come down. From the other side, which largely has been, I mean, unless there are any specific issues or any changes in the people at the helm of the affairs in terms of the department, other than that, the rest of the procedure and the norms are completely the same. Hence, I do not foresee major challenges there.
Sure. And on the Bangalore market, right, you said that the demand remains steady. Considering the uncertainty on the U.S. policymaking regarding, say, the H-1B visas and even the recent repatriation tax, and a fair bit of demand comes from the workforce abroad, do you sense any reluctance there in terms of, again, customer behavior, in terms of committing to long-term or committing to purchases?
Any such macro or issues that come up which impact the sentiment of the customer, or there is this kind of uncertainty that gets created, would definitely impact. In cities like Bangalore, for us, the NRI demand or those is good, but it's a small percentage. From that point of view, it's not visible yet for us right now. As more clarity comes through and people would make their choice to sort of go ahead with their purchases or how to plan their own life. As that progresses, probably we'll get to see the visibility. As of now, I think it's a little early for us to comment on that.
Understood. Understood. Lastly, in terms of, say, scaling up from, say, the current scale of, say, INR 6,000-6,500 crore of sales to, say, INR 10,000 crore that we aim for, right, in terms of our organization capability, are we ready in terms of, say, livening, getting approvals, sales, or even execution for that matter?
Yeah. No, very good question. This is very pertinent for us, particularly because we are a macro-integrated company. Our ability to mobilize resources is very critical for us to scale up. In that regard, we have done a few changes in our organization from a structure point of view, which will enable both these factors which you have just mentioned, which is one, ability to launch projects in a quicker manner and probably more timely manner, right? That's one. Secondly, there are huge challenges with respect to project execution in terms of mobilizing resources and ability for us to scale in multiple cities. These small organization structure changes and continuous effort to explore both from a technology and people training and people capability point of view, it's a continuous exercise.
Specifically, understanding the kind of scale that we are looking at, we have made conscious restructuring and re-designations of key people inside the organization. I am hoping that with that, we have initiated the changes that are required to address this challenge.
Understood. Understood. One last question. I don't know whether you gave out this number. What will you expend on new land purchases in FY 2026?
We should do similar or again, it's not a very clear number because what we are going to do in terms of any new deals that can come up, those calls we will take a little later. From a current visibility point of view, there would be certain committed land sales, and those will be similar or slightly higher than what we have. Largely, from the operational cash flow that we will generate, we should try to achieve that. Even if we have to spend a little bit more, I think we have enough capital with us to take us through that.
Sure. Sure. Thanks. Thanks, Girish Choudhury. All the best.
Thank you, Kunal.
Thank you very much. As there are no further questions from the participants, I now hand the conference over to management for closing comments.
Thank you, everyone, for patiently listening to us. I hope we have answered most of the questions that have been posed. In case of any further clarifications, please do reach out to us. We will be happy to provide far more data and also clarity towards any of the further questions. Overall, we think that we are in probably the best phase right now as a company. We are, for the first time, sitting on negative debt. For the first time, we have a clear visibility of large scale of launches that we can pursue. We have, for the first time, a big set of inventory that we already have to begin with. For the first time, we are clearly seeing the power of the diversification that we set on a long time back. We have a lot of launches across these cities.
This is a very exciting time for the company and also a very challenging one in a good manner to assure that we should be able to showcase our strength of our model of macro-integration and able to achieve both our operational and financial objectives going forward. I thank everyone who have been covering us and also listening to our side of the story for the last few years. Thank you very much, and we wish you the best.
Thank you very much. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.