Ladies and gentlemen, good day and welcome to SOBHA Limited Q3 FY 2026 Earnings Conference Call hosted by ICICI Securities Ltd. As a reminder, all participant lines will be in the listen-only mode, and there will be an option 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 the touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities. Thank you, and over to you, sir.
Yeah, good evening, everyone. Thank you for joining us 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'd now like to hand over the call to the management for their opening remarks. Over to you. Thank you.
Good evening, everyone. I'm wishing everyone a very happy and prosperous New Year. Thank you for joining us on this Q3 FY 2026 call. Thank you, Adhidev, for organizing this. I will briefly touch upon our performance in Q3 and our outlook for the remaining period for FY 2026 and beyond. Firstly, on real estate sales and new project launches, the first nine months of FY 2026 have been truly exceptional for SOBHA, with our real estate sales reaching an all-time high of INR 6,097 crores in a nine-month period. In Q3, we have surpassed our ever highest sales with INR 2,115 crores. We have achieved an average price realization of about 14,500 in the first nine months versus last year's of about 13,400, an increase of about 8%.
This quarter, Bangalore achieved our highest-ever quarterly sales of over INR 1,500 crores thanks to the launch of SOBHA Magnus on Bannerghatta Road, which did fantastically well, selling about 80% of the project in the launch quarter itself. NCR also has done well this quarter with the launch of SOBHA Strada in Gurgaon. It is our first service apartment project. We also launched SOBHA Inizio, our first project in Mumbai in December, expanding our real estate presence to 13 cities across India. In this month, January 26, we already received RERA for two projects: SOBHA Altair in Bangalore and SOBHA Woods in Trivandrum. Overall, we have launched 2.58 million sq ft in the first nine months of this year. Some of the planned launches in this year got delayed due to a combination of factors.
We are working towards launching three to four projects in Q4: one in Gurgaon, which is about 800,000 sq ft. One in Greater Noida, which is about 2.4 million sq ft. One in Chennai, which is about 1.5 million sq ft. And one in Calicut, at about 800,000 sq ft. All of them are in various stages of approval. If all of them come through, then we will cumulatively be launching about 8.5 million sq ft for this financial year. The Q4 sales performance is partly dependent on these launches, and if they come through in time, we should be able to surpass our annual plan of 35% increase over last year at about INR 8,500 crores. Coming to our non-real estate businesses, our manufacturing, contracting, and retail businesses continue to perform steadily, further strengthening our unique backward-integrated execution model that ensures world-class quality.
The revenue contribution from the non-real estate businesses has been steady quarter on quarter, and we achieved about INR 575 crores in the first nine months and hope to do about INR 750 crores for the year. Since we are not undertaking any new projects in civil contracts, there would be a degrowth in this segment to the extent of about INR 150-175 crores from next financial year. Coming to project completions in real estate, we have completed 915 homes, taking cumulative deliveries in the first nine months to 2,100 homes, which is about 3.65 million sq ft. We plan to complete another 1.5-1.7 million this quarter and take it to a total of 5.2-5.3 million sq ft, a growth of about 15-17% over last year's completions of 4.54 million sq ft.
Coming to revenue recognition and margins, our revenue recognition in residential real estate has been low this quarter, affecting the overall profitability. We could recognize lower due to non-receipt of OCs in three projects. This is not due to any structural issue or any ongoing issue but specific to this time period, which we can classify as normal procedural delays. Due to this lag, we couldn't recognize close to INR 500 crores, which would be reflected in the next quarter. As you would have seen in various investor presentations, we have a total unrecognized real estate revenue of about INR 18,600 crores. The blended net margin at project level, after accounting for project interest, is about 30% for this unrecognized revenue. Projects that we have recognized revenue in this financial year and in the first nine months is about 12% when compared to that 30% number.
Projects that we have completed and we are going to recognize in the next few quarters and going to complete in the next 12-15 months, the margin of the same would be in the range of about 18%-19%, a 50% increase. For the projects that we would complete beyond 15 months, it would be about 34%, again an increase of about 90%. Hence, the margin expansion is definitely going to happen in a manner as we increase our pace of completions and recognize those revenues. With this, I hand over the call to Mr. Yogesh, our Chief Financial Officer, to provide details on the financials.
Good evening, everyone. I wish you all a Happy New Year. I am pleased to share our financial performance for our Q3 and first nine months of financial year 2025/2026. I will begin with our cash flow covering both quarterly and year-to-date trends and then move to P&L before opening the floor for questions. Q3 was another strong quarter with a total operational cash inflow of INR 1,985 crores, representing a 34% year-on-year growth. This was driven by real estate collection of INR 1,816 crores, up 37.5% over the same period last year. For the first nine months, total operational inflow stood at INR 5,809 crores, recording a steady 32% growth over last year. Real estate collection for the period grew 33.7% year-on-year, reflecting strong sales, momentum, and disciplined execution. As anticipated, construction costs and sales and marketing outflow were higher year-on-year, in line with our sales momentum.
Our net operational cash flow remained robust, with generated INR 362 crores in Q3 and improvement of 78% year-on-year, supported by strong customer collection and project progress. For the first nine months, net operational cash flow stood at INR 1,270 crores, already surpassing the full year FY 2025. During the nine months, net land payments were INR 872 crores, up nearly by 38%, reflecting a strengthening of our growth pipeline. We generated net cash flow of INR 41.6 crores in Q3 and INR 161.9 crores in nine months of FY 2026. We closed the quarter with a gross debt of 997 crores and cash balance of INR 1,790 crores, underscoring high resilience and strong financial footing.
Looking ahead, we have clear visibility of future cash flow expected from our ongoing and forthcoming inventory. From all ongoing projects, we expect to generate marginal cash flow of c lose to INR 9,000 crores at project level post sales and marketing spend.
We should be able to rely on this over the next four to five years. Additionally, we expect to generate INR 7,300 crores of marginal cash flow from forthcoming projects of 16.51 million sq ft, which shall be sold over the next six to eight quarters. With the strong foundation, we aim to further scale operational cash inflow in coming quarters, supported by new launches, sales, construction progress, and sustained collections. Now coming to P&L, total income for Q3 was INR 983 crores, and for nine months, it stood at INR 3,354 crores. Revenue recognition during the quarter was lower than anticipated, primarily due to delay in obtaining OC for certain projects. EBITDA for Q3 was INR 78 crores, and for the first nine months, INR 309 crores. That was INR 15.4 crores for Q3 and INR 102 crores for nine months.
We have unrecognized revenue from sold units of approximately INR 18,600 crores as of date. As we ramp up our project completion and recognize more revenue, we expect the profitability margin to improve. I would like to thank you all for your participation. With this, we can now open the call for questions.
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 touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets 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 Puneet Gulati from HSBC. Please go ahead.
Thank you so much, and congrats on great performance. My first question is, if you can give some color on what you're seeing on the ground in terms of demand environment, some of your peers, at least in Gurgaon, seem to be talking about a bit of softness. If you can share your experience across geographies, it will be very helpful. Thank you.
Thank you, Puneet. The overall demand scenario in the operating markets that we are present, Bangalore seems to be steady in nature, and Gurgaon, while there are pockets of concern, but like I was always mentioning in the previous calls, the sweet spot of about between four to five crores is still four to six crores is still a good market for Gurgaon. And in such cases where the demand from the short-term investors has reduced, the opportunity lies with projects and companies where there is end-user or long-term investor demand. That seems to be on a continued path. From a leading indicators point of view, our site visits and opportunities that we generate for these projects, they seem to be continuously on a similar number month-on-month. And hence, we have seen that this end-user demand continues to be robust in Gurgaon. In Kerala, the demand seems to be steady.
It's an NRI market largely, and some projects in Trivandrum. It is a combination of both NRI and end-user. So they seem to be quite steady in terms of demand.
Okay. And also, Noida, and some color on how you foresee pricing?
NCR as an overall market, for us, it is a very long-term play. And immediate and in the next few quarters or a year, couple of years, the demand side seems to be still very robust. For the whole of NCR, whole of NCR, and in fact, not only NCR, the only job-creating locations are Gurgaon and Noida. And they would produce end-customer or, let's say, end-user demand. And I think that would continue. And we have been, for a long time, have attracted long-term investors and end-users as our customers. So hence, for projects like us, for projects and locations like ours, that play doesn't seem to reduce or change.
But the only thing is, probably due to some of these absence of some very short-term or, let's say, medium-term investors, the volume might not be as expected as what we had seen a couple of years ago, where we were seeing fully sold-out project launches. But other than that, from structurally, I don't think it is a big issue.
Okay. That's very helpful. Thank you. And secondly, on the cash flow side, just three questions. We've seen cash tax go up, advertising spend go up. Should that be the new number? And secondly, if you can comment on the nature of spends on the land payment side, INR 240 crores this year, this quarter as well.
Yeah, sure. The marketing, sales and marketing spend, of course, it's an accrual of all the sales that we have done, the brokerages pay incentives. We are doing advertisements for new project launches. So it is bound to increase in accordance with the pace of sales. Second is, with respect to the tax, I think it's advance tax that we have paid for this quarter, and hence, that's a higher number there. Third, in terms of the land payment that we have done, so for projects that we have to launch, some of the pending payments that needed to be done, and those reflect the majority of the outflows for us.
Okay, so it's not the new land parcel, and just preparing for the launch for some approval-related spends?
No, the approval-related spends, we don't take it as part of land. All the land spends that we take are the approval-related spends go towards the construction spend.
So, this is what new land that you got for INR 240 crores, or?
In this particular quarter, majority is towards settlement of old dues for some of the existing lands, which we are planning to launch in the next financial year, and very little component towards any new projects.
Great. That's very helpful. And lastly, on post-quarter, when should we expect that launch?
We are in advanced stages of approval process. It's about 48 acres of land. First phase, we are planning to launch it, launch about 5.4 million sq ft. That should happen in the first quarter of the next financial year.
Okay. That's very helpful. Thank you so much, and all the best.
Thank you, Puneet.
Thank you. Ladies and gentlemen, to ensure that the management is able to address questions from all participants, we would request you to please limit your questions to two per participant. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Yeah. Hi, Jagadish. Congratulations on a good quarter, sir. My first question is on the launches in this quarter. So if you can help us with the timeline of NCR launches for both Greater Noida and Gurgaon? So what stages of approval have you filed for RERA? So if you can just update us on that.
Thank you, Parikshit. Both of them are in advanced stages. I think we should be able to apply for RERA late this month or early next month. So we are looking at the launches, like I mentioned in the initial comments. Apart from these two, a couple of others, we should be able to do those towards the end of the quarter. Mid-March is what I'm expecting to launch for us.
So when the sales are recorded in this quarter, from that angle, I want to understand whether the pieces will get captured in this quarter or next quarter?
Yes. If RERA comes in time, definitely we plan to launch it in this quarter, and part of the sales which will come for the projects will be logged in this quarter.
Okay. And between the two, I mean, when will Noida be a full-fledged launch, as you said, that 0.8 million you're looking to launch in Gurgaon, which looks like half of the project, but Noida is full 2.4 million. So are you more confident on the Greater Noida project if you're going for a full-fledged launch and not that confident on Gurgaon? Just wanted to pick your brain on that.
Yeah. Good question. Actually, it's not related to any demand-side scenario, but it is more towards technical. In Gurgaon, we are launching part of the project because the remaining set of the project needs TDR. And we have phased the project in such a manner that we launch first the base FAR, and the remaining we will launch subsequently in the next financial year. And that's the main reason. Otherwise, we could have launched the entire project.
Okay. And this is the last question, Jagadish, on the pricing bit. So do you think that maybe three months back, the pricing you were thinking on both these projects, and now where it actually goes to the launch, do you think that in your mind that number will be slightly lower given what we've been hearing from the peers on the demand slowing down? So do you think that there is a case you are presenting to the management, senior management, that we should rationalize the pricing which was thought earlier?
No, I think the pricing is largely stabilized in both these locations. We have not come across or not seen any rationalization of pricing. So hence, and the projects are of long-term in nature. We are not chasing only the short-term sales or growth. We are here chasing both the growth and also would not like to sacrifice our margins as well. So hence, we are quite confident that we will be able to achieve both.
Okay. Because on margins, still we are weak. And you said that 19% for next 12 to 15 months. So from next quarter onward, we see the margins improving, and by the year-end, we'll be at 30, 30%. Then for the next year, after 15, we are at 34%. So how will be the journey from every quarter from here, from right now 8% EBITDA margin?
Right. For Q4 specifically, it should be much better because there's a lot of pending revenue that we can recognize. Going forward, it also the net margin for the company-wide margin also depends on the quantum of the completions that we will do and the kind of projects that we will do. So what I can see is in the first couple of quarters next year would still be a little tight, mainly also because of increased sales and marketing expenditure that we would incur. And the completions are slated towards the second half, which we have started about three years ago. All those projects will start coming in. So I think from Q3, it should be significantly better, but first two quarters also should be okay, mainly apart from the fact that there would be an impact on higher sales and marketing. That's about it.
Okay, sir. Thank you. Yeah.
Thank you.
Thank you. The next question is from the line of Sucrit Patil from Eyesight Fintrade Ltd . Please go ahead.
Good afternoon, team. Am I audible?
Yes, Sucrit. Perfectly audible.
Yes. Thanks. So I have two questions. My first question is to Mr. Nangineni. As demand for premium housing continues to grow, how do you see SOBHA balancing expansion into new cities with maintaining its reputation for quality and luxury? Over the next few years, what kind of role do you see SOBHA playing in shaping the customer experience and brand positioning, especially as competition in the real estate sector intensifies? This is my first question. I'll ask a second question after this. Thank you.
Yes. Thank you, Sucrit. Currently, we are present in 13 cities, and as luxury housing is increasing, in fact, we have our aim is to focus far more on cities which have a continuous growth and also to make sure that the delivery of our product remains consistent to what we have been doing till now and, in fact, improve upon that, so as we grow in scale, the scale what we anticipate would be coming from a lesser number of cities, and higher scale in each of those cities rather than spread out across multiple cities, and largely, those cities would be, again, what we are operating in: Bangalore, NCR, Mumbai, and partly from Pune and Hyderabad. The rest of the cities also would contribute, but the main focus would be on these cities.
Second is the role that we would play. Our whole company has been founded, and we have continuously operated on the most unique backward-integrated model where we can continuously upgrade ourselves and always see how we can improve on our design and our ability to deliver both on time and of the best quality. That would continue to remain our focus. In fact, we are making significant strides towards that while attending to the matter of delivering towards scale.
Thank you. My second question is to Mr. Bansal. With multiple projects underway, how are you thinking about balancing profit margins with the need to fund growth? As new developments come into play, what steps are you taking to keep the cost under control and ensure financial discipline while still supporting SOBHA's long-term expansion plan? Thank you.
So, Sucrit, basically, we are keeping check on our capital, how to allocate capital, and where we have to allocate so that we can get expected return from the project. And our team will fully focus on execution and controlling the cost. So we have full check on our control on cost as well as capital allocation so that we can grow in disciplined manner. Also, adding to what Jagadish has mentioned, Sucrit, that as you would have seen, we are one of the few real estate companies which has a net negative debt. It would mean that there is our ability to fund growth and also to ride over any real estate cyclicality. Both we can achieve simultaneously.
Just extending to this, just mentioned the ability to fund growth. So this funding will be internal, or it will be by raising any funds from external things?
As you are aware, we have actually raised INR 2,000 crores as part of our issue last financial year. So hence, we have already addressed that question of funding growth. In addition to that, we have a series of new launches that we plan to do in the next 15 to 18 months. And those also, majority of them are fully paid for in terms of land. And hence, incremental cash flow should be significant to fund any growth possibilities that we will get.
We are expecting INR 16,000 crores too from our ongoing project plus forthcoming project cash flow in the near future, five to six years.
Thank you very much. The last part was very important. I wish the entire team best of luck for the next quarter.
Okay. Thank you, Sucrit.
Thank you. The next question is from the line of Akash Gupta from Nomura. Please go ahead.
Hi. Congratulations on great performance. So my first question is regarding the strategy in Mumbai. I think that project Inizio was launched in the third quarter. So could you please explain what's the pricing strategy there and how has been the reception for that project? That's my first question.
Thank you, Akash. Our plan for Mumbai as a market is strategic. It's one of the largest real estate markets in India. So it's a measured approach in which we have started our projects in Mumbai. I think any location that we have entered into, it has been a steady growth for us. I mean, there are several examples in that because we are present in 13 cities. So it does take some time to understand the local market across various aspects of real estate development. And to that extent, so it's a fantastic opportunity that we have started out in Mumbai. And we would continue to invest in Mumbai as we find new projects. The first project, Inizio, the pricing, I mean, we have a similar method of pricing our projects.
I think for the kind of quality that we deliver, it's quite a little premium to the market, but that's the premium that we do see in any of the locations that we operate in.
Got it. And sir, second question is on next year's demand outlook. With so much macro uncertainty and even the stock market's not doing very well, what's your thought on the real estate demand in the cities that you're operating in in FY 2027? I wanted to know your thoughts particularly for Gurgaon and Bangalore. How are you thinking there?
Frankly, Akash, I wish I know the accurate answer for that. But what I can clearly see is that there is not only in just FY 2027. So when we launch projects or when we have outlook for the business, we cannot operate in just one year time horizon. We'll have to take a slightly longer-term outlook. And in that context, we see that the real estate demand is directly. I mean, the real estate demand is completely an outcome of the economic growth that we experience. And as the economy grows, the discretionary spend increases, there would be continuous demands. And in an asset class like real estate, there might be. In the last few years, there has been a significant increase in pricing, and hence it has attracted a lot of short-term or medium-term investors. But probably that might not be the case in the near term.
But otherwise, from a long-term structural point of view, the demand should remain robust if the core assumption is that the economic growth is intact.
Yes, sir. And sir, my third and final question is with respect to your FY 2026 guidance. I think it's close to INR 85 billion, and you're thinking that the Gurgaon and the NCR project will be launched towards mid-March. In the event that happens, do you think there's risk to that INR 85 billion number? And second is, in addition to Hoskote in FY 2027, do we have any other big project to drive our growth in FY 2027?
Good question. So in FY, I'll take the second question first. So FY 2027, as you have seen, there is a pipeline of about 16.5 million sq ft to be launched for us. And in that, if all the launches that we have spoken in this quarter do occur, then that's about 6 million sq ft. The remaining about 10.5 million sq ft is in the next financial year. So apart from just Hoskote, which is about 5.5 million, there are several other projects both in Bangalore and the rest of the country, one in Pune, one in a few more in Gurgaon, and then a couple of more in Bangalore as well. So we have a reasonably good visibility towards that pipeline. In addition to that, in fact, there are several other projects which are at design stage.
And as we make progress towards the approval stage, we would add to this pipeline. Coming to your question on this specific quarter, of course, like I said, the quarter four performance would be partly dependent on the launches. But I think if we are managing to launch at least some of these projects which I have mentioned, then we should be able to achieve what we have set out for.
Got it, sir. Perfect. Thank you so much, sir. Best of luck.
Thank you, Akash.
Thank you. The next question is from the line of Fanil from Choice Institutional Equities. Please go ahead.
Hello. Am I audible?
Yes, you are. Please go ahead.
Yeah. Yeah. Thank you. Thank you so much. And congratulations for the good quarter. So you entered into the Mumbai market first time in the last quarter. So how was the response to the SOBHA Inizio? I want to understand. And what will be the expected average price realization or completion period if you can share some detail on that project?
Thank you, Fanil. The fact that as a group we have been a listed company for the last almost 19 years. Also the fact that our presence in Dubai has been significant as a group. The recognition towards our brand is very high. There have been a lot of inquiries. The pricing that we have launched today is about a little over 50,000. I think there is a good understanding of the customers of the brand and the location. We seem to be in good stead on that particular project. Also, we are looking at a few additional projects that we would explore in the next year or so.
Okay. Okay. And could you repeat the launch schedule for 4Q 2026, which you have mentioned during this call at the start with the sq ft, like one project in Gurgaon and then Noida and Bangalore? So could you repeat that thing once again?
Yes, sure. I said we can launch about three to four projects, one in Gurgaon at about 800,000 sq ft. Greater Noida is about 2.4 million sq ft. Chennai is about 1.5 million sq ft, and Calicut one is at about 800,000 sq ft.
Okay. Talking about the margin, is there any material impact or support from the recent GST reform or what the management view from that changes on the margins? Like SOBHA is getting any support or it's impacted due to those reforms? What's the view?
So finally, if you see GST reform, okay, basically it is benefiting B2C customer more than B2B. We are consumers of cement. They are reduced. Okay. But we are consumers of RMC. Okay. So for us, it has had very limited impact on our margins. Basically, it should be reduced prices, but since we are in B2B segment, so we are not getting any benefit of GST reduction. So hence, there is no impact on margins.
Okay. Okay. And if we can see the same thing from this primary labor law, which is changing on which come into effect on 21st November. So some labor laws changed, right? So what we are expecting out of that? Because in general, market are expecting impact from this around 8%-12% overall. So what's your view on this?
So we are expecting labor code rules, okay, which yet to be notified by the states. Okay. We have to see impact. But gratuity and leave encashment perspective, we are already fully compliant. So we don't have any impact for that perspective.
Okay. Got it.
Okay.
Yeah. Okay. Okay. Okay. Yeah. So that's all from my side. Thank you so much and all the best.
Thank you, Fanil.
Thank you.
Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead.
Thank you. Good afternoon, everyone. Wish you all a very happy New Year. So my first question is on Greater Noida. My understanding is that the project was at advanced stage, I mean, last quarter itself. And now we are seeing that it could be launched mid-March. So what is happening there? What is the issue there? It is some regulatory or some market-related decision. Could you elaborate because another developer also postponed its launch? So is there any issue, something that we should be aware?
Thank you, Biplab. I am not aware of any other player, Biplab. But for us, it is simply a very specific issue or let's say which is part of any new project launch or design. So we have been going back and forth. I mean, we have made some small minor changes in our design, and hence it led to a little extension of time. And only due to that is the main reason for some of the timeline extension. But otherwise, I have not seen any systemic issue, Biplab.
Okay. Okay. That's good. And sir, congratulations on Inizio launch. That is the first ever. Actually, the project is nearby where I stay. Now, after Inizio and this Greater Noida projects, what is the can you give us some insight on the business development pipeline? What next in, say, in Greater Noida or MMR? We also read some news where you have bid for a project, railway project also. So can you give us some insight on business development pipeline in NCR and MMR? Yes, sir.
Yes, Biplab. Sure. I mean, like I was mentioning previously, our focus locations are Bangalore, NCR, Mumbai, and some of the other cities like Hyderabad and Pune. So firstly, the good news is that we already have a good pipeline of projects in NCR and Bangalore. And we continue to have good business development pipeline as well. So that's an ongoing process. And since we are located in both these locations for more than I mean, of course, in Bangalore for three decades and NCR for almost a decade and a half, so the opportunity pipeline is quite good. In fact, it has increased quite a bit in the last six months or so. So we are seeing a lot of interesting opportunities, and we will continue to deploy our capital in both these locations. However, our inventory that we can actually launch in Bangalore is much larger.
But considering the various sub-micro markets in Bangalore, we are selective in some of the micro markets where our presence is lower. Other than that, we are quite good in the existing land bank that we already have. Coming to new cities like Mumbai, so this launch has been an effort that we had undertaken about a year and a half or so. Now, that's also now that we have a full-fledged presence in Mumbai, and we have gone through a cycle from land to launch of a project, our understanding of the market and our understanding of the local bylaws, etc., are much better. And hence, we are looking at opportunities, and wherever we find that it is an opportunistic or a good opportunity, we are expressing our interest and participating in those. Like you have seen that one of the railway land, we have participated.
Okay. Okay. And how much inventory you have sold in terms of percentage in Inizio?
Still, initial days, Biplab, we would definitely like to disclose that, which we would do. But since we have launched towards the end of the quarter, still numbers are trickling in. And as we progress, by the next quarter, hopefully, we should be able to give you a clear picture for that.
Okay, sir. And thank you. And all the best, sir.
Thank you, Biplab.
Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Am I audible?
Yes, Pritesh. Please go ahead.
Hi. Good evening. Just one question on the growth visibility side. So I think this year has been good so far and probably will end well, and probably will surpass the appreciation that we had last year. For how long we can continue this 15%-20% kind of a growth that we would have had in the last two years? And in terms of city-wise, probably Bangalore, we would be already doing 4,500-5,000 crore of pre-sales. Is there more growth possible? And apart from that, which all cities do we think we can scale up further to target that 15%-20% growth over the next couple of years? Yeah.
Thank you, Pritesh. On the overall growth point of view, I think if the demand scenario continues, which is quite stable, and the end-user demand continues, and the economic growth is intact, the basic fundamentals, if they remain the same, then the growth for us is partly led by new supply and new supply from our side. And we are seeing that if we are able to launch projects, this financial year, we have seen that the response to new launches has been much better. And hence, we are able to achieve these better numbers despite fewer launches during the year. So hence, it gives a lot of optimism for us. And from a growth point of view, so our main goal would be to make sure that the current pipeline of launches are actually executed, and we bring those inventory into the market.
If we continue to do that, then I think that the ability for us to grow is definitely there, and there is a visibility for the next at least two to three years.
Sure. Sure. And just while you have elaborated city-wise pipeline quite well in terms of forthcoming projects and the subsequent land, but just in which city or markets you think you would continuously need some business development to be done over the next six to 12 months so that your growth targets are aligned for a company as a whole?
Right, so like I said, if I look at my current inventory and future inventory that's going to come in, roughly about 50% of that is still in Bangalore, and about roughly 30% is in NCR, and about 10% in Kerala, and remaining in the other cities, and if we have to grow in cities like new cities like Mumbai and also increase the growth in cities like Hyderabad and Pune, then we are looking at new investments there. In fact, we are looking at opportunities in all these places. That said, I think there is a slightly more opportunity even in NCR, even though we have a little bit of inventory there because, like you would have seen, NCR is not just one city, it's three different states, and hence, we will look at opportunities specific to each of the states and the corresponding inventory that we have.
So it's an ongoing process. And thanks to our visibility of our cash flow and our capital structure that we have, there seems to be better opportunities now than what we had seen in some of these locations. But of course, the challenge is to make sure that there is a balance between what we are launching, generating cash flow, and also deploy capital where the opportunities provide some kind of margin of safety.
Sure. And just as in Noida, we had two projects. We would have launched both of those this year itself. Are there more opportunities emerging there as well, or we'll still have to rely on Gurgaon for achieving the same number or grow on this base in NCR?
No, absolutely. The fact that we have taken a plunge into Noida market, which is UP, so we are seeing opportunities across UP. Not all tier two, tier three cities, but which is Noida, Greater Noida, Ghaziabad, and around those. So the pool of opportunities has increased for us, and we are actively looking, evaluating, in fact, in various stages of discussion as well.
Sure. Sure. Okay. That's it. That's very helpful, and all the best.
Thank you, Pritesh.
Thank you. The next question is from the line of Manoj from Geometric. Please go ahead.
Am I audible?
Hello?
Yes, Manoj.
Yes, you are. Please go ahead.
Happy New Year, sir, and best of luck for the coming year. Most of the questions have been answered. I just want to know how much the launch size of Hoskote, which is coming in the next financial year, in the beginning?
Yeah. I had mentioned it earlier in the call. We have about 5.4 million sq ft project, and we are planning to launch it in the first quarter of next year.
And when you launch there, how much in the beginning? It won't be launched in the 5.4 in the starting, or we have not decided as of yet?
Yeah. Typically, the project RERA will take it for the entire project, but we would launch based with the demand that we would see. And typically, for this size of the project, at the time of launch, it's about 30% of the inventory. But if things are really good, then we would subsequently open up the entire inventory. For example, we had launched a large project last year around this time, SOBHA Town Park, Madison, and Hampton. So that was about 3.3 million sq ft. Initially, we did launch about a million sq ft of it. And as we speak, we have opened only a couple of towers. Remaining, all the other towers have been released. So close to more than 80%-85% of the inventory has been released.
So it's a function of the demand and also our ability to open up that inventory since we have all the permissions for that.
Okay. You can have a line in some places. How do you feel Noida and Greater Noida as a market for coming time?
No, I think we have just launched our first project. We are going to start our second one very soon. So these are still early days for us, and there's a great recognition for the brand. And there is bound to in the last three to four years, especially, there has been a significant growth in UP and specifically in Noida, Greater Noida. And there are a lot of positives in the development of the location. It was already known for good infrastructure, but in addition to good infrastructure, now job creation also has significantly increased. And the prospects are also looking very good with events like opening of Jewar Airport and some of the other manufacturing giants coming and setting up their units there. So overall, there seems to be very positive indications towards the economic growth, specifically in these locations. And that should be positive for us.
In the long run, if end-user demand continues to grow there, then there is no doubt that we can also grow.
Thank you, and best of luck.
Thank you.
Thank you. The next question is from the line of Dhruvesh from ProsperoTree. Please go ahead.
Yeah. Hi, Jagadishji. Congratulations. A couple of questions related to three, five years of overall growth from here. So we are basically at INR 8,500 crores probably hitting in FY 2026. And if we target I mean, you have not communicated, but the direction is towards INR 15-17 thousand crores over the next five, six years or four, five years. How much contribution from Bangalore will be if we ever achieve those lines? And it is coming from an angle that can Bangalore give you the same growth as the total company because of already having such high maturity there?
Good question, Dhruvesh. First, from a growth point of view, we, of course, have plans of how we can grow from this FY 2026. And partly part of it is dependent on our new project launches, and we have clear visibility for that. And if I look at the from a supply point of view, not necessarily from a demand point of view, we do have visibility for even in a number like 15-16 thousand crores. So we do think that Bangalore can contribute towards anywhere between 40%-50%. They're already at 5,000 or close to 4,500-5,000 crores. And that is largely concentrated in two locations. And if the diversity of the locations improves, then definitely there should be an increase in the overall I mean, we would be addressing a larger market size within Bangalore itself.
And hopefully, we should be able to grow within that. That's number one. Number two is, of course, for overall growth of the company, we will need to penetrate a little bit more or have a higher market share in other locations. And those are definitely coming from NCR. And if not near term, then definitely in the longer term from places like Mumbai. But other locations like Hyderabad, Pune also can contribute. So if you really ask from overall growth point of view, we are quite positive in terms of this growth. And going for a number of 15, 16, I would not like to comment immediately, but these are the numbers that we already have in the horizon.
Okay. Great. And in terms of the volume, because everywhere in the country, the prices in the last four, five years have really gone up quite a bit, especially in the key metro cities. And I don't think anybody is now imagining big price increases. In fact, there can be a situation where there is a 5%-7% decrease in some areas. So in light of that, how much will I mean, we as a company are not at all focusing on high volumes in terms of sq ft because we are so premium, so higher ticket sizes. Will it not come to bite us if we don't really ramp up our supply towards the slightly lower categories also, which we already are servicing, but not in a big way?
No, I'd say you're right. So in fact, it's dependent on our ability to size our product. And not that we are addressing only one segment. Our pricing might be premium, but not necessarily. I mean, but within that itself, we should be able to address ticket sizes across from two to three crores to three to five crores. If you look at our investor presentation, you can see that our sweet spot has been between two to five crores, which delivers close to 80% of our sales. So within that, I think there is enough demand. And even less than two crores for a two-bedroom kind of product also. In some projects, particularly in larger projects, we are bringing out those in higher number to address that kind of segment.
So it might not be possible in every city that we are able to do, but definitely in cities and in locations where we can do, we are actively mindful of the market size based on ticket sizes. So hence, we are designing our products also in that manner.
And just last comment, more than a question. So I, as a shareholder, really like the company, the product, etc. But just that I, as a shareholder, also feel that we are missing out on the growth that we can achieve in the country like India. So just as a feedback, do push the pedal wherever you think there is a possibility. Thank you.
Absolutely, Dhruvesh. We are highly focused on growth as well. And there are quite a few things that we have done in the last few years, which have set up a good foundation for us. One, acceleration of launches, creating the right kind of process and structure within the company. Second, building the capital base without risking the cyclicality of the residential cycle. And definitely, there is a high emphasis on growth. And we would be focusing on that, absolutely.
Thank you. If I may, just one bookkeeping. What would be the total corporate overheads with this new established structure? I remember asking this question a couple of years back, but because a lot of things have changed internally. So if we don't go at the project level, what will be our corporate total yearly cost?
That's roughly about for this financial year, it would be about INR 322-330 crores.
Sorry? 322 crores?
INR 322-INR 330 crores.
Okay. Fine. Thank you, sir.
Thank you.
Thank you. The next question is from the line of Himanshu from Steadford . Please go ahead.
Hello. Good evening, Himanshu. Can you hear me?
Yeah. Good evening. Yeah. So my question was, in the last nine months, we have spent significantly on land, okay? And land-related payment and JD and partner payment. Can you give some idea what would be the money we have spent for historical land consolidation and approval-related costs versus completely new project acquisitions, which we have done in nine months? Just the numbers, if you can give some thoughts, it will be helpful.
Yeah. I mean, it's a combination of both. I do not have the number right away for that, Himanshu, and we'll be able to provide subsequently. The investor relations will reach out and give you that number. I do not have that number handy immediately.
Okay. And not the exact amount, but let's say the number of new land acquisitions we would have done. Any thoughts on that? I mean, business development-wise, so new land.
Yeah. It's an ongoing process. And actively, we have not been declaring new business development or, let's say, as a metric in any previously. And we don't even intend to do that because that's a very strategic, opportunistic goal that we pursue. And hence, we have not been disclosing it in the past. So right now, for the breakup, what you would like to have, then our team can reach out to you and provide you the same.
And one more thing. We have this forthcoming and subsequent projects launched, the land, okay? Some 422 acres, okay? So should we assume that in these 422 acres, we don't have any money to be paid for the JD, JV partner or anything like that? And it would be only approval-related costs which are pending for this 422 acres.
In fact, there are certain pending payments towards land in this. It is not very significant given the volume of launches that we would be doing in this. So all put together, we have an estimate of about INR 1,000 crores that need to be spent or, let's say, invested towards this, towards both these forthcoming. Forthcoming, very minimal, but part of it is forthcoming and part of it is subsequent. But not necessarily the investment is impeding the launch of the project. So in some cases, the investment is continuing post the launches also.
Let's say another figure what we give is 1,752 acres, which is various stages of consolidation, monetization, and self-use. What type of amount which will be required to consolidate and just get our name on those lands, okay? Any thoughts on that?
Yes. In fact, majority of those lands, we would ideally like to monetize or bring towards the JD, and part of them, we will bring towards development. Even if we have to bring towards development, that is not as high as what we have seen for the remaining 422 acres.
Does it mean that it is lesser than that 422 acres what rough cut figure you gave of INR 1,000 crores?
Yes. Yes.
Okay. Okay. Yeah. Thank you from my side.
Thank you, Himanshu.
Yeah.
Thank you. Ladies and gentlemen, this will be the last question for today, which is from the line of Ayush Sabu from Choice Institutional Equities. Please go ahead.
So I just wanted to understand. Firstly, congratulations on your Mumbai launch. What would be the prospective pipeline that we could launch possibly in Mumbai in two to three years? But have we set any target or any guidance regarding that?
Good evening, Ayush. Sorry, we don't have any specific timeline or target towards that. Like I mentioned, we are looking at opportunities. In fact, we are working on a few opportunities in Mumbai. But considering that we are new and also considering that there are multiple opportunities that we are pursuing, and most of the land acquisition is opportunistic, it has to fit in our framework. So it's very difficult for us to give a target at this stage. Once we have certain land tied up, then surely we can disclose those details.
Thank you. All the best.
Thank you, Ayush.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Adhidev Chattopadhyay for closing comments.
Yeah. Good evening. Thank you, everyone, for joining us on the call today. I'd just like to hand it back to the management for any closing comments instead. Yeah. Thank you.
Thank you, Adhidev. And thank you all for participating in the call, for your questions and patient hearing. I hope we have answered most of your questions satisfactorily. You're most welcome to reach out to our investor relations team for any further clarification. Our continued focus on operational excellence coupled with strong customer confidence in the brand are pillars of our strength, helping us simultaneously achieve both customer satisfaction and business metrics. Our disciplined growth mindset, investment in technology and people, and process improvements will see growth acceleration. Our robust balance sheet uniquely equips us to capitalize on emerging opportunities while effectively managing the inherent cyclicality of residential real estate. Wish you all a very happy weekend and the best for the rest of the year. Truly appreciate your support. Thank you.
Thank you. Members of management, ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you.