Ladies and gentlemen, good day, and welcome to the SOBHA Limited Q2 FY 2027 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities Limited. Thank you, and over to you, sir.
Hello. Good evening, everyone, and I'd like to welcome everyone on the SOBHA Limited call today. From the management, as always, we have with us Mr. Jagadish Nangineni, the Managing Director, and Mr. Yogesh Bansal, the Chief Financial Officer. I'd like to hand over the call to the management for their opening remarks and comments. Over to you. Thank you.
Thank you, Adhidev. Good evening, everyone, and thank you for joining today's call for Q2 and H1 2027 earnings. I extend a warm welcome to all our investors, analysts, and stakeholders. I'll briefly highlight our business performance and key developments, before I hand over to our CFO, Yogesh Bansal. H1 2027 was the strongest half-year in SOBHA's history, with a sales value of INR 5,862 crore, a strong 47.2% year-on-year growth. We sold 3.76 million square feet across 2,260 units, with sales volume growing at 32.4%. SOBHA's share of sales value also reached a record of INR 4,874 crore. In Q2 FY 2027, this is our second highest quarterly sales of INR 2,206 crore with a growth of 16% year-on-year with 1.42 million square feet across 828 units. Average price realization improved to INR 15,522 per square feet in Q2 from INR 13,648, representing 13.7% growth.
For H1, realization increased to INR 15,604 per square feet compared to INR 14,028 last year, reflecting our strong product positioning and favorable sales mix. From a city performance point of view, Bengaluru remained our largest market, contributing INR 3,385 crore or about 58% of first half of sales, and NCR of about INR 1,974 crore, which is again about 34%. Kerala at INR 357 crore, which is about 6%, and remaining cities at 2.5%. Following significant launches in Q1 and Q2, Q2 witnessed healthy sustenance sales, particularly from our launched project in Q1, SOBHA OneWorld and SOBHA Neopolis in Bengaluru, and SOBHA Crescent and Aranya in Gurugram. This demonstrates sustained customer demand beyond the initial launch phase. Overall, we are on track for our guidance and hopefully exceed in terms of sales for the entire financial year.
Coming to new launches, during this quarter, we launched two projects, which is SOBHA Boulevard, which is a plotted development project in Mysuru, and SOBHA Bellevue, a high-rise and apartment project, about 4.3 acres, 298 homes of about 0.83 million square feet in Calicut. Overall, for the first half, we launched five projects across Bengaluru, Gurugram, and Calicut, aggregating to 7.91 million square feet with an estimated sales potential of close to INR 11,200 crore. Our forthcoming launch pipeline remains robust at 20.42 million square feet across 18 projects. We are quite confident of launching at least nine projects, exceeding 11 million square feet during the remainder of FY 2027. As of September 30, 2026, our unsold inventory stood at approximately 15 million square feet , providing a healthy growth visibility. On execution front, we completed 720 homes covering 1.49 million square feet across nine wings and blocks in Q2.
H1 completion stood at 1,391 homes covering 2.56 million square feet across 17 wings. Coming to cash flows and financials briefly, our balance sheet continues to be our key strength. We maintain a net cash position of about INR 322 crore with a competitive borrowing cost of 7.75% and remaining focused on sustaining a zero net debt position throughout FY 2027. We achieved our highest-ever cash inflows both for the quarter and half year. Q2 collections reached more than INR 2,000 crore at INR 2,084 crore, and our net operational cash flow was INR 422 crore. This financial strength supports our future investments while maintaining prudent capital allocation. As of end of this quarter, we had INR 22,040 crore of revenue yet to be recognized from units already sold.
We expect, w hile the quarter level margins appear lower, as we continue to recognize lower margin projects and as we recognize future projects which we are on course for completion and handovers, we are quite confident that our margins will significantly improve, and we should be able to deliver at least 50% growth of PAT over last financial year by the end of this financial year. During Q2, our contracts manufacturing and retail businesses generated about INR 225 crore, an increase of 31% quarter-on-quarter, and the external order book stood at INR 540 crore. Our commercial rental portfolio contributed INR 24 crore in income during the quarter. We expect these businesses to maintain steady performance and with the scope for marginal growth.
Also, in this quarter, as part of our plan to deepen our expertise in terms of execution, we have acquired a small business of fire and safety from SOBHA Projects & Trade Limited , SPTL, and this would enable us to execute fire protection services across all our projects as we scale towards a larger volume delivery. With these remarks, I would conclude my opening remarks, and then I would hand over the forum to our CFO, Mr. Yogesh Bansal, for his remarks on the financial performance.
Good evening, everyone. Let me take you through the key financial highlight of SOBHA's performance for the second quarter and first half of FY 2027. The first half has been marked by strong operational cash collection, continued investment in project execution, and expansion of our development pipeline while maintaining a healthy balance sheet. We recorded our highest ever half-yearly operation cash inflow of INR 4,009 crore, generated positive operation cash flow of INR 755 crore, and closed September with a net cash position of INR 322 crore. Coming to cash flow, operational cash inflow for the quarter stood at INR 2,084 crore, compared with INR 2,046 crore in the corresponding quarter last year. Real estate collection contributed INR 1,922 crore. This operational outflow was INR 1,642 crore, resulting in positive operation cash flow of INR 442 crore for the quarter. For the first half, operation cash inflow reached INR 4,009 crore, with positive operational cash flow of INR 755 crore.
Construction expenditure continued to be an important area of cash deployment. During the quarter, real estate project related outflows stood at INR 826 crore, while sales and marketing expenditure was INR 103 crore. We have made land payments amounting to INR 617 crore during Q2 and INR 987 crore for the first half. These payments are aligned with our objective of strengthening the development pipeline, while continuing to fund existing projects. After accounting for land payments, capital expenditure, and financing related movement, the overall net cash movement was negative INR 337 crore for Q2 and negative INR 486 for H1. Our operation continued to generate positive cash flow while we deployed capital towards existing projects and further growth. Moving to our reported financial performance, total income for quarter stood at INR 1,017 crore, compared with INR 1,469 crore in Q2 of the previous year.
Real estate revenue contributed INR 749 crore, while contractual manufacturing and retail operation contributed INR 225 crore. Quarterly EBITDA stood at INR 119 crore, representing a margin of 11%, while profit after tax was INR 33 crore. For the first half, total income stood at INR 2,347 crore, EBITDA was INR 249 crore, and profit after tax amounted to INR 84 crore. Our gross debt as on 30th September 2026 stood at INR 1,505 crore against cash and cash equivalent of INR 1,827 crore. Our debt-to-equity ratio stood at negative 0.07, while our average borrowing cost was 7.75%. Maintaining financial discipline remains a key priority. We continue to focus on optimizing borrowing costs, maintaining adequate liquidity, and balancing investment in new opportunities with the funding requirement of ongoing projects. Looking ahead, our existing portfolio provides meaningful visibility on future cash flow and revenue.
As on 30th September 2026, receivable from sold units together with sale value of unsold inventory stood at INR 31,814 crore against estimated remaining project cost of INR 1,997 crore. This represents projected project level marginal cash flow of INR 12,517 crore.
Including forthcoming projects, the projected real estate project level marginal cash flow increased to INR 19,748 crore. These figures provide visibility on the potential of our existing development portfolio. To conclude, our priority remains clear, sustaining operating cash generation, progressing project execution, maintaining balance sheet strength, and ensuring disciplined capital allocation. We remain committed to delivering sustainable growth, strengthening financial performance, and creating long-term value for our shareholders. Thank you. We can now take your questions.
Thank you very much. We will now begin with the question- and- answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and then 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. Again, to register, please press star and one. Your first question comes from the line of Parikshit Kandpal with HDFC Securities. Please go ahead.
Yes, sir. Hi. Congratulations on the great pre-sales for the H1 . My first question is, in this quarter, we have seen very strong gross margins, almost 48%, maybe, I think, recent quarter highs. Is it right to understand now that the legacy low-margin projects may be behind us and as the deliveries improve from here on in the coming quarters, if this level of gross margin is maintained, we can see a sharp uptick in the EBITDA margins from Q3 onwards?
Good evening, Parikshit. The EBITDA margin as we go forward, like I said, the remaining, the entire revenue to be recognized is close to INR 22,000 crore. It has got excellent EBITDA margins, and we believe that we will be able to maintain our costs and be able to deliver those margins as we progress forward. So increasingly, you will definitely see an increased margins, and whether that is going to come from Q3, Q4, yes, they would. Like I mentioned in the opening remarks, as of now, we estimate that from a PAT point of view, this financial year, we will be able to deliver at least 50% of growth over the last financial year. From the next financial year also, it's going to be even better.
Overall, from a P&L standpoint, we are quite confident considering what we have done in terms of pre-sales, the sales value that we achieved and the pace of development that we are doing and the handovers, the visibility that we have. We believe that it's going to be an uptick from now on. Also, in the previous quarters, I had guided that from Q3 onwards, this financial year, it should start looking better. We should be on track for that.
Okay. Thanks for that elaborate answer, Jagadish. As my second question, in this first half, we have spent a significant amount, almost INR 987 crore on the land outgo. If you can help us understand how much was this for this current year new acquisitions, and how much GDV we have added corresponding to this land cadence?
Yes. This financial year, in the first half, the cash outflow for land has been significant. Close to about 30% of that cash outflow was towards settlement of old dues for our existing projects, which is now fully complete, and any new cash outflow that would go from now on will be for addition of new lands. That' s number one. Number two is, in the first half, we also added three more lands in Bangalore, and we have started procurement of land. As and when they reach the approval stage, they will become visible in the project pipeline. I believe that it will take about a year, a year and a half for them to show up in that. And one more in Gurugram .
Overall, we have not given specific GDV for the investment that we have done, but we have done significant progress in terms of adding new projects in Bangalore, in NCR, and we had purchased one land in Mumbai. All put together, and remaining parts, that's about another 50%. Remaining 25% has gone towards existing lands, where we had to do consolidation and remaining payouts to the landowners.
Is it right to assume, like what million square feet of GDV you have in it? It will be close to about INR 9,000 crore-INR 10,000 crore in 1H ?
We will be able to provide that estimate separately, Parikshit. I don't have that GDV right now.
This is the last question on the launch pipeline now for Q3 and Q4, if you can help us understand how much. You did quantify in terms of million square feet. In terms of projects and sizes, if you can help us and split this into Q3 and Q4, that will be helpful.
Q3 and Q4, we have tentatively about, like I said, about eight projects that we are looking at launching. Three in Bengaluru, one in Hyderabad, one in Chennai, one in Gurugram, one in Greater Noida, and one in Thrissur. All of them put together, they will be about 12 million odd crore, and that might be about a value of close to about INR 18,000 crore.
In Q3 specifically, if you can call out some large projects in Q3, which are the ones, if you can name or call out, and also on the RERA, what is the status for these projects?
Yeah. These are highly time sensitive in terms of approvals. We are on track for some of them, but you never know what's the next surprise that we might get. While Q3, we are confident of doing at least two to three projects of these. I am hoping that it can be higher, and probably half of this in Q3 and half of this in Q4, but they are very, very tight in terms of timelines. Any slip up here and there, because of any reason, they might quickly go towards Q4. That's number one. Number two is, even while we might get all approvals, we might choose not to launch them for better preparation and better response.
Hence, for example, this time, even though we got the plotted development approval for Boulevard in Q1, but we actually chose to launch it in Q2 so that we can have a slightly better preparation. It's a smaller project, but at the same time, the same approach we would take for the larger projects and also the new launches. While approvals are one aspect of launching a project, some preparation for that also is required. Q3, Q4, in both these quarters together, we should be able to do these launches. We are fairly in advanced stage in terms of all approvals for all these projects.
But any specific projects which you can call out, that will be helpful. I think Crystal Meadows was one which was pending for quite some time. If you can name some projects for Q3, where you have high visibility on getting approvals and launching. That would be helpful for the analysts.
Yeah. We can give those details separately.
Okay. Sure. Thank you, sir. I will join back in.
Thank you, Parikshit.
Thank you. Ladies and gentlemen, we request participants to limit to two questions each, and we join the queue for any further follow-up questions. Your next question comes from the line of Parvez Qazi with Nuvama Group. Please go ahead.
Yeah. Hi, good evening, and congrats on the great set of numbers. My first question is, you have mentioned about INR 11,200 crore as the GDV of launches in H1. Ballpark, what would have been the sales in H1 from these INR 11,000 odd crore roughly?
From our sales of about INR 5,800 crore, what we have done in the first half, about 70 odd percent has come from the new launches.
Sure. My second question is, you have also given a segment-wise breakup of our H1 sales. Roughly 36 odd percent has come from ticket size above INR 5 odd crore, and I think that ties in with the general trend of premiumization in the industry. Looking towards H2 and the 11 odd million square feet of launches that we are looking at H2, in general, what would be a segment-wise split of these 11 million, 12 million [inaudible]?
Good question, Parvez. I would not generalize like that because it's heavily dependent on the project mix and the kind of product that we initially launch. The sales value that we are achieving in the last few quarters, majority of the sales is coming through new launches. Considering the mix of the new launches, it typically varies. Like for example, you can see even in Q2, the mix from about 36 odd percent of the total overall H1, you can see that greater than INR 5 crore is only 26.2%. There are certain projects that do contribute to higher ticket size, but the launches we are going to do in the future, there is a huge mix across ticket sizes. Mainly between, I would say, between INR 2 crore- INR 5 crore.
Hence, whenever you see a spike in terms of in the higher ticket sizes, that might be because of good traction in that particular segment in that quarter. But overall, if I look at, again, the inventory that we have, so majority of that inventory would lie between INR 2 crore- INR 5 crore. I would assume it's more than 70%.
Sure. And last question, fair to assume that this INR 5 crore plus ticket size would largely be in the NCR?
Yes. You are right. Most of the units that have contributed to more than INR 5 crore are from Gurugram specifically, and we have one-off projects in Bengaluru and of course, what we have in Mumbai as well. But you're right, majority comes from our NCR or Gurugram sales.
Thanks, and all the best.
Thank you, Parvez.
Thank you. The next question comes from the line of Girish Choudhary with Avendus Spark. Please go ahead.
Yeah. Hi, good evening, Jagadish. My first question, so you have seen strong sustenance in sales. Right. On that, specifically, if you could give some more details on the Hoskote project, what kind of sales we have seen this quarter, and how and when are you thinking about the phase two launch?
Well, good evening, Girish. So the Hoskote, the entire project is a very large one. We have overall value of about INR 7,500 crore, and we have done over INR 2,500 crore till now. That too, we have not launched all the towers in the project. But the response to the project and sustenance of that is quite good. Similarly, in our projects in NCR as well, what we have launched in Gurugram, specifically Crescent and also Aranya, that's where we have been doing the project for the last two years. So the sustenance sales have been good. Also this quarter, the sustenance sales in one of our projects, SOBHA Neopolis, which was quite flat for the last one and a half years or so, has picked up quite well after we started completing our towers and handing over to the customers.
So the sustenance sales are again, quite steady, and we see that as a positive sign for projects where we have launched and also seeing steady traction.
Got it. Any thoughts on phase two launch of Hoskote?
When you say phase two launch, what exactly do you mean?
I believe the total GDV of the project is INR 7,000+ crore, right?
Yes.
Yeah.
In this quarter itself, we launched one more tower, so that will take us to almost 65% of the total inventory being released, and little over. As we progress towards more inventory getting released, and also consumed, we will keep releasing based on two factors. One is on the extent of sales that we are seeing, and second is the development plan that we have. Based on both these parameters, we will keep releasing the inventory. It's not that we have specifically phase two as a separate launch that we would do. We would do tower-wise launches going forward.
Got it. That's helpful. My second question, on the acquisition of SOBHA Projects & Trade , if you could give us more details around what's the profitability debt of this company, and also, going ahead, how do you see the numbers? Will this require any CapEx? If you can just give some details, how should we look about this acquisition?
Sure. SOBHA Projects & Trade , we are acquiring the fire and safety business of it. In which, essentially, the fire and safety business has been delivering about 70% of its business has been for SOBHA itself. They have an order book of about INR 180 crore now, of which, again, 70% of that is SOBHA's projects. As we scale, we believe that both from a strategic and financial point of view, it makes sense for us. Strategic, it will just help us increase our ability to coordinate better and also deliver faster for our projects. That's number one. Number two is, from a cost standpoint, it would reduce our cost because there is a GST benefit that we currently lose. There is a certain ability to procure better through our scale of operations and some of the synergies that we might bring in.
With that, some cost reduction can happen, and hence, that will help us. Overall, we think that it is quite strategic and advantageous for us to have this business within our own operations. From a revenue standpoint, they have been doing roughly about INR 60 crore- INR 65 crore a year. But as we scale our own delivery, this is going to significantly increase from here on. From a margin point of view, there is going to be no CapEx involved because it is a services business, and whatever CapEx is already there, that's good enough. Going forward, if at all there is any working capital requirement, that we will have to fund it. But otherwise, there is no additional incremental investment that needs to be done apart from what we are doing at the time of acquisition.
Got it. Thank you.
Thank you. The next question comes from the line of Biplab Debbarma with Emkay Global. Please go ahead.
Yeah. Hi, Jagadish. Good evening, and congratulations on the strong quarter. We see that in the forthcoming projects you have now three MMR projects. Last quarter it was one. Just wondering, where you have acquired these two new projects, and overall what would be estimated GDV of these three MMR projects?
Biplab, I think there is a slight confusion there. We should have corrected it. Actually, three is actually two. One is additional FAR, or let's say saleable area, that we would load into the existing one after what we have already released in Inizio, which is an ongoing project. Second is the new Chandivali project. Actually, that addition of that new FAR is coming in two stages, and hence we counted it as two, plus one is the Chandivali project, three. That's a clarification for that.
You have added Chandivali projects?
Yes. Our land acquisition for Chandivali is complete, and now we are at the design stage, and going forward for the approvals.
How big would that project be, in terms of GDV, INR 1,000 crore or INR 800 crore?
Yeah. About INR 1,000 crore is what we estimate.
Okay. My second question is on the margins. You have guided the margins will see uptick from 3Q onwards, and will be very healthy in FY 2028 onwards. Could you give us some insight, like when you say uptick now currently it is in single- digit. Should we expect, say, in the second half or third quarter, fourth quarter onward, something like 15% consolidated basis for EBITDA margin? What range the margin would be? FY 2028 onwards steady state, what kind of consolidated EBITDA margin should we expect?
For the second half of FY 2027, I think the EBITDA margin should fairly be much higher than 15%, for the whole of FY 2027. From FY 2028, of course, I've been mentioning in the previous calls also that it will go towards 20%, and beyond.
See, one of the main reasons for us, probably I have mentioned it previously in the previous call, these current lower margins are, or at least it's visible like it's lower margins, is because of four to five factors. One, particularly if you see this quarter and the last quarter, or specifically this quarter, what we could recognize as the revenue itself has been lower because handovers that we could do and also the completions that we did. It's a part of cyclicality in terms of, in some quarters there would be more and some quarters it might be less, but over a period of time, they would normalize. Whenever we recognize a lower revenue, however, our fixed cost in terms of overheads and also the elevated sales and marketing costs will continue to be there, and hence you can see a lower margin.
As the new scale of revenue that we will start recognizing, those would normalize. That's one. Second is also is that some of the projects that we would recognize in future are the ones where we have our own land, and there the margins would still be far superior than typical projects that we do. Those will also start contributing much higher. Third is we still have some of the old projects where the margin is lower, and till the time we completely recognize those will weigh down on the overall margins. That I think in the next two quarters also, those will reduce quite a bit, and the effect of the higher margin projects will start looking up from next two quarters.
As I mentioned earlier, it would be an upward curve in terms of overall margins and should stabilize over about 20%+ in terms of EBITDA.
You have done exceedingly well in first half in terms of pre-sales, almost INR 5,800 or INR 900 odd crore. Considering seasonality, that's what we see the trend second half does always better than the first half. Does it mean that simple arithmetic, we will cross INR 12,000, INR 13,000 of pre-sales in this financial year considering we have seen decent sustained sales, and also we have a healthy launch pipeline? What's your thought on it?
Yes. Both factors, like you mentioned, the glut can contribute to a good sales number. Hence, we would hope and also we would work towards exceeding what we have given as a guidance from a sales point of view. If all of the factors come through, then definitely we should be seeing much better than what we have guided at the beginning of the year. Both factors, which is sustenance sales being strong and new launches being successful, we should do much better than what we have guided.
Okay. Thank you, and all the best.
Thank you. The next question comes from the line of Murtuza Arsiwalla with Kotak Securities. Please go ahead.
Hi, Jagadish. Just a question on your segment financials. When we look at the numbers, there is another unallocable expenses, which is reasonably large, generally across quarters between 7%-10%. How should we think of it when we think of EBITDA margins, the other unallocable expenses? What is the nature of these expenses? And they form the apportion to either the [inaudible] or the contract and manufacturing segment? That's my first question.
Mm-hmm. Good evening, Murtuza. So these expenses, what you're talking about is, can you help me? What numbers are you looking at?
So if I look at the reported financials, for instance, in the second quarter, we have other unallocable expenditure in the consolidated segment report of INR 977.57 million. Right. Which on a net revenue of about INR 9.63 billion. So it is about 10% in the current quarter.
Yeah. That's essentially the overhead expense, which is a fixed expense for us on a quarter on quarter, which is essentially including our own staff and overheads and also part of marketing and incentive that we pay out. It has two components. One is a fixed component, which is for fixed overheads, which is inflationary or probably slightly lower than the growth that we are experiencing. Second part of it is directly proportional to the sales that we will end up doing.
So shouldn't we allocate the sales-related expenses to part of either real estate or contract and manufacturing jobs? I am just trying to appreciate that when we look at your segment results, which is a few lines above that, it obviously shows a slightly better margin than when you look at the consolidated, which is a combination of the real estate and contract and manufacturing, where the margins may appear even weaker because one takes into consideration the other unallocable expenditure. So I am just trying to understand how do we better appreciate this particular dynamic.
Sorry, you are right. In this part, I would like to clarify again. Sales and marketing expenditure would remain in the real estate segment. This unallocable expenditure is largely the overheads that we see. And that should be quite flat or let's say, inflationary in nature.
Okay. The second question is, generally when I think of your business mix, what proportion of your projects would be through a joint development agreement where there is a share of revenue to the landowner versus projects which are doing 100% outright purchase of land and there is no share of payment to the landowner because you outright purchase it. Is it an 80/20? Is it a 70/30? What is the mix between, generally speaking, not a particular quarter or a particular year?
Sure. On an aggregate level, Murtuza, out of overall sale or the inventory that we have, roughly 82%- 85% is what is our share. In the sense, typically, as an overall example, 50% is, let's say, own projects and the remaining 50% are joint development projects. The joint development, let's assume it's a 35% landowner share, then it's roughly 17.5%. So about 82.5% is what we take it as our share.
So in terms of projects, it would be roughly 50/50. Half the projects that you would do are through joint development mechanism, half would be 100% kind of model.
As of the current land bank and the output of the projects that we plan to launch, yes, that's the case. At an aggregate level, it is about 82%, 83%.
Yeah, that I get. All right. Thank you so much, sir.
Thank you, Murtuza.
Thank you. The next question comes from the line of Pritesh Sheth with Axis Capital. Please go ahead.
Yeah. Hi. Thanks for the opportunity, Jagadish, and congrats on a good sustenance quarter. Just a couple of questions. One, continuing the previous question on the unallocable expenses. That has increased considerably versus last year. Last year, full year, we had INR 200 crore. In first half itself, we have done INR 190 crore. Reasons for that, and when you talk about 30% as the project level EBITDA margin, should we then exclude another 10%, which would be the corporate overheads, and hence your EBITDA margin should be around 20% for the [inaudible] segment? How should we look at? Or yeah. Some insights on that.
Good question, Pritesh. I do not have the exact details of that. Can we get back to you?
Sure. No worries. I will take it offline. Second question on the launches. I think when we talked about the contribution of launches in first half, that was 70% of the current sales. We would have done roughly INR 4,000 crore from the launches, which are around INR 11,000 crore of total GDV. So we have sold 40%. But in this we had one large project that was SOBHA OneWorld, which would have, obviously in terms of proportion, would have been lesser. Wanted to understand if there are any such large projects planned in H2 which have a GDV of more than INR 3,000 crore at the launch time itself. Just trying to understand how should we think about the velocity that way. Yeah.
Right. When we do a launch of the project, we typically do take the entire value of the project as part of the launch value instead of taking what has been released. Hence you would tend to see that it is a smaller portion of the overall, and specifically like you mentioned, for a larger project it is more prominent. Some of the projects pipeline that we have, which is over INR 3,000 crore, we have one such project in Bangalore, which we plan to launch in the second half. That should be also of similar size, similar or slightly lower than the OneWorld project. That's one. And second, there is one more project in Bangalore which we plan to launch towards the end of the year. That also will not be maybe INR 3,000 crore but towards INR 2,500+ crore .
Sure. So two projects of large size in second half.
That's right.
Sure. Okay. Just one last on the approvals. While I think it's business as usual for most of the cities, specifically checking for Chennai. After the new government came in, any delays in terms of approvals that you are noticing, considering they've just come in and trying to settle down. So, what are the timelines for Chennai launch that you are seeing now?
We have very limited presence in Chennai. We are planning to launch one project in this next half. We have just completed one project in SOBHA Arbor. Most of the approvals, even after the new government has come in, has been quite swift. We have not experienced any kind of delays. In fact, it's quite quick in terms of transition and business as usual.
Got it. Fair enough. Okay. That's it from my side. Thanks and all the best for the second half. Yeah.
Thank you, Pritesh.
Thank you. The next question comes from the line of Parikshit Kandpal with HDFC Securities. Please go ahead.
Hey, Jagadish. Thanks for the follow-up. Just to clarify, so when you said 15% margins, EBITDA margins, was it for FY 2027 or second half of FY 2027?
Second half of FY 2027.
Okay. The other question is what is the deliveries plan for H2 FY 2027? If you can help us quantify in million square feet or in value. How much deliveries you are looking for second half?
Overall our plan for deliveries this year is about 6 million square feet. Which would mean, again, we have already done close to 2.56 million. About another 3.5 million is what we plan to do in the second half.
This will come in, that means almost INR 10,000 or INR 11,000. It will be about INR 3,000 crore-INR 4,000 crore of revenues for second half.
Yes. In that we will have to take which is our share. That will be one. Second is while we complete this, does not necessarily translate into handovers at which point we actually recognize the revenue. There might be some inconsistencies there but largely what you are saying is our ballpark numbers.
Okay. Got it. Just the last thing, if you can, given what is happening on the geopolitics, on interest rate increase, macro. How are you looking at your macro markets? Surprisingly, Gurugram has been holding up despite everyone, all the analysts calling out that will be the first market to go down, it has been holding up quite well. Developers are reporting good sales, sustenance sales has been strong. Just wanted to pick your brain, next couple of quarters or three to four quarters, how do you think the macro market will behave?
It's very difficult for me to comment on what exactly is going to happen on macro. Clearly there is a certain caution related to what is happening in terms of interest rate increase and combination of geopolitics and AI. There are several factors which can lead to, let's say, someone being a little cautious. But when we look at the data in terms of what is the interest levels that we are seeing on a leading indicator basis, which is our inquiries and visits to our marketing offices, they seem to be quite steady. Like you are seeing, sustenance sales seems to be quite good. If there is any further worsening of it, then it might be different or any positive thing also will turn to be even better for us.
I see it quite positively in the sense that even in spite of these so-called negative sentiments playing out, most of the leading indicators seem to be quite steady. What we are seeing on the ground seem to be quite good. Interest levels are high, and that's quite positive. Which in fact means that if there is any kind of positive events that can turn out from here on, then things can be even better than what we are seeing today.
You are seeing good demand across your markets, like NCR, Bengaluru, Mumbai, Thrissur. But the key markets, the demand continues to remain quite strong on the ground for you?
Yes. We see that it's quite good. There might be pockets, some of the projects where we have one project, cities. There it might be specific to micro market, specific to project. But otherwise, overall, I would still think that the overall demand seems to be quite steady.
The Noida project is doing well now. The one which we have launched in 1 Q, I think towards just about when the geopolitics started, the war started. Are you seeing good momentum on the sustenance side there?
SOBHA Rivana, it started out well. I would not say that we have seen a rapid start. But post that, we launched the project in March of last financial year, which is in the midst of just the war has begun, and there was quite a bit of caution in the air. So it started out a little slower, but the interest levels are quite good, and sustenance is the demand and the walk-ins that we are seeing is quite robust. And hence, we have started to make good progress at the site as well. I would say it's an end user market specifically for that project, and I believe that it's going to be a very steady project in terms of sales and overall completion of the project.
Okay. Thank you.
Thank you, Parikshit.
Thank you. The next question comes from Biplab Debbarma with Emkay Global. Please go ahead.
Just one small clarification I wanted. I think I missed that part. So in the second half, what is your pipeline in terms of GDV in million square feet? I missed that part.
Yeah. Biplab, we have about eight projects that are lined up, and let's say about 12 million square feet should, at the same average price of about INR 15,000, it's about INR 18,000 crore.
Okay. Thank you.
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you.
Thank you, everyone, for joining today's call. Wish you and your families a very happy Vijayadashami. I hope we have answered most of your queries. For questions where we said we will have to revert to you, we will do so very quickly. For any other further questions, please reach out to us. We'll be happy to clarify those. Thank you, everyone, and wish the best.
Thank you. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines.