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Sobha Ltd is preparing to introduce several new residential and commercial projects across key Indian markets to capitalise on sustained housing demand. The company, which currently holds unsold inventory worth around INR 13,000 crore, recorded significant sales growth in the recent quarter. With a pipeline of nearly 16 million sq ft for future launches and unrecognised revenue exceeding INR 18,000 crore, Sobha aims for strong pre-sales performance in the ongoing fiscal year.
Real estate major Sobha Ltd has stated that it holds unsold inventories valued at approximately INR 13,000 crore in its ongoing projects and is set to unveil new developments to leverage the continued rise in housing demand. During a recent conference call with market analysts, Managing Director Jagadish Nangineni mentioned that the company's unsold inventory stood at about 10 million sq ft at the end of the latest September quarter. Advertisement
He noted that beyond this, the company has a solid launch pipeline planned for the latter half of the current financial year and subsequent periods. Nangineni added that Sobha has a residential pipeline spanning nearly 15.96 million sq ft across 13 projects in nine cities, along with a commercial pipeline of around 0.74 million sq ft across all its operational regions. These forthcoming projects are expected to be rolled out over the next four to six quarters.
The company is also advancing its project plans rapidly, covering an estimated 24 million sq ft of development area. Nangineni highlighted that, in addition to the upcoming launches, the existing inventory at the end of the quarter had a potential sales value of INR 13,000 crore.
In terms of outlook, Sobha expressed confidence in achieving pre-sales of about INR 8,500 crore in the 2025-26 fiscal year, which would represent growth of over 30 per cent compared to the preceding year. The company also holds unrecognised revenue worth INR 18,000 crore from previously completed sales, which is expected to enhance profit margins in the coming quarters.
As per the firm's latest investor presentation, Sobha is preparing to launch 13 projects in cities such as Bengaluru, Mumbai, Delhi-NCR, Pune, Chennai, Calicut, Thrissur and Trivandrum. These projects, encompassing approximately 16 million sq ft of saleable space, are estimated to generate revenue of nearly INR 22,000 crore. Additionally, two commercial projects covering about 0.74 million sq ft are also planned, taking the overall pipeline to 15 projects spanning 16.7 million sq ft of built-up area.
Sobha reported a 61 per cent increase in sales bookings during the second quarter of the ongoing fiscal year, reaching INR 1,902.6 crore, up from INR 1,178.5 crore a year earlier. The company sold nearly 13.94 lakh sq ft of space in the July-September period, achieving an average price realisation of INR 13,648 per sq ft. Its half-yearly sales bookings reached an all-time high of INR 3,981.4 crore, marking a 30 per cent rise compared with the previous year.
Nangineni attributed the steady growth in pre-sales to continued demand for luxury housing supported by a resilient economy. He stated that with a robust pipeline of 16.69 million sq ft in forthcoming launches, a strong balance sheet and stable market conditions, Sobha is strategically positioned for sustained growth and future opportunities.
Financially, the company registered a near threefold increase in its consolidated net profit, which rose to INR 72.52 crore in the second quarter of the current fiscal year from INR 26.08 crore in the same period last year. Total income also climbed to INR 1,469.3 crore from INR 965.29 crore during the same comparison period. For the previous fiscal year, Sobha had reported a net profit of INR 94.68 crore on total revenue of INR 4,162.75 crore and recorded property sales worth INR 6,276.5 crore.
Headquartered in Bengaluru, Sobha Ltd has so far delivered over 148 million sq ft of developable area across 27 cities in India, consolidating its position as one of the country's leading real estate developers.
Sobha Ltd's performance reflects strong momentum in the residential property sector, buoyed by rising housing demand and consistent buyer confidence. With extensive project launches scheduled in major metropolitan areas and a substantial revenue pipeline, the company is targeting significant growth in both sales and profitability. Supported by a stable financial structure and strategic expansion plans, Sobha is positioning itself to strengthen its presence across India's key real estate markets in the forthcoming quarters.
Source - PTI
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