Q1 2026 Sobha Ltd Earnings Call Transcript
Key Points
- Sobha Ltd (BOM:532784) achieved its highest ever real estate sales, crossing INR 2000 crore for the first time, with a total sales value of INR 2078.8 crore.
- The successful launch of Sobha Auram in Greater Noida contributed significantly to the sales milestone, with 80% of the project sold by the end of the quarter.
- The company has a strong residential pipeline of 17.67 million square feet across 17 projects in nine cities, indicating robust future growth potential.
- Sobha Ltd (BOM:532784) recorded a 15% growth in total collections from all businesses, reaching INR 1,778 crore for the quarter.
- The company has a clear visibility of future cash flow, expecting a total of INR 24,752 crore from ongoing and forthcoming inventory over the next four to five years.
- Delays in obtaining occupancy certificates (OCs) for five Bangalore projects led to lower margins as revenues and corresponding margins could not be recognized.
- The company's EBITDA margin was reported at 8.1%, with a PAT margin of only 1.5%, indicating pressure on profitability.
- Higher central overheads and advertising expenses were noted this quarter, partly due to IT and insurance-related costs.
- The cost of land and opportunities in the market are fully mature, with a lower margin of safety compared to previous years.
- The company faces challenges in some cities due to external factors, affecting the pace of project launches and business development.
(technical difficulty) in a month after the end of the quarter. Thanks to our operating profit. In our first quarter of this financial year, we achieved the highest ever real estate sales crossing a huge milestone of INR2000 crore for the first time with a total sales value of INR2078.8 crore.
This achievement was driven by a successful launch of Shoba Auram in Greater Noida, our first project in Greater Noida, a project that has garnered exceptional in its launch week towards the end of June. This achievement signifies a major step in deepening our presence in a total sale for the quarter were supported by the sale of 1.44 million square feet across all our operational markets, with an average realization of 14,395 per square feet.
During the quarters, measuring 1.62 million square feet one of them is Sobha Auram and the second one is Marina one, four towers, which constituted about 90 to 20,000 square feet. Cumulatively during the past five quarters, we launched more than 10 million square feet of the area and the quarter was about 11.55 million square feet,
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