SOBHA Q1 FY25 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹640 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹85.4 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Sobha delivered a strong operational quarter with Q1 FY25 sales of ₹1,874 crores (+28% YoY, +24.6% QoQ), the second-highest ever, despite revenue recognition headwinds from delayed OCs. Total collections hit an all-time high of ₹1,546 crores with net operating cash flow of ₹327 crores (+68% YoY). The NCR region surpassed Bangalore, contributing ₹852 crores (45.5% of sales) for the first time, aided by new premium launches. Gross debt stood at ~₹2,000 crores with net debt equity at 0.47x post-rights issue completion. The company raised ₹2,000 crores via rights issue (1.39x subscribed), providing capital for new market expansion. Management guided for FY25 sales target of at least ₹8,500 crores with 9 million sq ft of launches planned. EBITDA margins at 12.7% reflect legacy project cost overruns; management expects recovery to 30%+ project-level margins as higher-margin recent sales get recognized. Key risks include moderate sales velocity for high-ticket premium projects and delayed revenue recognition timing.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated its sales target of at least ₹8,500 crore for FY25, driven by diverse inventory across locations and strong upcoming launch pipeline.
- Company targets 9 million sq ft of launches for the full year, with 3 million already launched in Q1 and remaining 6 million planned for Q2-Q4. Upside potential exists based on execution confidence.
- Project-level EBITDA margins expected to exceed 30% from sales executed in FY23-25. Current 12.7% margin reflects legacy cost overruns and fixed cost absorption; recovery should begin from Q2 with steady improvement into FY26.
- Post ₹2,000 crore rights issue completion, net debt expected to reduce to ~₹300 crore from current ~₹1,200 crore, providing firepower for new market entry and land acquisition.
Risks flagged
- OC delays affected Q1 revenue recognition; management acknowledged revenue will be 'larger in a lagged manner' for remainder of FY25 despite expecting significant OCs post-Q1.
- Recent launches are in high-ticket size category (>INR 5 crores), leading management to expect 'moderate' sales velocity for these units, potentially impacting quarterly sales run-rate.
- Analyst directly questioned EBITDA margin trajectory for FY25-26; management provided only qualitative guidance ('steady improvement') without specific quarterly margin targets despite direct questioning.
- Mumbai expansion described as 'baby steps' and 'learning mode'; timelines for pre-sales remain unclear with management saying 'by next call or so' they'll be clearer. Greater Noida entry also in early stages with ~0.65-0.7M sq ft development potential.
Key quotes
- We have sold a total of 562 units this quarter and achieved a quarterly sales of INR 1,874 crores, registering a year-on-year growth of 28% and quarter-on-quarter growth of 24.6%.
- Our gross margins should be EBITDA margins at project level should be more than 30%. So, they would recover as we recognize these revenues in the coming years.
- It's very difficult to comment about the timelines immediately, but probably by the next call or so, we'll be more clear in terms of how we would like to progress from here.
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