SOBHA Q3 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
₹1,224 Cr
verified against source
Revenue YoY
76%
reported change
EBITDA
Pending
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Sobha reported Q3 FY25 real estate sales value of INR 1,388 crores with 9M FY25 sales at INR 4,440 crores, falling significantly short of the INR 8,500 crore full-year guidance. The company attributes this to slower sales velocity in higher-ticket projects and delayed launches, particularly Town Park (RERA received post-quarter). Q3 total revenue surged 76% YoY to INR 1,256 crores. 28% project-level PBT margin on INR 15,000 crore unrecognized revenue provides long-term visibility. Margin pressure this quarter stemmed from one-time losses in de-scoped civil and glazing contracts, which management expects to resolve by Q4. Sobha's share of sales reached 90% (highest ever), driven by Bangalore projects. New launches of 4.66M sq ft across 4 cities have been executed with 9M sq ft annual target maintained. Expansion to 15 cities planned for FY26 including Greater Noida, Hosur, and Mumbai. Risks include sales velocity challenges in premium projects and execution risk on new market entries.
Colored figures show movement against the previous available record.
Guidance to track
- Management acknowledged inability to achieve INR 8,500 crore guidance; now targets reaching last year's sales value with potential upside from new Bangalore launches.
- One-time contractual losses from de-scoped projects are largely complete. Margins expected to improve from Q4 FY25 with full shift to higher-margin real estate recognition.
- Company maintains full-year launch target of 9M sq ft across 6 projects in 4 cities. Town Park (3.67M sq ft) received RERA post quarter-end.
- On INR 15,000 crore unrecognized revenue, CFO stated consolidated PBT (after corporate overhead and interest) will be in 15-18% range by FY30.
Risks flagged
- Analyst Himanshu Upadhyay questioned whether higher ticket sizes (INR 14,000/sq ft realization) and slower sales pace in large-ticket projects could impact project-level IRRs. Management acknowledged the issue but expects new launches to address this.
- Despite INR 8,500 crore guidance, 9M sales target appears unachievable. Parikshit Kandpal from HDFC Securities challenged management on whether launch assumptions were realistic, noting that actual opened-for-sale area is much lower than announced project sizes.
- Management disclosed Mumbai project is 'very early stages of approval process' with visibility expected in 3-4 months. Location details withheld from investors. Geographic expansion execution remains uncertain.
- MD explicitly stated that lower-margin projects recognized in joint development agreements combined with cost increases in real estate projects led to margin compression, not just contractual business losses.
Key quotes
- We are currently aiming at reaching at least what we have done last financial year in terms of pre-sales, and if we can do that, that would be a good outcome for us.
- It's a combination of both the real estate cost increases and lower margin projects that we have recognized in the joint development projects, and combined with even the contractual losses, all of them put together has led to this.
- In this, Kunal, if we add corporate overhead plus interest plus depreciation, it will be removed. So will the PBT level be between the range of 15% to 18% in FY 2030 going forward?
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