SOBHA Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹943 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹78 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
SOBHA reported record Q3 performance with real estate sales of INR 2,115 crores, the highest ever quarterly sales, driven by strong demand in Bangalore (INR 1,500+ crores) and the successful launch of SOBHA Magnus in Bannerghatta Road which sold 80% in launch quarter. However, P&L metrics showed pressure: revenue recognition fell to INR 983 crores due to delayed OCs on three projects (INR 500 crores deferred to Q4), with EBITDA margin at 7.9% versus the 30% project-level margin on unrecognized revenue of INR 18,600 crores. The company guided for Q4 margin recovery as completions accelerate, with project-level margins expected to expand from 12% currently to 18-19% for near-term completions and 34% for those beyond 15 months. Cash generation remained robust with 34% YoY operational cash inflow growth. Management targets INR 8,500 crores annual sales (35% growth) contingent on Q4 launches including a 2.4 million sq ft Greater Noida project. Risk includes softening Gurgaon demand flagged by analysts and timing risk on INR 1,000 crores pending land payments against 422 acres of pipeline.
Colored figures show movement against the previous available record.
Guidance to track
- Targeting 35% YoY growth, partially dependent on Q4 launches (planned 8.5 million sq ft cumulative for FY26 vs 2.58 million sq ft in 9M).
- Gurgaon (800k sq ft), Greater Noida (2.4 million sq ft), Chennai (1.5 million sq ft), Calicut (800k sq ft) — all in advanced RERA approval stages targeting mid-March launches.
- 5.4 million sq ft project on 48 acres in Bangalore, with ~30% of inventory planned for initial launch phase. First phase visibility within first quarter of next financial year.
- Q4 should see significant improvement due to deferred revenue recognition. Near-term margins (12-15 months) expected at 18-19%, improving to 34% for projects completing beyond 15 months as completions ramp up.
Risks flagged
- Analyst questioned peer reports of demand slowdown in Gurgaon. Management acknowledged reduction in short-term investor demand but maintained end-user demand remains robust. Volume may not match peak years with fully sold-out launches.
- Q3 revenue impacted by OC delays on three projects causing INR 500 crores deferral. While termed 'procedural delays,' this pattern creates earnings volatility and margin uncertainty in near-term quarters.
- Civil contracts business to decline by INR 150-175 crores from next FY as company is not undertaking new projects in this segment, creating headwind to overall revenue growth.
- First two quarters of next year expected to remain 'tight' due to increased sales and marketing expenditure for new launches, offsetting some volume growth benefits.
Key quotes
- The overall demand scenario in the operating markets that we are present, Bangalore seems to be steady in nature, and Gurgaon, while there are pockets of concern, the sweet spot of between four to six crores is still a good market for Gurgaon.
- The Q4 sales performance is partly dependent on these launches, and if they come through in time, we should be able to surpass our annual plan of 35% increase over last year at about INR 8,500 crores.
- We have unrecognized revenue from sold units of approximately INR 18,600 crores as of date. As we ramp up our project completion and recognize more revenue, we expect the profitability margin to improve.
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