SOBHA Q4 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
₹1,241 Cr
verified against source
Revenue YoY
29%
reported change
EBITDA
₹418 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 Limited delivered a strong FY25 with total income of INR 4,163 crore (29% YoY growth) and PAT of INR 95 crore, though EBITDA margin remains compressed at ~10% due to legacy low-margin projects in the contract manufacturing segment. The company completed a INR 2,000 crore rights issue, achieving net debt negative status for the first time with INR 1,761 crore cash against INR 1,131 crore gross debt. FY25 real estate sales reached INR 6,277 crore with average realizations of INR 13,412 per sq ft (up 23% YoY). Management targets 30-35% sales growth in FY26 aiming for five-digit sales (~INR 10,000 crore), underpinned by 18.56 million sq ft pipeline across 18 projects in 9 cities, with ~9 million sq ft targeted for launch. Project-level EBITDA margin on unrecognized revenue of INR 15,873 crore is guided at 33%, rising to ~40% for new sales. Key risks include execution challenges in scaling to INR 10,000 crore sales target across 14 cities, near-term margin drag from low-margin project recognition in FY26, and approval risks for Greater Noida (Q1 FY26) and Mumbai (Q3 FY26) launches.
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Guidance to track
- Management targets at least 30-35% growth over FY25 sales of INR 6,277 crore, with achievement dependent on timely launch execution in Q1-Q2 across 14 cities.
- From 4.54 million sq ft completed in FY25, the company expects to ramp up construction significantly, which will drive revenue recognition acceleration.
- INR 15,873 crore of balance revenue (Sobha's share) from already sold units has embedded project-level EBITDA margin of 33%, rising toward 40% for new sales as low-margin legacy projects phase out.
- 40%+ in NCR (Greater Noida + Gurugram), 15% in Bangalore, 10% in Chennai, 5% in Mumbai; Q1-Q2 launches targeted at 3-3.5 million sq ft (~INR 5,000-6,000 crore value).
Risks flagged
- A few non-Bangalore projects with significant cost overruns will continue to be recognized in FY26, dragging overall margins despite strong project-level economics on newer inventory.
- Greater Noida (Q1 FY26) and Mumbai (Q3 FY26) are new geographies; delays in regulatory approvals or slower-than-expected sales absorption could impact the INR 10,000 crore sales target.
- Analyst flagged ongoing KATA-related delays in Bangalore approvals; while management expects improvement as the system adapts, timing remains uncertain and could impact launch pipeline.
- A significant portion of Gurugram demand historically came from investors; management acknowledged short-term investors may pull back in a stabilizing price environment, potentially impacting sales velocity despite end-user demand remaining steady.
Key quotes
- For the first time in history, we are right now net debt negative. Our average borrowing costs have also started to come down. It was 9.12% in Q4.
- In this financial year alone, which is FY 2026, if everything works well, we will be able to launch at least half of this pipeline. In a more optimistic scenario, we can cross the double digit in terms of million sq ft launches.
- We fundamentally believe that Gurugram has very good potential. We have established a good reputation. We have a good operational presence there. We will continue to invest there, and we are putting our best effort to make sure that scales up from an overall medium to long-term point of view also.
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