Signatureglobal vs Sobha Q4 FY26

Signatureglobal reported a strong FY26 with PAT surging to ₹1,100 crore aided by an exceptional item from the RMZ JV. Revenue from operations stood at ₹2,600 crore with gross margins of 30%. Pre-sales reached ₹8,250 crore (down YoY but up 30% CAGR over 4 years) and net debt reduced to near zero at ₹200 crore. The company guided for FY27 with launches of ₹15,000 crore GDV, targeting pre-sales of ₹10,000 crore and revenue recognition of ₹5,000 crore. Key drivers include three group housing launches in Sector 71, including a branded residence tie-up with Tonino Lamborghini. The RMZ commercial JV (5.5 msf) is expected to activate this year with a capex of ₹3,500-4,000 crore over 4-5 years. Risk: Macro headwinds could dampen demand absorption, though management remains confident of 40% sell-through at launch.

Guidance read

FY27 pre-sales target of ₹10,000 crore: Management expects to achieve pre-sales of ₹10,000 crore in FY27, driven by new launches and sustaining sales. FY27 revenue recognition target of ₹5,000 crore: Revenue recognition guided at ₹5,000 crore for FY27, implying completions of ₹6,000-6,500 crore. FY27 collection target of ₹5,000 crore: Collections are expected to cross ₹5,000 crore in FY27, supported by steady construction progress. RMZ JV capex of ₹3,500-4,000 crore over 4-5 years: The 5.5 msf commercial project will require total capex of ₹3,500-4,000 crore, funded equally by both partners.

Risk read

Key risks include Macro headwinds impacting demand — Global economic uncertainties could dampen housing demand, though management expects 40% sell-through at launch.; Construction delays due to regulatory hurdles — Excessive rains and NGT restrictions caused slippage in FY26 completions; similar issues could recur.; Lower-than-expected absorption in new launches — Analyst questioned if 40% sell-through is achievable; management expressed confidence but macro risks remain.; JV execution risk with RMZ — The commercial JV is a new asset class for Signatureglobal; execution and leasing success are unproven..

Promise ledger

Of 2 tracked promises, management 0 met, 0 close, 2 missed.

SO

Sobha

Q4 FY26 · Diversified

Sobha reported record full-year pre-sales of ₹8,136 crore, up ~30% YoY, driven by strong performance in Bangalore (₹4,500 crore) and NCR (₹2,450 crore). Q4 revenue recognition improved to ₹2,300 crore aided by delayed occupancy certificates, with EBITDA of ₹194 crore and PAT of ₹92 crore. The company ended the year net cash positive with gross debt of ₹2,200 crore and cash of ₹1,800 crore. Management guided for similar ~30% pre-sales growth in FY27, targeting launches of ~10 million sq ft (GDV ~₹15,000 crore), including the large Hoskote project (5.3 msf, GDV ₹7,000 crore). EBITDA margins are expected to improve to 24-26% in H2 FY27 as higher-margin projects complete. Key risk: input cost inflation from geopolitical tensions could pressure margins if not offset by price increases.

Guidance read

Pre-sales growth of ~30% in FY27: Management expects similar growth rate as FY26, with 45-50% from sustenance and 50-55% from new launches. Launch ~10 million sq ft in FY27: Planned launches include Hoskote phase 1 (5.3 msf), Gurgaon Crescent, and projects in Kerala, Bangalore, Pune, Chennai. EBITDA margin improvement to 24-26% in H2 FY27: Higher-margin projects nearing completion will drive margin expansion in Q3/Q4 FY27. Net operating cash flow target of ₹2,000 Cr in FY27: Aiming to generate ₹2,000 crore from operations, up from ₹1,637 crore in FY26.

Risk read

Key risks include Input cost inflation from geopolitical tensions — Commodity price increases may impact margins; management is in wait-and-watch mode and may not fully pass on costs.; Demand slowdown due to AI/IT sector concerns — Analyst raised concern about IT client mix in Bangalore; management noted steady demand but acknowledged uncertainty.; Delays in project approvals and launches — FY26 launches were delayed; FY27 target of 10 msf depends on timely approvals, especially for Hoskote.; Geopolitical uncertainty impacting NCR demand — Rivana launch in March faced uncertain environment; sustained sales momentum needs monitoring..

Promise ledger

Scorecard data is being built as historical quarters are processed.