Sobha Ltd logo.
Credit: X/@SobhaLtd
Bengaluru: Luxury homebuilder Sobha Limited reported its highest-ever quarterly collections at Rs 2,046 crore in the July-September quarter, driven by strong sustained demand for luxury real estate in a growth economy with improving macroeconomic parameters and timely government interventions.
"In Q2 alone, we have achieved sales of Rs 1,902 crore, consisting of 770 homes with Bengaluru contributing 70% of the sales despite any new significant project launch," Jagadish Nangineni, Managing Director, Sobha Ltd, said during the analysts’ call.
Sales for the first half rose 30% to Rs 3,981 crore. Bengaluru contributed 48%, NCR 38%, and 10% from Kerala region of the overall sales. Its total sales for the year were supported by the sale of 1,576 homes, 2.84 million square feet across all operational markets with an average price realisation of Rs 14,028 per sq ft.
"The slower first half launches were impacted due to several external and internal issues, and we are making our best efforts to catch up in the second half and launch at least 8 million to 9 million square feet for the entire financial year across 7 to 8 projects,” Nangineni said .
Overall, the company has a strong residential pipeline of 15.96 million square feet across 13 projects in 9 cities and a commercial pipeline of about 0.74 million square feet across all operation cities, he said.
“We envisage to launch these forthcoming projects in the next 4 to 6 quarters. Also, we are working on our subsequent project plans rapidly for about 24 million square feet. And in addition to these launches, our existing inventory at the end of the quarter was about 10 million square feet with a potential sales value of Rs 13,000 crore,” Nangineni added.
For H1, Sobha collected Rs 3,824 crore, recording a healthy 30.9% growth over H1 ’25. Real estate business contributed 90.2% to overall collection, that is Rs 1,846 crore in Q2 and Rs 3,445 crore during H1 period, said Yogesh Bansal, Chief Financial Officer, Sobha Limited.
“Contracts and manufacturing businesses contributed Rs 200 crore in Q2 and Rs 380 crore in H1. We generated Rs 513 crore of net operational cash flow in the quarter for the half year, and it was Rs 909 crore, registering a significant growth of 79.1%, allowing us more room for investing in future growth,” he said.
Sobha has a clear visibility of future cash flow expected from the ongoing and forthcoming inventory. From all completed and ongoing projects, they expect a total of Rs 22,867 crore of future inflow. The cost to complete this project is estimated at Rs 13,000 crore, thereby generating marginal cash flow potential of close to Rs 9,800 crore at project level post sales and marketing spend, the CFO said.
“Additionally, we expect to generate Rs 7,100 crore of marginal cash flow from forthcoming projects of 16.69 million square feet, which shall be launched over the next 6 quarters and the cash flow realized over a 5- to 6-year timeframe,” Bansal added.