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Informist, Monday, Oct. 19, 2026

 

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--Sobha: Launched two new projects in Jul-Sept
--CONTEXT: Sobha Ltd management's comments in post-earnings analyst call
--Sobha: Launched five new projects in Apr-Sept
--Sobha: Jul-Sept collections stood at over INR 20 bln
--Sobha: Expect EBITDA margin improvement in Q3, Q4
--Sobha: Expect to launch eight projects worth INR 180 bln in Oct-Mar
--Sobha: Expect EBITDA margin at 20% from FY28 onwards
--Sobha: Expect upcoming new projects to support higher margins
--Sobha: Expect EBITDA margin at over 15% for FY27
 

 

By Ayush Jaiswal and Astha Oriel 

 

MUMBAI/NEW DELHI – Sobha Ltd. is expected to launch eight new projects worth INR 180 billion in the second half of the current financial year ending March, a senior company official said in a post-earnings conference call. This includes three in Bangalore and one each in Hyderabad, Chennai, Gurgaon, Greater Noida, and Thrissur. "So Q3 (Oct-Dec), Q4 (Jan-Mar), in both these quarters together, we should be able to do these launches. And we are fairly in an advanced stage in terms of all approvals for all these projects," a company official said.

 

The company launched two new projects in the September quarter, bringing total project launches in Apr-Sept to five. The September quarter projects include Sobha Boulevard in Mysuru and Sobha Bellevue in Calicut. The company's launch pipeline remains robust at 20.42 million square feet across 18 projects.

 

The company has generated around 70% of its total sales of INR 58 billion from new launches in the first half of 2026-27. "The sales value that we have been achieving in the last few quarters, the majority of the sales are coming through new launches," the company official said. 

 

For Oct-Dec and Jan-Mar, the real estate company expects an improvement in the earnings before interest, tax, depreciation, and amortisation margin, the official said. For Jul-Sept, the company's consolidated EBITDA margin stood at 11.7%. "The EBITDA margin as we move forward, the remaining entire revenue to be recognised is close to INR 22,000 crores (INR 220 billion). It has got excellent EBITDA margins, and we believe we will be able to maintain our costs and we will be able to deliver those margins as we progress forward. So, increasingly you will definitely see an increased margin," the official said. The company expects EBITDA margins above 15% for the remainder of FY27 and above 20% in FY28. 

 

Some of the company's upcoming projects could generate higher margins, according to the official. "Some of the new projects that we could recognise in future are the ones where we have our own land, and there the margins would still be much superior to typical projects that we do, and those would also start contributing much higher," the official said. 

 

The company's margins are currently being weighed down by a few remaining legacy projects, according to the official. The company expects these lower-margin projects to have a much smaller impact over the next two quarters, allowing newer, higher-margin contracts to drive profitability higher. The company expects 50% on-year consolidated net profit growth by the end of FY27. 

 

"So, overall from a P&L (profit and loss) standpoint, we are quite confident considering what we have done in terms of pre-sales, the sales value that we achieved and the pace of development that we are doing and the handover flexibility that we have. So, we believe that it is going to be an uptick from now on," the official said.

 

For the September quarter, the company reported a consolidated net profit of INR 329.59 million on revenues of INR 9.67 billion. The collections for the September quarter stood at over INR 20 billion. 

 

Monday, its shares closed 1% lower at INR 1,176 on the National Stock Exchange. The company reported its September quarter earnings after market hours.  End

 

Edited by Saji George Titus

 

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