Sobha Ltd's Unsold Properties at ₹13,000 Cr in Existing Projects, to Launch More Homes for Sale

Realty firm Sobha Ltd has unsold inventories of Rs 13,000 crore in its existing projects and will launch more properties to tap rising housing demand, according to a senior company official.

In a conference call with market analysts, Sobha Ltd MD Jagadish Nangineni said the company had an inventory of 10 million sqft in existing projects at the end of the latest September quarter.

Apart from existing inventories, he said the company has a strong launch pipeline for the second half of this fiscal year and beyond.

"Overall, we have a strong residential pipeline of 15.96 million sq ft across 13 projects in nine cities and commercial pipeline of about 0.74 million sq ft across all our operation cities," Nangineni said.

As per the transcript of the conference call, he told analysts that the company will launch these forthcoming projects in the next 4-6 quarters.

The MD said the company is working on subsequent project plans rapidly for about 24 million sq ft area.

"And in addition to these launches, our existing inventory at the end of the quarter was about 10 million sq ft with potential sales value of Rs 13,000 crore," Nangineni said.

On the sales bookings outlook for the current fiscal year, he said the company is confident of achieving Rs 8,500 crore pre-sales during the 2025-26 fiscal year, a growth of more than 30 per cent over the preceding year.

Sobha Ltd also has Rs 18,000 crore of unrecognised revenue from sales that the company has already done across its projects, the MD said, adding that the company's profit margin would improve going forward.

According to a latest investors' presentation, Sobha Ltd will launch 13 projects across Bengaluru, Mumbai, Delhi-NCR, Pune, Chennai, Calicut, Thrissur, and Trivandrum.

These 13 upcoming projects will have 16 million sq ft of saleable area area with an estimated revenue of nearly Rs 22,000 crore.

It would also launch 2 commercial projects with an area of 0.74 million sq ft, taking the total forthcoming projects pipeline to 15 projects covering 16.7 million sq ft of built-up area.

Recently, Sobha Ltd reported a 61 per cent growth in its sales booking to Rs 1,902.6 crore in the second quarter of this fiscal year from Rs 1,178.5 crore in the year-ago period.

It sold 13.94 lakh sq ft area during the July-September period of this fiscal year at an average price realisation of Rs 13,648 per sq ft.

Sobha Ltd achieved its highest-ever sales bookings during the first six months of this fiscal year at Rs 3,981.4 crore, a growth of 30 per cent over the year-ago period.

Nangineni said the growth in pre-sales or sales bookings reflect the steady demand for luxury residential real estate in a growth economy.

"With a clear pipeline of 16.69 million sq ft of future launches in the next six quarters, strong balance sheet and a stable demand environment, we are well positioned for growth and to capitalise on potential opportunities," Nangineni said.

On Friday, Sobha reported a nearly three times increase in its consolidated net profit to Rs 72.52 crore in the second quarter of this fiscal year on better income.

Its net profit stood at Rs 26.08 crore in the year-ago period.

Total income increased to Rs 1,469.3 crore in the July-September period of this fiscal year from Rs 965.29 crore in the corresponding period of the preceding year.

Bengaluru-based Sobha Ltd, one of the leading real estate firms in the country, had posted a net profit of Rs 94.68 crore on a total income of Rs 4,162.75 crore in the 2024-25 fiscal year.

On the operational front, it sold properties worth Rs 6,276.5 crore during the last fiscal year.

Sobha has so far delivered 148.02 million sq ft of developable area across 27 Indian cities