Sobha Ltd

- SOBHA Limited ended FY '26 with gross debt of INR1,002 crores and cash equivalents of INR1,800 crores, resulting in a negative net debt position of INR800 crores, indicating strong liquidity and no immediate need for fundraising. - The company focuses on funding construction and land investments through operating cash flow and aims to improve earnings quality via lower finance costs. - No explicit mention of planned new debt or equity fundraising was made during the call. - Business development plans will be funded through cash flow generated from operations. - The company remains disciplined in capital allocation, prioritizing strengthening the balance sheet, improving cash flow, and maintaining speedy execution. - Overall, current strategy suggests no immediate plans for fresh debt or equity raising, relying instead on strong cash reserves and operating cash flow for upcoming launches and investments.

- Business development spend in FY ‘27 is expected to be similar to FY ‘26, around INR1,100-1,200 crores. - Continuous addition of new projects to maintain a pipeline of 16-20 million sq ft at any time. - Active pursuit of new land parcels/projects especially in Hyderabad, Mumbai, Noida, and Greater Noida. - Focus on land acquisitions funded by strong cash flows from operations. - Rental portfolio development is under consideration, with about 2 to 2.5 million sq ft of commercial space under evaluation in Hoskote and Gurgaon to be developed in coming years. - No immediate new rental projects are being developed, but significant increase in rental portfolio is planned once the strategy is finalized. - Emphasis remains on residential launches and improving profitability while assessing rental and commercial development opportunities.

- SOBHA Limited achieved a 30% growth in sales in FY '26 and expects a similar 30% growth in FY '27. - Plans to launch approximately 10 million square feet in FY '27 with an estimated GDV of around INR 15,000 crores. - The sales contribution is expected to be roughly 45-50% from sustenance sales and 50-55% from new launches. - The launch pipeline includes significant projects such as Phase 1 of Hoskote (~5.3 million sq ft; INR 7,000 crores GDV) and Gurgaon (already launched Phase 1). - Total launch pipeline across regions like Bangalore, Gurgaon, Hyderabad, Thrissur, and Pune is about 20.67 million square feet over 6-8 quarters. - Revenue recognition visibility is strong with INR 18,647 crores unrecognized revenue from sales till March 2026; expected EBITDA margin improving to 24-26% in near-term projects. - Growth driven more by volume increase rather than price increases; prices stable over last 3-4 quarters.

- SOBHA Limited expects a 30% growth in presales for FY ‘27, similar to FY ‘26 growth. - Revenue recognition and margins are expected to improve significantly in FY ‘27, with EBITDA margins likely to range between 24% to 26% on near-completion projects. - Higher profitability will become visible as remaining revenues start recognizing, especially in Q3 and Q4 of FY ‘27. - The company anticipates sustained long-term value creation supported by strong operating momentum and high visibility across P&L and cash flow. - Projected net operating cash flow for FY ‘27 is close to INR 2,000 crores. - Focus remains on building a strong foundation with speedy execution and disciplined financial posture. - Management is confident about continued good performance and improving profitability in the coming years.

- The company aims for an orderbook/sales sustenance of about INR 1,000 crores per quarter. - Expected total for the current quarter is at least INR 3,000 crores-plus, as indicated in the discussion with Jagadish Nangineni. - There is a strong pipeline of real estate launches totaling approximately 20.67 million square feet over the next 6 to 8 quarters. - Of this, about 10 million square feet is expected to be launched in FY '27 itself, with a GDV around INR 15,000 crores. - Existing released and unreleased inventory is valued around INR 1,200-1,300 crores. - Combining new launches and existing inventory, the expected total GDV (orderbook) is approximately INR 27,000-28,000 crores. - Orderbook visibility is strong with good sales momentum across projects and regions.