Good evening, everyone. Thank you for joining us on the Sobha Limited Q1 FY '27 results call today.

As always, from the management, we have with us Mr. Jagadish Nangineni, the Managing Director, and Mr.

Yogesh Bansal, the Chief Financial Officer. I would now like to hand over the call to the management for their opening remarks.

Over to you. Thank you.

Thank you, Adhidev. Good evening, everyone, and thank you for joining us on this Q1 FY '27 earnings call.

I thank all the investors, analysts, and stakeholders for taking time to be with us today. Our operational update was earlier shared in the month, and a detailed investor presentation is available on our website.

Today, I'll briefly cover the key business and operational highlights for the quarter, and our CFO, Yogesh Bansal, will walk you through the financial performance in greater detail. I am pleased to share that Q1 FY '27 has been a landmark quarter for us, for Sobha, in terms of sales.

We achieved our highest ever quarterly real estate sales, recording sales value of ₹3,666 crores, representing a 76% increase year-on-year. We sold 2.34 million square feet across 1,432 homes with an average realization of 16-- ₹15,655 per square foot, reflecting the strength of our product portfolio and brand.

Bangalore once again emerged as our strongest market, contributing 57% of the quarterly sales of about ₹2,067 crores, driven by good response to our launches of Sobha One World and Sacred Groves, a plotted development. The NCR region also delivered its highest ever quarterly sales, with a sales value of about ₹1,384 crores, mainly driven by successful launch of Sobha Crescent in Gurgaon, reaffirming our strategy of expanding in high-growth micromarkets.

Together, these launches significantly contributed to our record quarterly performance. In Sobha One World, out of the overall 3,484 homes across 47.4 acres, we released 3.4 million square feet, and out of the released, we could sell about 40% at the launch.

In Sobha Crescent, we sold about 60% in Q1 FY '27. During the quarter, we launched three new projects across Bangalore and Gurgaon, with a combined saleable area of 6.89 million square feet and a potential sales value of about ₹10,000 crores.

These launches further strengthen our development pipeline and provide strong visibility for future growth. Execution continued to remain our core strength.

During the quarter, we completed 677 homes covering 1.08 million square feet across multiple projects. Consistent project delivery remains central to our business model and enables faster revenue recognition while reinforcing customer confidence in the Sobha brand.

We plan to complete 6 to 6.5 million square feet for FY '27 as against last year's completion of about 5.4 million square feet, which can be about 20% higher. Our development portfolio continues to provide strong long-term growth visibility.

We currently have a forthcoming launch pipeline of about 20.77 million square feet across 17 projects. Of this, we are confident of launching nine projects, aggregating approximately 8.2 million square feet during the remaining period of FY '27.

The planned launches comprise four projects in Bangalore, about 3 million square feet; two projects in NCR, about 2 million square feet; one project in Hyderabad, which is about 1.7 million square feet; and two projects in Kerala at about 1.5 million square feet. This pipeline provides us with confidence in sustaining the growth momentum over the medium term.

As of end of Q1 FY '27, we also have 14.94 million square feet of unsold inventory. Both put together, the forthcoming launch pipeline and our current unsold inventory, we have a strong visibility of inventory to be sold in the coming quarters and the years.

We envisage our net debt to be at about zero level for this year. Another important strength of our business continues to be our balance sheet.

We ended the quarter with a net cash position of about ₹669 crores while maintaining a low borrowing cost of about 7.62%. Our operational cash inflow remained quite healthy at ₹1,924 crores despite higher investments in land acquisition and project expansion.

This financial strength gives us flexibility to continue investing in future growth while maintaining a prudent capital allocation strategy. On the financial performance front, we reported a total income of ₹1,330 crores, representing a growth of nearly 48% year-on-year.

The remaining P&L details will be covered by our CFO. Our future earnings visibility continues to be very strong.

As on end of this quarter, the company has ₹20,553 crores of revenue yet to be recognized from the sales that have already been done. We would see margin expansion as we complete the projects that we have sold from FY '23.

Our backward integrated operating model continues to differentiate Sobha in the market. During the quarter, our other businesses generated revenue of about ₹170 crores, and we have a good order book visibility for those businesses.

Our commercial rental has a total income of about ₹20-- ₹23 crores. In the steady-state run rate, we expect in this financial year also to be similar to last financial year in terms of revenue for the other businesses.

Looking ahead, we remain quite optimistic about the new launch pipeline that we have, and we see a good customer demand for our products. We believe the company is well-positioned to sustain this growth momentum and deliver long-term value.

With that, I would like to hand over our call to our CFO, Mr. Yogesh Bansal, who will take you through the financial performance in greater detail.

Good evening, everyone. Q1 FY '27 quarter reflects improved revenue and profitability, healthy operating cash generation, and continued strength in our balance sheet with a net cash position.

Our total operation cash inflow during the quarter increased by 8.2% year-on-year basis to ₹1,924 crores. Real estate collections stood at ₹1,756 crores compared with ₹1,599 crores in Q1 FY '26.

Collections from contractual and manufacturing businesses stood at ₹168 crores. Total net operation cash flow generated ₹312 crores.

During the quarter, project-related expenditure increased in line with increase in construction activity. We also incurred higher sales and marketing expenditure in line with increased sales and new project launches.

The company generated cash flow of ₹290 crores. During the quarter, we invested approximately ₹370 crores in land and approximately ₹70 crores in capex.

The quarter recorded an overall net cash outflow of ₹149 crores. This net cash outflow was primarily attributable to planned investment in land and future development opportunities.

These investments were undertaken while retaining a strong liquidity position and a net cash balance sheet. Coming to P&L front, total income for Q1 FY '27 stood at ₹1,330 crores, representing an increase of approximately 48% year-on-year.

Real estate revenue increased by approximately 60% to ₹1,107 crores compared with ₹691-- ₹694 crores in Q1 FY '26. Revenue from the contractual manufacturing and retail business stood at ₹171 crores compared with ₹162 crores in corresponding quarter of the previous year.

Profit after tax stood at ₹50.7 crores compared with ₹13.5 crore in Q1 FY '26. The improvement in profitability was supported by higher real estate revenue recognition and improved revenue mix and continued financial discipline.

During the quarter, our residential real estate contributed revenue of ₹963 crores from the delivery of 1.24 million square feet comprising 819 homes, reflecting our continued focus on timely project execution and delivery. Our balance sheet continued to be a key source of strength.

As on 30th June 2026, gross debt stood at ₹1,110 crores while cash and cash equivalents stood at ₹1,769 crores. Our net debt ratio stood at negative 0.14, and our average borrowing cost is 7.62%.

Our strong cash position, low leverage, and competitive borrowing cost provide us with the flexibility to fund construction, land acquisition, and pursue growth opportunity without compromising financial discipline. We have projected receivable from sale and unsold value approximately ₹31,000 crores.

Against this, the estimated remaining cost to be incurred is ₹19,000 crores, resulting in projected margin cash flow ₹12,000 crores from completed and ongoing projects. Together, these figures provide substantial visibility for future collection and cash generation and give us additional headroom to invest in future growth.

For FY '27, our financial priority remains focused on maintaining a strong and liquid balance sheet, improve collection and operating cash generation, and discipline in capital allocation. This will remain well-positioned to support sustainable business growth.

Thank you once again for joining us today. With that, we can open the floor for questions.

Yeah. Hi, Jagadish.

Congratulations on the strong presales. Firstly, obviously you have had a strong start to the year, if you could just give us the presales growth or the booking value you're targeting for fiscal '27.

As a follow-up, you mentioned about 8 million square feet of launches for the remaining nine months, if you could give the GDV and also the timelines and the key projects which we should look forward to.

Thank you, Girish. The in the last quarter, to, like end of the financial year, we have guided for at least 30% growth in the presales.

That, I think, we should be able to continue to achieve. If all the launches happen within time, probably we can do slightly better than that.

As of now, I think we we continue to aim for that in terms of presales. Now coming to the exact timing of these remaining project launches of about 8.2 million square feet, like I have to in the opening comments I have given, those most all these about nine projects, we would be able to do it within the next within the next nine months.

Those most of them would be this quarter would be about three projects and which are couple of projects in Kerala, and one plotted development in Bangalore, and probably a small 0.4 million square feet project in Bangalore. Other than that, the remaining projects would be coming in Q3 and Q4.

Got it. That's useful.

Secondly, what we notice also, collections were relatively modest considering the presales. Was this primarily a timing issue because a large part of sales came towards the end of quarter?

Should we expect material improvement from this quarter onwards?

That's right. What you mentioned was right.

One is the collections from new sales have come towards the end of the quarter, and hence there is more collection that would be coming from these new sales, but part of the collections only have come in this Q1. Second is, typically our milestone billing collections this time were relatively lower because some of the milestones we could not achieve due to labor shortage mainly in April and May, and hence corresponding billing could not happen.

Hence, there is a small shortfall there also. Otherwise, in general, things seem to be good in terms of overall cash flow visibility.

Got it. We are on target to do the ₹2,000 crore, I think, which was guided in the past for the year?

₹2,000 crore of operating cash flow?

Yes. Yeah.

Yes. That is on an average for the next few years.

If you take an aggregate level of what is the marginal cash flow, but as we grow, we should be able to touch that number. Yeah.

Lastly, if I may, on the land payments, we have seen around ₹370 crores during the quarter, higher than the normal run rate. If you could explain for fiscal '27 and '28, what are the commitments, and then from a business development point of view, what are you seeing?

Yes, this quarter, in addition to our normal commitments of the existing lands, we have invested in a couple of new lands. One small land, we have bought in Mumbai, and we have invested in a new opportunity in Greater Noida.

Put together, these are the two new ones. Otherwise, the rest are towards commitments of the future forthcoming projects that we have already declared.

Got it. Thank you, and all the very best.

Thank you, Girish.

Thank you so much. My first question is one with respect to your disclosures on the forthcoming project where you talk about potential sales value of 295 billion and versus that the margin that we talk about in slide 15 is 68.3 billion.

This is a lot lower than what you had in the previous presentation at close to 86 billion of margin and a smaller sellable value for forthcoming project. What is the change here?

You are right, Puneet. Good evening.

The main difference for the new forthcoming, a greater mix is towards joint development, and hence you would have seen reduction. Second is, earlier in this marginal cash flow for forthcoming projects, we had Hoskote as one of the main projects which was our own land, and hence the marginal cash flow was much higher.

Okay. The GDV that you state is basically including the land owner share?

Yes, this is a gross value of the entire project.

That's fine. Secondly, while you talked about potential two acquisitions this quarter, one in Mumbai and the other one I missed out?

In Greater Noida.

Have you paid for both of them?

Yes.

Okay. How should one think about full-year allocation of capital towards land?

What is the run rate one should assume? See, we have

we have done last year, we would, from a land payments point of view, we would be roughly similar to land for last year. Going forward, there would be incremental from a last year, we did about ₹1,150 crores, and this year we already did about ₹370, and we have identified a couple of opportunities where I think we can invest in Bangalore and in NCR.

If we if we are able to complete those transactions, then we might get closer towards ₹1,500 to ₹1,600 crores this year.

That's helpful. Lastly, in your nine project launches, does that also include the balance phase of One World or that's separate?

No, that doesn't include balance phases. Like I said, we have taken the entire project of Sobha One World in the new project launches in Q1.

Understood. That's helpful.

Thank you so much, and all the best.

Thank you, Puneet.

Hi, Jagadish. Congratulations on a great quarter on presales.

My first question is, the way we were forecasting this quarter, the first half was a washout because of geopolitical issue. Just wanted to understand what led to this strong demand coming back towards the second half of the quarter both in Gurgaon and Bengaluru?

Also wanted some color on Noida, how the Rivana has done after there were some delays you said the sales could have got pushed off. Just your sense on the demand, what has just surprised this positively, and where do you think the real estate cycle currently is?

Thank you, Parikshit. Like you have seen in Q1, or let's say Q1 of this calendar year, right, we had been preparing for these launches for some time, and hence the time advantage that we had got in terms of preparation is what I believe is what led to a stronger performance in this quarter.

For any new launches, it's not only dependent on the timing of the launch, but also the extent of preparation for that. In that aspect, we were much better prepared, and hence there is a stronger response is what we can see in Q1.

Otherwise, the overall demand scenario seems to be quite stable from what we have seen in terms of the launches, and also what we are witnessing post the launches also. It's been quite steady.

We believe that it is a reasonably good demand scenario. What we would like to see is how the supply is going to come up.

Specific to your question related to Rivana, Rivana has also been quite steady. It's not a project where we have not seen much higher sales through at the launch, but post that during the quarter, it has been quite steady in terms of monthly sales and the quarterly sales.

Okay. The second question is on the ₹1,500 crore you said if the deals could get closed, ₹1,500 crores spends on land may happen this year.

Just wanted a break up of how much will be Bengaluru and how much will be the contribution from NCR and MMR on this, and whether is it right to assume that out of this 1,500, roughly ₹15,000 crores worth of GDV, 10 to 12 to 13,000 crores of GDV addition will happen?

Yes. From a remaining capital allocation, part of that is towards our current commitments for the 20.77 million square feet, that's roughly about another ₹400 crores, and our past commitments, that's about another ₹200 crores.

Those are about 600, plus already we have done about 370. Remaining is about ₹600 crores.

That 600 odd, we should look at the current opportunities that we are pursuing. It's still a little early to disclose that, but it's at a good valuation, and hence we should be able to typically in any new land buy, we see that the value of the land is between about 15 about 15% of the total sale value.

That it would be in the similar range.

This will be largely in NCR, this 600, 700 incremental beyond the existing past commitments which you said? Out of this 6, 700 crores, how will be the geographical break up of this?

It's

majority is in Bangalore, and the remaining is split largely between NCR and little bit portion to Mumbai.

Okay. Just the third question on this Hoskote, how much was the contribution from the Sobha One World out of the total 20 2,000 odd crores of sales?

How much was the contribution? Because the numbers look little lower, the numbers for the other one, was there any spillover you're going to book in Q2 out of this?

Just wanted the total cumulative sales on this and how much has been recognized in Q1.

You have seen about 45% of the overall sale is from One World sales, and the remaining is from both Bangalore and NCR have contributed close to 87%.

Sorry, I didn't hear you. How much?

Bangalore and NCR together have contributed about 87%. You're saying

out of the total 3,600, 45% comes from here, Sobha One World?

Yes.

Is there any pending sales to be recognized because this numbers then looks slightly on the lower side compared to what you have released? It's about 1,600.

Were you able to book the entire sales or there's a pass-over which will happen in Q2 from this which you could not realize in the Q1 numbers?

Yeah. Like I mentioned, we have released about 3.4 million square feet of the total, and within that, we have done about 40% of the sales.

That's about totally 1,800 odd, about 2, 300 crores could be a spillover which may happen in the Q2 quarter? Hello?

Yes, Parikshit.

There was some spillover into Q2, that means. The entire thing was not booked.

Yes. That is a characteristic of any new launch or ongoing operations, there would naturally be some spillovers from interest that are being put in the previous time period.

Sure. Thank you, Jagadish, and wish you all the best.

Thank you, Parikshit.

Hi, Jagadish and team. Congratulations on the great start to FY '27.

First question is on the Mumbai and Greater Noida business development you did in this quarter. Could you give us some details like are these outright projects and how much you paid for this projects, what would be their GDVs, when they are expected to be launched?

The Mumbai project is about 1.3 acres, and we bought the land for about ₹180 crores. The Greater Noida project is a joint development for which we have paid certain dues for the authority and for the land owner.

Both put together, the GDV for this would be about ₹2,700 to ₹3,000 crores.

They would be launched in this financial year?

The Greater Noida one, we are envisaging to launch this financial year. Mumbai one, we would endeavor to do it, but considering the approvals, uncertainty, a clear timeline, there is a lot of work to be done there, and hence, although our endeavor is to launch it this financial year, currently, I have not included that in the projection that I have given in terms of 8.2 million square feet for this remaining nine months.

Second question is on the margin. Last quarter, you mentioned that margin would see revival from the second half of this financial year.

The

margin continues to be low, do you maintain that margin will see uptick in second half of this financial year? What kind of margin do you think we'll see in the second half of financial years, reported margin?

Right. Biplab, you're right.

I still expect the margins to be significantly better in the second half. Sequentially, it should start looking better.

Q2 might be similar or depending on the number of completions that we can do, Q2 might be similar. Q3 and Q4 sequentially should become better as we complete some of our high-margin projects and start handing over.

Our expectation is that by Q4, currently we are at about 9.7% EBITDA, so as we leave the end of Q4, maybe hopefully we should be able to do closer towards 17%

to 20%. That's great.

My third question is on the remainder of the year, you said 8.2 million square feet launches. That translated to how much of GDV?

At the current average of 15,000, it should be about another ₹12,000 crores.

Okay. Thanks, Jagadish, and all the best.

Thank you, Biplab.

Hello.

Hello, Fenil.

Congratulations for the good set of number. I have a two question for you.

First is on this approved NCDs of ₹1,000 crore, when we are planning to issue this NCDs in the next quarter or there is any timeline? If you can throw some light on that, that would be helpful.

Yes. We envisage the usage coming in the next couple of quarters, we would do it in tranches as and when we identify the acquisition opportunity or, let's say, firm up the acquisition opportunity, we would go ahead with the funding of NCDs.

Need not be at one shot, but as and when it's required. At least, I would think that we will break it into at least two tranches.

Got that. I just want to understand the project completion for FY '27, '28.

Which projects are at the finishing stage or we are planning to deliver in next three quarters or next remaining FY '27? If possible, you can give some highlights for FY '28 projects as well.

For FY '27, like I mentioned, we would endeavor to complete about 6 to 6.5 million square feet versus what we have done about 5.4 million square feet last year. There is a list of projects that we would complete as per the timeline of the completions.

We can provide you that list separately, Fenil, if that's okay.

Okay. That's all from my side.

All the best for the next quarter. Thank you.

Thank you, Fenil.

Yeah. Hi, thanks for the opportunity, and congrats on a great start to the year.

Just dwelling some more on launches again. Second phase of Sobha Crescent is planned for next year or this year?

Good evening, Pritesh. Thank you.

Crescent phase two will happen during this financial year, mostly likely in Q3, towards the end of Q3 or beginning of Q4.

Okay. So, 2 million square feet in NCR which you said is basically second phase of Crescent and the Greater Noida project?

Yes.

Bangalore will have the Crystal Meadows now converted into those apartment projects also included in current year's pipeline?

That's right.

Okay. Perfect.

Just on Mumbai, I can't see the latest addition in our forthcoming or subsequent pipeline, or rather there is one acre of Mumbai, but I thought that's the second part of the Parel project. Is that included in the current pipeline or since you're not sure of the timeline, we have not included in the forthcoming subsequent land right now?

Right. The one that you are seeing in the forthcoming pipeline is the second phase of the current project, which is Inizio.

The one that we have just acquired, that we have not yet included. Basis the timeline once it gets firmed up, we would include it subsequently.

Sure. Got it.

Got it. One last again on launches.

I think last time we had a 6 lakh square feet of commercial project in Gurgaon that I don't see currently in the pipeline. Has that plans being shelved for that commercial project now or has anything changed there?

Good observation, Pritesh. That particular project, the endeavor to launch and develop it.

We have, in fact, the entire TDR for it and we can develop the entire project. Currently, we are evaluating an option of launching it, but not actually selling it, but retaining for our rental income.

That we are in a evaluation phase, and hence we have removed it. If we decide to do part of the development as a sale model, we will bring it back.

Sure, perfect. That's pretty helpful.

That's it from my side, and all the best. Thank you.

Thank you, Pritesh.

Good evening, sir. Sir, my question is regarding labor law.

Sir, in Karnataka, recently in May month, there was a hike of 60% in minimum wages. Have you evaluated any impact on cost?

Good evening, Shubham. Yes, there has been, and we are still under the evaluation phase.

Largely, our technician force that we have, that is above the minimum wage. However, it would have a little bit of impact on our overall cost.

That is yet to be assessed, but I think we should be able to absorb it within the budget that we have allocated for the projects.

Okay. Thank you, sir.

Thank you, Shubham.

Thank you, everyone, for participating in today's call. I hope we have answered most of the questions that you had.

In case of any further queries or more details, you can please reach out to us, and wish you the very best. Thank you, and have a good evening.