Sobha (SOBHA) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue rose 76.1% year-over-year to INR 12.57 billion, with Bangalore contributing 72.1% of real estate sales and major launches like SOBHA Ayana driving over 50% of Q3 sales value.

• Nine-month FY25 sales value totaled INR 44.41 billion, with 50% from Bangalore and 25% from Gurgaon; handovers increased 42.3% to 2,130 units.

• Launch pipeline includes 21 million sq ft residential and 1.19 million sq ft commercial across 10 cities, with expansion into Greater Noida, Hosur, and Mumbai planned.

• Standalone and consolidated unaudited financial results for the quarter and nine months ended 31 December 2024 were reviewed and approved, with auditors issuing unmodified review reports.

• Completed 3.43 million sq ft (2,097 homes) in 9M FY25, a 27.1% increase year-over-year.

Financial highlights

• Nine-month FY25 total revenue was INR 28.92 billion, with real estate contributing over 80% and contract/manufacturing about 16%.

• Q3 FY25 EBITDA margin declined to 8.0% from 14.4% in Q3 FY24; PAT margin at 1.7%.

• Net debt at Q3 FY25 was INR 4.56 billion, with a net debt-to-equity ratio of 0.13 and average borrowing cost between 8.57% and 9.44%.

• Operational cash inflow for nine months was INR 43.99 billion, up 2% year-on-year; CapEx increased 46.54% to INR 1,251 million.

• Standalone and consolidated Q3 FY25 net profit were INR 275.45 million and INR 216.85 million, respectively.

Outlook and guidance

• Management aims to match or slightly exceed last year's pre-sales, with margin improvement expected from Q4 as one-time losses subside and more high-margin real estate revenue is recognized.

• Revenue to be recognized from already sold units as of 31.12.2024 stands at INR 153.61 billion.

• Project-level PBT margin on unrecognized revenue is about 28%, with consolidated PBT margin expected in the 15–18% range after overheads.

• Launches are expected to accelerate in FY26, with strong inventory and new city additions supporting growth.

• Total estimated future marginal cashflow from ongoing and forthcoming projects is INR 171.13 billion.