Sobha Ltd's unsold properties at Rs 13K cr in existing projects, to launch more homes

Realty firm Sobha Ltd has unsold inventories of Rs13,000 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 Rs13,000 crore," Nangineni said. On the sales bookings outlook for the current fiscal year, he said the company is confident of achieving Rs8,500 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 Rs18,000 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 Rs22,000 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 Rs1,902.6 crore in the second quarter of this fiscal year from Rs1,178.5 crore in the year-ago period.