Sobha (SOBHA) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 real estate sales value reached INR 1,388 crores, with 72.1% from Bangalore and 90% share from own projects, a record high.

• Nine-month FY25 sales value was INR 4,440 crores, with Bangalore contributing 50%.

• Launched 4.66 mn sq ft across six projects in four cities in 9M FY25; major launch SOBHA Ayana in Bangalore contributed over 50% of Q3 sales value.

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

• 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.

Financial highlights

• Nine-month FY25 operational cash inflow was INR 43.99 billion, up 2% YoY; real estate collections rose 6.3% to INR 39.35 billion.

• CapEx for nine months was INR 1,251 million, up 46.54% YoY, supporting increased construction.

• Net land outflow was INR 6.33 billion, more than double YoY.

• Net cash flow generated was INR 8.06 billion, including rights issue receipts.

• Q3 FY25 net debt stood at INR 4.56 billion; net debt-to-equity ratio at 0.13; average borrowing cost at 8.57–9.44%.

• Nine-month total revenue was INR 28.92 billion; real estate contributed 80.2% (INR 23.19 billion), contract/manufacturing INR 4.79 billion.

• Q3 revenue rose 76% YoY to INR 12.56 billion; EBITDA for nine months was INR 2.94 billion (margin 10.2%).

• PAT for nine months was INR 0.53 billion, up 27.9% YoY.

Outlook and guidance

• Pre-sales target for FY25 was INR 8,500 crores, but management now aims to match last year’s sales due to project launch delays and slower sales in high-ticket projects.

• Launches expected to accelerate in the next year, with strong inventory and new project pipeline of 21.22 mn sq ft over 6–8 quarters.

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

• Total estimated future marginal cashflow from ongoing and forthcoming projects is Rs. 171.13 bn.

• Project-level PBT margin on unrecognized revenue (~INR 15,000 crores) is 28%; consolidated PBT margin expected at 15–18%.