Sobha (SOBHA) Q4 24/25 earnings summary

Executive summary

• Achieved net debt negative status in FY25, celebrating 30 years with industry-leading quality and backward integration.

• Completed INR 2,000 crore rights issue, expanding capital base and enabling entry into Mumbai and Greater Noida markets.

• Achieved record operational cash inflow, robust sales growth, and major launches and completions across key cities.

• Consolidated revenue from operations for FY25 was ₹40,386.93 million, up from ₹30,969.46 million in FY24.

• The Board recommended a final dividend of ₹3 per equity share, totaling ₹320.81 million for FY25.

Financial highlights

• FY25 total income reached INR 4,163 crore, up 29% year-over-year; EBITDA at INR 418 crore; PAT at INR 95 crore (2.3% margin).

• Sales value reached ₹62.77 Bn (4.67 Mn sft), up 22% year-over-year; average price realization at ₹13,412/sft.

• Net operational cashflow at ₹11.74 Bn; net cashflow (including rights issue) at ₹18.93 Bn.

• Gross debt reduced to ₹11.31 Bn; net debt negative at (₹6.30 Bn); debt/equity ratio at (0.14).

• Book equity value as of 31.03.2025 at ₹45.61 Bn.

Outlook and guidance

• Targeting 30-35% sales growth in FY26, aiming to approach or exceed INR 10,000 crore in sales.

• Plans to launch 18.56 million sq ft across 18 projects in nine cities over the next 6-8 quarters, with at least half in FY26.

• Project-level EBITDA margin expected to improve to 33% on unrecognized revenue, with new projects potentially reaching 40%.

• FY26 inventory of 11.44 Mn sft with sales value of ₹177.63 Bn; revenue to be recognized at ₹158.73 Bn.

• Focus on margin protection, operational efficiency, and risk mitigation; major growth targeted from Bangalore, NCR, and Mumbai.