Sobha Ltd Targets 5.2-5.3M Sq Ft FY26 Completion With Q4 Projects Launch Plan

Sobha Ltd has outlined comprehensive growth plans for FY26, combining ambitious completion targets with strategic project launches. The real estate developer expects to complete 5.2-5.3 million square feet in FY26, representing a 16-17% increase from the previous year's 4.54 million square feet completion.

FY26 Completion and Delivery Targets

The company has set specific completion milestones for the current financial year, with Q4 FY26 expected to contribute significantly to the annual target. Sobha Ltd anticipates finishing 1.5-1.7 million square feet in the fourth quarter alone.

Parameter:	Target/Achievement
FY26 Total Completion:	5.2-5.3 million sq ft
Q4 FY26 Completion:	1.5-1.7 million sq ft
Previous Year Completion:	4.54 million sq ft
Growth Rate:	16-17%

Strategic Q4 FY26 Project Launch Initiative

Alongside completion targets, Sobha Ltd has set an ambitious annual sales target of ₹8,500.00 crores for FY26, expecting substantial 35% growth compared to the previous year's performance. The company plans to unveil 3-4 new projects in Q4 FY26 across strategic locations to support these targets.

Location:	Project Size (Sq Ft)
Gurgaon:	800,000
Greater Noida:	2,400,000
Chennai:	1,500,000
Calicut:	800,000
Total Q4 Launches:	5,500,000

Enhanced Market Positioning Strategy

The planned Q4 projects could significantly boost Sobha Ltd's total launch capacity for FY26 to 8.5 million square feet. This substantial increase in project launches aligns with the company's aggressive sales target and reflects its commitment to expanding market presence across multiple tier-1 and tier-2 cities.

Strategic Metrics:	Details
FY26 Sales Target:	₹8,500.00 crores
Expected Sales Growth:	35%
Total FY26 Launch Potential:	8.5 million sq ft
Q4 Project Count:	3-4 new projects

The combination of strong completion targets and strategic project launches positions Sobha Ltd for significant growth in FY26. The diversified geographical spread across key markets demonstrates the company's comprehensive approach to capitalizing on varied regional market dynamics while maintaining steady delivery momentum.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.51%	-3.40%	+2.47%	-8.87%	+16.55%	+241.79%

Sobha Limited delivered mixed Q3 FY26 results, achieving record quarterly sales while experiencing a decline in profitability amid increased operational expenditure. The company posted a quarterly profit after tax (PAT) of ₹15.40 crores, down from ₹21.60 crores in Q3 FY25, marking a 29% year-on-year decline. Revenue fell to ₹943.10 crores from ₹1,224 crores, representing a 23% drop, while EBITDA contracted 42% to ₹38.90 crores.

Record Sales Performance Despite Financial Challenges

Despite the dip in financial metrics, Sobha achieved its highest-ever Q3 sales value of ₹2,115 crores, representing a remarkable 52% year-on-year and 11% quarter-on-quarter growth. The new area sold stood at 1.37 million square feet, up 35% YoY, with an average price realisation of ₹15,436 per square foot.

Financial Metric	Q3 FY26	Q3 FY25	Change (%)
Revenue	₹943.10 Cr	₹1,224 Cr	-23%
PAT	₹15.40 Cr	₹21.60 Cr	-29%
EBITDA	₹38.90 Cr	-	-42%
EBITDA Margin	4.12%	5.51%	-

Sales Performance	Q3 FY26	Q3 FY25	Change (%)
Sales Value	₹2,115 Cr	-	+52%
New Area Sold	1.37 Mn sft	-	+35%
Price Realisation	₹15,436/sft	-	-

Increased Construction Costs and Strategic Land Investments

The company reported increased construction costs and sales expenditure during Q3 FY26 and the first nine months, aligning with the robust sales growth trajectory. Net land payments totaled ₹240 crores in Q3 FY26 and ₹872 crores for the first nine months, signaling the company's commitment to strengthening its growth pipeline through strategic land acquisitions.

Investment Details	Q3 FY26	Nine Months FY26
Net Land Payments	₹240 Cr	₹872 Cr
Construction Costs	Increased	Increased
Sales Expenditure	Increased	Increased

Operational Achievements and Project Completions

The company completed 915 homes during the quarter, contributing to cumulative nine-month deliveries of 2,100 units. Bangalore emerged as the strongest performer, contributing ₹15.12 billion or 71.5% to Q3 FY26 sales value, representing the highest ever quarterly performance for the region. Gurgaon showed impressive growth with sales value increasing by 119.2% over Q2 FY26, supported by the successful launch of SOBHA Strada.

Project Completions Q3 FY26	Location	Units	SBA (sft)
SOBHA Windsor (Wing 6 & 9)	Bangalore	138	262,280
SOBHA Dream Acres (Wing 23 & 24)	Bangalore	237	237,727
SOBHA Manhattan Towers (Wing 4)	Bangalore	138	206,861
SOBHA City (Tower C6)	Gurgaon	96	212,303
SOBHA Arbor (Wing 2 & 4)	Chennai	48	80,367

Management Commentary and Future Growth Strategy

Managing Director Jagadish Nangineni noted that procedural delays in securing Occupancy Certificates (OCs) had temporarily moderated quarterly profitability. However, he expressed confidence in accelerating project completions and sustaining momentum in the coming months. The company launched three significant projects during Q3 FY26 with total saleable area of 931,171 square feet, including SOBHA Strada in Gurgaon, SOBHA Magnus in Bangalore, and SOBHA Inizio in Mumbai.

Strong Development Portfolio and Future Outlook

Sobha's real estate development portfolio spans 89.99 million square feet of total developable area, with 65.26 million square feet completed and 36.82 million square feet under development across 27 cities and 14 states. The company maintains 422 acres of developable land bank with development potential of 42.79 million square feet. The projected marginal cashflow from visible inventory stands at ₹90.64 billion from completed and ongoing projects, with additional ₹73.09 billion from forthcoming projects.