Sobha Holds Rs. 13,000 Crore Unsold Inventory, Plans Fresh Launches

Real estate major Sobha Ltd is gearing up for a big expansion. The company currently holds unsold housing inventory worth around Rs. 13,000 crore but plans to roll out several new residential and commercial projects to meet the rising demand for quality homes across India.

In a conference call with market analysts, Managing Director Jagadish Nangineni said the company had an inventory of about 10 million square feet in its ongoing projects at the end of the September 2025 quarter. Despite the large unsold stock, Sobha remains bullish about future demand and is preparing a major pipeline of new launches for the coming quarters.

According to Nangineni, Sobha will launch projects covering a total of 15.96 million square feet of residential space across 13 projects in nine cities, along with about 0.74 million square feet of commercial development. These launches are expected to take place over the next four to six quarters.

“We are working rapidly on subsequent project plans covering nearly 24 million square feet,” Nangineni said during the call. “In addition to these launches, our existing inventory at the end of the quarter stood at around 10 million square feet, with a potential sales value of Rs. 13,000 crore.”

The company is confident that the strong housing market and robust buyer sentiment will help drive record sales. Sobha aims to achieve pre-sales of Rs 8,500 crore during the 2025–26 fiscal year, marking a growth of more than 30 percent compared to the previous year.

Nangineni also highlighted that the company has Rs 18,000 crore of unrecognised revenue from sales already booked across its projects. This means Sobha has secured revenue that will be recognised in future quarters as projects reach completion. “Our profit margins are expected to improve as these projects progress and new launches come on stream,” he added.

13 New Projects Across Major Cities

Sobha’s latest investor presentation outlines a strong expansion plan. The company will launch 13 new residential projects across Bengaluru, Mumbai, Delhi-NCR, Pune, Chennai, Calicut, Thrissur, and Trivandrum. Together, these projects will have a saleable area of about 16 million square feet, with an estimated potential revenue of nearly Rs. 22,000 crore.

In addition to the residential developments, Sobha also plans to launch two new commercial projects covering around 0.74 million square feet. This takes the total forthcoming pipeline to 15 projects spanning approximately 16.7 million square feet of built-up area.

Record-Breaking Sales Performance

Sobha Ltd’s recent performance reflects strong momentum in India’s housing sector, especially in the premium and luxury segments. In the second quarter of the current fiscal year, the company reported a 61 percent jump in sales bookings, rising to Rs. 1,902.6 crore from Rs. 1,178.5 crore a year earlier.

During the July–September period, Sobha sold 13.94 lakh square feet of space at an average price of Rs. 13,648 per square foot, one of its best quarters to date. The company also achieved its highest-ever sales bookings in the first six months of the year, touching Rs 3,981.4 crore, a 30 percent increase from the same period last year.

Nangineni attributed this performance to the growing appetite for premium homes and the overall economic recovery. “The consistent growth in pre-sales reflects steady demand for luxury residential real estate in a growth-oriented economy,” he said.

Profits Nearly Triple

Sobha’s financial performance also mirrors this strong operational growth. The company’s consolidated net profit for the July–September quarter surged nearly three times to Rs. 72.52 crore, compared to Rs. 26.08 crore in the same period last year.

Total income during the quarter rose to Rs. 1,469.3 crore, up from Rs. 965.29 crore in the corresponding period of the previous fiscal year. Nangineni said the company’s financial stability, combined with its strong project pipeline, positions it well for sustained growth in the coming years.

“With a clear pipeline of 16.69 million square feet of future launches over the next six quarters, a strong balance sheet, and a stable demand environment, we are well positioned for growth and ready to capitalise on potential opportunities,” he said.

Strong Track Record

Headquartered in Bengaluru, Sobha Ltd is one of India’s leading real estate developers. The company reported a net profit of Rs. 94.68 crore on a total income of Rs. 4,162.75 crore in the 2024–25 fiscal year. On the operational front, it sold properties worth Rs. 6,276.5 crore during the last financial year.

Over the years, Sobha has built a strong reputation for delivering high-quality projects. It has completed over 148 million square feet of developable area across 27 Indian cities, with a growing focus on luxury and mixed-use developments.