INDUSTRY STRUCTURE AND DEVELOPMENT
Global Economy
In 2025, global economic activity displayed resilience despite high tariffs, elevated policy uncertainty and geopolitical tensions as the overall impact of tariff measures turned out to be less severe than initially anticipated. US trade deals with major partners provided relief, but the US
Supreme Courts tariff announcements in February, have rekindled uncertainty.
The resilience of the global economy, already with trade tensions, is being tested by the
Asia. The near halt in tanker movements through the Strait of Hormuz has intensified pressures in the global supply chains. The durability and intensity of the conflict pose substantial uncertainty to the global growth prospects amidst broader supply chain disruptions and elevated energy prices. In its January 2026 World Economic Outlook update, the International Monetary Fund (IMF) revised up its global growth projection for 2026 by 20 bps to 3.3 per cent, mainly reflecting stronger AI-related investment and fiscal spending. It kept its 2027 projection unchanged at 3.2 per cent. After the outbreak of the conflict, the OECD presented a more cautious picture. In its March economic outlook, it retained its growth forecast at 2.9 per cent for 2026 as the adverse effects of the West Asia conflict are expected to be offset by strong momentum in tech related investment and supportive fiscal and monetary policies. However, it marginally lowered its 2027 projection by 10 bps to 3.0 per cent. (RBI Monetary policy report April, 2026)
Indian Economy
The Indian economy continues to hold its ground despite facing a major supply shock due to the conflict in West Asia
In March, available high-frequency indicators of economic activity displayed divergent trends: demand conditions remained resilient, despite some pockets of slowdown in economic momentum. RBIs forward looking surveys pointed towards softening consumer confidence on the current situation and moderation in business optimism along with buildup of cost pressures.
The Monetary Policy Committee (MPC), in its bi-monthly review of April 2026, unanimously voted to keep the policy repo rate unchanged at 5.25 per cent. The MPC also decided to continue with the neutral stance, retaining the flexibility to respond judiciously to incoming information.
The decision was guided by the strong fundamentals of the Indian economy, which provided it with a greater resilience to withstand external shocks.
Indias macroeconomic performance in FY 2025 26 was characterised by three concurrent positives that are directly relevant to the residential real estate sector: sustained GDP growth, meaningfully lower inflation, and a supportive monetaryruling,andsubsequentnew tariff policy cycle. Together, they created the most favourable purchasing environment for housing in several inflicted years in West.
GDP Growth
According to the First Advance Estimates released by the Ministry of Statistics and Programme Implementation
(MoSPI), Indias real GDP is projected to grow at 7.4% in FY 2025 26, up from 6.5% in FY 2024 25. Nominal GDP is expected to reach 357.14 lakh crore, registering 8% growth. In the updated GDP series with base year 2022–23, the Second Advance Estimates further revised real growth to 7.6% for FY26, reflecting the economys sustained expansion and Indias structural momentum toward the Viksit Bharat vision.
Private Final Consumption Expenditure, the largest component of GDP at roughly 60% of total, is estimated to grow at 7.0%, supported by steady rural recovery, urban wage expansion, and the income tax relief announced in Union Budget 2025-26. Gross Fixed Capital Formation, which encompasses investment in construction, infrastructure, and machinery, is projected to expand by 7.8%, up from 7.1% in FY25, signalling that both public infrastructure spending and private capital formation are gaining momentum simultaneously.
The services sector is estimated to grow at 9.1% in FY26, up from 7.2% in FY25. Its share in GVA has reached a historic high of 56.4%, and its share of GDP rose to 53.6% in H1 FY26.
The manufacturing sector also recorded strong GVA growth reflecting a structural recovery in industrial activity. The construction sector is estimated to grow at 7.5% at constant prices in FY26, reflecting the direct contribution of real estate and infrastructure activity to national output.
Government infrastructure spending remains elevated, with construction sector GVA growth of 7.5% in FY26 reflecting continued investment in roads, metros, and urban infrastructure across cities.
Inflation and Purchasing Power
CPI headline inflation averaged 2.7% in Q1 FY26 and fell to 1.7% in Q2 FY26, the lowest since the current CPI series began, anchored by declining food prices and moderate core inflation. Full-year CPI inflation for FY26 is projected at 3.7% by the RBIs June 2025 policy, well within the 2–6% tolerance tion touched a near eight-year low of infla band. Retail 1.54% in September 2025. Subdued inflation preserves real household purchasing power and reduces construction input cost pressures of materials, labour, and logistics.
Monetary Policy and Home Loan Rates
The Reserve Bank of India (RBI) has played a pivotal role in maintaining a conducive environment for long-term investments like housing.
The Reserve Bank of India conducted four rate cuts over the course of FY 2025 26, reducing the policy repo rate by a cumulative 100 basis points — from 6.25% at the start of the al year to 5.25% by December 2025. The monetary policy fisc stance was shifted to ‘neutral in subsequent meetings, with the February 2026 policy maintaining the repo rate at 5.25% while signalling that the easing cycle remains data-dependent.
Home loan rates, benchmarked to the External Benchmark Lending Rate which is directly linked to the repo rate, have fallen materially across lenders. Total home loan originations in the first three quarters of FY26 amounted to 8.3 trillion across 2.6 million new loans, according to CRIF High Mark data.
| Indicator | Value / Trend |
| Real GDP Growth | 7.6% |
| Construction GVA Growth | 7.2% |
| Retail Inflation (CPI) | 3.48% (March ‘26) |
| RBI Repo Rate | 5.25% (Unchanged) |
Indian Real Estate Overview
The Indian real estate sector continues to be a pivotal driver of economic growth, urban transformation, and infrastructure development. Contributing approximately
7 7.5% to Indias GDP, the sector is expected to significantly enhance its economic footprint, with projections indicating a rise to around 13–15% by the end of the decade. The industry is on a strong long-term trajectory, with its market size expected to reach US$ 1 trillion by 2030 and expand further to US$ 5.8 trillion by 2047.
Over the past few years, the sector has transitioned from a cyclical, sentiment-driven industry to a more formalised and institutionalisedassetclass.RegulatoryreformssuchasRERA,
GST implementation, and the rise of REITs have significantly enhanced transparency, governance standards, and investor participation. This shift credible long-term investment avenue, both for domestic and global capital.
The sector spans multiple asset classes, including residential, commercial, retail, hospitality, and industrial real estate, each contributing to a broad-based ecosystem that supports employment generation and demand across allied industries such as cement, steel, banking, and logistics. Rapid urbanisation, favourable demographics, and increasing household incomes continue to underpin sustained demand for real estate across both ownership and rental markets.
Regulatory and Policy development
The National Real Estate Policy 2025 introduced a unified single-window clearance system for real estate project approvals, designed to reduce project timeline delays by up to 40% and eliminate the multi-ministry friction that has historically lengthened the gap between project inception and launch. The policy also provides tax incentives for green-certified developments, aligning the policy direction with broader sustainability goals.
The Union Budget 2025-26 revised income tax slabs, increasing disposable income for salaried buyers. The SWAMIH Special Window Fund targets completion of approximately 1,600 stalled projects across India, releasing pent-up buyer demand that has been locked in delayed projects. The Registration Bill 2025 aims to digitise and centralise land and property records, enabling Aadhaar-based online registration and simplifying cross-border property transactions for NRI buyers.
COMMERCIAL REAL ESTATE
FY 2026
Office Market Overview
Indias office real estate market delivered its strongest-ever performance in calendar year 2025, fundamentally reshaping the countrys standing in global commercial real estate. According to JLL, gross leasing activity across the top seven cities reached 83.3 million sq. ft., a 7.8% increase over the prior peak year. Vestian placed overall pan-India absorption at 78.2 million sq. ft., an 11% YoY rise. Across all estimates, the direction is unambiguous: Indias office market outperformed every prior record.
Global Capability Centres
(GCCs) - The Defining Force has repositioned real estate as a
GCCs emerged as the single most dominant driver of Indias office market, accounting for 37 45% of total absorption in
2025, with absolute GCC-led leasing reaching 31–35 million sq. ft., the highest annual figure ever recorded for this segment. Nearly 200 new GCCs entered India over the past two years, and GCCs now represent approximately 50% of all active office space requirements in the market.
Critically, GCCs are no longer back-office utilities, they are evolving into centres of product development, artificial intelligence, data engineering, and risk management. This evolution translates into demand for larger, higher-quality campuses with long-term lease commitments. Indias deep talent pool, cost competitiveness, and regulatory environment continue to attract both established multinationals deepening their India footprint and new country entrants.
Flex & Co-Working — The New Occupancy Backbone
The flexible workspace segment continued its rapid expansion. Domestic flex operators leased approximately 18 million sq. ft. in 2025, their best performance on record, while flex space contributed 26.6% of Q4 2025 leasing, the highest quarterly share ever. The co-working segment in the top seven cities grew 48% year-on-year in H1 2025 alone. This demand is driven by enterprises seeking agile, scalable, and cost-optimised office solutions amid hybrid work models.
| Office Market Metric | 2025 |
| Gross Leasing (JLL) | 83.3 million sq. ft. (all-time high, +7.8% YoY) |
| Net Absorption (Cushman & Wakefield) | 61 million sq. ft. (+25% YoY) |
| Pan-India Vacancy Rate | 10.8% (5-year low, down 310 bps) |
| GCC Share of Absorption | 37 45% of total; 31 35 mn sq. ft. (record) |
| New GCCs Entering | 200 new GCCs |
| India (2 years) | |
| Q1 CY2026 Leasing | 29.9 million sq. ft. (all-time quarterly high) |
estian V Source: CBRE,Cushman&Wakefield,
Residential Real Estate Overview FY 2026
Residential real estate in FY26 maintained steady momentum across major metros: Mumbai, Delhi-NCR,
Bangalore, and Hyderabad, with demand shiftingdecisively towards higher-ticket homes. According to Knight Frank India, homes priced above 1 crore accounted for 50% of total residential sales across the top eight cities in 2025, up from 44% a year earlier. Data further estimates that this premium share reached approximately 62% of total sales value, underscoring shifttowards structuralpreference quality, space, and lifestyle-centric living.
According to the Reserve Bank of Indias House Price Index, residential prices rose 3.58% year-on-year in Q3 FY2025 26, with city-level growth notably stronger, particularly in NCR, Bangalore, and Hyderabad. The average ticket size across the top seven cities increased from 1.05 crore in FY25 to approximately 1.20 crore in FY26, a 15% rise, driven by buyers upgrading to larger formats, premium amenities, and branded developer offerings.
Mortgage penetration deepened during the year: the RBIs repo rate cut to 5.25% in December 2025 brought average home loan rates to approximately 8.10%, stimulating demand from first-time buyers and upgrade seekers alike. A total of 2.6 million new loans amounting to 8.3 trillion were granted in the first three quarters of FY2025 26, reflecting continued lender confidence.
Premiumisation & Luxury Segment
The premium and ultra-luxury segments defined FY26s residential story. Around 40–45% of new housing launches in H1 FY26 were in the luxury and ultra-luxury categories (typically 1.5 crore and above), compared to 36% a year earlier. Buyers, increasingly HNIs, NRIs, and senior professionals, are seeking not just homes but holistic lifestyle ecosystems integrating wellness, green spaces, and curated community living.
NRI demand provided an additional tailwind, supported by favourable exchange rates, post-RERA regulatory transparency, and improved digital platforms enabling remote investment. Cities such as Bangalore, Chennai, and Gurgaon continued to attract NRI capital, particularly in the villa and branded residences segments. Developers launched 47 villa projects totalling approximately 8,200 units during 2024–25, primarily on large land parcels of 50 acres and above.
| Metric | FY25 | FY26 | Change |
| Housing Sales Value (Top 7 Cities) | 5.5L Cr | 6.65L Cr | + 20% YoY |
| Homes >1 Cr as % of Sales (Volume) | 44% | 50% | +6 ppts |
| Avg. Ticket Size (Top 7 Cities) | 1.05 Cr | 1.20 Cr | +15% |
| Luxury Share of New Supply | 36% | 42–45% | Structural shift |
| All-India House Price Index Growth (Q3 FY26) | — | +3.58% YoY | RBI Provisional |
Source: CBRE–ASSOCHAM, Knight Frank India
Operational Performance of the Company
FY ‘26 has been an exceptional year for the company.
The Companys real estate sales reached an all-time high of 81,359 million, with strong and consistent average quarterly run rate of approximately 20,000 million. The
Company has achieved an average price realization of
14,675 per square feet compared to 13,412 previous year, which is reflecting a growth of around 9.4%. Bangalore recorded its highest ever annual sales of about 45,000 million, with both new launches and sustenance sales also doing well during the year. NCR region delivered the highest ever annual sales of about
24,500 million with our expansion into Greater Noida.
Both Bangalore and NCR together contributed about 85% of our sales. Kerala region maintained steady momentum with about 8,000 million and other regions contributing about 4,000 million. Presence of SOBHA in Mumbai has been one of the remarkable aspects during the financial year. In terms of project launches, the Company launched about 6.04 million square feet during FY ‘26. Some of the planned launches were delayed due to multiple factors, both external and internal.
Ournon-realestatebusinesses,whichincludemanufacturing, contracting and retail have continued to perform steadily.
These businesses also play a critical role in strengthening our backward integrated model and ensuring consistent delivery of world-class quality. Overall, the Company has Completed total developable area of 9.04 Million Square feet amounting to 6.54 Million square feet saleable area in 2025-26. In Real Estate the Company completed 7.74 million square feet of developable area translating to 5.40 million square feet of saleable built-up area comprising of 3,118 homes across 9 cities and in DM projects 0.50 million square feet of developable area translating to 0.34 million square feet of saleable built-up area comprising of 265 Units in Bangalore was completed in the financial year 2025-26.
In contractual the Company delivered 0.80 million square feet of project in Bangalore and Sonepat. The Company launched 9 new projects across 6 cities with total saleable area of 6.04 Million square feet and as on 31st March 2026 SOBHA has 38.71 Million Square Feet of developable area under construction (saleable built-up area of 27.65 Million
Square feet)
Since inception, SOBHA has developed a cumulative 152.69 million square feet in real estate and contractual verticals — spanning over 30 cities across India. As on March 31, 2026, the Company has total ongoing real estate developable area of
38.71 million square feet (27.65 million square feet saleable) spread across 11 cities, in addition to 3.23 million square feet of ongoing contractual projects.
| Cumulative project completion (Developable area in Mn. Sft) | |||||
| Details | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
| Cumulative | 121.60 | 128.00 | 136.25 | 143.65 | 152.69 |
| Real Estate | 4.07 | 5.78 | 6.76 | 7.21 | 8.25 |
| Contracts | 3.71 | 0.62 | 1.49 | 0.19 | 0.80 |
Region wise completed and ongoing projects
| City/Region | Ongoing Projects | SBA (Mn Completed Projects FY 2025-26 |
| Residential real estate | ||
| Bangalore | 13.18 | 3.72 |
| Gurgaon | 3.92 | 0.71 |
| Greater Noida | 3.27 | - |
| Kochi | 2.87 | 0.36 |
| GIFT City | 1.57 | - |
| Thrissur | 1.14 | 0.24 |
| Hyderabad | 0.65 | - |
| Trivandrum | 0.58 | 0.10 |
| Pune | 0.28 | 0.14 |
| Mumbai | 0.15 | - |
| Chennai | 0.04 | 0.44 |
| Calicut | - | 0.03 |
| Contractual | ||
| Bangalore | 3.23 | 0.80 |
Marketing Initiatives FY 2025-26
FY 2025 - 26 was a landmark year for SOBHA Across all verticals - Digital & MarTech, Brand & Communication, and Pre-Sales. The Company has demonstrated measurable growth, accelerated its adoption of artificial intelligence, and laid a strong operational foundation for national expansion. The pages that follow present a department-wise account of our performance, key milestones, and the strategic initiatives that will define FY 2026 27.
Digital & Martech
Driving Demand at Scale Through Data and Technology
AI-Powered Content at Scale
The integration of ChatGPT into the content workflow enabled the team to scale blog publishing to over 50 articles per month, contributing to the cumulative total of 684 blogs published during the year. This content volume has materially strengthened organic search visibility, with monthly organic traffic reaching approximately 1.8 lakh sessions.
AI-Driven Creative Production
Google Gemini was deployed for the generation of both static and video creatives, leveraging Nano Banana Pro and Veo 3 capabilities. The Leonardo tool was used to enhance output quality from Nano Banana, while the Topaz AI tool was used to upscale the resolution of video assets — enabling production-quality outputs at significantly reduced cost and turnaround time.
Brand & Communication
Entering New Markets. Elevating an Enduring Brand.
The Brand & Communication team is responsible for articulating SOBHAs brand promise across markets, campaigns, and channels. FY 2025 26 was a year of significant entries, major project launches, the establishment of in-house video production capabilities, and the accelerated adoption of AI-powered creative tools.
New Market Entries
This financial year marked SOBHAs entry into two new markets — Mumbai and Greater Noida. Both markets received bespoke brand campaigns, purpose-built for their respective audiences and project offerings. The Mumbai campaign, anchored on the proposition ‘Mumbai, Meet Perfection, introduced SOBHAs signature language of quality and discernment to a new buyer segment.
Tactical & Festive Campaigns
Eighteen tactical and festive campaigns were rolled out over the course of the year, each designed to drive short-term lead generation and conversion while reinforcing brand equity. These campaigns played a meaningful role in opportunity generation across all active markets.
In-House Video Production Capability
A dedicated Video Team was constituted during the year, comprising an in-house cinematographer, video editor, motion graphics specialist, and VFX and CGI professionals. This team now handles Ad Films, live-event coverage, corporate films, and audio-visual presentations significantly reducing dependence on external agencies and enabling faster, higher-quality content turnaround.
AI Adoption in Creative Workflows
AI technologies were integrated systematically into the creative process, enabling a higher volume of digital assets at improved quality and reduced production timelines. Tools such as Google Gemini, Nano Banana Pro, and
Veo 3 were adopted for static and video creative generation, complementing the teams in-house production capabilities.
Martech: AI at the Core
Building an Intelligent Marketing Infrastructure
SOBHAs MarTech strategy in FY 2025 26 was defined by a deliberate shift from tool adoption to AI integration - embedding intelligence across the marketing funnel, from content creation and campaign management to quality monitoring and lead nurturing.
AI Integration Across the Marketing Funnel
The breadth of AI deployment in FY 2025 26 represents a structural upgrade to how the Marketing Division operates:
| Funnel Stage | AI Tool / Initiative | Impact |
| Content & creative ambition | Chat GPT for SEO marked by blog writing new market | Scaled monthly output to 50+ articles; 684 blogs published in FY26 |
| Creative Production | Google Gemini, Veo 3, Nano Banana Pro | Faster, higher-volume static and video creative output |
| Video Quality | Topaz AI, Leonardo | Production- quality resolution enhancement at reduced cost |
| Automation & Engagement | WebEngage, AiSensy | Personalised WhatsApp and multi- a channel journey automation |
| ORM & Brand Monitoring | Brandwatch | Real-time sentiment tracking and online reputation management |
| Pre-Sales Quality | Ozonetel Conversational AI | Real-time call scoring, language insights, quality monitoring |
Pre-Sales
More Output. Leaner Operations. Smarter Conversations. Key Milestone: Ozonetel Conversational AI Implementation
A pivotal milestone in FY 2025 26 was the deployment of the
Ozonetel Conversational AI platform across the Pre-Sales function. This tool has transformed the teams ability to monitor, measure, and improve call quality at scale.
Channel Partner Relations
Building a Partner Ecosystem That Performs and Feels Valued.
Scaling a partner network built on trust:
Implementation of SOBHA Prosper app that recorded 3,354 downloads across Bangalore, Mumbai, and Ahmedabad, becoming the primary digital interface for partner engagement.
Average commission payout timelines were cut from 60–90 days to 30 working days.
SOBHAs channel partner network grew from 674 registered partners to 4,359 across Bangalore, Gurgaon, Mumbai, and Ahmedabad, formalised through the introduction of a digital MOU across all four cities.
Engagement quality improved sharply year-on-year - actively transacting partners grew by 300% in Ahmedabad, 81% in Gurgaon, and 46% in Bangalore, while performing CPs in Bangalore more than doubled.
The Chairmans Elite Partner Club was launched for the top contributing partners nationally, and over 1,300
Preferred Channel Partner certificates were distributed to recognise consistent contributors across all four cities.
Performance in key markets
1. Bangalore
Bangalore is often hailed as Indias Silicon Valley. With its robust economic foundations driven by a booming IT sector, world-class startups and a diverse workforce, the city attracts professionals from across the globe. This influx has fuelled a vibrant residential property market in Bangalore, where demand for quality homes remains consistently high. Residential property in Bangalore is place to live, its about embracing notjustaboutfinding a lifestyle that blends urban convenience with green spaces and modern amenities. Financial year 2025-26 marked a pivotal point in Bangalores residential market, characterized not just by continued growth, but also by key structural shifts.
Bangalore remained SOBHAs flagship market and the single largest revenue contributor at 55.0% of total sales value. Three new projects were launched during the year aggregating 1.09 million square feet of saleable area, further strengthening the Companys dominant presence in the citys premium and luxury residential segment.
SOBHA Lifestyle Grande – Boutique luxury villa project, North Bangalore (near International Airport). 2.12 acres; 45,279 sft saleable area.
SOBHA Magnus – Luxury high-rise, South Bangalore. 5.78 acres; 5,89,150 sft saleable area; 294 homes in 3/4 BR (1,250 2,578 sft).
SOBHA Altair – Luxury project, East Bangalore (adjacent to SOBHA Royal Pavilion). 3.31 acres; 4,56,598 sft saleable area; 207 homes in 3/4 BR (1,507 2,571 sft).
Ongoing projects in Bangalore aggregate 18.70 million square feet of total developable area and 13.18 million square feet of saleable area across 18 projects (including DM projects).
| Project | Type | Developable Area (in Million square feet) | Saleable Area (in Million square feet) |
| 1 SOBHA Neopolis | Apartment | 4.65 | 3.44 |
| 2 SOBHA Hamptons | Apartment | 3.01 | 2.09 |
| 3 SOBHA Madison Heights | Apartment | 2.28 | 1.58 |
| 4 SOBHA Ayana | Apartment | 1.45 | 1.13 |
| 5 SOBHA Brooklyn Towers– Town Park | Apartment | 1.44 | 1.01 |
| 6 SOBHA Royal Crest | Apartment | 0.93 | 0.65 |
| 7 SOBHA Magnus | Apartment | 0.86 | 0.59 |
| 8 SOBHA Infinia | Apartment | 0.70 | 0.48 |
| 9 SOBHA Altair | Apartment | 0.67 | 0.46 |
| 10 SOBHA Manhattan Towers | Apartment | 0.49 | 0.44 |
| 11 SOBHA Oakshire | Row Houses | 0.38 | 0.28 |
| 12 SOBHA Victoria Park | Apartment | 0.36 | 0.22 |
| 13 SOBHA Dream Gardens | Apartment | 0.20 | 0.12 |
| 14 SOBHA Lifestyle Legacy (Ph 2) | Villas | 0.13 | 0.07 |
| 15 SOBHA Insignia | Apartment | 0.12 | 0.08 |
| 16 SOBHA Galera | Villas | 0.01 | 0.01 |
| 17 Chartered Birdsong (DM) | Plotted Development | 0.86 | 0.44 |
| 18 Sterling Infinia (DM) | Apartment | 0.16 | 0.11 |
| TOTAL | 18.70 | 13.18 |
2. NCR (Gurgaon and Greater Noida)
The National Capital Region (NCR) is the fourth-largest residential real estate market among the top seven cities in India. Following three consecutive years of elevated residential launches and sales between 2022 and 2024, NCRs housing market saw a measured moderation in 2025. Much of the earlier postpandemic surge had been driven by pentup demand, which encouraged an aggressive launch pipeline and corresponding sales. The market now appears to be transitioning into a more stable phase, with demand-supply dynamics normalizing as investor activity moderates and genuine endusers take precedence.
NCR contributed 30.2% of total sales value of the Company in FY 2025-26. During the year, SOBHA significantly expanded its NCR footprint by entering
Greater Noida with two residential project launches, while also launching a new service apartment in Gurgaon.
SOBHA Aurum (Greater Noida) – Sector 36,
Greater Noida. 3.46 acres; 7,01,051 sft saleable area; 420 homes in 1/2/3/4 BR (739 2,306 sft). Launched June 2025.
SOBHA Rivana (Greater Noida) – Sector 1,
Greater Noida. 11.72 acres; 25,72,523 sft saleable area; 1,364 homes in 2/3/4 BR (1,374 2,716 sft). Launched March 2026.
SOBHA Strada (Gurgaon) – Sector 106, Gurgaon.
2.03 acres; 3,23,403 sft total development (Serviced Apartments + Retail); SOBHA saleable area 2,14,060 sft; 222 studio apartments (857 926 sft). Launched November 2025.
NCR has 7 ongoing projects aggregating 9.69 million square feet of total developable area and 7.19 million square feet of saleable area.
| Project | Location | Type | Developable Area (in Million square feet) | Saleable Area (in Million square feet) |
| 1 SOBHA Aranya | Gurgaon | Apartment | 2.65 | 1.93 |
| 2 SOBHA Altus | Gurgaon | Apartment | 1.16 | 0.81 |
| 3 SOBHA City – Gurgaon | Gurgaon | Apartment | 1.14 | 0.79 |
| 4 SOBHA Strada | Gurgaon | Service Apt./Retail | 0.48 | 0.32 |
| 5 SOBHA International City Ph 1 & 2 | Gurgaon | Villas | 0.10 | 0.07 |
| 6 SOBHA Rivana | Greater Noida | Apartment | 3.23 | 2.57 |
| 7 SOBHA Aurum | Greater Noida | Apartment | 0.93 | 0.70 |
| TOTAL | 9.69 | 7.19 |
3. Kerala (Kochi, Thrissur, Trivandrum)
Kerala, known for its scenic beauty, high literacy rate and quality of life, continues to attract attention in the real estate sector in 2025. Whether its urban buyers in Kochi, nature lovers seeking land in Wayanad or NRIs investing in holiday homes, Keralas real estate market remains dynamic and diverse. After a period of cautious recovery post-COVID-19 and global inflationary pressures, Keralas real estate sector is showing stable and consistent growth in 2025. Unlike volatile metros, Kerala has maintained moderate price increases, making it a relatively safe investment.
Kerala contributed 9.9% to overall sales value of the
Company in FY 2025-26. The Company operates across three cities in Kerala. Two new projects were launched during the year.
Marina One (Kochi) – Launched the remaining four towers comprising 9,20,593 sft saleable area; 362 homes in 2/3/4 BR (2,006 3,061 sft).
SOBHA Woods Whispering Hills (Trivandrum) – Third in the Whispering Hills series. 2.51 acres; 2,52,255 sft saleable area; 110 homes in 3/4 BR (1,811 2,787 sft).
Kerala has 6 ongoing projects aggregating 6.88 million square feet of total developable area and 4.59 million square feet of saleable area.
| Project | Location | Type | Developable Area (in Million square feet) | Saleable Area (in Million square feet) |
| 1 Marina One | Kochi | Apartment | 3.07 | 1.98 |
| 2 SOBHA Atlantis | Kochi | Apartment | 1.34 | 0.89 |
| 3 SOBHA Metropolis | Thrissur | Apartment | 1.63 | 1.14 |
| 4 SOBHA Woods Whispering Hills | Trivandrum | Apartment | 0.40 | 0.25 |
| 5 SOBHA Ridge Whispering Hills | Trivandrum | Apartment | 0.34 | 0.23 |
| 6 SOBHA Meadows Whispering Hills | Trivandrum | Apartment | 0.11 | 0.10 |
| TOTAL | 6.88 | 4.59 |
4. GIFT City
Ahmedabad continues to be perceived as one of the most affordable residential markets within the top eight cities, a distinction supported by sustained and strategic urban planning initiatives. Since 2006, the citys municipal area has increased from 186 sq km to nearly 500 sq km, allowing infrastructure expansion to align more effectively with demographic growth and alleviating congestion in the established urban core. The Company has established a presence in Gujarat
International Finance Tech-City (GIFT City) with two ongoing projects - SOBHA Avalon and SOBHA Elysia. Together, these developments aggregate 2.03 million square feet of developable area and 1.57 million square feet of saleable area.
SOBHA Avalon comprises 0.42 million square feet of developable area and 0.32 million square feet of saleable area, and
SOBHA Elysia accounts for 1.61 million square feet of developable area and 1.25 million square feet of saleable area.
5. Tamil Nadu (Chennai)
The Chennai residential market delivered a strong performance in 2025 with annual housing sales reflecting a 12% YoY increase. This robust full-year outcome underscores sustained end-user demand, supported by stable pricing, improving affordability in select segments, and continued buyer confidence across the citys key residential corridors.
In Chennai, the Company maintains a focused presence through its ongoing project, SOBHA Arbor, with a total developable and saleable area of 0.04 million square feet.
6. Mumbai
Mumbai Metropolitan Region (MMR) is the largest residential real estate market among the top seven cities in India, accounting for 24-25% of the area sold and 31-33% of the sales value in FY2024 and 9M FY2025 . Mumbais residential market maintained steady momentum in the year 2025, reflecting the markets ability to hold demand levels despite rising prices and a higher base set over the past two year.
The Company marked its entry into the Mumbai market with the launch of SOBHA Inizio, a luxury residential development located in the Sewri–Parel micro-market.
The project is being developed on 1.03 acres of land, with Phase I comprising a total development area of 147,578 square feet, of which 128,961 square feet is saleable area. The development offers 134 homes across 1, 2, and 3 BHK configurations, with unit sizes ranging from 498 to
1,225 square feet.
7 Hyderabad
The Hyderabad residential market recorded a stable and demand-led performance in 2025, supported by steady end-user confidence and continued price appreciation. Annual housing sales registering a 4% YoY increase, reinforcing Hyderabads position as a structurally strong residential market underpinned by employment growth, infrastructure expansion, and lifestyle-driven demand. Demand remained largely end-user driven, supported by income stability and improving financing conditions.
The Companys presence in Hyderabad is anchored by SOBHA Waterfront, a luxury residential development with a developable area of 0.81 million square feet and a saleable area of 0.65 million square feet.
8. Pune
Pune is one of Indias top-selling residential markets, with high demand fueled by IT/ITeS,. In Pune, the
Company has one ongoing project, SOBHA Nesara, aggregating 0.38 million square feet of developable area and 0.28 million square feet of saleable area.
Financial performance of the company
SOBHA recorded a total sales value of 81,359 million in
FY 2026, with a new sales area of 5.54 million square feet and an average price of 14,675 per square foot. Bangalore contributed 55.0% and NCR 30.2% to the overall sales value. Kerala reported steady sales from provided inventory, contributing 9.9%, while Tamil Nadu and Other Region contributed 4.9% to the overall sales value. Expanding footprint in NCR with entry of Greater Noida with SOBHA Aurum and in Mumbai with SOBHA Inizio during the year.
FY ‘26 was characterized by strong operating execution and disciplined capital allocation. The Company delivered record sales while strengthening liquidity and reducing leverage, ending the year in a net debt negative position. Our focus has been to accelerate collection, fund the construction and land investment through operating cash flow and improve the quality of earnings through lower finance cost. During the full year, total collection was
77,985 million, recording a healthy 26.1% growth over last financialyear. In real estate collections stood at
70,668 million, Contractual and manufacturing contributed 7,317 million during full financialyear. At net operating cash flow level, the Company generated
16,367 million in full year, registering growth of 39.4% over FY ‘25. As on 31st March 2026, gross debt stood at
10,023 million, while cash and cash equivalents was 18,020 million, maintaining a net cash position.
During FY ‘26 total revenue was 53,838 million. Revenue recognition strengthened during the last quarter, aided by clearance for completion certificate for multiple projects. EBITDA for FY ‘26 was 5,033 million. PAT for
FY ‘26 was recorded 1934 million. The cash balance provides resilience through cycles and enable us to fund launches, construction moment and land investments. A combination of strong collection, lower cost of funds and a net debt negative position strengthen our ability to execute our development pipeline with a disciplined financial posture
| Particulars | FY-26 | FY-25 |
| Real Estate Revenue | 44,197 | 33,782 |
| Contractual & Manufacturing Revenue | 7,708 | 6,605 |
| Other Income | 1,933 | 1,241 |
| Total Income | 53,838 | 41,628 |
| less: Total Expenditure | 48,805 | 37,444 |
| EBITDA | 5,033 | 4,184 |
| EBITDA Margin (%) | 9.30% |
10.10% |
| less: Depreciation | 1,060 | 898 |
| less: Finance Expenses | 1,374 | 1,956 |
| Profit Before Tax | 2,599 | 1,330 |
| PBT Margin (%) | 4.80% |
3.20% |
| less: Tax Expenses | 665 | 383 |
| Profit After Tax | 1,934 | 947 |
| PAT Margin (%) | 3.60% |
2.30% |
| Profit after OCI | 1,908 | 924 |
Segmentwise Performance
REAL ESTATE
Following is the performance of the Real Estate Vertical:
| Particulars | 2025-26 | 2024-25 | 2023-24 | 2022-23 | 2021-22 |
| Revenue – Real Estate | 44,197 | 33,782 | 24,138 | 25,238 | 18,437 |
| Share of total Revenue (%) | 82.09% | 81.15% | 75.01% | 74.18% | 69.70% |
a. R esidential Real Estate
Residential real estate operations of the Company are currently spread across 11 cities with developable area of 38.72 Million Square feet under construction.
b. Commercial Real Estate
In addition to residential projects, company developed two commercial malls,
1. Sobha City Mall at Thrissur has a total leasable area of 0.32 million square feet out of which our share of leasable area is 0.28 million square feet. It commenced its operations from December 2015.
2. One Sobha Mall in Bangalore has a total leasable area of 0.23 million square feet of which our share of leasable area being 0.16 million square feet
| Particulars | 2025-26 | 2024-25 | 2023-24 | 2022-23 | 2021-22 |
| Rental Income from Operating Losses | 651.49 | 623.86 | 618.27 | 478.24 | 395.82 |
c. Contractual:
Following is the performance of the Contracts Vertical:
| Particulars | 2025-26 | 2024-25 | 2023-24 | 2022-23 | 2021-22 |
| Revenue – Contractual | 3,716 | 3,150 | 3,088 | 3,622 | 4,633 |
| Share of total Revenue (%) | 6.90% | 7.56% | 9.60% | 10.65% | 19.09% |
During the year 2025-26, revenue from this vertical contributed around 7% to the Companys turnover. The contracts vertical has been executing orders ranging from civil structures, finishes,MEP works, metal and glazing works and interior furnishings for various reputed clients. Total ongoing contractual orders under execution is 3.23 million Square Feet.
d. Manufacturing & Retail Sales
Following is the performance of the Manufacturing and Retail Sales Vertical:
in Million
| Sales | 2025-26 | 2024-25 | 2023-24 | 2022-23 | 2021-22 |
| Glazing and Metal Works | 1,893 | 1,575 | 1,724 | 2,626 | 1,208 |
| Interiors | 868 | 787 | 984 | 831 | 738 |
| Concrete Products | 980 | 914 | 843 | 649 | 520 |
| Retail Sales | 251 | 178 | 192 | 134 | 77 |
| Total | 3,992 | 3,454 | 3,743 | 4,240 | 2,543 |
| Share of Revenue (%) | 7.41% | 8.30% | 11.63% | 9.61% | 9.61% |
SOBHA has pioneered complete vertical integration in Real Estate industry in India. It is the only Company with own manufacturing facilities to cater to building materials. Company has the infrastructure, capabilities, skills and resources to deliver a project from conceptualisation to completion with all in-house teams, backed by this unique strength. This gives the company an absolute control over the product quality and execution timelines to meet requisite standards. Construction materials manufactured in our own facility help us to ensure that the products are superior in quality and the Company has a minimal dependence on external suppliers. We believe this model has been one of the most important factors for our successful execution track record without compromising on the quality.
Our manufacturing divisions comprises of Glazing and Metal Works, Interiors and Furnishing Works and Concrete Works, which supplements our core business of real estate and contracting. Each of these manufacturing divisions is also a profitcentre by itself and is efficiently servicing 3 rd party clients as well.
Under retail sales division, Company manufactures wide range of mattresses and also provide one-stop solution for home buyers, allowing them the flexibility to furnish and decorate their homes through a wide range of interior packages available online and at our retail stores under metercube sub-brand.
Glazing and Metal Works
The Company owns one of the largest Glazing and Metal factories in India operated in Bangalore. The facility is spread across 7.91 acres of land with a 9,288.33 sq. m.
(99,943 sq. ft.) state of the art manufacturing unit. The factory is equipped with advanced machineries like
CNC profile cutting machine, TIG welding machines,
ACP routing machine, Milling machines etc. Apart from Bangalore unit, the Company has established Glazing and Metal Works Divisions in Kancheepuram (Tamil Nadu) and Sonepat (Haryana). The Products manufactured in the said facilities include aluminum doors, windows, structural glazing, MS and SS metal fabrications, aluminum composite panel, SS cladding, architectural metal works and pre-engineered buildings.
| Products | Installed ca- pacity (2025) | Production (2025) | Installed ca- pacity (2026) | Production (2026) |
| Unitized curtain wall (square meters) | 153,500 | 40,100 | 1,78,200 | 90,222 |
| Semi-unitized curtain wall (square meters) | 21,000 | 6,500 | 40,000 | 17,037 |
| M. Streel (meters) | 12,000 | 5,450 | 3,500 | 1,230 |
| S. Steel (meters) | 100 | 50 | 156 | 110 |
| Windows and Doors (square meters) | 68,000 | 76,400 | 98,000 | 90,909 |
| Solid Sheet Cladding (square meters) | 40,000 | 23,000 | 40,000 | 22,555 |
| Aluminum Fins (rmt) | 6,000 | 2,000 | 9,000 | 12,010 |
| Aluminum Louvers (square meters) | 21,000 | 83,500 | 15,000 | 33,333 |
Interiors
The interior and furnishing division of the Company is one of the largest wood working /joinery facilities in India. The division has two highly mechanized factories with total floor area of 2,55,000
Bommasandra, Bangalore. The division is equipped with imported machineries from Spain, Italy, and Germany. The Company has Interiors Division in Alwar also. The product range includes large scale corporate and residential interiors, solid wood veneer paneled doors and MDF paneled doors, customized joinery works like
. located at paneling, partitions, tables, loose furniture like chairs, sofas, Cots and modular kitchens etc.
| Products | Installed capacity (2025) | Production (2025) | Installed capacity (2026) | Production (2026) |
| Doors (number of units) | 67,200 | 31,859 | 67,200 | 40,023 |
| Furniture(3) (number of units) | 26,000 | 6,002 | 26,000 | 7,509 |
Concrete Products
The Company has a fully automated concrete product division which uses remote controlling systems. The manufacturing facility in Bangalore spread over 32,374.56 sq. m. (8 acres) manufactures concrete products of international quality. The unit has the imported technologies from Germany (Masa Plant) and England.
In addition, the Company has opened concrete products divisions in Gurgaon and Pune and newly added its unit in Hosur. The units are manufacturing ready-to-use products, including concrete blocks, pavers, kerb stones, water drainage channels, paving slabs, and related landscape. The facility has a production capacity of 28,000 nos of
Blocks/ day or 20 million nos of Landscaping products.
| Products | Installed capacity (2025) | Production (2025) | Installed capacity (2026) | Production (2026) |
| Blocks (number of units) | 9,855,000 | 6,469,237 | 9,855,000 | 50,33,140 |
| Pavers (square feet) | 4,726,750 | 4,703,248 | 4,726,750 | 44,61,945 |
| Kerb (number of units) | 1,022,000 | 796,518 | 1,189,000 | 9,10,417 |
Retail Sales
We manufacture mattresses under "Sobha Restoplus" brand which includes multiple mattress combinations. The mattresses come in a variety of designs and features, from pocketed, bonnell, re-bonded and foam to rolled, coir and pure latex mattresses.
metercube is our one-stop solution for home buyers, allowing them the flexibility to furnish and decorate their homes through a wide range of interior packages available online. metercubes interior packages offer, among others, semi-finished options with kitchens and wardrobes, as well as fully furnished homes for living rooms and bedrooms.
| Products | Installed capacity (2025) | Production (2025) | Installed capacity (2026) | Production (2026) |
| Mattress (#) | 30,000 | 17,333 | 30,000 | 9,678 |
Cash Flows
The cash flow summary for the financial year 2025-2026 under direct cash flow method is as follows:
in Million
| Particulars | 2025-26 |
| Operational Cash inflow | 77,985 |
| Operational Cash outflow | 61,618 |
| Net Operational Cashflow | 16,367 |
| NetFinancial | (1,189) |
| Net Cashflow after Financial activities | 15,178 |
| Net Cash flow | 1,694 |
The Company has collected 77,985 Million during the year from real estate, contractual and manufacturing activities. After spending on construction expenses for real estate, contractual, manufacturing activities, overheads, etc. the net operating cashflows were 16,367 Million.
Out of the above, the Company has utilised Rs 879 Million towards payment of interest and 2,514 Million for income taxes & TDS and 322 Million for dividend (including tax).
The Company has spent 12,677 Million towards land payments during the year, and also collected 1,073 Million from sale of Land. In addition to this, the Company incurred 1,830 Million towards capex expenditure.
Company has recorded a Net positive Cashflow of 1,694 Million.
Debt
As on March 31, 2026, the net debt of the Company was (7,997) Million as compared to (6,304) Million in the previous year. The debt-equity ratio stood at (0.17) at the close of the financial year.
Fixed Assets
During the financial year 2025-26, the gross addition to
Fixed Assets was 1,197.79 Million. This is about 13% addition on Gross Fixed assets of FY 2023-24 on account of investment in scaffolding items and additions to Plant and Machinery.
Current Assets
During the financial year 2023-24, the Current Assets increased by 34,230.22 Million as compared to the previous year. This is mainly on account of increase in inventories by 18,758.36 Million and increase in Cash and bank balance by 11,355.72 Million
Current Liabilities
During the financialyear 2023-24, the Current Liabilities increased by 13,038.89 Million, mainly due to increase in Advance from Customers and liabilities under JD agreements FY 2025, and decrease in borrowing.
STATEMENT OF CHANGE IN KEY FINANCIAL RATIOS PURSUANT TO REGULATIONREGULATION 34(3) AND 53 (F) READ WITH SCHEDULE v OF SEBI (LODR) REGULATIONS, 2015
| Consolidated Basis | Standalone Basis | Remarks | |||||
| Particulars | FY 2026 | FY 2025 | Change % | FY 2026 | FY 2025 | Change % | |
| Inventory Turnover | 0.39 | 0.35 | 10.17% | 0.42 | 0.38 | 11.80% | NA |
| Current Ratio | 1.14 | 1.25 | -8.98% | 1.15 | 1.25 | -7.91% | NA |
| Debtors Turnover ratio | 3.31 | 3.75 | -11.65% | 3.74 | 3.49 | 7.14% | NA |
| Interest Coverage Ratio (times) | 2.89 | 1.68 | 72.09% | 4.02 | 1.82 | 121.58% | As a result of significant reduction in borrowings and increase in earnings available to service interest cost. |
| Debt Equity ratio | 0.21 | 0.25 | -14.39% | 0.21 | 0.25 | -15.93% | NA |
| Net Profit Margin (%) | 0.04 | 0.02 | 58.94% | 0.06 | 0.03 | 103.40% | The growth is attributable to an increase in turnover and the recognition of revenue from higher- margin projects. |
| Operating Profit Margin (%) | 0.08 | 0.08 | -5.92% | 0.10 | 0.08 | 19.14% | NA |
| Return on Net worth(%) | 0.04 | 0.02 | 97.36% | 0.06 | 0.03 | 153.16% | Due to increase in net profit during the year. |
HUMAN RESOURCES
At the core of the Companys sustained growth and organizational resilience lies a dynamic and committed workforce. During the financial year 2025 26, the Human
Resources function remained focused on attracting top talent, strengthening organizational capabilities, enhancing employee experience, and driving operational excellence in alignment with strategic priorities.
The year witnessed continued emphasis on attracting, retaining and developing talent across all levels. Strategic initiatives such as enhanced digital sourcing through LinkedIn integration and strong campus recruitments through 303 institutions strengthened the talent pipeline and ensured access to quality candidates.
In line with its commitment to employee experience, the Company continued to strengthen HR operations and HR service delivery. All new hires were provided with 100% Day-1 onboarding readiness, ensuring seamless integration into the organization. Initiatives such as welcome kits, team building activities, and the rollout of health check-ups contributed positively to employee satisfaction and well-being. The introduction of flexible work practices, including leave combinations and flexi-hours, further supported a balanced and inclusive work environment.
Talent management continued to be a key priority area during the year. The Company reinforced its employer brand by achieving the Great Place to Work certification, reflecting its commitment to building a positive and engaging workplace culture. Structured initiatives such as the launch of "Sobha Shine", a talent assessment and development program, and the strengthening of behavioural competency frameworks were undertaken to support capability building and leadership development. Technical competency mapping across functions is also in progress to ensure alignment with evolving business requirements. The performance management process was executed successfully, with 100% completion of performance cycles within stipulated timelines.
The Company maintained a strong focus on statutory compliance and governance, ensuring adherence to all applicable labour laws and regulations. The introduction of the new labour codes by the Government of India, marks a significant regulatory development. The Company is proactively taking necessary steps to ensure smooth transition and compliance with the new regulatory framework.
Looking ahead, the Human Resources function will continue to align closely with the Companys growth strategy, with a focus on building a future-ready organization. Key priorities include strengthening workforce planning, enhancing campus and lateral hiring frameworks, developing high-potential talent through structured competency models, and further improving managerial capabilities.
The Company remains committed to empowering its people, strengthening organizational capabilities and fostering a high-performance culture, thereby enabling sustainable growth and long-term value creation.
As of 31st March 2026, the Companys organizational strength stood at 4,451 employees, including 17 consultants, compared to 4,483 employees as of 31st March 2025.
Training and Development:
Training and developing employees is a must for any organization to be successful. This can be done through ensuring that the employees skills, abilities, and knowledge are constantly updated both to meet world standards and also to satisfy discerning and demanding customers needs. Training also helps employees move up in their career paths and helps them take on more responsibilities.
SOBHA too benefits as a company through this training it helps it to plan succession roles, address the challenges of changing technologies and opens up the possibilities of widening the scope of the work that it does. At SOBHA, the organisational training and development plan includes in-house and external workshops/seminars as per need.
The trainings provided to employees has resulted in boosting productivity, increasing employee satisfaction, fostering organizational learning culture, creating a safe working environment and the upgradation and updation of technology. It has also led to improvements in leadership and management skills and quality, higher productivity, and the resultant optimum ROI.
Training at SOBHA is broadly divided into Technical, Behavioural, Sales and Adhoc.
Technical Training:
Project Execution employees are trained at different levels to help them become the best in class by mastering the latest technological developments in the field.
During FY 2025-26, 44 technical training programmes were conducted in which 316 employees out of 391 nominated employees were trained. These trainings were conducted for employees working in Bangalore, Kerala, Chennai, Pune, NCR, Ahmedabad, Hyderabad and other locations where SOBHA has projects.
Management Trainee and Junior Management Trainee: A total of 6 batches aggregating to 158 employees were trained. (A total of 2027 employee count is considered for total duration of training)
Technician Supervisor Training: A total of 30 programs were conducted for both Sobha and non-Sobha Rolls in which 220 employees out of 244 nominated employees were trained during this year.
Behavioural Training:
At SOBHA behavioural training is equally important as it helps empower employees to leverage their positive skills. Behavioural training helps enhance employees ability to handle conflicts, helps in creating win-win accommodating changes and flexibility, and following a dynamic approach. Since behavioural training polishes skills and develops talent, it also contributes to an individuals overall development. Behavioural training at SOBHA covers a range of subjects including team building, time management and developing motivational, leadership and interpersonal skills.
During 2025-26, 122 behavioural training programmes were conducted for employees at differentlevels in which 1,135 employees out of 1,727 nominated employees were trained.
In addition, Adhoc (Behavioural, Technical and Technician
Supervisor) training programmes were also conducted during the year which were attended by 1,282 employees at different levels.
Sales Training:
A total of 63 programs aggregating to 156 training sessions covering 757 employees towards sales training, communications kills, channel partners training, interiors employees.
Other Training programs: A total of 71 training programs covering 1,363 employees towards department centric and induction training programs.
In all, a total 1,043 training programmes covering 13564 participants including employees of non-Sobha rolls (technician supervisors, foreman and technicians) including post effectiveness evaluation, during the year FY 2025-26.
Training, a continuous exercise
SOBHAs training wing, SOBHA Academy, conducts training on a regular basis. The Company assesses employee performance to gauge employee skills and provide them requisite training for enhancing their skills.
Outlook
Globally consumer sentiments have plummeted due to concerns over higher prices eroding purchasing power and weaker asset valuations. Business optimism too fell to a five month low in March, one of its weakest levels since the pandemic in 2020. The International Monetary Fund
(IMF) has projected a moderation in global growth in 2026 alongside an increase in inflation. The growth slowdown and inflationary pressures are expected to be more pronounced in emerging market and developing economies (EMDEs).
The RBI projects the FY 27 GDP growth to be 6.9% with inflation moderating around 4%. As per the IMFs April
2026 World Economic Outlook, global growth is slated to moderate to 3.1% due to intensified geopolitical tensions and energy price volatility. However, India continues to demonstrate exceptional structural resilience. With the IMF upgrading Indias FY27 growth forecast to 6.5%, citing robust domestic demand and improving trade dynamics
| Metric | FY 2025-26 (Actual/Est.) | FY 2026-27 (Projected) |
| Real GDP Growth | 7.6% | 6.9% |
| Retail Inflation | 3.5% | 4.6% |
| Fiscal Deficit | 4.5% | 4.3% |
| Capital Expenditure | 10.96 Lac Cr | 12.20 Lac Cr |
Source: MOSPI, RBI Monetary Policy Reports
Input costs escalation, employment market moderation across India and West Asia, business sentiment downgrade,
Inflation reacceleration remain prominent risks amidst the ertainty. unc WestAsiaconflictandUStradeandtariff efficiency.Inaddition, a
Looking ahead, company confidence is underpinned by strong operating momentum and high visibility across
P&L performance, revenue, cash flow and land availability.
Revenue yet to be recognized from sales done till 31st March stands at 18,647 crores. For a cash standpoint, projected marginal cash flow from completed ongoing is estimated 9,560 crores and forthcoming project add an additional 8,699 crores. projectedmarginalcash
The Company is aiming in FY ‘27 net cash -- net operating cash flow close to INR2,000 crores. As the Company scale, the priorities remain the same, strengthen our balance sheet, improve cash flow and maintain speedy execution. this operating framework, SOBHA will be well positioned for sustained long-term value creation.
Opportunities
Indias real estate sector is experiencing renewed momentum, underpinned by strong urban demand, rising disposable incomes, and a favorable policy environment. Sobha Limited, backed by its established brand equity, proven execution capabilities, and strategic presence in key geographies, is well-positioned to leverage this upward trajectory. The growing preference for high-quality housing, consolidation within the sector favoring organized players, and the increasing adoption of digital sales channels further strengthen the Companys growth prospects. Moreover, sustained government focus on affordable housing and large-scale infrastructure development presents substantial long-term opportunities for expansion and value creation.
Threats
While the industry outlook remains optimistic, several challenges persist. Regulatory delays, policy uncertainties, and inflationary trends in construction materials continue to exert pressure on project costs and timelines. Prolonged approval processes and evolving compliance requirements canfurtherimpactoperational tight labor market and rising input costs may affect the pace of execution. Interest rate fluctuations and tighter monetary policies also have the potential to dampen homebuyer sentiment and affect affordability, especially in price sensitive segments, thereby posing risks to sustained sectoral momentum.
Risks & Concerns
For more detailed information on Risks and Concerns, please refer to the Boards Report on page number 127.
With Internal Controls
The Company has a robust internal financial control system, commensurate with the size, scale and complexity of its operations. This system encompasses adequate controls, procedures and policies designed to ensure the orderly and efficient conduct of business, adherence to established policies, the safeguarding of company assets and the establishment of a reasonable framework for the prevention and detection of fraud and errors, as well as the accuracy and completeness of accounting records. Appropriate framework is in place to ensure effective internal controls over financial reporting, thereby enhancing the integrity of the Companys financial statements.
The design of key processes and various policies is subject to periodic review to ensure the ongoing adequacy of controls. The Company has an Internal Audit function, headed by the Chief Internal Auditor. The annual internal audit plan is reviewed and approved by the Audit Committee at the commencement of each financial year. The Audit Committee is responsible for overseeing the scope and coverage of the Internal Audit plan and evaluating the overall audit findings. Functional heads participate in these meetings as necessary to provide updates on control and compliance developments within their respective functions.
The Internal Audit team conducts effectiveness testing of internal controls across all project sites and functions.
The findings of these tests, along with any recommended corrective actions, are reviewed by management on a regular basis. Any deviations identified are reported to the
Audit Committee periodically.
A certificate from the CEO and CFO, confirming effectiveness of internal controls and reiterating their responsibility to report deficiencies to the Audit Committee and rectify the same, forms part of the Corporate Governance Report.
ENVIRONMENT, HEALTH AND SAFETY
Ensuring a healthy and safe work environment involves developing safe, high-quality and environmentally responsible processes, working practices and activities that prevent or minimise the risk of harm to individuals operating within such environments. It also entails adherence to environmental regulations, including effective management of waste and air emissions, with the objective of reducing the Companys overall carbon footprint.
At SOBHA, established procedures are in place for identifying workplace hazards and minimising accidents and exposure to unsafe conditions and harmful substances, thereby ensuring a safe working environment. This is supported by regular training programmes covering accident prevention, emergency response, preparedness and the use of appropriate protective equipment.
SOBHA is certified under ISO 9001, ISO 14001 and OHSAS
18001 standards for its quality, environmental and occupational health and safety management systems.
The Company also focuses on minimising emissions and increasing the use of renewable resources across its construction activities and during the operational phase of its manufacturing facilities, with a view to maintaining a low carbon footprint through adoption of industry best practices.
SOBHA has established pre-cast units for its construction activities. In place of conventional block work or brick-based construction, the Company uses pre-cast elements, which offer multiple advantages including faster execution, reduced labour requirements, minimal material wastage and elimination of plastering requirements. These elements enable efficient utilisation of resources while reducing overall construction waste.
Rainwater Harvesting
Rainwater harvesting is a key initiative undertaken by the Company to address water scarcity. It is considered a viable solution for meeting the water requirements of a growing population while also contributing to the restoration of depleted aquifers and improving sustainable water availability in areas surrounding project sites.
Rainwater harvesting is implemented through both roof-based and surface runoff systems. Roof runoff is collected through storage tanks, while land-based runoff is channelled through recharge tanks, recharge bores and percolation pits. Wherever feasible, collected water is treated and reused for primary applications, thereby reducing reliance on external water sources and groundwater extraction
Sewage Treatment Plants
SOBHA has installed specially designed Sewage Treatment
Plants (STPs) across its developments to treat wastewater generated within its buildings. The treated water is reused for secondary applications such as flushing, landscaping, cleaning of common areas and dust suppression at construction sites, thereby reducing the consumption of fresh water.
The STPs operate using hybrid technologies, including:
Activated Sludge Process (ASP)
Extended Aeration System (EAS) / Sequential Batch Reactor (SBR)
Ultra Filtration (UF)
These systems ensure high-quality treated water in compliance with Pollution Control Board standards. Additional features such as sludge dewatering systems, acoustic enclosures, ozonators and air curtains are implemented to improve operational efficiency and minimise environmental impact.
Organic Waste Converters
SOBHA has implemented Organic Waste Converters (OWCs) across its projects as part of an integrated solid waste management system based on the 4R principle—Reduce, Re-use, Recycle and Recover.
Waste is segregated at source into organic and inorganic streams. Organic waste is processed into compost, which is utilised as manure for landscaping and plantation activities within project sites. Inorganic waste is handed over to authorised recyclers for further processing.
Additional measures such as air curtains, fly control systems and waste tracking mechanisms are deployed to ensure efficient and hygienic waste management. During construction phases, organic waste is also diverted to local reuse channels, supporting eco-sanitation efforts.
Water Treatment Plants (WTPs) and Testing Facilities
To ensure safe and healthy water supply, SOBHA has installed Water Treatment Plants equipped with:
Dual media filters
Softeners
Centralised reverse osmosis systems
Water quality is maintained with Total Dissolved Solids
(TDS) levels of:
<400 ppm for domestic use
<100 ppm for drinking water
The Company also operates chemical and microbiological laboratories at the SOBHA Academy to analyse water samples across physicochemical and microbiological parameters, ensuring continuous monitoring and quality assurance.
Energy Saving Measures
SOBHA actively undertakes energy conservation initiatives, including the installation of solar panels for common area lighting and solar water heaters across its projects. Key measures include:
Rooftop solar installations at manufacturing facilities:
? Glazing factory: 225 kW ? Interior factory: 750 kW
Approximately 90% of the corporate office power requirement sourced through solar energy
During the year, around 2.3 million units of solar power were utilised across SOBHAsations and on-groundfacilities, resulting in an estimatedand late-reduction of approximately 1,700ation drift tonnes in carbon emissions. The Company also promotes the use of heat pumps and solar water heaters as alternatives to conventional geysers, thereby reducing overall power consumption.
RESEARCH & DEVELOPMENT
R&D in the construction industry is about seeking meaningful technological advances, overcoming real-world obstacles, resolving uncertainty at the site level, and translating innovation into tangible product and process improvement.
SOBHAs R&D function is structured to be both outward-looking, in its benchmarking of global construction standards, and inward-facing, in its relentless focus on the quality and refinement of what is built and how it is built.
During the year under review, the Research & Development Department concentrated on two interrelated priorities: process improvement and product enhancement. This focus is not incidental, it is central to SOBHAs competitive identity as a backward-integrated developer that controls quality across the entire construction value chain, thereby reducing dependence on external vendors and maintaining the integrity of its product promise to customers.
Electrical & Power Systems
Two significant interventions were implemented in the area of electrical engineering across SOBHAs multi-storied residential projects: Adoption of Bus Bar Rising Main Systems for power distribution in high-rise buildings. This upgrade ensures efficientpower transmission across floors, meaningfully reducing power losses and voltage drops — thereby enhancing the reliability and stability of electrical supply throughout the buildings lifecycle.
Installation of HT (High Tension) Metering Systems in projects with elevated power requirements. This enables accurate, granular monitoring and measurement of electricity consumption, facilitating precise billing and creating a structured foundation for ongoing energy optimisation and cost management.
Structural Quality & Inspection
A formalised joint inspection process was instituted at the Structure Completion stage to rigorously verify that project execution is aligned with design intent. This initiative strengthens the linkage between architectural andengineering outcomes,reducingtheriskof stage rectification.
Interior Finishing & Material Improvements
Several targeted improvements were developed and standardised across interior finishing components, addressing both aesthetics and constructability:
Gypsum Ceiling Support Standardisation: Based on recurring observations at project sites, the support system for gypsum ceilings was systematically re-engineered and standardised, ensuring consistency and structural integrity across all projects.
Large-Format Tile Installation: The full process for selection, inspection, and installation of large-format tiles was streamlined, reducing installation complexity and improving on-site execution quality.
Aluminium False Ceiling for Toilets: An enhanced specification was developed for aluminium false ceilings in toilet areas, improving durability, moisture resistance, and finish quality.
Glass & Aluminium Railing Systems: A comprehensive system specification was developed to govern the design, procurement, and installation of glass and aluminium railings — ensuring consistency and safety compliance.
Cladding & External Finish Innovations
Material-level innovations were introduced to improve the performance, aesthetics, and long-term durability of external facades and finishes:
Stainless Steel Cladding: Stainless steel cladding was adopted as a replacement for granite and off marble cladding in select applications, superior weather resistance, reduced maintenance requirements, and a contemporary aesthetic.
PVC L-Bead Refinement: The profile size of PVC L-beads was reduced by 2 mm — from 15 mm to 12 mm, to achieve a more refined, visually precise finish plastered wall edges, improving the quality of the final appearance.
Alternative Adhesive for MCM Cladding: A high-performance alternative adhesive system for Metal
Composite Material (MCM) cladding was sourced and validated, providing greater flexibility in procurement without compromising installation quality or durability.
HEALTH AND SAFETY
Safety is an integral part of SOBHAs operational processes, with a strong emphasis on embedding Environment, Occupational Health and Safety (EOHS) practices into everyday activities. The Company adopts a structured approach to identifying and addressing workplace hazards, supported by continuous awareness initiatives across management and workforce levels.
The EOHS framework is driven by strong leadership commitment and organisation-wide ownership, reflecting a sustained focus on implementing industry best practices and progressing towards the goal of zero accidents.
During the year, key initiatives included:
Strengthened PPE compliance across projects
Implementation of standardised safety communication practices
Trials for fire suppression systems and horizontal lifeline systems
The Company conducted 4,261 hours of health and safety training, achieving 86% coverage across employees, contractors and subcontractors. Health and well-being initiatives included daily health camps at select locations and periodic medical camps conducted in collaboration with local authorities.
During FY 2025-26, SOBHA recorded 60.78 million man-hours across its projects. The Companys commitment to safety excellence was recognised with its Thiruvananthapuram project receiving the Samoohya Suraksha Award under the New Civil Construction Projects category at the Safety Awards 2025 organised by the National Safety Council Kerala Chapter. The Company also reinforced its safety culture through the launch of the Sobha Safety Standard Practices handbook.
CORPORATE SOCIAL RESPONSIBILITY INITIATVES
CSR at SOBHA is rooted in a genuine and enduring commitment to the holistic development of rural India. It is this conviction that led Sri P.N.C. Menon, Founder and Chairman Emeritus of SOBHA Limited, to establish Sri Kurumba Educational and Charitable Trust in 1994. For more than three decades, the Trust has worked towards the comprehensive upliftment of marginalised families across the Kizhakkencherry, Vadakkencherry, and Kannambra Grama Panchayats of Palakkad District, Kerala. In 2006, the Trust launched GRAAMASOBHA, a unique, structured social development initiative — under which a wide array of social welfare programmes continues to be implemented.
Over these 32 years, the lives of people in the Trusts target area have been transformed in meaningful and measurable ways. At the heart of this change has been the Trusts sustained commitment to social empowerment, delivering quality life-building resources, facilities, and services to those who need them most.
Education has been the cornerstone of this social engineering process. The Trust has undertaken most of its programmes within an institutional framework, achieving considerable success in reshaping the educational landscape of this otherwise underserved district. The SOBHA Academy and SOBHA ICON have been instrumental in transforming the lives of countless families by providing access to quality education. Complementing this, SOBHA Health Care has extended free primary healthcare services to ensure that essential medical support reaches the community. Together, these initiatives have brought about significant and lasting improvements in livelihoods across the three Panchayats.
In 2016, the Trust conducted a comprehensive survey that identified approximately 4,525 families in need, representing nearly 17,311 individuals. Beneficiary identity cards were issued to each enrolled family, enabling the Trust to maintain detailed, authentic data on every and their specific needs. This data the GraamaSOBHA model, a bottom-up, long-term poverty alleviation framework designed to bring about sustainable, positive transformation in the lives of underprivileged citizens.
Beneficiary families were selected through a rigorous scientific process known as the Social Empowerment
Mapping Exercise (SEME), which was guided by the following objectives:
To identify and enlist genuine beneficiary families from the three panchayats (6 villages) using clearly defined norms and criteria.
To generate qualitative, multi-dimensional Baseline Reports on target families, enabling the design of specific programmes and activities tailored to their needs.
To develop targeted, area-specific empowerment programmes across key human development areas, including education, health, employment, and housing.
To create an effective mechanism for measuring and monitoring progress across the Trusts empowerment beneficiary initiatives. formed the foundation for SOBHAs CSR activities are primarily focused on the following areas:
Education
Healthcare
Care for the aged and the needy
Womens empowerment
Green and environmental initiatives Please refer page number 32 for the details on CSR.
Risk Management Report
SOBHAs financial position and the results of its operations are subject to certain risks and liabilities that may affect its performance and ability to achieve its objectives. These are factors that the Company believes could lead to its actual results differing materially from expected and previous results. However, there are other risks and uncertainties that may also affect the Companys performance and ability to achieve its objectives not currently known to the Company or deemed immaterial. SOBHA has a robust risk management and internal control system in place. Real estate and allied risks can be caused by several factors, which could be within and outside of a companys control. It is, therefore, important that a company have a solid risk mitigation and management policy in place.
Risk assessment and response
SOBHA has a six-step approach to risk assessments:
1. Risk assessment planning
2. Risk identification
3. Risk rating
4. Evaluation and risk response
5. Reporting
6. Periodic monitoring and review
Our risk assessment focuses on short-term risks and emerging risks in the risk areas such as strategic, operational, financial, legal and compliance. SOBHA has implemented an Enterprise Risk Management (ERM) program through which it reviews and assesses significant risks regularly to ensure it has internal controls.
Risk governance
Risk governance architecture consists of the Board, Audit Committee and Risk Management Committee at the top of the pyramid enabling oversights functions of the risk management system. Operational and functional heads, along with a strong and independent internal audit function, facilitate the oversight functions by providing valuable inputs in the form of information, data and reports on various external and internal risks—both existing and emerging—thereby enabling the Committees and Board to take timely action and aiding decision-making. At the bottom of the pyramid lies the risks affecting the operations and impeding the growth of the organisation.
Risk management process
SOBHA recognises that risk is inherent to any business activity and that managing risk effectively is critical to the immediate and future success of the Company. The Companys risk management process enables it to identify, assess and prioritize, manage and respond, and ultimately monitor and report the risks in its operations, supply chain, sales, and marketing support functions. In order to achieve the key objective, the risk management process establishes a structured and disciplined approach to risk management, in order to guide decisions on key risks.
SOBHA recognises risk assessment, monitoring and mitigation as a continuous process closely embedded in the business processes and aiding managements decision-making. This may be understood through the risk management chart provided below:
This system helps SOBHA respond appropriately to risks and achieve its objectives, ensuring compliance with the applicable RERA law and its statutory obligations.
The listing agreement with the stock exchanges mandates the identification, minimization and periodic review of these risks and uncertainties. However, it is not possible for the Company to implement controls to adequately respond to all the risks that it may face and there can be no complete assurance provided that the steps that it undertakes to address certain risks will manage these risks effectively, at all.
The Companys Risk Management Committee evaluates risks for each category. It assists in identifying and assessing risks to that appropriate mitigation mechanisms may be devised. The Audit Committee reviews and advises the management on all categories of risks that the Company faces, the exposure in each category and on the acceptable and appropriate levels of these exposures. It also monitors the steps taken by the management to control such exposures and ensures that the overall risk exposure is within the Companys risk capacity and risk appetite. The Board of Directors of the Company are also apprised of the risks faced by the Company and timely risk management measures taken for mitigating them.
The Company has strong systems in place for each kind of risk that it may face in the course of conducting its business.
I. Universal risks
(i) Natural and manmade disasters
Natural disasters include earthquakes, fires, droughts, floods, or global pandemics (such as COVID), and manmade disasters include acts of terrorism and war.
Insurancecoverageisanappropriatewayofmanaging disaster-related risks. Apart from a sufficient insurance coverage, SOBHA also takes appropriate measures to ensure that the structural design of its buildings conforms to the applicable construction standards in the various regions it operates in. The properties of the Company are insured against natural risks, like fire, with periodical review of adequacy, rates and risks covered under professional advice.
(ii) Economy-related risks
Interest rates, inflation and exchange rate risks are amongst the important macroeconomic indicators which are subject to several factors which primarily have to do with the government, monetary and tax policies, domestic/ international economic and political conditions and other factors beyond a companys control. Changes in interest rates may increase a companys cost of borrowing and impact its profitability. These risk factors will be a driving factor in the development of the real estate sector.
A sluggish economy or even recession in a specific industry, such as IT/ ITES, can lead to a decrease in sales or market rates for residential projects. In extreme cases of an economic downturn, a company may also run the risk of customer insolvency though the registration of property happens only on the receipt of all the dues from a customer. These factors could decrease the revenue generation from some or all the companys businesses, adversely impacting its business and future growth. Further, uncertainties in the national or global economic scenario, a changing demographic profile of the country and inflation also have a bearing on the functioning of a company operating in real estate and allied sectors.
SOBHA is confident that with the economic and sector specific reforms introduced by the government in the recent past, the outlook for long-term demand for the real estate sector in India is stable and positive. The emergence of Tier-II and Tier-III cities, urbanization, large-scale employment opportunities in Tier-II cities and larger numbers of nuclear families will contribute to a substantial increase in demand for real estate and corporate space in the future.
(iii) Political risks
Changes in government policy, social and civil unrest, and political developments in or affecting
India could impact the Companys business interests.
Specific laws and policies affecting real estate, foreign investments and other matters affecting investments in the companys securities could also change.
(iv) Liquidity risks
In this industry, the time required to liquidate a real estate property can vary depending on the quality and location of the property. As a result, the Company flood, may not be able to liquidate its assets promptly inearthquakes, etc., response to economic, real estate market or other conditions.
II. Sectoral risks
(i) Sales market risks
Modern day businesses, including those in the real estate sector, are customer-centric and driven by market sentiment and competition. Though everyone aspires to own a home, there is a chance that the decision to purchase the same be deferred due to certain changes in existing economic or market conditions.
SOBHA has devised a detailed compliance checklist system to monitor and obtain the approvals from different authorities as per applicable laws and regulations at various stages of project construction to ensure smooth completion of projects.
(ii) Land-related risks
For any construction company, land is a primary input. Non-availability of an appropriate parcel of land at a strategic place and at a reasonable price can lead to an increase in its prices, thereby having an adverse impact on the companys performance. Further, availability of land, its use and development are subject to approvals by various local authorities under applicable local laws and regulations. This makes the price of land volatile. A drop in land prices may erode the book value carrying the cost of land, which in turn could affect a companys profitability.
The Company takes strategic decisions with respect to land acquisition. Effective methodologies are in place for managing the land portfolio. Requisite due diligence is conducted before acquiring land or entering partnerships for joint ventures or joint development.
(iii) Regulatory risks
Local, state and central regulatory bodies control the real estate sector through laws and regulations governing the acquisition, construction and development of land including zoning, permitted land use, fire safety standards, height of buildings and access to water and other utilities. SOBHAs business is subject to all these laws and regulations. Any delay in obtaining an approval under these laws and regulations will expose the business to higher risks.
We are actively working with industry bodies, regulators, and the government to understand the issues impacting the industry and developing legal frameworks to address these issues in time to minimise any impact.
(iv) Legal risks
SOBHA is involved in some legal proceedings relating to the lands it owns and claims in relation to taxation matters. Any adverse decision here may have a significant impact on the companys business, prospects, and financials.
(v) Competition risks
Theresidentialrealestatesectorishighlycompetitive. Other developers undertaking similar projects within the same regional markets are in direct competition with SOBHA. Due to the fragmented nature of the real estate development business, adequate information about small and medium level competitors projects may not be available and SOBHA could run the risk of underestimating the supply in the market.
III. Company-specific risks
(i) Customer risks
SOBHA operates in twelve cities in real estate that contribute to the Companys revenue. A sizeable portion of sales from real estate operations is generated in Bangalore. A decline in the revenue in this real estate market or a shift may have an adverse effect on its business and operating results. Contractual businesses depend solely on orders received from corporate entities for their construction requirements. A substantial portion of the revenue from contractual projects is generated from major clients operating in the information technology sector.
The Company has a dedicated and robust in-house sales and marketing team, which is entrusted with the task of generating enquiries for its products and transforming them into sales. This reduces dependency on external agents and brokers.
SOBHA also has a dedicated Customer Relationship
Management (CRM) Department to cater to customer feedback, resolving their queries and grievances, addressing their issues, streamlining the purchase process and receiving feedback. An online portal has been designed for customers where they can share their views and check the status of the projects. The CRM Departments core responsibility is ensuring smooth and hassle-free transfers of products to the satisfaction of the customers.
(ii) Borrowing and credit risks
Construction activities, which are a major contributor to SOBHAs revenue, are capital-intensive and require a significant expenditure on land acquisition and development. An efficient borrowing strategy has placed SOBHA ahead of its competition with respect to borrowing costs. However, SOBHA is subject to risks normally associated with debt financing and may be required to dedicate a portion of its cash flows towards the repayment of its debt commitments. It may not be possible to generate adequate cash flows in certain extreme scenarios to service principal and interest payments. In certain cases, lenders also have the right to recall a loan. Such an event could impact SOBHAs liquidity and credit rating.
In most cases, SOBHA develops properties on a joint venture basis. Credit risks arise when its JV partners do not discharge their obligations and, in such circumstances, SOBHA may be required to make additional investments in a joint venture or become liable for the other partys obligations.
SOBHA has a proven record in servicing its debt obligations. The gearing levels of the Company have been efficiently managed in previous fiscal years, bringing down the gearing ratio. Every investment avenue is evaluated based on the risks and rewards attached to it.
(iii) Project implementation risks
Real estate projects are vulnerable to several implementational problems, such as regulatory compliances. These may cause project start up delays, construction delays, cost overruns and unavailability of skilled labour, accidents, and quality gaps. SOBHAs operations may be unfavourably impacted if these risks are not mitigated on a real-time basis.
SOBHA has adopted a standard process for ensuring product quality. Technology related to the industry is upgraded periodically by comparing it to global standards, which helps minimize implementation risks. The in-house Quality, Safety and Technology Department is in-charge of addressing quality issues of the products.
(iv) Input cost risks
Many times, operations of a real estate project are subject to budget overruns due to several factors like increase in construction costs, growing subcontracted service costs and increase in labour costs. Increased operating expenses may affect SOBHAs profit margins if it is not able to sell the properties with desired margins. There is a chance of reduction in demand if the selling price of unsold properties is increased.
(v) Supply chain risks
If suppliers of raw materials curtail, discontinue, or disrupt the supply of materials, SOBHAs ability to meet its material requirements for projects could be impaired, which could lead to a disruption in construction schedules and projects may not be completed on time.
Vendors supplying key materials have longstanding relationships with SOBHA. Since the Company is a backward integrated organization, key inputs are sourced in-house, reducing dependency on external suppliers.
(vi) Workforce risks
The construction industry is highly dependent on workforce and its ability to retain that workforce. Employee attrition could have an adverse impact on SOBHAs businesses. SOBHAs performance could also be retain key employees like engineers and architects. Employee attrition rate in the Company is below the industry/ sector average. To minimize attrition and retain talent, SOBHA has adopted effective and employee friendly policies.
(vii) Diversification and investment risks
Although SOBHA is a backward integrated company, expanding into new businesses or new geographies exposes it to new risks, such as low levels of familiarity with the development of properties in the specific area or market for new project development.
Competitors may not only be better known in these markets but may also enjoy better relationships with vendors/ suppliers/ landowners/ joint-venture partners and customers.
Taking calculated risks is a part of all businesses. A business growth depends on the Companys ability to absorb the risks related to the sector. After a careful evaluation of the risks, SOBHA has been steadily expanding its geographic presence in the real estate domain. This diversification its dependency on a single market, Bangalore, which at one point accounted for all its sales. Bangalore now contributes about 65 per cent of its sales.
SOBHAS foray into new geographies is based on a thorough analysis of prevailing market conditions and the regulatory environment. Several contractual projects have been successfully executed in different cities across India and hence, there is a good understanding of the local factors at play. The Company also engages locally available workforce resources.
(viii) IT and system risk
SOBHA uses an Enterprise Resource Planning system for integrating its core and backend activities like architecture, engineering, projects, and costing. A breakdown of existing IT systems or a delay in implementation could disrupt the Companys ability to track, record and analyse the work in progress, or result in the loss of valuable data. These risks relate to the following:
System capability
System reliability
Data integrity risks
Coordinating and interfacing risks
Information Security if it is unable to identify, attract and
SOBHA has a strong IT team to support all IT-related matters. The Company has also begun implementing the new ERP system, wherein we have done away with redundant and non-value add processes to make us more agile; optimized processes that help reduce time in decision making; identified roadblocks that came in the way of taking quicker and relevant actions; cleaned up thousands of data fields and data sets that affected data integrity; and introduced new and robust processes that make us more efficient as a team and work with greater speed.
(ix) Cyber security risk
As a customer-centric organization, we need to regularly give updates to customers, interact with third parties, and service providers. Today, a lot of emphasis is given to real-time information, which inadvertently means exposing our system and data to the outside world. Although a lot of care is taken through digital certification and methodologies, there continue to remain concerns over different security risks associated with it.
SOBHA has strong IT infrastructure to support the increased usage of digital platforms and combat cybersecurity threats. The Company provides continuous training and education to employees on cybersecurity to minimise the occurrence of any threat.
Cautionary Statement
The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be ‘forward-looking statements within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply, and price conditions in the domestic & overseas markets in which the Company operates, changes in Government regulations, tax laws & other statutes, and other incidental factors. The Company assumes no responsibility in respect of forward-looking statements, which may be amended or modified in the future.
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