Sobha Ltd (NSE: SOBHA) Q4 2025 Earnings Call dated May. 30, 2025
Corporate Participants:
Jagadish Nangineni — Managing Director
Yogesh Bansal — Chief Financial Officer
Analysts:
Adhidev Chattopadhyay — Analyst
Parikshit Kandpal — Analyst
Dhruvesh Sanghvi — Analyst
Puneet Gulati — Analyst
Pritesh Sheth — Analyst
Biplab Debbarma — Analyst
Parvez Qazi — Analyst
Girish Choudhary — Analyst
Kunal Lakhan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Sobha Limited Q4 FY ’25 Results Call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in a listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call. Please signal operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Aditysh. Thank you, and over to you, sir.
Adhidev Chattopadhyay — Analyst
Good evening, everyone. On behalf of ICICI Securities, I’d like to welcome everyone to the Limited call. From the management we have with us as always , Mr Jadesh, the Managing Director; and Mr Yogesh Bansal, the Chief Financial Officer. Now I would like to hand over the call to the management for their opening remarks. Over to you, sir. Thank you.
Jagadish Nangineni — Managing Director
Thank you,. Good evening, everyone who have joined the call today. We are pleased to connect with you today for our Q4 FY ’25 financial results. We have already shared the details of our operational update of the company in the first week of April. The investor presentation based on the financial results also can be downloaded from our website. In today’s call, I’ll quickly take you through the operational highlights for the year and the quarter.
Our CFO, Yogesh Bansal, will take you through the financials. Some of our key highlights this financial year have been our completion of rights issue of INR2,000 crores in increasing our capital base, expansion into two new markets, which is Mumbai and Greater Noida; completion of our migration to new ERP across businesses. These are in addition to our constant efforts to improve our delivery capability at speed and scale through people and technology.
With the new financial strength, clear visibility to the future in terms of new project launches, it is indeed an exciting time for us to move ahead into FY ’26 and beyond. The residential demand environment seems to be steady at the moment despite witnessing certain global political and economic uncertainties that have hit us in the past few months in this year. Our demand, as you all know, is directly correlated to the economic growth of the country and the job creation in the respective cities.
As long as that is in the growth phase, it is up to us to capture the demand in the marketplace. In FY ’25, we launched 8.76 million square feet over eight projects in four cities. This is our highest area of launches till-date. In Q4 ’25 alone, we launched two projects, Town Park in Bangalore with a total saleable area of 3.67 million square feet and on the plotted development project with a saleable area of 0.44 million square feet.
For the next year, we continue to have a strong residential pipeline of 18.56 million square feet across 18 projects in nine cities. We aim to launch these projects in the next six to eight quarters. In this financial year alone, which is FY ’26, if everything works well, we will be able to launch at least half of this pipeline. In a more optimistic scenario, we can cross the double-digit in terms of million square feet launches.
We expect to launch our first project in Greater Noida this quarter, which is Q1 of FY ’26 and Mumbai in the 3rd-quarter. Of course, these timelines are subject to unknown variables that sometimes still come up. Both these launches will take our footprint to 14 cities in the country.
These launches combined with our current inventory gives us a good chance to achieve higher sales in FY ’26. During FY ’25, our total real-estate sales stood at INR6,277 crores with Bangalore contributing about 20% from Purgaon, 13% from Kerala. Shoba share of the total sales is roughly about 79% of this at about INR4,961 crores. The average realization stood at INR13,412 per square feet, which is higher by about 23% as compared to FY ’24.
During the quarter, our quarter of — the last quarter, which is Q4, our total real-estate sales was at INR1,836 crores. We expect to achieve at least a growth of 30% plus this year, which is in FY ’26, which we aim to do in FY ’25 and move towards the goal of reaching the 5-digit sales number by FY ’26. On the project completion front, we completed 4.54 million square feet, 3008 units in 36 towers during the year.
We expect to also increase this by at least 20% next year with 5.5 million square feet-in FY ’26. On the contracts, manufacturing and retail side, we concluded the year with a revenue of about INR661 crores and we expect to grow at least 10% with enhanced profitability next year. We have good visibility of order book to achieve this and hope to build the order book during the year as well.
With this brief, I hand over the call to Yogesh, our Chief Financial Officer, to provide color on the financial performance, post which we shall open the floor to take questions.
Yogesh Bansal — Chief Financial Officer
Good evening, everyone, and thank you for joining us today. I’m pleased to share our financial performance for 4th-quarter and financial year ’25. In FY ’25, we have completed INR2,000 crores sizes successfully and received INR1996 crore and balanced INR4 crores were outstanding as on 31st March, part of that we have received in health. So starting with cash-flow, in FY ’25, total operational cash-flow was INR6,184 crores.
Real-estate collection grew up by 10% as compared to last year FY ’24 and contributed 89% to overall operational cash-flow. In Q4, real-estate collection crossed, INR1,500 crores, which is highest-ever. As on 31st March, from all our completed and ongoing projects, we expect a INR24,120 crores of future inflow from all sold plus unsold units. Against that, our cost to complete is expected to be INR13,580 crores, thereby generating margin cash-flow of INR10,500 crores at project-level.
Along with this, our forthcoming projects of 19.3 million square feet expected to be launched over next six to eight quarters shall generate another INR7,200 crore of marginal cash-flow. We ended the year with gross debt of INR1,131 crores and a strong cash balance of INR1,761 crores and first time in history, we are right now net-debt negative. Our average borrowing costs have also started to come down. It was 9.12% in Q4.
On P&L side, for the full-year, total income was at INR4,163 crores, 29% growth over last year. EBITDA was INR418 crores. We generated PAT of INR95 crores with a margin of 2.3%. In coming year, margin are expected to improve significantly. Our current balance revenue to recognize from already sold unit as on 31st March with INR15,873 crores, which is Shoba share and we expect project-level EBITDA margin of 33%.
And this revenue is dependent on recognition of 17.9 million square feet of saleable area. As we ramp-up our construction, this entire recognition will come over the next three to four years. With this, we can now open the call for questions. Once again, thank you for all — for your participation.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star in one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star in two. Participants are requested to use handset while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Parikshit Kandpal from HDFC Securities. Please go-ahead.
Parikshit Kandpal
Yeah, hi, Jadeen, sir. Sir, so just wanted to clarify, did I hear it correctly that you said we will cross INR10,000 crores of sales in FY ’26 evening.
Jagadish Nangineni
So what our plan is what I have guided is achieve 30% to 35% what we have done in FY ’25 and move towards the 5 digit number in FY ’26. If it’s possible in FY ’26, nothing like it, but at least this is what considering the new launches that we have and some of the inventory that we already have with us.
So I think at least we should be able to do 30% to 35% this year. And if we can move towards 10,000 this year itself, nothing like it. It also depends on the timing of the new launches that we plan to do. And if that works well, then surely we should aim towards that.
Parikshit Kandpal
My second question was on the launches. So if you can help us understand at least the near-term launches which are in significant stages of approval, at least in Q1 and Q2, so that will be helpful.
Yogesh Bansal
Thank you. In Q1, we have launches from Our first launch in Greater Noida, which is in sector 36 and we have Marina one which we have in the towers just about 20,000 square feet and the launch is about 0.7 million square feet. These two would be large ones. And if one launch in Bangalore, which is of about 0.6 million square feet is also possible. We are hoping that it can work, but if there is a mix, then it will go with the first few weeks of July. So that’s in Q1. Q2, again, we have a small launch in Guran, which is a commercial one day we are launching service departments and a small project in Bangalore again, which is about 0.5 million square feet and another project in Bangalore, which is about 0.3 million square feet. And if everything works well again, there is one more project in Treventum, which we can move it at 0.25.
Jagadish Nangineni
So first two quarters together, I think we should be looking at about 3 million to 3.5 million square feet.
Parikshit Kandpal
And this cumulative GDV will be approximately about INR5,000 crores INR6,000 crores and these will be our single-phase launches.
Jagadish Nangineni
Yeah, I mean, we would launch all of them and again like any other project, we would do the phasing based on the taste of sale. But yeah, both put together, it should be around INR5,000 crore crores overall.
Parikshit Kandpal
Okay. And just one last question,, on this business development, so we have spent close to about INR945 crores in FY ’25, versus INR382 crores, which was spent in FY ’24. And I also see that Noida now we have — the area has increased to 3 million square feet. So if you can help us understand how much has been the new business developed in both outright and JDA in FY ’25 and particularly in Noida, why has this land-bank increased and what has been the addition there?
Jagadish Nangineni
Right. We have a overall business development that we have done about — we have added about close to 10.5 million square feet last year, which would have an average — even at an average value of about INR15,05 the overall value should be about INR15,000 crores. In that mix of JD and outright, overall, again, the our share of the whole revenue in that again will be about again, 80-20.
Parikshit Kandpal
Okay, sir. And Noida, there is increase in Noida?
Jagadish Nangineni
Yeah. So along — apart from the first plot that we have taken in Noida in the authority auction, we have done one more small transaction in Greater Noida, which is a joint development, the details of which we will be able to further with details in the month or so.
Parikshit Kandpal
Okay. And this 15,000 which you have taken over, so if you can give a broad split, I mean, if this include your own line or online would be over and above this in FY ’25, which you are up. And also geographically, how is the 15,000 divided?
Jagadish Nangineni
Yes. I mean, of course, it is owned land consolidation is a small bit in this. In addition, what I have said is, which is 10.7 million square feet is actually it is entirely a new developable area that we can target. Some small part of it will be coming from even from our existing land-bank where we have we have incrementally invested to make it contiguous and also add to the current landmark.
And geographical breakup, geographical breakup, again, about roughly 50% of that is in NCR, which is in both Purav and and about with 40% is in Bangalore and remaining 10% is in Chennai — Chennai, Pune and Kerala.
Parikshit Kandpal
Okay. No,. Thank you very much. Thank you.
Jagadish Nangineni
Thank you very much.
Operator
The next question is from the line of Dhruvesh from Prospero Asset Management LLP. Please go-ahead. MR. Dhruvesh, please go-ahead.
Dhruvesh Sanghvi
Am I audible? Hello.
Operator
Yes, yes, sir, you’re audible.
Dhruvesh Sanghvi
Yeah first congratulations for the five-digit guidance. I mean very pleasant to hear that you are read condition. Secondly, just want to understand,, I think mentioned about 33% margin. If you can expand what you were saying because maybe I missed out or was you saying that in the next eight quarters, we will have our reported margin go towards 32 plus
Jagadish Nangineni
And the way we — even in the investor presentation we have given that we have roughly about INR16,000 crores of revenue to be recognized, right? So this revenue that is to be recognized has an embedded project-level EBITDA margin of 33%. So that’s what Yogesh is — has been saying. And this revenue we would recognize as the projects complete, of course, and which I think is going to happen in the next three to four years.
And as and when they — and it would be an increasing function in terms of the margin getting recognized because there is still a small mix of lower-margin projects in the which need to be recognized, which will gradually phase-out in the next year or so and a higher-margin would be in the future, which is the — currently what we have 33% is the average of all the — of the entire lot of the unrecognized revenue.
Operator
The line for the current participant is disconnected. We’ll move to the next participant. The next question is from the line of Puneet from HSBC. Please go-ahead.
Puneet Gulati
Yeah, thank you so much, and good luck for this year. My first question is continence of this EBITDA guidance of 33% on project-level. How much of overhead should we build-in from here? And do you think this is conservative because you also have a lot of backward integration? How should one think about the benefits of backward integration into your margins versus the sales velocity?
Jagadish Nangineni
Thank you yeah. Thank you, Puneet. Puneet, the guidance or let’s say, estimate of overhead is little tougher to sort of get to because if you include sales and marketing costs as part of the overheads, that’s a variable year-on-year, right, because as we do better in sales the in subsequent years, the cost-of-sales and marketing increases and which needs to be recognized on the P&L in that year itself. So hence the overhead significant increases.
But otherwise, if you take that out, then it should be reasonably constant. That should be about 7% to 8%, but only the other overheads, non-sales and marketing. And there would be a small percentage of interest also that will be emered. So if you just deduct these — after the project-level, if you’re asking what are the other costs that need to be taken into account that these three would be the one, which is a standard corporate overhead, second sales and marketing for that year and of course the interest that is embedded in the projects.
Puneet Gulati
Understood. And you know, a couple of quarters back, you talked about the margins improving dramatically. We haven’t seen that in the second-half. Is that something one should expect into FY ’26 or is it still some while away?.
Jagadish Nangineni
I think the projects are the margin should start improving this financial year definitely, because it’s a fairly clear that whatever the margin loss that we have encountered in the contractual space, that’s largely completed. And hence now the majority of the — of the entire of the revenue and corresponding margins will be from real-estate.
And even here, like I was saying that some of these — there are few projects which are a few of them, mainly non-Bangalore projects where we had incurred significant increase in cost. There will — there will be some kind of lower-margin projects with that, which we will be recognizing in the next year or so. Apart from those, rest of the projects seem to Be very well within a good margin on the margin front. Hence, I think FY ’26 will have a mix of those and hence it might drag a bit. But otherwise from going-forward, that should not be the case anymore.
Puneet Gulati
Understood and your 33% EBITDA margin guidance is a blend of those low-margin projects and the high-margin projects.
Jagadish Nangineni
Yes, yes. And that’s why I was saying that it is going to be an increasing function. So hopefully, it should even become — I mean, we might start with a little lower and will get much higher.
Puneet Gulati
Great. And versus 33, which is more for historical projects, what are the margin expectations you have from your current sales?
Jagadish Nangineni
Current sales, again, EBITDA margin should be now — the new one should be closer to 40% is what our sense is. And if with our own land in some of the places that we — that also will add to those margins. But if it’s in a typical joint development and recent acquisitions, our margin should be in the range between again closer towards 40%.
Puneet Gulati
Understood. That’s helpful. And lastly, if you can talk a bit about your new financial strength with lots of cash, how aggressive should we see you going and getting new business development or would you like to keep some cash on the sidelines.
Jagadish Nangineni
Yeah, that’s a good question. We have, in fact in the anticipation of this and we have — and in the — we had already started and we have seen some of the investments that we have done in NCR and in some places in Bangalore also. We have done these investments. And I think now the focus for us in terms of new business development would be, again, more concentrated towards Bangalore, NCR, maybe a little bit in Hyderabad and Mumbai.
So — and it’s going to be highly opportunistic. The kind of opportunities that we can really pursue now is slightly wider. We don’t — I don’t have a clear guidance in terms of we’re going to deploy, but the fact is that we are in a good position to capture any good opportunity that can come by. And that’s what we have done in the — our entry into Noida and a little bit investments that we are doing and that current opportunities that we are pursuing in Mumbai are all based on that.
Having said that, we already do have a good pipeline in terms of new launches and you have seen that even from our existing land-bank, there is enough for us to launch and monetize those. And there also, we have some kind of cash outflow to monetize and take it to the project-level.
So hence, so our usage of cash will be — will be in three buckets. One is for pursuing opportunities in these focused cities second is to get our existing land-bank into monetizable state and 3rd is some of the — if we have to require to invest in any of the other land banks, future land banks where the — some investment is required to actually monetize them, not necessarily develop into projects, but monetize them, they’re also investment.
Puneet Gulati
That’s helpful. And lastly, if you can talk a bit about your strategy, last year was a little weak. Any thoughts on how you would want to accelerate that part of the market?
Jagadish Nangineni
Thank you. Yes. Last year, although has contributed close to 20% of our sales and we did the highest-ever sale there. We expected — definitely expected to do much better. We have been discussing over the calls in the previous quarters as what how we are going to turn it back again. So this year also, we think that we can achieve much better than what we have done almost. Hopefully at least 60% to 70% higher than what we did this year.
So things have been progressing well since last few months in terms of sales in. So my view is that with the progress of the project and with the understanding of the people of the customers in terms of value that we create. So there is an increased interest and enhanced sales that we are seeing. And we have a new set of projects also lined-up of two to three of them. So that will also generate much higher interest.
And hence the — and those projects that we have designed and we are quite mindful of the ticket sizes that the — that has been sort of probably one of the issues that they faced in the last years. So considering, one, the slight good pickup and good interest being seen, consistent interest being seen in the in the project. Projects — current projects and the new pipeline that’s coming in, both should contribute well for Suzan.
And we fundamentally believe that Suzan is there — has very good potential. We we have established a good reputation. We have a good operational presence there. So we’ll continue to invest there and we are putting our best efforts to make sure that scales up from an overall medium to long-term point-of-view also.
Puneet Gulati
Sorry. Just lastly on the plan to monetize host and, what should be the timelines for that?
Jagadish Nangineni
We — I think I have mentioned it in my previous call for sure, the — one of the land parcels that we have in which we plan to monetize through a quarter development, the change of land-use has already come and hence we are in the design and the approval phase right now.
That’s about 40 acres. Remaining parcels of the land in, we have clearly identified that they will be monetized. In addition to that, the land, hospital land, we also is in design and approval space. We are hopeful that should be launched for the next 12 months and prices.
Puneet Gulati
Thank you so much and all the best.
Jagadish Nangineni
Thank you.
Operator
The next question is from the line of Pritesh Sheth from Axis Capital. Please go-ahead?
Pritesh Sheth
Yeah. Thanks for the opportunity. So firstly, if I look at the guidance of 30% 35% growth, that’s probably similar to where we guided for last year, right? So how would this year be different versus last year? Is it on the launch timelines, the confidence that we have on launches, but maybe a slight change in-demand environment. So what’s going to drive this and this INR10,000 crore number that you are aim for?
Jagadish Nangineni
Yes, Pritesh. The launch timelines visibility for us is slightly better this year, no doubt about it. And second, the launches are also more diversified in the sense they are — they are in much more — many more cities and with varied customer sets and also ticket sizes. So hence, the diversity in the kind of new launches that we are getting in should definitely help us in achieving a much better number than what we have done last year.
Last year, if you remember, the launches that we did were slightly concentrated in larger ticket sizes. And that did not — although we launched it early in the year, it did not really help us add to the whole sale value. In fact, the 50% of the last year sale is also from the new launches, but some of those launches have happened little later in the year. So a phased approach of launches and clear visibility should definitely help.
Number-one. Number two is, we are starting out with a reasonable inventory across cities. So that should also help us in achieving our number. So it’s more to do with a steady demand environment and a diversified launches that we are doing and hopefully timely launches as well.
Pritesh Sheth
Sure. And since you mentioned about ticket size, have we also course corrected there in terms of every market we are present in, in, that what kind of right ticket size and right pricing is needed for those projects? And should we be — we as analysts should be fairly confident about your pricing strategy and product strategy for launches going right?
Jagadish Nangineni
Yeah. I mean, like I Mentioned earlier as well, we — it’s not that we have deliberately aimed for a certain ticket sizes. Those launches that we have done last year were all of them came up in in a certain time-frame, which was coincidental. But otherwise our core bread-and-butter business has always been a three-bedroom, two, three and four-bedroom apartments and that continues to be the case even in the in the future and particularly the large projects, we have a good mix of products. So that’s one. Second is from a pricing point-of-view, also we would continue to adapt the same methodology, which we have been doing, which is essentially at least one, protecting margins. And also second is making sure that the project sales are done at least there is a — we complete the project sales much ahead in terms of the — from the project life-cycle or completion life-cycle. So both put together, the inventory — higher inventory that we have will definitely contribute to the higher sales is what
Pritesh Sheth
Second on the launches, so 8 million to 9 million square feet is what you’re aiming to launch this year. If you can provide a breakup across markets? I mean you in general gave a breakup of first-half launches, but broader full-year number, how should these launches be across the markets?
Jagadish Nangineni
And from a launches point-of-view, more, I think roughly about 40% plus will be in NCR, which is in Noida and Great Noida and Gurgaon and roughly about 15% is in Bangalore and 10% is in Chennai, 5% in Mumbai and rest of the locations carry the remainder.
Pritesh Sheth
Sure. And NCR, I mean Noida will launch both the projects. Is it both the project that we have this year?
Jagadish Nangineni
Yes. Yes, we hope to launch. And the first one being in this quarter, hopefully and the remaining the other one, we aim to do it by in this calendar year. If not this calendar year, definitely this financial year.
Pritesh Sheth
Got it. And just one last. I see, we have added a 15 acre land, which wasn’t there last-time. I’m sure it’s new acquired land. I just wanted to know the location of that land where it’s located is in.
Jagadish Nangineni
Sorrysh, we have not done any new but if there is anything like that, let me go through that and then come back to you. That might be from our earlier project, which is an international city, which we are trying to develop as floors. That might be the case, but let me have a look at it and then come back to you again.
Pritesh Sheth
India. Okay, okay. Thanks. That’s it from my side and all the best.
Jagadish Nangineni
Thank you. Thank you, Pradesh.
Operator
Thank you very much. The next question is from the line of Piplab from Antique Stock Broking. Please go-ahead
Biplab Debbarma
Good afternoon, Jadesh and good afternoon team. My first question is on Gurugram. So, sir, Gurugram, are we restricting ourselves mostly in Expressway or do you have projects that is coming up say, in other parts of Guruglam and also our strategy seems to be very different from other developers in the last three, four years that we have seen, whereas all the developers that we track or we have seen are trying to sell everything on launches, at least what they are — that is what they are saying, whereas we seem to use a different strategy. We try to sell over the project life-cycle.
So my first question is this on Gurgaon.
Jagadish Nangineni
Yeah. Thank you,. So on the project portfolio in Gurgaon, we have currently three projects, which is one is, which is in sector 80. In fact, it’s not on on main NHA. Second one is in Altus, which is a again mixed-use apartment project in Sector One, that’s on the other expressway. See, the current ongoing projects, the mix has — we have changed it from pure expressive, which was earlier the case. But now we have these two.
And adding to those will be two other projects at least one is sector 63, so which is on the other side of the way which is sort of extension of Gulf Coast roll. So that will be a new location for us. And in addition to that, we have a couple of other projects which are again in Expressway. So range of projects that we have is in — location is reasonably diversified now.
So that’s one. Second is to your point of the sales strategy or the pace at which people are selling in, other players versus us, the — I mean the difference is clearly very stark. But it’s a way we price it and the way we give out our payment plan, all of it is in the — in the interest of the — making sure the cash-flow of the project is intact. We have been present in for last now, close to 14 years.
One of the things that we have seen is any investor — keep short-term investor led demand or bookings would — might there is a possibility that it might lead to cash-flow issues in case of any steadiness or a slowdown in the market that we would definitely like to avoid. And hence due to that nature and second is the our pricing being slightly premium, both these take-out a large chunk of the of the market, which is pure investor market.
So hence, you might see that the volumes are lower, but largely we have also seen that the — our sales cycle and the project cycle are similar, which means that we do sell-out the project prior to the completion of the project. So hence, that should not be an issue from a from a project cash-flow and project profitability point-of-view. B
But yes, I mean, we do hope that we can increase the pace of sale. And we are — we are taking some learnings from what has been done last year and improving upon those. And if those also work, then we should see a pickup in our sales force okay.
Biplab Debbarma
That’s good, sir. And my second is more of a clarification me there. In the slide number 17, you know the area in ongoing and upcoming for and Noida, I’m just trying to decify it. So are you saying in Gurubra, in the ongoing portion, you have only 0.02 million square feet of SBA. And I’m just trying to interpret this as an ongoing and forthcoming from Gurugram and on.
Jagadish Nangineni
Great is a new location for us. So this is — so that’s a 3.1, sir. Yeah, that’s the 3.1 that’s forthcoming. So we don’t have anything which is ongoing or completed. But Gurga ongoing, which is essentially ongoing good. I think this is a list take, but we will continue.
Biplab Debbarma
And that’s fine, sir. And on the forthcoming in the Gurugram, that is 4.08, so are you saying that the main projects you that just now mentioned that is coming this quarter and two more — two projects in Sector 623 and Dwarka, this together would be 4.08 million square feet forthcoming in.
Jagadish Nangineni
Yes, in, we — there are four projects which are in forthcoming. One is the 63 — sector 63. Second is the one mix development that we are planning to do in Sector 106. And third is we have a commercial project, which we plan to sell part of it, retain the retail portion of it and fourth is sector 99 where we have a — as a project.
So there are four projects in that. And in addition to that, we have a small portion in, we have our own land in international city, which is a development that we are debating between doing a plotted development and cell or we can do a — we can do a floors and do the project. So that also once we decide, then that also will come up. So FY ’26
Biplab Debbarma
27, we would see significant supply coming from NCR. Can I heard, sir?
Jagadish Nangineni
Yes, in ’25-’26 itself, we can see, like I said in the to an earlier question, about 45% of the new launches that we are going to do are from NCR.
Biplab Debbarma
Okay, sir. Great. And all the best for FY ’26. Thank you.
Jagadish Nangineni
Thank you.
Operator
The next question is from the line of Parvesh Kazi from Nuvama Group. Please go-ahead.
Parvez Qazi
Hi, good afternoon. Thanks for taking my question. So two questions from my side. First, wanted to get to your views on the demand scenario would be great. If you could expand on that and especially across various ticket sizes or segment. Now I think about 45% of our sales is coming from ticket sizes, INR3 crore and above. So what is the demand across these various ticket sizes? And second is on the pricing front, I mean, how do we see the pricing scenario?
I think everyone in the industry has seen very sharp price increase, partly due to product mix. Of our 23% increase in realizations in FY ’25, what would have been the like-to-like organic price increase and how do we see like-to-like price increase in FY ’26? Thank you.
Jagadish Nangineni
Good questions, Parvel. So to start with from a demand point-of-view, so each market — we have three large markets, of course, our launches are in multiple many more cities this time. So the May, our Bangalore, NCR and, all three are slightly different. Bangalore is largely End-User driven and there the demand seems to be at least steady from the leading indicator, which is coming from a inquiries and from the site visits point-of-view.
So — but however, of course, any macro events that do occur, which are negative in nature typically impact negatively into the customer sentiment. And one of the first things one tends to do is to put a break on the discretionary spending. So which was temporarily we could see in the last — in the first two months of this financial year. But otherwise, it’s back to be steady. So I think from a from demand standpoint in Bangalore it seems to be very much consistent with what we have seen last year.
Second, from a — in the same market, from a pricing point-of-view, like-to-like pricing, probably we might not increase the price as we have done in the last couple of years. So hence, we can see a steady pricing environment. If going-forward, probably in the next few years, you’ll probably see an inflation led price increases. And if that’s largely in Bangalore. Similar would be the case in NCR as well, although we are seeing from a demand point-of-view, there as well, seems to be reasonably steady.
From a Kerala, which has a different set of customers, the kind of demand is mainly driven from the NRIs. And there also there seems to be good continue to see interest in our projects. And the pricing there also has been steady, but new launches what we are doing are slightly higher than what we had done earlier. And even in those, there seems to be a good interest from the customers. S
Parvez Qazi
Sure. Thanks and all the best,. Thank you for this.
Jagadish Nangineni
Thank you very much.
Operator
The next question is from the line of Kirish Choudhary from Avendus Spark. Please go-ahead.
Girish Choudhary
Hi,. Yeah. So firstly on operating cash-flow, I just wanted to check how do you see the trajectory for fiscal ’26? This year we saw around how from operating cash-flow point-of-view, around INR1,174 crores, which was some 7% to 8% growth. So yeah.
Jagadish Nangineni
I think from an operating cash-flow also, it should be similar or better. In fact, it should be — we should aim to achieve at least at least 10% growth on operating cash-flow. We should try doing it because there is — on the back of sales that we have done in the previous years, the construction
Operator
Of Punja Tishi, hold by. Bajaha the person you’re speaking with has put your call on-hold. Please stay on the line the line for the management seems to have disconnected.
Jagadish Nangineni
Okay, sorry, continue from the line of Girish. We can take the next question.
Operator
Okay, sir. The next question is from the line of Kulal Lakhant from CLSA Limited. Please go-ahead.
Kunal Lakhan
Hi, thanks for taking my question. Just on an earlier question, just trying to read between the lines here. You said that the Gurgao demand is reasonably steady. Would you say it’s reasonably steady currently versus, say, euphoric last year or how do you — you how would you like to elaborate that? Y
Jagadish Nangineni
Yeah. I mean, last few years, the demand has been euphoric in Gurgam, in other cities as well, Kunal. But actually the characteristics roughly remain the same, which is now we are in an environment where there is a pricing increase, right, is largely stabilized, you know. Initially it was a — it was a cost-led increase, then there is a demand-led increase. And now the demand seems to — the pricing seems to be have stabilized and the — and also since the supply also has caught up, the price increases, I would say, would largely be inflationary going-forward at least in the visible year or so.
Considering that the demand environment specifically in cities like Gurgam, there is a significant chunk that comes from investors as well. And that the long-term investors and end-users demand continue to be steady, but a part of short-term investors might be — might be impacted with this nature.
Otherwise, which actually what matters to us or to any developer could be a customer who is not leveraging and playing on the price increases, but actually would like to keep the investment that one does. So from that sense, the steadiness of the demand should continue.
Kunal Lakhan
Sure. Just on that, right? I understand speculative demand may just being down, but say even the end-user demand, right, with say the 20% 25% growth in prices that we saw annually in the previous years with that now slowing down and then obviously the formo effect for end-users like reducing. Yeah, would you see slowdown in the End-User demand also? Are you sensing that in the footfalls or inquiries?
Jagadish Nangineni
Yeah, like I said, the leading indicator, which is our — which is our inquiries, visits to our project side, those seems to be — those seem to be quite steady. So I have not seen any big changes there and hence the confidence that the demand seems to be quite steady right now?
Kunal Lakhan
Sure, sure. On the Bangalore market, right, the approval issues that we had in the last year due to the issue, is it fully resolved or there is still some deadlock there?
Jagadish Nangineni
In is a evolving phenomenon. As we progress the time, the adaption to the new system is continuing to take place both inside the government and for the end-users or the developers. So unless there are some exceptional cases — cases use cases these things seems to seem to be getting resolved much faster and hence that part of one small area of CASA related timeline should get better.
Kunal Lakhan
And just On the approval side of the department, I think is that — is that normalized there or is it still
Jagadish Nangineni
Yeah, during the approvals, Sonal, CASA is also a part of the process. So that side, which we — there were certain delays experienced by — on the developers, those I think would slowly come down. But from the other side, which largely has been I mean, unless there are any specific issues or any changes in the in the people at the helm of the affairs in terms of the department. Other than that, rest of the procedure and the norms are completely the same. And hence, I don’t foresee major challenges there.
Kunal Lakhan
Sure, sure, sure. And on the Bangalore market, right, you said that the demand remains steady, but considering the uncertainty on the US policymaking regarding, say, the H1V visas and even the recent repatriation tax and a fair bit of demand comes from the workforce abroad. Do you sense any reluctance there in terms of again customer behavior in terms of committing to long-term or committing to purchases
Jagadish Nangineni
Or any such macro or issues that come up, which impact the sentiment of the customer or there is a — there’s kind of uncertainty that’s created would definitely impact, but it’s a in cities like Bangalore it says that for us, the NRI demand or the goal is good for us, it’s a small percentage.
So from that point-of-view, it’s not visible yet for us right now. But if as more clarity comes through and people would make their choice to sort of go-ahead with their purchases or how to — how to plan their own life. So as that progresses, probably we’ll get to get to see the visibility. But as of now, I think it’s little early for us to comment on that.
Kunal Lakhan
Understood. Understood. And lastly, in terms of like say scaling up from, say, the current scale of, say, INR6,000, INR6,500 crores of sales to say INR10,000 crores that we aim for, right? In terms of our organization capability, are we ready — ready in terms of say licening, getting approvals, sales or even execution for that matter.
Jagadish Nangineni
Yeah. No, very good question, which is very pertinent for us, particularly because we are a backward integrated company. So our ability to mobilize resources is very critical for us to scale-up. So in that regard, we have done a few changes in our organization from a structure point-of-view, which will enable both these factors, which you have just mentioned, which is one ability to launch projects in a — in a quicker manner and probably more timely manner, right? That’s one.
And secondly, the — there are huge challenges with respect to project execution in terms of mobilizing resources and ability for us to scale in multiple cities. So this small organization structure changes and continuous effort to explore both from a technology and people training and people capability point-of-view.
It’s a continuous exercise, but specifically understanding the kind of scale that we are looking at, we have made conscious restructuring and redesignations of key people inside the organization and that I’m hoping that with that initiate — we have initiated the changes that are required to address this challenges now.
Kunal Lakhan
Understood yeah, understood. Understood. One last question. I don’t know whether you gave out this number. What will be the spend on new land purchases in FY ’26
Jagadish Nangineni
How well we should do similar or again, it’s not a very clear number because of what we are going to do in terms of any new deals that can come out that those calls we will take little later. But from a current visibility point-of-view, there would be certain committed time payouts and those will be similar or slightly higher than what we are.
But largely from the operational cash-flow that we will generate, we should try to achieve that. And even if we have to spend a little bit more, then I think we have enough capital with us to take us through that.
Kunal Lakhan
Thank you. Sure, sure. Thanks. Thanks, all the best.
Operator
Thank you thank you very much. As there are no further questions from the participants, I now hand the conference over to management for closing comments.
Jagadish Nangineni
Thank you everyone for patiently listening to us and I hope we have answered most of the questions that have been posed. In case of any further clarification, please do reach-out to us. We’ll be happy to provide far more data and also a clarity towards any of the further questions. Overall, we think that we are in a very, probably the best phase right now as a company. We — we are for the first time sitting on a negative debt.
For the first time, we have a clear visibility of large-scale of launches that we can pursue. We have for the first time, have a big set of inventory that we already have to begin with. And for the first time, we are clearly seeing the power of the diversification that we have that we had set on long-time back and hence we have a lot of launches across these cities.
So given — so this is a very exciting time for the company and also a very challenging one in a good manner to show that we should be able to showcase our strength of our model of backward integration and able to achieve all both our operational and financial objectives going-forward. I thank everyone who have been covering us and also listening to our side of the story for the last few years. And thank you very much and wish you the best.
Operator
Thank you thank you very much. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines