Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Sobha Ltd (NSE: SOBHA) Q3 2026 Earnings Call dated Jan. 17, 2026
Corporate Participants:
Jagadish Nangineni — Managing Director
Yogesh Bansal — Chief Financial Officer
Analysts:
Adhidev Chattopadhyay — Analyst
Puneet Gulati — Analyst
Parikshit Kandpal — Analyst
Sucrit Patil — Analyst
Akash Gupta — Analyst
Vineet Kumar — Analyst
Manoj Dua — Analyst
Biplab Debbarma — Analyst
Pritesh Sheth — Analyst
Himanshu Upadhyay — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Shobha Limited Q3FY26 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the 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 an operator by pressing star then read on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Adide Chhattupadhyay from ICICI Securities. Thank you. And over to you, sir.
Adhidev Chattopadhyay — Analyst
Yeah. Good evening everyone. Thank you for joining us on the Shobha Limited call today from the management. As always, we have with us Mr. Jagdish Nangineni the Managing Director and Mr. Yogesh Bansal the Chief Financial Officer. I would now like to hand over the call to the management for their opening remarks over to you. Thank you.
Jagadish Nangineni — Managing Director
Good evening everyone and wishing everyone a very happy and prosperous new year. Thank you for joining us on this quarter three FY 2526 call. Thank you Adidev for organizing this. I will briefly touch upon our performance in Q3 and our outlook for the remaining period for FY26 and beyond. Firstly, on real estate sales and new project launches. The first nine months of FY26 have been truly exceptional for Shobha with our real estate sales reaching an all time high of 6,097 crores in a nine month period in Q3 we have surpassed our earliest highest sales with 2,115 crores.
We have achieved an average price realization of about 14,500 in the first nine months versus last year’s of about 13,400. An increase of about 8%. This quarter Bangalore achieved our highest ever quarterly sales of over 1500 crores thanks to the launch of Shobha Magnus on Baneir Gatta Road which did fantastically well selling about 80% of the project in the launch quarter itself. NCR also has done well this quarter with the launch of Shobha Strada in Gurgaon. It is our first service apartment project.
We also launched Shobha Initio, our first project in Mumbai in December, expanding our real estate presence to 13 cities across India. In this month, January 26, we already received RERA for two projects. Shobha Altair in Bangalore and Shobha woods in Triventrum. Overall we have launched 2.58 million square feet in the first nine months nine months of this year. Some of the planned launches in this year got delayed due to combination of factors. We are working towards launching three to four projects in Q4 one in Gurgaon which is about 800,000 square feet, one in Greater Noida which is about 2.4 million square feet, one in Chennai which is about 1.5 million square feet and one in Calicut at about 800,000 square feet.
All of them are in various stages of approvals. If all of them come through then we will cumulatively be launching about eight and a half million square feet for this financial year. The Q4 sales performance is partly dependent on these launches and if they come through in time we should be able to surpass our annual plan of 35% increase over last year at about 8,500 crores. Coming to our non real estate businesses Our manufacturing, contracting and retail businesses continue to perform steadily further strengthening our unique backward integrated execution model that ensures world class quality.
The revenue contribution from the non real estate businesses have been steady quarter on quarter and we achieved about 575 crores in the first nine months and hope to do about 750 crores for the year. Since we are not undertaking any new projects in civil contracts, there would be a degrowth in this segment to the extent of about 150 to 175 crores from next financial year. Coming to project completions in real estate, we have completed 915 homes taking cumulative deliveries in the first nine months to 2,100 homes which is about 3.65 million square feet.
We plan to complete another 1.5 to 1.7 million this quarter and take it to a total of 5.2 to 5.3 million square feet, a growth of about 15 to 17% over last year. Completions of 4.54 million square feet. Coming. To revenue Recognition and Margins Our revenue recognition in residential real estate has been low this quarter affecting the overall profitability. We could recognize lower due to non receipt of OCS in three projects. This is not due to any structural issue or any ongoing issue but specific to this time period which we can classify as normal procedural delays.
Due to this lag we couldn’t recognize close to 500 crores which would be reflected in the next quarter. As you would have seen in various investor presentations, we have a total unrecognized real estate revenue of about 18,600 crores. The blended net margin at project level after accounting for project interest is about 30% for this unrecognized revenue projects that we have recognized revenue in this financial year and in the first nine months is about 12% when compared to that 30% number projects that we have completed and we are going to recognize in the next few quarters and going to complete in the next 12 to 15 months.
The margin of the same would be in the range of about 18 to 19%, a 50% increase. For the projects that we would complete beyond 15 months it would be about 34% again an increase of about 90%. Hence the margin expansion is definitely going to happen in a manner as we increase our pace of completions and recognize those revenues. With this I hand over the call to Mr. Yogesh, our chief Financial Officer to provide details on the financials
Yogesh Bansal — Chief Financial Officer
Good evening everyone. I wish you all Happy New Year. I am pleased to share our financial performance for our quarter three and first nine months of financial year 2025 26. I will begin with our cash flow covering both quarterly and year to date trends and then move to P and before opening the floor for questions. Q3 was another strong quarter with total operational cash inflow of 1985 crore representing a 34% year on year growth. This was driven by real estate collection of 1,816 crore up 37.5% over the same period last year.
For the first nine months total operational inflow stood at 5,809 crore recording a healthy 32% growth over last year. Real estate collection for the period grew 33.7% year on year reflecting strong sale momentum and disciplined execution. As anticipated, construction cost and sales and marketing outflow were higher year on year. In line with our sale momentum, our net operation cash flow remained robust. We generated rupees 362 cr in Q3 and improvement of 78% year on year supported by strong customer collection and project progress.
For the first nine month net operational cash flow stood at 1270 cr, already surpassing the full year FY25. During the nine months net land payments were rupees 872 crore up nearly by 38% reflecting a strengthening of our growth pipeline. We generated net cash flow rupees 41.6 crore in Q3 and rupees 161.9 crore in nine months of FY26. We closed the quarter with a gross debt of 997 crore and cash balance of 1790 crore, underscoring high resolvency and strong financial footing. Looking ahead we have clear visibility of future cash flow expected from our ongoing and forthcoming inventory.
From all ongoing projects, we expect to generate marginal cash flow of close to 9,000 crore at project level. Post sales and marketing spend, we should be able to rely this over next four to five years. Additionally, we expect to generate 7,300 crore of marginal cash flow from forthcoming project of 16.51 million square feet which shall be launched over next six to eight quarters. With the strong foundation, we aim to further scale operation. Cash inflow in coming quarters supported by new launches, sales, construction, progress and sustained collections.
Now coming to P and L. Total income for Q3 was 983 crore and for nine months it stood at 3354 crore. Revenue recognition during the quarter was lower than anticipated primary due to delay in obtaining OC for certain projects a bit. For Q3 was 78 crore and for first nine months 309 crore pad was 15.4 crore. For Q3 and 102 crore for nine months we have unrecognized revenue from sold unit of approximately 18,600 crore crore as on date. As we ramp up our project completion and recognize more revenue, we expect the profitability margin to improve.
I would like to thank you for all for your participation. With this we can now open the call for questions.
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 and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets 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 Puneet Gulati from hsbc. Please go ahead.
Puneet Gulati
Yeah, thank you so much and congrats on great performance. My first question is if you can give some color on what you’re seeing on the ground in terms of demand environment. Some of your peers, at least in Gurugram, seem to be talking about a bit of softness. If you can share your experience across geographies, it will be very helpful. Thank you.
Jagadish Nangineni
Thank you. Puneet. The overall demand scenario in the operating markets that we are present, Bangalore seems to be steady in nature and Gurgaon while there are pockets of concern. But like I was always mentioning in the previous calls, the sweet spot of about between 4 to 5 crores is still. 4 to 6 crores is still a good market for Gurgaon. And in such cases where the demand from the short term investors has reduced the Opportunity lies with projects and companies where there is end user or long term investor demand that seems to be on a continued path.
From a leading indicator’s point of view are site visits and opportunities that we generate for these projects. They seem to be continuously on a similar number month on month. And hence we have seen that this end user demand continues to be robust. In Gurgaon in Kerala. Kerala, the demand seems to be steady. It’s a NRI market largely and some projects in Trivandrum it is a combination of both NRI and end user. So they seem to be quite steady in terms of demand.
Puneet Gulati
And also Noida and some color on how you foresee pricing.
Jagadish Nangineni
NCR as a overall market is for us it is a very long term play and immediate and in the next few quarters or a year, couple of years, the demand side seems to be still very robust for the whole of ncr. Whole of NCR and in fact North India. The only job creating locations are Noida and they would produce end customer or let’s say end user demand. And I think that would continue. And we have been for a long time have attracted long term investors and end users as our customers. So hence for projects like us, for projects and locations like ours that play doesn’t seem to reduce or change.
But the only thing is probably due to some of these absence of some very short term or let’s say medium term investors the volume might not be as expected as what we have seen couple of years ago where we were seeing fully sold out project launches. But other than that from structurally I don’t think it is a big issue.
Puneet Gulati
Okay, that’s very helpful, thank you. And secondly on the cash flow side, just three questions. We’ve seen cash tax go up, advertising spend go up, should that be the new number? And secondly if you can comment on the nature of spends on the land tenant side, 240 crore this year, this quarter as well.
Jagadish Nangineni
Yeah sure. The marketing, sales and marketing spends of course it’s an approval of all the sales that we have done. Brokerages pay incentives, we are doing advertisements for new project launches. So it is bound to increase in accordance with the pace of sales. Second is with respect to the tax, I think it’s advanced tax that we have paid for this quarter in this quarter and hence that’s a higher number there. Third in terms of the land payments that we have done so for the projects that we have to launch, some of the pending payments that needed to be done and those reflect majority of the outflows for that.
Puneet Gulati
Okay, so it’s not the new land parcel. It just preparing for the launch to some approval related spends.
Jagadish Nangineni
No, the approval related spends. We don’t take it in as part of land. All the land spends that we take are the approval related spends go towards the construction spend.
Puneet Gulati
So this is what new land that you bought for 240 crores or
Jagadish Nangineni
It’s not. It’s a major in this particular quarter. Majority is towards settlement of old dues for some of the existing plants. We are planning to launch in the next financial year and very little component towards any new products.
Puneet Gulati
Great. That’s very important. And lastly on Horse Cote, when should we expect that launch?
Jagadish Nangineni
We are in advanced stages of approval process. It’s about 48 acres of land, first phase. We are trying to launch it about 5.4 million square feet. That should happen in the first quarter of next financial year.
Puneet Gulati
Okay, that’s very helpful. Thank you so much and all the best.
Jagadish Nangineni
Thank you.
Operator
Thank you. Ladies and gentlemen. To ensure that the management is able to address questions from all participants we would request to please limit your questions to two per participant. The next question is from the line of Parikshit Khanpal from HDFC Securities. Please go ahead.
Parikshit Kandpal
Yeah. Hi Jagdish. Congratulations on a good quarter. Sir, my first question is on the launches in this quarter. So if you can help us with the timeline of NCR launches. Both great and Oida and Gurugram. So what stages of approval have we filed for era? So if you can just update us on that.
Jagadish Nangineni
Thank you. Both of them are in advanced stages. I think we should be able to apply for ERA early late this month or early next month. So we are looking at the launches like I mentioned in the initial comments. Apart from these two, couple of others, we should be able to do those towards the end of the quarter. March, mid March is what I’m expecting to launch.
Parikshit Kandpal
So when the sales we recorded in this quarter. So from that angle I wanted to understand whether the pieces will get captured in this quarter or move to next quarter.
Jagadish Nangineni
Yes, if the DA comes in time and we are. If DAA comes in time, definitely we plan to launch it in this quarter. And part of the sales which will come for the project will be logged in this quarter.
Parikshit Kandpal
Okay. And between the two, I mean will Noida be a full fledged launch? As you said that 0.8 million you’re looking to launch in Gurgaon which looks like half of the project but NOIDA is full 2.4 million. So are you more confident on the greater Noida project? If you are going for A full fledged launch. I’m not that confident on Gurgaon. Just wanted to pick your brain on that.
Jagadish Nangineni
Yeah, good question. Actually it’s not related to any demand side scenario, but it is more towards technical. In Gurgaon we are launching part of the project because the remaining set of the project project needs TDR and we have phased the project in such a manner that we launched first the base far and the remaining we will launch in subsequently in the next financial year and that’s the main reason. Otherwise we could have launched both the. Entire project
Parikshit Kandpal
And this is the last. Question on the pricing bit. So do you think that maybe three months back the pricing you were thinking on both these projects and now where it actually goes to the launch, do you think that in your mind that number will be slightly lower? Given that what we’ve been hearing from the peers and the demand slowing down, do you think that there is a case you are presenting to the management, senior management that we should rationalize the pricing which was thought earlier?
Jagadish Nangineni
No, I think the pricing is largely stabilized in both these locations. We have not come across or not seen any rationalization of pricing. So hence I and our the projects are of long term in nature. We are not chasing only the short term sales or growth from A we are here chasing both growth and also would not like to sacrifice our margins as well. So hence we are quite confident that we will be able to achieve both.
Parikshit Kandpal
Because on margins still we are weak and you said that 19% for next 12 to 15 months. So from next quarter onwards we see the margins improving and by the year end we’ll be at 30 30%. Then for the next year after 15 we are at 34. So how will be the journey from every quarter from here from right now 8% EBITDA margin.
Jagadish Nangineni
Right. For Q4 specifically it should be much better because there’s a lot of pending revenue that we can recognize going forward. It also the net margin for the company wide margin also depends on the quantum of the completions that we will do and the kind of projects that we will do. So what I can see is in the first couple of quarters next year would still be little tight. Mainly also because of increased sales and marketing expenditure that we would do. We would incur and the completions are slated towards the second half which we have started about three years ago.
All those projects will start coming in. So I think from Q3 it should be significantly better. But from first two quarters also should be okay. Mainly apart from the fact that it is the there would be an Impact on higher sales and marketing. That’s about it.
Parikshit Kandpal
Okay, sir. Thank you.
Jagadish Nangineni
Thank you.
Operator
Thank you. The next question is from the line of secret Patil from Isight Sunk Trade Private limited. Please go ahead.
Sucrit Patil
Good afternoon team. Am I audible?
Jagadish Nangineni
Yes, Sukhrit. Perfect.
Sucrit Patil
Yeah, thanks. So I have two questions. My first question is to Mr. Kenny. As demand for premium housing continues to grow, how do you see Shobha balancing balancing expansion into new cities with maintaining its reputation for quality and luxury over the next few years? What kind of role do you see Shobha playing in shaping the customer experience and brand? Good listening. Especially as competition in the real estate sector intensifies. This is my first question. I’ll ask my second question after this.
Thank you.
Jagadish Nangineni
Yeah, thank you. See, currently we are present in 13 cities and as luxury housing is increasing, in fact we would. We have. We are. Our aim is to focus far more on cities which have a continuous growth and hence and also to make sure that the delivery of our product remains consistent to what we have been doing till now and in fact improve upon that. So as we grow in scale, the scale would what we anticipate would be coming from a lesser number of cities on higher scale in each of those cities rather than spread out across multiple cities.
And those largely those cities would be again what we are operating in Bangalore, ncr, Mumbai and partly from Pune and Hyderabad. Rest of the cities also would contribute but the main focus would be on these cities. Second is from a role what we would play. The whole company has been founded and we have continuously operated on the most unique, backward, integrated model where we can continuously upgrade ourselves and always see how we can improve on our design and our ability to deliver both on time and optimize best quality.
And that would continue to remain our focus. And in fact we are making significant strides towards that by attending to the matter of delivering towards scale.
Sucrit Patil
Thank you. My second question is to Mr. Banzal. With multiple projects underway, how are you thinking about balancing profit margins with the need to fund growth as new developments come into play, what steps are you taking to keep the costs under control and ensure financial discipline while still supporting Shobha’s long term expansion plan? Thank you.
Yogesh Bansal
So Chris, basically we are keeping check on our capital, how to allocate capital and how we are where we have to allocate so that we can get expected return from the project. And our team is fully focused on execution and controlling the cost. So we have full check on our control on cost and as well as capital allocation so that we can grow in disciplined manner.
Jagadish Nangineni
So adding to what Yogesh has mentioned, Supreet, that as you would have seen we are one of the few real estate companies which has a net negative debt. This would mean that there is a our ability to fund growth and also to ride over any real estate cyclicality. Both we can achieve simultaneously.
Sucrit Patil
Just an extension to this just mentioned the ability to fund growth. So this funding will be internal or it will be by raising any funds from external things.
Jagadish Nangineni
As you are aware we have actually raised 2000 crores as part of rights issue last financial year. So hence we have already addressed that question of funding growth. In addition to that we have series of new launches that we plan to do in the next 15 to 18 months. And those also majority of them are fully paid for in terms of land. And hence incremental cash flow should be significant for us to fund any growth possibilities that we will get.
Yogesh Bansal
And we are expecting 16,000 crore2 from our ongoing project plus forthcoming project cash flow in near future 5 to 6 years.
Sucrit Patil
Thank you very much. The last part was very important. So I wish the entire team best of luck for the next quarter.
Yogesh Bansal
Okay, thank you.
Operator
Thank you. The next question is from the line of Akash Gupta from Nomura. Please go ahead.
Akash Gupta
Hi. Congratulations on great performance. So my first question is regarding the strategy in Mumbai. I think the project in EASIA was launched in the third quarter. So could you please explain like what’s the pricing strategy there and like how has been the reception for that project? That’s my first thought. That’s my first question.
Jagadish Nangineni
Thank you. Akash. Our plans for Mumbai as a market is very strategic. It’s one of the. It’s one of the largest real estate markets in India. So it’s a measured approach in which we have started our projects in Mumbai. I think any, any location that we have entered into it has been a steady growth for us. Like, I mean there are several examples in that because we are present in 13 cities. So it does take some time to understand the local market across various aspects of real estate development. And to that extent.
So it’s a fantastic opportunity that we have started out in Mumbai and we will continue to invest in Mumbai as we find new projects. The first project in isio, the pricing, I mean we have a similar method of pricing our projects And I think for the kind of quality that we deliver it’s quite. It’s little premium to the market but that’s the premium that we do see in any of the locations that we operate in.
Akash Gupta
Got it. And sir, second question is on next year’s demand outlook. With this so much macro uncertainty and even the stock market’s not doing very well. What’s your thought on the real estate demand in the cities that you’re operating in in FY27? I wanted to know your thoughts particularly for Gurgaon and Bangalore. How are you thinking that?
Jagadish Nangineni
Frankly Akash, I wish I know the accurate answer for that. But what I can clearly see is that there is only not in just FY27. So when we launch projects or when we have outlook for the business, we cannot operate in just one year time horizon. We’ll have to take a slightly longer term outlook. And in that context we see that the real estate is directly, I mean real estate demand is completely an outcome of the economic growth that we experience. And as the economy grows, the discretionary spends increase, there would be continuous demand and in an asset class like real estate there might be.
In the last few years there has been a significant increase in pricing and hence it has attracted a lot of short term or medium term investors. But probably that might not be the case in the near term. But otherwise from a long term structural structure point of view that the demand should remain robust if the core assumption is that the economic growth is intact.
Akash Gupta
And so my third and final question is with respect to your FY26 guidance, I think it’s close to 85 billion and we are thinking that the Gurgaon and the NCR project will be launched towards mid March. In the event that happens, do you think there’s risk to that 85 billion number? And second is the in addition to Host Cote In FY27, do we have any other big project to drive our growth in FY27?
Jagadish Nangineni
Good question. So in FY. I’ll take the second question first. So FY27 as you have seen there is a pipeline of about 16 and a half million square feet to be launched for us. And in that if all the launches that we have started spoken in this quarter do occur then that’s about 6 million square feet. So remaining about 10 and a half million square feet is in the next financial year. So apart from Just Kote which is about 5.5 million, there are several other projects both in Bangalore and rest of the country.
One in Pune, one in a few more in Gugaon and then couple of more in in Bangalore as well. So we have a reasonably good visibility towards that pipeline. In addition to that, in fact there are several other projects which are at design stage and as we make progress towards the approval stage we would add to this pipeline. Coming to your question on this specific quarter, of course, like I said, the quarter four performance would be partly dependent on the launches. But I think if we are managing to launch some of at least some of these projects which I have mentioned then we should be able to achieve what we have set out for.
Akash Gupta
Perfect. Thank you so much, sir. Best of luck.
Jagadish Nangineni
Thank you, Akash.
Operator
Thank you. The next question is from the line of Enel from Choice Institutional Equities. Please go ahead.
Vineet Kumar
Hello. Am I audible?
Operator
Yes, you are. Please go ahead.
Vineet Kumar
Yeah, thank you. Thank you so much and congratulations for the good quarter. So you entered into the Mumbai market first time the last quarter. So how was the response to the Soba in Zio? I want to understand. And what will be the expected average price realization or completion period? If you can share some detail on that project.
Jagadish Nangineni
Thank you. Vinit. The fact that as a group we are present in. We have been a listed company for the last almost 19 years. And also the fact that our presence in Dubai has been significant. As a group, the recognition towards our brand is very high. There have been a lot of inquiries and the pricing that we have launched it at is about little over 50,000. And I think there is a good understanding of the customers of the brand and the location. And we seem to be in good stead on that particular project.
And also we are looking at few additional projects that we would explore in the next year or so.
Vineet Kumar
Okay. Okay. And could you repeat the Launch schedule for 4Q26 which you have mentioned during this call at the start like with the square feet like one project in Gujaram and then Noida and Bangalore. So could you repeat that thing once again?
Jagadish Nangineni
Yes, sure. We have. I said we can launch about three to four projects. One in Gurgaon at about 800,000 square feet. Detronoida is about 2.4 million square feet. Chennai is about one and a half million square feet. And Calicut one is about 800,000 square feet.
Vineet Kumar
Okay. Okay. Talking about the margin, is there any material impact or support from the recent GST reform or what the management view from that changes on the margins like SOA is getting any. Any support or it’s impacted due to those reforms. Like what’s the view?
Yogesh Bansal
Finally if you see GST reform, okay. Basically it is benefiting the B2C customer more than B2B. We are consumer of like cement, they have reduced. Okay. But we are consumer of rnc. Okay.
Manoj Dua
So
Yogesh Bansal
For us it’s had very limited impact on our margins. Basically it should be reduced prices. But since we are B2, we are in B2B segment. So we are not getting any benefit of BST reduction. So hence there is no impact on margins.
Vineet Kumar
Okay. Okay. And. And if we. If we can see the same thing from the this primary labor call which is change on means which come into effect on the 21st of November. So some labor laws change. Right. So what we are expecting out of that like because in general market are expecting impact from this around 8 to 12% overall. So what’s your view on this?
Yogesh Bansal
So we are expecting labor code rules. Okay. Which yet to be notified by the states. Okay. We have to see impact. But graduity and leave in cashmere perspective. We are already fully complied. So we don’t have any impact for that perspective.
Vineet Kumar
Okay. Okay. Yeah. Yeah. Okay. Okay. Yeah. So that’s all from my side. Thank you so much and all the best.
Jagadish Nangineni
Thank you.
Operator
Thank you. The next question is from the line of from attic stock broking. Please go ahead.
Biplab Debbarma
Thank you. Good afternoon everyone. Wish you all a very happy new year. Sir, my first question is on Greater Noida. I. My understanding is that the project was at advanced stage. I mean last quarter itself. And now we are seeing that it could. It could be launched mid March. So what is happening there? What is the issue there? It is some regulatory or some market related decision. Could you elaborate? Because another developer also postpone its launch. So is there any issue something that we should be aware.
Jagadish Nangineni
Thank you, Vikla. I am not aware of any other player. But for us it is simple. A very specific issue or let’s say which is part of any new project, launch or design. So we have been going back and forth. I mean we have made. Made some small minor changes in our design. And hence it led to a little extension of time. And only due to. That is the main reason for the. For some of the timeline extension. But otherwise I have not seen any systemic issue with those.
Biplab Debbarma
Okay. Okay, that’s. That’s good. And sir, congratulations on NZO launch. That is the first ever. Actually the project is nearby my where I stay now after Initio and this Greater Noida projects. What is the. You know. Can you give us some insight on the business development development pipeline? You know what next in say in Greater Noida or mmr. We also read some news where you have built for a project railway project or so can you give us some insight on business development pipeline in NCR and mmr?
Yes sir.
Jagadish Nangineni
Yes, sure. I mean like I was mentioning previously our focus locations are Bangalore, NCR Mumbai and some the of the Other cities like Hyderabad and Pune. So firstly the good news is that we already have good pipeline of projects in NCR and Bangalore and we continue to have good business development pipeline as well.
Sucrit Patil
So that’s
Jagadish Nangineni
An ongoing process. And since we are located in both these locations for of course in Bangalore for three decades and NCR for almost decade and a half so the opportunity pipeline is quite good. In fact it has increased quite a bit in the last six months or so. So we are seeing a lot of interesting opportunities and we will continue to deploy our capital in both these locations. However our inventory that we can actually launch in Bangalore is much larger. But considering the various sub micro markets in Bangalore we are selective in some of the micro markets where our presence is lower.
Other than that we are quite good in existing land bank that we already have coming to new cities like new cities like Mumbai. So we this is this launch has been an effort that we had undertaken about year and a half or so now during that’s also now that we have a full fledged presence in Mumbai and we have gone through a cycle of from land towards to launch of a project. Our understanding of the market and our understanding of the local bylaws etc. Are fairly are much better and hence we are looking at opportunities and we are wherever we find it is an opportunistic or a good opportunity.
We are expressing our interest and participating in those like you have seen that one of the railway land we have participated.
Biplab Debbarma
Okay, okay. And how much inventory you have sold in terms of percentage in any zero.
Jagadish Nangineni
Still initial days. We would definitely like to disclose that which we would do. But since we have launched towards end of the quarter still numbers are trickling in and as we progress we will by the next quarter hopefully we should be able to give you a clear picture for that.
Biplab Debbarma
Okay sir and thank you and all the best sir.
Jagadish Nangineni
Thank you.
Operator
Thank you. The next question is from the line of Pritesh Red from Access Capital. Please go ahead.
Pritesh Sheth
Yeah, am I audible?
Jagadish Nangineni
Yes Pritesh, please go ahead.
Pritesh Sheth
Hi. Yeah hi. Good evening. Just one question on the growth visibility side. So I think you know this year have been good so far and probably will end well and probably will you know survive the aberration that we had last year. Can for how long we can continue this 15 20% kind of a growth that we have. We would have had you know in last two years and you know in terms of city wise probably Bangalore we would be already doing 4 and a half 5,000 crore of pre sales. You know is there more growth possible and apart from that which all cities do, we think we can scale up further to target that 15, 20% growth over next couple of years.
Yeah,
Jagadish Nangineni
Thank you Pritesh. On the overall growth point of view, I think if the demand scenario continues, which is quite stable and the end user demand continues and the economic growth is intact, the basic fundamentals, if they remain the same, then the growth for us is partly led by new supply and new supply from our side. And we are seeing that if we are able to launch projects this financial year, we have seen that the response to new launches has been much better and hence we are able to achieve these better numbers despite fewer launches during the year.
So hence it gives a lot of optimism for us and from a growth point of view. So our main goal would be to make sure that the current pipeline of launches are actually executed and we bring those that inventory into the market. If we continue to do that, then I think that the ability for us to grow is definitely there and there is a visibility for the next at least two to three years.
Pritesh Sheth
Sure, sure. And just you know, while you have elaborated citywide pipeline quite well in terms of forthcoming projects and the subsequent land, but just you know, in which city or markets you think you would continuously need some business development, you know, to be done over next 612 months so that you know your growth targets are aligned, you know, in as a, as for a company as a whole.
Jagadish Nangineni
Right. So like I said, the if I look at my current inventory and future inventory that’s going to come in roughly about 50% of that is still in Bangalore and about, roughly 30% is in NCR and about 10% in Kerala and remaining in the other cities. And if we have to grow in cities like new cities like Mumbai and also increase the growth in, in cities like Hyderabad and Pune, then we would, we are looking at new investments there. In fact, we are looking at opportunities in all these places. That said, I think there is a slightly more opportunities even in ncr, even though we have a little bit of inventory there.
Because like you would have seen, NCR is not just one cities, three different states. And we will look at opportunities specific to each of the state and the corresponding inventory that we have. So it’s an ongoing process and thanks to our visibility of our cash flow and our capital structure that we have, there seems to be good, better opportunities now than what we had seen in some of these locations. So of course the challenge is to make sure that there is a balance between what we are launching, generating cash flow and also deploy capital where the opportunities provide some kind of margin of safety.
Pritesh Sheth
Sure. And just assuming in NNOIDA we had two projects we have launched, we would have launched both of those this year itself. Are there more opportunities emerging there as well or, you know, we’ll still have to rely on Gurgaon for, you know, achieving the same number or grow on this base, you know, in ncr?
Jagadish Nangineni
No, absolutely. The fact that we have taken a plunge into Noida market, which is up. So we are seeing opportunities across Europe, not all tier 2, tier 3 cities, but which is Noida, Greater Noida, Gaziabad and in and around those. So the pool of opportunities has increased for us and we are actively looking, evaluating in fact in various stages of discussion as well.
Pritesh Sheth
Sure, sure. Okay. That’s it. That’s very helpful and all the best.
Jagadish Nangineni
Thank you.
Operator
Thank you. The next question is from the line of Manoj from Geometric. Please go ahead.
Manoj Dua
Hello.
Operator
Yes you are. Please go ahead.
Manoj Dua
Happy New Year, sir. And best of luck for the coming year. My most of the questions have been answered. I just want to know how much the launch size of Hosko Day which is coming in the next financial. In the beginning.
Jagadish Nangineni
Yeah. Like I had mentioned in this earlier in the call, it is the we have about 5.4 million square feet project and we are trying to launch it in the first quarter of next year.
Manoj Dua
And when you launch there how much in the beginning it won’t be launched in the 5.4 in the starting we have not decided as on that.
Jagadish Nangineni
Yes, typically the one the project Reza we would take it for the entire project but we would launch base is the demand that we would see and it’s a typically for this size of the project we generally at the time of launch it’s about 30% of the inventory. But if things are really good then we would subsequently open up the entire inventory. For example, we had launched a large project last year around this time Shobha Town Park, Madison and Hamptons. So that was about 3.3 million square feet initially we did launch about a million square feet of it and as we speak we have opened on we have not opened very couple of towers remaining every all the other towers have been released so close to more than 80 to 85% of the of the.
Inventory has been released. So it’s a it’s a function of the demand and also our ability to our ability to open up that inventory there since we have all the permissions for that.
Manoj Dua
You can have. In some places. How do you feel Noida and greater Noida as a market for coming time.
Jagadish Nangineni
No, I think it’s a. We have just launched our first project we are going to start our second one very soon so these are still early days for us and we. There’s a great recognition for the brand and there is bound to. In the last two, three to four years especially there has been a significant growth in UP and specifically in Noida, Greater Noida and there are a lot of positives in the development of the location it was already known for good infrastructure but in addition to good infrastructure now job creation also has significant significantly increased and the prospects are also looking very good with events like opening of Jwar airport and some of the other manufacturing giants coming and setting up their units there.
So overall there seems to be a very positive indications towards the economic growth in specific instruments in these locations and that should be positive for us and in the long run if end user demand continues to grow there then there is no doubt that we can also grow.
Manoj Dua
Thank you ambassador
Jagadish Nangineni
Thank you.
Operator
Thank you. The next question is from the line of Durvish from Prospero Tree please go. Ahead
Biplab Debbarma
Yeah hi Jagdishi Congratulations. A couple of Questions related to 35 years of overall growth from here we are basically at 8500 crores probably hitting in FY26 and if we target I mean you have not communicated but any the direction is towards 15 17,000 crores over next 5, 6 years or 45 years how much contribution from Bangalore will be if we ever achieve those lines I mean and it is coming from an angle that can Bangalore give you the same growth as the total company because of already having such high maturity there.
Jagadish Nangineni
Good question Dhruvesh first from a growth point of view we of course are. We have plans of how we can grow from here from this FY26 and partly part of it is dependent on our new project launches and we have clear visibility for that and if I look at the from a supply point of view not necessarily from a demand point of view we do have visibility for even in a number like 1516,000 crores so we do think that Bangalore can contribute towards anywhere between 40 to 50% they’re already at 5,000 or close to 4,500 to 5,000 crores and that is largely concentrated in few locations and if the diversity of the locations improve then definitely there should be an increase in the overall I mean we would be addressing larger market size within Bangalore itself and hopefully we should be able to grow within that.
That’s number one. Number two is of course for overall growth of the company we will need to penetrate little bit more or have a higher market share in other locations. And those are definitely coming from ncr and if not near term then definitely in the longer term from places like Mumbai. But other locations like Hyderabad, Pune also can contribute. So if you really ask from overall growth point of view, we are quite positive in terms of this growth and going for a number of 15, 16. I would not like to comment immediately but these are the numbers that we already have in the horizon.
Biplab Debbarma
Okay, great. And in terms of the volumes, so because everywhere in the country the prices in the last four or five years have really gone up quite a bit especially in the key metro cities. And I don’t think anybody is now imagining big price increases. In fact there can be a situation where there is a 5, 7% decreases in some areas. So in light of that, how much will. I mean we as a company are not at all focusing on high volumes in terms of square feet because we are so premium. So you know, higher ticket sizes, will it not come to bite us if we don’t really ramp up our supply towards the mid slightly lower categories also which we already are servicing but not in a big way.
Jagadish Nangineni
You’re right. So in fact it’s dependent on our ability to size our product and not that we are addressing only one segment. Our pricing might be premium, but not necessarily. I mean but within that itself we should be able to address ticket sizes across from 2, 3 crores to till 5 crores. If you look at our investor presentation, if you see that our sweet spot has been between 2 to 5 crores which delivers close to 80% of our sales. So within that I think there is enough demand and even less than 2 crores for a 2 bedroom kind of product.
Also in some projects, particularly in larger projects, we are bringing out those in in higher number to address that kind of segment. So it might not be possible in every city that we are able to do, but definitely in cities where cities and in locations where we can do, we are actively mindful of the market size based on ticket sizes. So hence we are designing our products also in that manner.
Biplab Debbarma
And just last comment, more than a question. So I as a shareholder really like the company, the product, etc. But just that I as a shareholder also feel that we are missing out on the growth that we can achieve in the country like India. So just as a feedback, do push the pedal wherever you think there is a possibility. Thank you.
Jagadish Nangineni
Absolutely. We are highly focused on growth as well and there are quite a few things that we had done in the last past few years which have set up a good foundation for us. One, acceleration of launches, creating the right kind of process and structure within the company. Second, building the capital base without risking the cyclicality of the results residential cycle. And definitely there is high emphasis on growth and we would be focusing on that. Absolutely.
Biplab Debbarma
Thank you. If I may just one bookkeeping. What would be the total corporate overheads with this new established structure? I remember asking this question a couple of years back. But because a lot of things have changed internally. So if we don’t go at the project level, what will be our
Jagadish Nangineni
Corporate
Biplab Debbarma
Total yearly cost?
Jagadish Nangineni
That’s roughly about. For this financial year it would be about 320 to 330 crores.
Biplab Debbarma
Sorry, 322 crores.
Jagadish Nangineni
320 to 330 crores.
Biplab Debbarma
Okay, fine. Thank you, sir.
Jagadish Nangineni
Thank you.
Operator
Thank you. The next question is from the line of Iman Shupatya from Steadfast. Please go ahead.
Jagadish Nangineni
Hello.
Himanshu Upadhyay
Hello. Evening,
Jagadish Nangineni
Himanshu. Yeah,
Himanshu Upadhyay
Good evening. Yeah, so my question was in last nine months we have spent significantly on land. Okay. And land related payment and GD and partner payment. Can you give some idea what would be the money we have spent for historical land consolidation and approval related costs and versus completely new project acquisitions which we have done in nine months. Just the numbers. If you can give some thoughts it will be helpful.
Jagadish Nangineni
Yeah, I mean we. It’s a combination of both. I do not have the number right away for that Himanshu and we’ll be able to provide subsequently will investor relations will reach out and give you that number. I do not have that number handy immediately.
Himanshu Upadhyay
Okay. And any. Not the exact amount but let’s say the number of new land acquisitions we would have done. Can you any thoughts on that? Means business development wise new
Jagadish Nangineni
Land. It’s a. It’s an ongoing process and actively we have. We have not been declaring new business development or let’s say as a metric in any previously. And we probably. We don’t even intend to do that. Because that’s a very strategic opportunistic goal that we pursue. And hence we have not been disclosing it in the past. So right now for this breakup what you would like to have then our team will can reach out to you and provide this.
Himanshu Upadhyay
And one more thing. We have this forthcoming and subsequent projects launched the land. Okay. Some 422 acres. Okay. So should we assume that in these 422 acres we don’t have any money to be paid for the JD JV partner or anything like that. And it would Be only approval related costs which are pending for this 422 records.
Jagadish Nangineni
In fact there are certain pending payments to the land towards land in this. It is not very significant given the volume of launch launches that we would be doing in this. So all put together we have an estimate of about thousand crores that need to be spent for let’s say invested towards this. Towards both these forthcoming very minimal. But a part of it is forthcoming and part of it is subsequent. But not necessarily the investment investment is impeding the launch of the project. So it’s in some cases the investments continue post launches also.
Himanshu Upadhyay
And let’s say the another figure what we give is 1752 acres which is various stages of consolidation, monetization and self use. What type of amount which will be required to consolidate and just get the our our name on those lands. Okay. Any some thoughts on that?
Jagadish Nangineni
Yes. In fact majority of those lands we would ideally like to monetize or bring towards the. And part of them we will think towards development. And even if you have to bring towards development that is not as high as what what we have seen in the. For the remaining 422 acres.
Himanshu Upadhyay
Does it mean that it is lesser than that 422 acres water up cut figure you gave of thousand corrodes.
Jagadish Nangineni
Yes. Yes.
Himanshu Upadhyay
Okay. Okay. Yeah. Thank you from my side.
Jagadish Nangineni
Thank you.
Operator
Thank you. Ladies and gentlemen, this will be the last question for today which is from the line of Ayush Sabu from Choice Institutional equities. Please go ahead.
Biplab Debbarma
So I just wanted to understand firstly congratulations on your Mumbai launch. What could be the prospective, you know pipeline that we could launch possibly in Mumbai in two to three years. Have we set any target or any guidance regarding that?
Jagadish Nangineni
Good evening. Sorry, we don’t have any specific timeline or target towards that. Like I mentioned we are looking at opportunities. In fact we are working on few opportunities in Mumbai. But it’s considering that we are new and also continuing that there are multiple opportunities that we are pursuing. And most of the land acquisition is opportunistic. It has to fit in our framework. So it’s very difficult for us to give a target at this stage. Once we have certain lands tied up then surely we can disclose those details.
Biplab Debbarma
Thank you. All the best.
Jagadish Nangineni
Thank you. Ayush.
Operator
Thank you. Ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to Ms. Atide Chattopadhya for closing comments.
Adhidev Chattopadhyay
Yeah. Good evening. Thank you everyone for joining us on the call today. I just like to hand it back. To the management for any closing comments, if any. Thank you
Jagadish Nangineni
Thank you. And thank you all for participating in the call for your questions and patient hearing. I hope we have answered most of your questions satisfactorily. You’re most welcome to reach out to our investor relations team for any further clarification. Our continued focus on operational excellence coupled with strong customer confidence in the brand are pillars of our strength, helping us simultaneously achieve both customer satisfaction and business metrics at disciplined growth mindset. Investment in technology and people and process improvements will see growth acceleration.
Our robust balance sheet uniquely equips us to capitalize on emerging opportunities while effectively managing the inherent cyclicality of residential real estate. Wish you all a very happy weekend and the best for the rest of the year. Truly appreciate your support. Thank you.
Operator
Thank you members of management. Ladies and gentlemen, on behalf of ICICI Securities Ltd. That concludes this conference, thank you for joining us and you may now disconnect your lines.
Jagadish Nangineni
Thank you.