Sobha Ltd (NSE: SOBHA) Q4 2026 Earnings Call dated May. 05, 2026
Corporate Participants:
Jagadish Nangineni — Managing Director
Yogesh Bansal — Chief Financial Officer
Analysts:
Adhidev Chattopadhyay — Analyst
Parikshit Kandpal — Analyst
Puneet Gulati — Analyst
Girish Choudhary — Analyst
Biplab Debbarma — Analyst
Fenil Brahmbhatt — Analyst
Pritesh Sheth — Analyst
Akash Gupta — Analyst
Parvez Akhtar Qazi — Analyst
Muralikrishnan Raghunathan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Sobha Limited Q4FY26 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the lesson 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 zero on your touch tone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Abhidev Chaturpadhya from ICICI Securities. Thank you. And over to you, sir.
Adhidev Chattopadhyay — Analyst
Yeah. Good evening everyone. On behalf of ICICI Securities, I’d like to welcome everyone on the Shobalimetrid call today from the management. As always, we have with us Mr. Jagadesh Nangineni, the Managing Director and Mr. Yogesh Bansal, the Chief Financial Officer.
I now like to hand over the call to the management for their opening remarks. Over to you. Thank you.
Jagadish Nangineni — Managing Director
Thank you. Good evening everyone and thank you for joining us on this call for Q4FY26. In today’s call, we’ll briefly go through the operational highlights of the year and little bit about the future. FY26 has been an exceptional year for the company. Our real estate sales reached an all time high of 8136 crores. With strong and consistent average quarterly run rate of approximately 2000 crores. We have achieved an average price realization of 14,675 per square feet compared to 13,412 previous year which is reflecting growth of around 9.4%.
From here we expect to grow at a similar rate as last year. Last year we have done about 30% growth in terms of sales and similar rate is what we expect. This FY27 as well. Bangalore recorded its highest ever annual sales of about 4,500 crores. With both new launches doing well and sustenance sales also doing well. During the year, NCR region delivered the highest ever annual sales of about 2,450 crores. With our expansion into Greater Noida, Both Bangalore and NCR together contributed about 85% of our sales.
Kerala region maintained steady momentum with about 800 crores and other regions contributing about 400 crores. In terms of project launches, we launched about 6.04 million square feet during FY26. Some of the planned launches were delayed due to multiple factors both external and internal. Having said that, in April 26 itself we successfully launched our first project in Gurgaon which is Shobha Crescent Phase 1. It has received good response. Looking ahead we plan to launch in this financial year at least about again more than 50% close to about 10 million square feet is what we look to launch across Bangalore, Gurgaon, Hyderabad, Tushur and Pune that we will be able to do in the next.
Overall we have a pipeline of 20.67 million square feet in various stages of design and approval which we plan to launch in the next six to eight quarters of which about 10 million we expect to launch in this FY27 itself. Our non real estate businesses which include manufacturing, contracting and retail have continued to perform steadily. These businesses also play a critical role in strengthening our backward integrated model and ensuring consistent delivery of world class quality. We expect to maintain a similar run rate with these businesses as well with improved profitability on the project completion front for the real estate we delivered 1087 homes during the fourth quarter and taking the total to 3188 homes equivalent to 5.4 million square feet for the year.
This again has seen an increase of about 19% compared to previous year. We are accelerating our delivery and we hope to achieve at least similar growth in the next year as well. In terms of revenue recognition and margins, we witnessed significant improvement in the fourth quarter primarily driven by receipt of occupancy certificates which were delayed in the third quarter earlier. We currently have an unrecognized real estate revenue of about 18,600 crores and we have shown in our investor presentation as well that we expect an EBITDA margin of at least about 30% plus there.
The projects that are nearing completion and expected to be recognized in the next 12 months are likely to deliver higher margins in the range of 24 to 25. 26% significant improvement from this year and hence we expect significant improvement in RP L even in FY27 with improving margins over the over the quarters and probably little bit higher towards the end of Q3 and Q4. In conclusion, the company has built a strong foundation supported by record sales performance, robust launch pipeline and steady operational execution and clear visibility of margin expansion and we believe we are very well positioned to sustain this growth momentum in FY27 and beyond.
With this I’d like to hand over the call to our CFO Mr. Yogesh Bansal to take you through the financial details.
Yogesh Bansal — Chief Financial Officer
Good evening everyone. I am pleased to present our financial performance for the fourth quarter and financial year 2526. In FY26 was characterized by strong operating execution and discipline capital allocation. We deliver record sale while strengthening liquidity and reducing leverage, ending the year in a net debt negative position. Our focus remain constant. Accelerate collection, fund the construction and lag investment through operating cash flow and improve the quality of earning through lower finance cost.
I will briefly walk walk you through our cash flow performance covering both the quarter and year trend along with the our outlook and then I will move on PNDL during the quarter from all businesses we collected 1990 crore and for the full year total collection was 7,798 crore recording a healthy 26.1% growth over last year. Financial year in Q4 real estate collection stand at 1,807 crore and for financial year 26 7,067 cr contractual and manufacturing contributed 183 crore in Q4 and 732 crore during full financial year.
At net operating cash flow level we generated 366 crores in the quarter and 1637 crore in full year. Existing growth of 39.4% over FY25 as on 31.03.2026 gross debt stood at 1002 crore while cash and cash equivalent were 1802 crore. Maintained a net cash position coming to P and L For the quarter we recorded a total income of 230 crore taking the full year FY26 total to 5,384 crore. Revenue recognition strengthened during the quarter aided by clearance for completion certificate of for multiple projects.
A bit of for Q4 was 194cr with for a bit of FY26E 503 crore PAT. Q4 was 92 crore and FY26 was recorded 193 crore. Gross debt reduced to 1002 crore and cash equivalent were 1800 crore resulting in net debt of 800 crore. The cash balance provides resilience through cycles and enable us to fund launches, construction movement and land investments. A combination of strong collection, lower cost of fund and a net debt negative position Strengthen our ability to execute our development pipeline with a disciplined financial forecharge.
Looking ahead, company confidence is underpinned by strong operating momentum and high visibility across P and L performance. Revenue, cash flow and land availability revenue yet to be recognized. From sales done till 31st March stand at 18,000, 8,647 crore. For a cash standpoint, projected marginal cash flow from completed ongoing is estimated 9,560 crore and forthcoming project add an additional projected marginal cash flow of 8,699 crore. We are aiming in FY27 net operating cash flow close to 2,000 crore.
As we scale our priority remain the same. Strengthen our balance sheet, improve cash flow and maintain speedy execution. With this operating framework, we believe Shobha is well positioned for sustained long term value creation. Once again, thank you all for your participation. With this, we can now open the 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, you press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may please note in order to ensure that the management will be able to address questions from all the participants, kindly limit your questions to two per participant. Should you have a follow up question, please rejoin the queue.
The first question is from the line of Parikshit Kandpan from HDFC Securities. Please go ahead.
Parikshit Kandpal
Hi sir. Congratulations on a decent quarter. The sales are low expectation. I mean our expectation was more like 10,000 crore. I understand one of the launch got postponed to Gurgaon. In Gurgaon. Just wanted to understand if we have a 10 minute. I’m sorry to interrupt.
Operator
I’m sorry to interrupt your voices. Maple, can you use your handset mode please?
Parikshit Kandpal
Am I audible now? Is it better?
Operator
Yeah. Please proceed. Thank you.
Parikshit Kandpal
My question was on the launches of 15,000 crores. About 10 million square feet and 15,000 realization. So if you can highlight some of the key launches in Q1, Q2, Q3, Q4. So how will these launches be spaced out and some of the key launches that you can highlight for us.
Jagadish Nangineni
Right? Good evening, Parikshit. So some of our key launches for this financial year would be our phase one of our Postcote project which we are expecting to launch in the first quarter. And along with that we have. We are already. Like I mentioned in the opening comments, we have already launched phase one of our Guzam project. Both these put together itself will be about close to 6.2 million square feet. In addition to that then in Q2 we have couple of launches in Kerala which are in Calicut and in Kutur.
In addition to those we expect to launch couple of more projects in Bangalore. Essentially one of the projects that we earlier launched as a row house project in Bangalore, we cancelled the project and we are delaunching it with apartments that we plan to launch it towards the end of the year. So these would be the main launches taking all of this together to about 10 million square feet. In addition to that there are a couple of more which is. Which are tentative which might come towards the end of the year which is one project in Pune and one project in Chennai. So both these, if they also come through then we can achieve slightly higher in terms of launches
Parikshit Kandpal
On the project. Riwana, so what exactly happened? I mean this is a large project and we were expecting very strong sales from this. So what I understand on your presentation you have given about 600 crores of sales from NCR. So if you can highlight what was the inventory which was open and how much you have clogged and how has been the momentum in Q1 from this project. So how do you rate the response to this project given that Q4 and we had this geopolitical issue. So you can highlight a bit on this project.
Jagadish Nangineni
Yeah. Like you would have seen Parikshit, that Rivana is a large project. It’s about two and a half million square feet, 1384 units. We launched our phase one there which is 684 units of the project. In the first few weeks of the launch we did about 25% of the sales whatever we launched. And due to the good location and also the scale of the project there is continued interest in the project and we’ll see a steady momentum from here. We have all the infrastructure in terms of sales preparation and the team in place. So hence we would see a good continued sustained sales in the project. We are quite confident of it and in fact we have started our execution of the project as well.
Parikshit Kandpal
And this is the last question so if you can help. Parikshit,
Operator
Please rejoin the key for more questions. Thank you. Next question is from the line of Puneet Gulati from hsbc. Please go ahead.
Puneet Gulati
Yeah, thank you so much and congrats on good performance. My first question is with respect to the gross margins and ebitda, they still seem to be a bit lower than what you’ve been guiding historically. When should we see expansion of this margin and any particular reason you would like to highlight for this quarter?
Jagadish Nangineni
Yeah, Good evening Puneet. The gross margin like I was mentioning is will start coming through with the project completions that we have on the ongoing projects which are scheduled to start complete getting completed in end of Q2 and Q3 and that’s where we think that the gross margins will significantly start looking. There will be an uptick on that. So as we progress during this financial year FY27, Q3 and Q4 should start looking far better and you would start seeing the EBITDA margins that we have been projecting pricing of course for the entire remaining revenue to recognize. But those bits will start kicking in and then hence higher profitability will be visible.
Puneet Gulati
Okay, my second question is number one, you had this row house plan which you converted to apartment. How should we think about this in the scheme of what you are viewing in the market?
Jagadish Nangineni
Well, it’s a. I think it’s a strategic call that we have taken given the extent of the land that we had and the kind of development one can plan there. So hence, and given the kind of ticket sizes that we will be able to through which we will be able to achieve higher sales momentum this seem to be a much better utilization of the land. And hence we are making that attempt to change which would give for the same land probably will get better both realization and overall margins as well. So from that perspective it’s a very positive change which will add to the overall sales numbers, sales value and the margins.
Puneet Gulati
And lastly if you can just talk about what should be. Sorry to interrupt, Mr. Dalati. Please rejoin the queue sir for more questions. Okay.
Operator
Thank you. Next question is from the line of Girish Chaudhary from Avendus Park. Please go ahead.
Girish Choudhary
Yeah. Hi Jagdish. Congratulations for a strong year. My first question is on again on the hoskote launch. If you can give us some more color on the total size of the project and break it up between phase one, phase two, the GDV and where are we in terms of the approvals both on the design and also the radar timelines.
Jagadish Nangineni
Right. So thank you Harish. So this project will be about 5.3 million square feet. Only residential portion. So that’s more. We should be able to receive our Q1 itself and launch the project. So we are in very advanced stages of the launch. So we. And the overall GDP for the project should be about 7,000 crores. So it’s a large launch for us and we expect to see sustained demand for this kind of product.
Girish Choudhary
Okay. Okay. Yeah. Thanks. And second question in terms of just monitored your outlook or how to look at business development heading into fiscal 27. Right. In the PPT you also mentioned about your key markets will be Hyderabad and also Mumbai. But what we can see is that there is a minimal land parcels or projects there in Hyderabad and Mumbai. So firstly how to look at the business development in terms of the key areas and also from a cash flow point of view. What can I mean what’s your budget? Budgeted outlay for the land.
Jagadish Nangineni
Right. So from a BD point of view we are continuously Adding new projects and hence you can keep seeing that despite our sales year on year, the potential launches that we can do, they continue to remain roughly around 16 to 20 million square feet at any point of time. So the business development like you would have seen that last year we have spent close to about 1150, 1160 crores on land. I think with the kind of cash flow that’s being generated there are certain some more pending land payments for the existing lands. And post that I think with the kind of cash flow that’s getting generated we should be able to do continuous business development in these locations. So Hyderabad, while we plan to do that, we are just hoping to launch our first second project this financial year. We are on the approval stage continuously looking at new opportunities in Hyderabad as well.
Girish Choudhary
So from a cash flow point of view can we look at the similar 1,100,200 crores kind of spend in fiscal 27?
Jagadish Nangineni
Yes, that is exactly what I was alluding to. So it’s not. Not only that we are, we have done that and a lot of the payments that are required for pending payments for the existing lands once those bits are also done, which should we should be it by in the first half then most of the additional cash flow will be going into new business development.
Girish Choudhary
Sure. Thank you and all the very best.
Jagadish Nangineni
Thank you.
Operator
Thank you. Next question is from the line of Bipla Debarma from MK Global. Please go ahead.
Biplab Debbarma
Good afternoon everyone. Congratulations on the excellent reasons. So I just wanted to know how is the performance to the new launches in you know Shobha, Rivana and Krishna. I mean how much you have sold till date in this project.
Jagadish Nangineni
So thank you. Biplub Ribana Like I mentioned last quarter which we launched, I mean towards the last week of the quarter we did quite decent in terms considering the uncertainty around built around that time and we are seeing positive sustenance sales as well. So whatever we launched we sold about 25% of that in Crescent which we launched in April 1st in the month of April. So we did roughly about 50% of the sale there which is quite encouraging. So both have started out really well and since we have the inventory in both places we can continue to see good momentum.
Biplab Debbarma
But in terms of rupees crore, how much investor project?
Jagadish Nangineni
In in Crescent it’s about 1100 crores.
Biplab Debbarma
And Riwana?
Jagadish Nangineni
Riwana it’s about 500.
Biplab Debbarma
Answer. What is the current deal pipeline visibility in MMR and Noida? Greater Noida.
Jagadish Nangineni
So in MMR we are pursuing couple of projects which we should Be which we should be able to conclude during this year. Which are one is a redevelopment project and one is we are trying to buy land. Both are small projects but at the same time it will give us a good understanding of how we can operate and scale in Mumbai. And our current view, the way we are operating in Mumbai is that we will continue to see how we are forming and also getting to learn the nuances of the market. While we are doing that in Noida we have seen significant demand for our product and which we have done well. We have already launched two projects there. So we have additional two to three additional lands that we are actively pursuing and we hope if we can conclude at least one of them then in this year in addition to what I have mentioned, if everything works then probably we can launch that project too.
Biplab Debbarma
Okay, great. Thanks.
Operator
Thank you. Next question is from the line of Fenil Rahmbat from Choice Institutional Equities. Please go ahead.
Fenil Brahmbhatt
Hello everyone. Good afternoon and congratulations for this on set of numbers. So, my first question is on the guidance like do we have any specific guidance for pre sales and average selling price for FY27 28? If yes then it would be helpful if you can share.
Jagadish Nangineni
Good evening. Fenil the I have mentioned this in my opening remarks. So I think this year we have achieved about 30% growth in our pre sales and similar is what we can expect in in FY27 as.
Fenil Brahmbhatt
Okay. And the next question is like can you share the geography wise or across the market wise the demand momentum and the average price of price momentum considering your last quarter performance specifically in Bangalore and the other other news, new cities which you expanded.
Jagadish Nangineni
Yeah. So from a pricing point of view it’s quite stable for the last three to four quarters and we expect the stability in terms of pricing to continue and hence it’s more. The increase would come more from volume rather than price increases. And both in terms of NCR and in Bangalore both seem to be on a similar path which is where the demand also has stabilized and in fact even the pricing has stabilized. So given both these there is a lot of certainty in terms of how things will pan out from a pricing point of view for us and for the industry and hence we should be able to continue to see the demand momentum continue.
Biplab Debbarma
Okay. Thank you.
Jagadish Nangineni
Thank you.
Operator
Thank you. Next question is from the line of Pritesh Seth from Axis Capital. Please go ahead.
Pritesh Sheth
Yeah, thanks for the opportunity. Good evening. First question again on on Rivana. Just harping a bit on the you know response that we got versus what we have Got in Crescent and and what we had heard is Noida as a market is doing better than what we see in Gurgaon. On that backdrop, your response of 25% sales at launch, what do you think could have been better to get a better response versus what we have seen for other peers even we had got some pricing feedback that it stood higher than what was expected. So it. Was it intentional in terms of pricing that project higher? You know to get a very sustenance kind of a response assistance kind of a sales from this project. Yeah.
Jagadish Nangineni
Good evening Pritesh. So on Rivana one should understand that it is. It was launched in the last week of the. Of the month, typically the of March. So typically we do have a preparation phase after we receive RERA and this we had launched. I mean the timing difference between once we get RERA and the launch it has been quite low because we wanted to launch in this in FY26 itself. So hence the value that we are seeing is not a typical launch but it’s a launch given the timing difference between the RERA receival and the actual launch events.
So hence we can see that we don’t need to view it only as a launch sale and hence determine how it’s going. How it’s going. But post that also our sustenance sales also seem to be quite good and with the current kind of momentum we should see good sustained sales and which is frankly it’s something that. Which is. We are quite fine with it and considering that this is a large project and over the period we can potentially see certain price increases as well. So we are quite okay with the kind of sales momentum that we have seen given the time frame between the RERA and the launch date.
From a pricing point of view I think it’s quite consistent with our typical pricing policy and this sector being slightly better in terms of the existing infrastructure, et cetera. And what we have done in the previous launch in which is in Shobha Aurum Sector 36. There is a small difference in the pricing but that should be okay and it’s quite well accepted and it’s going well.
Pritesh Sheth
Sure, sure that’s helpful. And just second on Postcote you talked about the residential portion. Are we also planning to build any rental yielding assets in Hoskote considering we have a large. We know 100 acre land parcel is part of first phase and overall 250, 300 acres. So your thoughts on building a rental rent yielding assets in Hoskoteq?
Jagadish Nangineni
Absolutely, that is one of the plans. But however, with Phase one, that’s what we are developing. It’s largely residential. We have a small bit of retail and commercial space but that’s about less than 6, 7% of the overall development. But we do intend to have a commercial developments in phase two and three. The exact design mix and the actual development is still under design stage. So once we have the clarity then we’ll definitely showcase that that’s part of the future development and how much of it is going to be commercial and slash detail.
Pritesh Sheth
Got it. That’s helpful. Thank you. That’s it from my side. All the best. Thank you.
Operator
Thank you. Next question is from the line of Parikshit Kanpal from HDFC Securities. Please go ahead.
Parikshit Kandpal
Thanks for the follow up. So my question is on the demand. So how do you read the demand across markets NCR and southern India especially in Bangalore in light of the AI concerns which people have which and large part of our client used to be it. So how are you seeing are you seeing any slowdown in the mix from the IT as a whole in your pre sales if you can give some color how do you perceive the demand?
Jagadish Nangineni
Yeah. I understand the concern with respect to the both the macro and specifically related to AI and impact. While that’s a concern that’s existent across the industry on the ground what we are seeing from a which are our leading indicators which is visible for us there doesn’t seem to be big slowdown or anything of that sort. There seems to be continued interest in the projects and like I have been mentioning in the previous calls from a ticket size point of view we are within certain ticket size of about below 3 crores or so the demand seems to be quite robust.
So hence there is from probably the demand side it might not be on a very high increased path which we had seen in between 21, 22, 23 but the demand seems to be steady as of now with respect to how it actually unfolds in terms of how things are going to happen in future with respect to AI and any of the other technology or any other macro macro aspects that we’ll have to wait and watch. But what I believe is the currently the demand seems to be quite good in NCR as well for the right kind of pricing product there seems to be a good demand which is witnessed in both in both of our launches. So from actual real outcomes perspective it seems to be positive. Is there any concern in future because of any other reasons? We’ll have wait and see
Parikshit Kandpal
Just on the business development when 1100 was spent. So how much Was the GDV addition in FY26 and what kind of GDV addition we are looking for FY27 in value terms
Jagadish Nangineni
Like, you know Parikshit, we don’t generally give out a guidance on the business development. Our aim is to at least have a pipeline of at least about 10 million square feet every year and that’s what we would continue to work upon. And currently like you have seen we have about 20 million square feet which is two years of. So we are quite good in terms of visibility for the next two years and we continue to generate good cash flow from operations and that will be deployed and I think that’s good enough for us to sort of add to the pipeline of our current projects. So we are quite confident in terms of how we go about it. So that should not be a concern from a. From a business development and visibility of the project launches perspective.
Parikshit Kandpal
And just one last question if I may. 52 crores of rentals which you currently are clocking. So our earlier strategy I think we tried with the APMC to ramp up the rental but it did not pick up. I think that shelled. So now next four, five years. How do we look at this rental trajectory going given In Oscote we are evaluating some of the commercial assets on ownership basis. So any sense, any color on how do you think about the annuity business from here on and potentially C4 how big this could be on an annualized basis.
Jagadish Nangineni
Right. It’s a very important decision and discussion that we are having in terms of how to build our rental portfolio. See as of now we are not developing any of the rental any of any new projects. Right. Immediately. And hence although we have opportunities for that in few areas like Koskote and like in Gurgaon we have. We have a commercial project. So these lands we can definitely build towards building rental and. And the rental portfolio is going to see a significant increase from this current rental.
So as of now I think we are in a stage where we think that we should be able to build at least about 2 million square feet additionally in the coming few years for which land is already available either in Muscote or in Gurgaon and small other developments that we are doing in Gurgaon also. So hence clear visibility. Right now we have about two to two and a half million square feet going forward. If we decide to have this as a separate vertical and strategy for that we would start working on it.
Our current focus is on building the residential portfolio and getting all these launches on time and achieve a Better value from every sales and improving our profitability while that’s happening. So this one is something that we are looking at it and we should start getting better traction in the next couple of quarters in terms of visibility how we go forward.
Parikshit Kandpal
Thank you. Sure. Thank you.
Jagadish Nangineni
Thank you very much.
Operator
Thank you. Next question is from the line of Puneet Gulati from HSBC. Please go ahead.
Puneet Gulati
Yeah, thanks for the follow up. Can you also talk about what you are seeing in terms of approval process in Bangalore. And there was also a potential FSI law change which was supposed to come where is it in the pipeline now?
Jagadish Nangineni
Right, Puneet, from an approvals process. There is no significant change either in positive or negative. So it’s quite stable in terms of approval environment is concerned from a new additional FSI that might come in Bangalore. That is still, it’s still an ongoing matter that’s in various forums. And we believe that it will come through at some point of time. And once it comes through, then we’ll have to bake that into our plans in terms of development potential for the lands that we hold or how we develop. So that’s the exact clarity of that is yet to emerge from the last time that we had a conversation. So we’ll wait and watch and as and when it gets the clarity emerges, then we can let you know.
Puneet Gulati
Okay, great. That’s all from myself. Thank you so much and all the best.
Jagadish Nangineni
Thank you, Puneet.
Operator
Thank you. Next question is from the line of Akash Gupta from Namura. Please go ahead.
Akash Gupta
Hello.
Operator
Yes, you’re right. Please proceed.
Akash Gupta
Hi sir. Congratulations on great performance. Sir, my question is more again from the demand perspective. Just wanted to know your thoughts on the number one footfalls and consequent conversions. And then are you seeing timelines extending due to this war impact? Second is from a labor standpoint, are you seeing any shortage? And then third is from the inflation standpoint, how much cost increases are you seeing? How much margin impact will that have? And then how are you planning to offset that through price increase? These are my three questions. Thank you so much.
Jagadish Nangineni
Good questions, Akash. So first on the demand side, see like I said, from a leading indicators point of view, which is our inquiries and visits, they seem to be quite stable across all our projects which are in sustenance. And last year and even this year in some of the launches at the time of launch, the kind of momentum that we are seeing is far superior than what we had seen earlier. And hence as of now things look quite positive in terms of continued demand and in the sustains project also there seems to be a continued interest.
So on both these parameters things seem to be quite good. And of course there is a concern related to the macro environment, related to how the basis the geopolitical events that are occurring and unfolding. But when we actually look at the ground reality, it seems to be quite stable. Second, in terms of the labor shortage, what you had discussed, what you just asked so that it’s a. Of course everyone throughout the industry has faced a labor shortage or issue because of the elections that has occurred in the four states.
So that I think is a brief interruption to the steady flow of the requirement. But I think once this stabilizes then we are back to normal in terms of the number of people working at the site. Third is with respect to the price increases and how it might impact us. There is of course surely there is a significant price increases for a short while in some of the commodities and in some of the other materials. So the impact of that immediately over the course of the whole projects is yet to be estimated.
It’s little dynamic situation and we’ll have to wait and see how long this the current issues will continue and hence how much of that will be will actually come and hit us in terms of margins. Because typically for any of the projects we do have a little bit of escalation that we take into account. It doesn’t look like it’s. We have gone past those escalations. However, like I said, it’s entirely dependent on the duration of this uncertainty price increases. Is it like short term, medium term or it’s going to be a permanent feature.
So once we get a probably much better sense of it in the next three to six months then we will be able to get a good handle in terms of the impact of that. While that’s the case, the how much we’ll be able to increase prices and hence there is offset. That’s always the case. Again we had done that earlier in the past when there was Covid where there was significant pricing cost increases and hence corresponding we could take price increases in new projects.
This time we will have to see the demand and supply situation also and hence we’ll have to take a call. So it’s not as simple as last time wherein demand was quite robust and it was there was a pent up demand as well which we could capture. But this time again this is a event led inflation and whereas demand seems to be quite stable. So it all depends on again demand, supply and how we can, how we can react to that. So it’s Currently wait and watch mode for us. We will take a call once things get clear.
Akash Gupta
Understood sir. And just one question for. Particularly for your Gurgaon project, I mean due to the war in the Middle east are you seeing any. I mean better than expected demand from the Middle east particularly for your Gurda project. Just from an investment perspective is there any change that you’re picking up?
Jagadish Nangineni
The reasons for investment in Middle east and reasons for investment in local markets might be quite different trend. So immediately we have not seen anything any huge changes but we do see some changes in our Kerala market where there is the inquiry flow is slightly better considering majority of the demand comes from Middle east. And there we can see that there can be slightly better opportunities for us to capitalize on the more or renewed interest in in India.
Akash Gupta
Understood sir. Thank you so much.
Jagadish Nangineni
Thank you.
Operator
Thank you. Next question is from the line of from MK Global. Please go ahead.
Biplab Debbarma
Thank you. So what would be the GDP of the Mumbai deal pipeline? The two deals that you mentioned earlier, the redevelopment and outcome,
Jagadish Nangineni
Both the new projects both put together should be about 2000 crores.
Biplab Debbarma
That’s quite big. And the second question is sir you mentioned Shobha Rivana till date sold 500 crore and Crescent 1100 crore in terms of field day. So does this indicate that recent has received a stronger market response compared to Rihanna? I thought it, it would be other way around
Jagadish Nangineni
Right. Like I mentioned book club. It is a function of also the time that we have given from for us to prepare in terms of launch. So I don’t see it as linked in terms of responses. Both are doing pretty well and we had quite a good preparation for both the projects and frankly one of the aspects that has actually impacted us is the timing which is in March versus April. And as you know in March things were quite, I mean everyone’s quite uncertain as how things were going to pan out. So given that I think it’s a. It’s a quite. We started out quite positively and that should, that should continue.
Biplab Debbarma
Okay sir. Thank you sir and all the best.
Jagadish Nangineni
Thank you.
Operator
Thank you. Next question is from the line of Parvez Kazi from Nirvama Group. Please go ahead.
Parvez Akhtar Qazi
Hi, good evening sir. Thanks for taking my question. So my first question is of the 10 odd million square feet that we plan to launch in FY27 what would be the GDV of these projects?
Jagadish Nangineni
Good evening for this. So if you take an average pricing of about what we have done this time which is about 4700 and similar maybe around 15,000, that would be about 15,000 crores.
Parvez Akhtar Qazi
Sure. And we have either released or unreleased inventory of about 12, 13 odd thousand in our existing project. So is that the fair way to look? We’ll have maybe close to about 128,000.
Jagadish Nangineni
That’s right. That’s right.
Parvez Akhtar Qazi
Sure. Great. Thanks. And all the best.
Jagadish Nangineni
Thank you.
Operator
Thank you. Next question is from the line of Murali Krishnan from Sundaram Mutual fund. Please go ahead.
Muralikrishnan Raghunathan
Yeah, thanks for taking question. So just want to understand this 30% growth and also continuing with last question. So how much would be coming from the sustenance and how much would be expected from the new new launches specifically because Hoskote will be a significant portion of our new launch. So you did indicate that you will accelerate the launches if required. So just to understand the sensitivities to this growth. Yeah.
Jagadish Nangineni
Right. So thanks for the question. The ability to generate sales from new launches is also dependent on the timing when we launch the project. Right. So the earlier we launched during the year, the higher would be the contribution from those new launches during the year. Last year we did. This year FY27, we expect roughly about 45 to 50% from sustenance and 50 to 55% from new launches.
Muralikrishnan Raghunathan
Understood. Thanks.
Jagadish Nangineni
Thank you.
Operator
Thank you. Next question is from the line of Prakshit Kanpal from HDFC Securities. Please go ahead.
Parikshit Kandpal
One question on Rivana sir. So you said that you had a very limited window. So out of 2000 you have sold about 25% something now until May. So have you seen again like come back in that project? Do you think that you still, I mean you achieve 50% or more in this project? Now
Jagadish Nangineni
We are seeing good sustained sales. It’s the launch. What we did, like I mentioned was in an uncertain environment. But we are looking, we are seeing good response from a sustained sales point of view. It’s not at the same level as a launch one, but at the same time as you know, generally the level of interest and the momentum that’s created in launch is not necessarily followed through. So in this case we have started. See generally we see a big fall off after the launch. But here we are seeing good continued interest.
So I would not say that it is going to continue in the same momentum but I see a very good sustained sales. And for this project to do well, the kind of, given the scale of the project in Greater Noida, a good sustained sales will really help in terms of the continued interest. And frankly we are quite prepared for that during the year. So based on how things progress during the year, we would launch the phase two or subsequent towers of the project during the year, during the course of the year and at any point of time whenever we launch a new tower or another phase again we can see a spurt in the demand there.
Parikshit Kandpal
Question on..
Operator
Sorry to interrupt. Sir, can you repeat your question? We. You’re not audible.
Parikshit Kandpal
Okay. So the host quote is about 7,000 crores of GDV. So phase one is how big and typically we have seen a large layout. It is like response initially. So. So how do you think? Because you’ve already been collecting UIs for some time now. I remember from March end of some time in that period this. Given all the noise and the it. So if you can give on this.
Jagadish Nangineni
Yeah, understand Parikshit. The. The phases of the launches is also dependent on the kind of demand that that comes through. And we have the mix of the product product across multiple towers basis, the demand across these. The unit size mix. We will continue to open new towers which is typically done in any large project. Here also we would follow the same. First is the dependency of the opening of phases and the towers is on purely on demand and also the construction schedule that we follow. So that we are going to follow. And here to start with at least half of it we should be releasing and if the demand is quite good then we would immediately release the subsequent ones also because we get RERA for the entire project at once.
Parikshit Kandpal
So about three and a half thousand crores is what will potentially come as a launch depending on the demand and it can be upsized as the demand. Actual demand translates into numbers. Is that right?
Jagadish Nangineni
Absolutely, you’re right.
Parikshit Kandpal
And any initial comment on the EOI here Because this has been out in the market for some time. So how are you seeing. And it’s a large project so typically township projects see good traction. So any initial sense on how the footfall or the UI has been for this project?
Jagadish Nangineni
There is good interest in the project given the scale of the project. And large communities are a differentiating factor for a lot of customers in cities like Bangalore. So this would also I believe attract good set of customers who are interested in such large developments. So initial interest seems to be good. Our first focus is to get all the approvals right and then start the actual sales process with solid preparation which is underway. So we’ll get to know the how things progress and how the momentum that’s created. And that’s obviously it’s going to flow into our operation date at the end of the quarter.
Parikshit Kandpal
Then this should be at least 3 and after 4000 quarter crore quarter. Because your gurdon has done 1100, it sells about 14,000. Should add 12, 1300 and sustainance of about 1000. So should be at least 3000 crore plus kind of features this quarter.
Jagadish Nangineni
We hope so. I mean I really hope what you are estimating comes true. So our job is to make sure all the preparation, everything happens and then whatever result comes, comes, we’ll aim for the best result.
Parikshit Kandpal
Okay? Sure sir. Thank you and wish you the best for this launch. Look forward to it.
Jagadish Nangineni
Thank you.
Operator
Thank you. That was the last question for today. I would now like to have the conference over to the management for closing comments.
Jagadish Nangineni
Thank you everyone for participating in the call. I hope we were able to answer most of the questions appropriately. In case of anything more, please reach out to us. We as a company, we have seen a good last year and we are quite confident of the next couple of years also with great visibility across all parameters. While we are doing this, our aim is to continue to build on the strong foundation and the brand that we have built. And that is at that is on execution across the team members. And our team is doing a fantastic job on all the parameters. We hope to continue our good performance in the coming future as well.
Thank you for listening and wish you all the very best.
Operator
Thank you very much. On behalf of ICICI securities limited that concludes this conference. Thank you all for joining us today and you may now disconnect your lines.
Jagadish Nangineni
Thank you.