Sobha Ltd (NSE: SOBHA) Q1 2026 Earnings Call dated Jul. 26, 2025
Corporate Participants:
Adhidev Chattopadhyay — Analyst
Yogesh Bansal — Chief Financial Officer
Jagadish Nangineni — Whole-Time Director
Analysts:
Puneet Gulati — Analyst
Parikshit Kandpal — Analyst
Pritesh Sheth — Analyst
Biplab Debbarma — Analyst
Manoj Dua — Analyst
Parvez Qazi — Analyst
Himanshu Upadhyay — Analyst
Yohan Batliwala — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Shoba Limited Q1 FY ’26 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 zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Aghitev. Thank you, and over to you, sir.
Adhidev Chattopadhyay — Analyst
Good evening, everyone. On behalf of ICICI Securities, I’d like to welcome everyone on the call today. From the management, as always, we have with us Mr Jagdesh, 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. Thank you,. Good evening to all the participants of the call. I and our team are pleased to connect with you today post declaring our Q1 FY ’26 financial results, which we declared yesterday. This is the first time in the last 15 years that we have declared the quarterly results within a month-after the end-of-the quarter, thanks to our improving processes. In our first-quarter of this financial year, we achieved our highest-ever real-estate sales, crossing a huge milestone of INR2,000 crores for the first time with a total sales value of INR2,078.8 crores.
This achievement was driven by a successful launch of Shoba Aurum in Greater Noida, our first project in Greater Noida, a project that has garnered exceptional demand from customers in its launch week towards the end of June. This achievement signifies a major step-in deepening our presence in NCR. Our total sales for the quarter were supported by a sale of 1.44 million square feet across all our operational markets with an average realization of 14,395 per square feet. During the quarter, we launched two projects measuring 1.62 million square feet, one of them is and the second one is Marina One, four towers, which constituted about 920,000 square feet.
Cumulatively, during past five quarters, we launched more than 10 million square feet of area and our inventory at the end-of-the quarter was about 11.55 million square feet with a potential sales value of about INR17,000 crores. In addition to that, we have a strong residential pipeline of 17.67 million square feet across 17 projects in nine cities and a commercial pipeline of about 0.7 million square feet across our operational cities. We envisage to launch these forthcoming projects in the next four to six quarters. Also, we are working on our subsequent project plans for about 23.53 million square feet.
During the quarter, we completed 1.07 million square feet of delivery, which is 594 homes and we are on-track to complete about 4 million to 4.5 million square feet for the balance nine months. While the operational and cash-flow performance has been healthy, one of the key concerns for all of you might be on the margin front. We expected significant improvement starting this quarter in this year. However, due to delay in obtaining proceeds in five Bangalore projects, we could not recognize those project revenues and corresponding margins. This has led to much lower margins, while with all the operational costs baked-in.
We expect to see good improvement in the subsequent quarters and years as we recognize these completed projects. With this, I hand over the call to Mr Bansal, our Chief Financial Officer, provide color on the financial performance, post which we shall open the floor to take questions.
Yogesh Bansal — Chief Financial Officer
Good evening, everyone, and thank you for joining us today. I will update — first update about cash-flow, our quarterly performance and future visibility. Then I shall briefly touch upon the P&L and open the floor for questions. During current quarter, our total collections on all businesses were INR1,778 crores, recording a 15% growth from Q1 2025. Real-estate segment recorded highest-ever collection of INR1,599 crores, supported by strong sales and construction milestone completions. The contracts and manufacturing businesses contributed INR179 crore in Q1. We generated INR395 crore of net operational cash-flow in the quarter.
Post finance land and CapEx-related payment, net cash-flow was INR56.8 crores. Our gross debt was INR1,019 crores and cash balance of INR1,706 crores. Our average interest cost for the quarter was 8.86%, which is lower than Q1 — Q4 2025. And we expect it to reduce further in coming quarter. Looking ahead, we have a clear visibility of future cash-flow from — from our ongoing and forthcoming inventories. From all our completed and ongoing projects, we expect total of INR24,752 crores of future cash inflow. Our course to complete this project is estimated at INR13,661 crores, thereby generating marginal cash-flow potential of INR1,191 crores at project-level. We expect to realize this over next four to five years.
Additionally, we shall generate another INR7,000 crore of marginal cash-flow in next five to six years from forthcoming project of 18.38 million square feet, which will be launched in next six to eight quarters. Overall, we are on a — on a very strong financial footing with robust future cash-flow visibility, giving us the confidence to pursue growth opportunities. Now coming to P&L, for the quarter, we recorded total income of INR901 crore. Real-estate income contributed INR690 crores. Contracts manufacturing contributed INR162 crores. Our EBITDA was INR73 crores with margin of 8.1%. We generated PAT of INR13.6 crores with a margin of INR1.5 crores, 1.5%. As we start recognize revenue from new project in upcoming quarters, we expect improvement in margins.
Our total balance revenue to be recognized from already sold unit as on 30th June 2025 was INR17,245 crores. With this we can now open the floor for questions. Once again thank you all for your participation.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star in one on their touchtone 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. The first question is from the line of Punit from HSBC. Please proceed.
Puneet Gulati
Yeah, thank you so much and congratulations on good start for the quarter. My first question is on margins, right? I mean, if your margins — if you had included those five projects, this is not same OT, what would your margins have been?
Jagadish Nangineni
Good evening, Puneet we have these five projects which we per which we should have received these OCs. Unfortunately there have been delays at the authority end due to certain ongoing matter related to the fee that needs to be charged to the projects for the issuance of any approvals. If we had included those, we could recognize additional close — over INR650 crores with regard to this these projects. And the PAT, probably the net that we could have recognized net in a sense, the PBT would be over INR450 crores.
Puneet Gulati
Okay. So then PBT adjusting for all this clean PBT would have been INR400 crores. Yes. Okay, that’s interesting. Secondly, are the one yes. So secondly, are the — the loss-making contractual business part of the problems resolved now?
Jagadish Nangineni
Absolutely. All the contractual projects, which we had undertaken in the previously, all of the projects are completed. See, in contracts, we do projects related to civil, electrical and plumbing. We are continuing to execute and take-up new projects in electrical and plumbing. However, in civil, we have only one project which is ongoing in Bangalore. Other than that, all the rest of projects are completed and corresponding revenue and cost, most of it is already taken. So any concerns related to margins in those — in that division are so-far it’s all accounted for and hence we should not see anything more coming going-forward.
Puneet Gulati
Okay. That’s good to hear. And also on your central overheads and advertising expenses, both have been higher this quarter. Any particular reason for that?
Jagadish Nangineni
Typically, the Q1 is generally higher and this time particularly because we had to incur expenses related to our IT, which is the technology expenses, which is license expenses, which come in once — once — I mean it’s periodically, not necessarily every year, but comes periodically. So that’s one. And second is some insurance-related expenses also have been higher. So both these have contributed to higher expenses. And in addition to that, some of the expenses which we were earlier categorizing in projects expenses, which are — which we started teaking as overhead expenses and hence they have also contributed to slight increase in the overhead expenses. So going-forward, I think it would not be as high as what you are seeing in this first-quarter, but it will be slightly lower. And second is related to the sales and marketing expenses, of course, with higher-value, there would be higher expenses going-forward. And that will — in fact, that will cause a little bit of pressure on the P&L in this financial year.
Puneet Gulati
Understood. That’s helpful. And lastly, if you can talk about what are the major projects we should look out for in the coming year?,
Jagadish Nangineni
In terms of launches? In terms of launches, yes. Well, in terms of launches, like I was saying, there were — there are three small-sized projects in Bangalore. There is a — there are couple of projects in Gurgaon which are — which can be large and one in Greater Noida. There is one project in Pune, which we intend to launch during this year. And Chennai we have a seasonably large-sized project mentioned in Kerala, we have couple of projects, one in and one in Calikat. These largely should if cumulatively, if we do all of these, it should be close to about 7 million to 8 million square feet we have already done about 1.60 million square feet.
Puneet Gulati
Understood. And if I can just squeeze in the last one here. On the projects which you launched in Noida, how much of it has been sold and what is still to sell? Soba Aurum aurum we — as on end-of-the quarter, we sold close to 80% and the remaining hopefully we should be completing in this quarter. And what was the sale value and volume for this, which you can give for this project?.
Jagadish Nangineni
The value per RM that which was part of the operating update, INR2,078 crores is INR823 crores. INR836 crores.
Puneet Gulati
Okay. That’s very helpful. Thank you so much and all the best. Thank you,
Operator
Thank you. Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference. Please limit your questions to two per participant. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please proceed.
Parikshit Kandpal
MR. We share congratulations on crossing the INR2,000 crore mark-on pre-sales. So just wanted to understand, is it now the quarterly bottom now for us and things will continue to build around this number and increase from here on in subsequent quarters?
Jagadish Nangineni
Yeah. Thank you, Parikshit. This — we — a lot of our performance in future is also dependent on our new launches. And even the sales that we are seeing from existing projects seems to be good and stable as of now. So hence, we do aim to this number and be consistent. However, as you are aware, the external market conditions and the timing of the launches are also very critical. So we are hoping that we will continue — we will achieve these timelines. And once we do that, hope that we should be able to do far better than what we did last year and what we have guided for this year.
Parikshit Kandpal
Wow, great. Good to hear that. The other question is on — I just want clarification. You said you have missed around five projects oversee of INR650 crores revenue and INR450 crores PBT. So is this number correct because PBT number?
Jagadish Nangineni
Sorry, sorry the prediction, it’s not INR450, it is INR150 crores. Okay. So INR150. Okay, so INR150 crores. Okay. Just lastly on the business development. So anything in this quarter and especially also on the launches, what are the launches plans for this quarter? So that would be my last question. So this quarter, we did plan to launch two projects between Bangalore and one project in. However, I think there will be — there might be — there might be touch and go. So I’m hoping that at least one project we will be able to launch.
Parikshit Kandpal
And value of that project and also business development done in this quarter?
Jagadish Nangineni
Well, you are aware that we do not close business development actively. And we — as and when they come into the pipeline, we — you will be able to see those. And as of the value of the new launch, we are hoping at least one project which is of about INR950 crores. Is?
Parikshit Kandpal
Yes. Okay, sure. Thank you,. Thank you very much.
Operator
Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please proceed.
Pritesh Sheth
Hi, good evening to the team. Congrats on great numbers. Firstly, just on this response to this Noida project that we got, you know-how you read this, was the market Noida too hot, I mean too much of demand right now? Or from our side, we strategically did something to get such a kind of response? And how do you expect the response for other launches during the year across the markets that you see, how the other markets behaving versus what you have seen in? That’s my first question. Yes, the first project response has been really good. We are very happy to see that. The over the years, there is definitely a good pickup in the demand-side from in Noida and Greater Noida. And considering that we could capitalize on it is a good thing. But as in any market, it’s a big — it is a function of demand and supply. And right now, it does seem that the supply is a little bit limited in Noida and Greater Noda. And as it opens up, things might be a little different, but we are happy to be in the current position and we are hoping to launch our next project also in the next few quarters and hope to see good response there as well. And your thoughts on other markets like, Bangalore or Kerala where you had a launch, how are those markets behaving in terms of demand versus your in general expectations about the current demand situation? Has there been better in-line with your expectation or slightly lower, if you can highlight or given color on each of these markets?
Jagadish Nangineni
The demand environment in all these markets, Pradesh, which is Kerala, Bangalore and seem to be very stable for us. If I look at all our leading parameters, which is with respect to the opportunities that we get besides that people are doing, it seems to be good interest in terms of real-estate buying and there is good interest in terms of End-User buying. So I believe that the situation of good demand continues to stay. Now as things progress, now it depends on how much is the supply that’s going to come into the market. So that also would play a big role in terms of at least medium to long-term how things will pan-out. But overall, from a demand perspective, the basic fundamentals continue to remain the same and it looks like there is stability over there.
Pritesh Sheth
Sure, got it. And just in, we have two projects now and one already largely done with, we have another one upcoming. What are the avenues to expand our pipeline in Noda, Greater Noida? Is it that we’ll have to continue to wait with government auctions? How is the intensity there or are there some kind of private opportunities which are also available like the one we have already done to increase our pipeline there and continue to be present in that market?
Jagadish Nangineni
No, that’s a good question, Pritesh. We are exploring all opportunities. But particularly Noida, Greater Noida, majority of the — the land are with the government and/or someone has taken the land to the government. So revenues which do have private lands as well. So we are surely looking at other opportunities also. The — like I said, the pricing and the demand environment has definitely improved and it provides us a good chance to look at these opportunities now. Thanks for that. That’s it from my side now. In case I’ll have any questions, I’ll jump back to the queue.
Pritesh Sheth
Thank you all the best. Thank you. Thank you
Operator
. The next question is from the line of Debarma from Antique Stock Broking. Please proceed.
Biplab Debbarma
Good afternoon, sir, and good afternoon, everyone. Congratulations on the excellent performance. My first question is on the stated launch pipeline for the remaining of the year. You mentioned around 7 million, 8 million square feet. Just wanted to understand are — are we planning to launch the entire 78 million square feet or you know, we said launched 7 million, 8 million square feet but open just part of each project. And also in the act, I didn’t hear Mumbai project. So is Mumbai project part of the pipeline? This is my first question.
Jagadish Nangineni
Okay. Yeah. To clarify on the Mumbai project, yes, it is part of the pipeline project. To the earlier question, there were — I was answering for the major, large projects that we can launch. So Mumbai is our first phase is a smaller one. It’s about 100 — should be about 150,000 square feet to start with. So hence, didn’t add-in the pipeline, but it surely is part of that. Coming to the other 8 million to 9 million square feet, the definition of our launch of a project is once we obtain RERA as we — and we open the sale to the market. Irrespect the size of the project is here at the launch — when I say — when we say launch, the entire inventory that is available where we have obtained RERA is available for — is declared as launches. But like you know, we do open the sale on a phase-wise manner. And if demand is good, then we open up all phases. But given the nature of the launches this year, a majority of them are not very large sizes and hence we should be able to open up the entire inventory for most of it. So if I have to say that about — if it’s about 8 million square feet, I think 70% to 80% of it should be available per se after that
Biplab Debbarma
Yeah. Actually.
Jagadish Nangineni
Your voice is not clear. Am I? No, sir. But your voice is breaking. Can you please repeat that — repeat your question please?
Biplab Debbarma
Second is on the broker and for it. So basically trying to understand what?
Operator
Sorry to interrupt Mr. My piece today is there. And hello. Hello, Mr. Could you please rejoint to the queue? Okay. Okay. Thank you. The next question is from the line of Manoj Duar from Geometrics. Please proceed.
Manoj Dua
Good afternoon, sir. And what is the guidance for pre-sale this year? Good afternoon,. We had guided for 30% increase over last financial year ’21. Okay. And secondly, financial mainly. And with an expectation that we will go towards a INR10,000 crores sale-in the subsequent year. Okay. And secondly, where I see — where are — since you’ve joined SMD, there are some changes we observe like in Greater Noida, the amount of projects you sell to the total size is much higher and the projects are being launched very fast when they are being in the business development. Can you give context to what are the major changes and has happened in four, three, four years in Shoba in terms of your strategy and according keeping with the pace of the time.
Jagadish Nangineni
Well, it’s, it’s not just about this last three to four years. We have been at it in terms of the overall operations for past three decades. Incidentally, we are completing 30 years this year. We did focus on few things, which is like you mentioned, the new project launches and making sure that the timeline of the launches from the time we obtain the land is very critical and that’s some area where we need to work-in an integrated manner internally. So that’s something we have clearly focused upon and there is a lot — there is a separate team which is which is formed to coordinate this and that has helped us in accelerating some of our project launches. That’s one.
And second, even in terms of business development, we are — we have been lucky in few locations like in Greater Noida, where we had in fact, we appraised the total value for the land in November last year and we could launch the project in June. So that’s been a very good turnaround for us and so that’s very heartening to see. So while this is happening in some other cities, it’s not such a rosy picture and we still are mainly due to the external factors, we are continuing to improve in those cities as well.
Manoj Dua
Okay. Will be launched this year.
Jagadish Nangineni
Is a fairly large project and we are for Phase-1, we are mostly done with our land consolidation and the initial planning and the — and the drawings. So we should start working towards approvals since we started working on approvals from this month depending on the entire timeline of the whole approvals, we should be able to launch it within the next one year is what our expectation is. If it can happen earlier, like you told that if the INR650 crore revenue would have recognized this year, we get about INR150 crore PAT. So can we take going-forward whatever project we have launched in last two, three year and we’re launching now, 20% PBT is given almost in most of the project on the project-level, 20% PBT. Yes, this INR150 crores, what I mentioned was PBT, not that. The second is for all the new projects that we have been selling in the past, say, two years, we have guided last-time that we have at the project-level, the EBITDA margins is at 33%.
Manoj Dua
And congratulations on adding written Mumbai thank you and best of luck. Thank you very much.
Operator
Thank you. The next question is from the line of Parvesh Kazi from Nuvama Group. Please proceed.
Parvez Qazi
Hi, good evening and thanks for taking my question and congrats for a great set of numbers. So couple of questions from my side. First, when we talk about this potential launches of 8 million to 9 million square feet. Does this include the launches that we have already done in Q1 or does it exclude it?
Jagadish Nangineni
Premium surveys. So we are hoping that we’ll do this 8 another 8 million square feet-in the next nine months. And what will be the total let’s say sales potential of 8 million square feet over the two quarters the total value of the — of the projects at an average of at least INR12,000 should be about close to INR10,000 crores. How much of that is going to translate into sales is dependent on the — on the timeline of — timing of the launch of the project. But overall, we expect that we should be doing roughly about 50% of our sales from new launches in this year and 50% from the earlier inventory that we had. Which is pretty much similar to what we did in Q1, right, about INR1,000 odd crore from new launches and INR1,000 crores from sustainable.
Parvez Qazi
Absolutely. You’re right. And lastly, in terms of the ticket size of the projects that we are launching, I mean, if one look at Q1 sales roughly about 60 odd percent was from ticket sizes less than INR3 crore and about 40% above INR3 crores. So for the upcoming 8 million square feet of launches, will the split be largely same or will it be slightly different? Thank you.
Jagadish Nangineni
Yeah. So last year-around this time, we had a much larger sale value through a much higher-ticket size because of the launches of high-ticket sized projects that have come together. And I have been saying this that the — it was no strategic call that we have taken, just that the timing of all of those projects have come together. But otherwise, all our projects, the bread-and-butter business has been largely between on — between 1,800 to 2,000 square feet and which is roughly about a ticket size between INR2 crores to INR3 crores. However, as some of the projects would be — in some of the projects and also some of the inventory in each of these projects would be over — over that ticket sizes as well. So it’s going to be a mix of both, but tilted towards less than INR3 crores.
Parvez Qazi
Sure. Thanks and all the best. Thank you very much.
Operator
Thank you. The next question is from the line of Himanshu from Bugal Rock Asia. Please proceed.
Himanshu Upadhyay
Yeah, hi, good afternoon. My first question was, can you give your thoughts on business development and any thoughts on which markets are most attractive markets in terms of the difference between sales value and cost of land currently in the market and which — where you find the least favorable markets in terms of profitability over the next four to five years, some of your thoughts will be considered.
Jagadish Nangineni
Thank you, Himanshu. That’s a strategic question, which probably I’ll not be elaborating much. But what I — what we can see is for us, the priority markets are where we current in our current operations is Bangalore, of course, second is NCR. In addition to these two, we would be — in long-term, we would look at Mumbai as well. However, we have just started there. So these three are, as you know, are very large markets in India. In addition to this, of course, our present — presence in Kerala and Hyderabad, Chennai and Pune are also there. So these will continue to be are areas where if we find very opportunistic land, then we would look at investments from a from a high-return on investment if you — that’s what we are alluding to, then still Bangalore is a very good market.
NCR also is a pretty good market. Mumbai, we are still testing out. So we — our understanding is limited. And hence as we continue to look at opportunities and invest there, we’ll have a much better view. So from our priority markets right now these both these seem to be good, both in terms of returns and in terms of the demand potential and our own presence. So they make the most strategic sense for us in focusing here. And while we leverage our presence in other locations and see if we get something which is — which is great on return — great on margins, we will definitely take those up.
Himanshu Upadhyay
And one question on Mumbai, UK. We have launched a very small project or land acquisition, okay. And what is our thought process? So are you exploring various micro markets through small projects and then we finalize a micro-market and then we launch or sort of bigger project or it was just a — it happened that we have started with a small new project. Is it strategically that we are just doing a small project? Some thoughts on that will be helpful or how are you approaching that market?
Jagadish Nangineni
Yeah, we are — we have been evaluating various types and sizes of the projects and we had been doing it for the past more than a year. I — it depends on the cycle at which where we had our capital availability also. So at that point of time, which where we have done this and some of the others that we are evaluating and in advanced stages, there are two factors that we would consider. One is the size of the opportunity and the quality of the opportunity. And second is our own ability to fund it. So both these matter. Now that we have slightly better capital structure in which we can evaluate opportunities, we should be looking at larger ones.
But more importantly for us, the first one is very critical because our own understanding of the market and going through the entire process of acquisition to launch and completion is very critical so that we would — we will have significant learnings from it and take it forward from there. So we are in — we are in the market for a very long-term and hence — and Mumbai is a very large market and hence we are we are on a path on exploratory nature right now. And as and when we find good opportunities, we would be willing to take those up.
Himanshu Upadhyay
Just a follow-up on this. See, when we do this 1,50,000 saleable type of project nearly 150 type of plans, okay. So can we give — and show our all prospects of what we can do in such a small piece of plan and do you think you will be able to create a brand what we have in NCR or or to these smaller projects.
Jagadish Nangineni
So what are your question is it’s a good question, Himanshu. First thing is, in this particular project, this is Phase-1 of the project. It’s actually the total size, the project is over 300,000 square feet. So the second part is regarding the scale of the project, yes, you would definitely — we would like to do projects which are larger in nature. However, I think considering the nature of land and kind of opportunities that are present in Mumbai and particularly in the core Mumbai areas, so it is very difficult to start with a much larger development potential.
So hence, even if this is a — we think that even this is a good start for us, we will be able to showcase our quality even in a project like this, but that entire construction and experience for the customers would take time. However, since the brand is well-recognized, we do think that the understanding of our brand and our processes, there are people who do understand that and should be able to be moving towards us and building a building its brand. So this is it might be a small step, but at the same time, we are continuously evaluating new opportunities.
Himanshu Upadhyay
Thanks, I’ll hand back for further questions. Thank you much.
Operator
Thank you. The next question is from the line of Johan from Motilal Oswal. Please proceed.
Yohan Batliwala
Yeah, hi. Thank you very much. Am I audible?
Jagadish Nangineni
Yes, you have.
Yohan Batliwala
Yeah. Thank you. First of all, good evening, sir. My question is on your earlier comment on the project-level EBITDA margin. You said you target 33%. Just a bookkeeping question on that. On PBT basis, what is the margin that is target for the INR172 billion? And also on an overall perspective, what will be the margin excluding overheads and interest?
Jagadish Nangineni
Sure. Well, I think you have, let’s a slightly tricky question because the timing of the recognition of that revenue plays a significant role in terms of arriving from that project-level EBITDA to a PAT level for the company because it are various overheads that come in, which are recognized during the quarter and whereas the timing of the — these unrecognized revenues when they come in and how much quantum of that coming in matters a lot. And hence it’s very difficult to just clearly say that how much could that translate into PAT. But what we can clearly say is that as we go-forward, the core EBITDA margins that we are seeing at the — at the project-level, which were in the past has definitely are being seen — are seeing an increase and hence overall, our PAT margins also should significantly increased.
Yohan Batliwala
Sure, sure. Okay. And my second question is on the OCF. I think in the last quarter’s call, you guided a 10% increase for FY ’26. Does that still hold true?
Jagadish Nangineni
In terms of operating cash-flow?
Yohan Batliwala
Yes. Yes.
Jagadish Nangineni
For the full-year. For the full-year, yes, I mean I — we would still be on-track for that. Overall, with the increase in our sales value and corresponding milestone achievements in the — in the construction, we should be able to do better there.
Yohan Batliwala
Sure, sure. Thank you very much. Have a nice day. Thanks.
Operator
Thank you. Thank you. The next question is from the line of Puneet from HSBC. Please proceed.
Puneet Gulati
Yeah, thank you so much. My question is, again, on the — on your net-debt, now you have a significant amount of cash and you’re also buying land as I can see in the cash-flow segment. What are your thoughts on deployment of this cash? How soon do you think can you spend bulk of it? And where-is it really going? What areas are you targeting?
Jagadish Nangineni
Puneet, we — from a debt point-of-view, yes, we are sitting — we have significant cash sitting on our books. A majority of them are in RERA accounts, which are — which would get available for deployment as and when we progress on the projects. How much would be cash? Sorry? Talking about INR1,300 crores of that would be. Okay. So, but that gives us big confidence for us to actually deploy capital, while that is the case. But today, there are three aspects to this. One, the — we are far better-off in terms of financial structure, yes. Second, the demand environment is good. But on the other side, the cost of land and the kind of opportunities that we are seeing are fully mature in the sense the margin of error is much of margin of safety is much lower than what we could see a couple of years ago. So it’s very — it’s — in a calibrated manner, we will need to deploy this cash. And while that is the case, we are in a situation where we have good visibility of inventory from our own projects, which we have done consolidated land in the past or we have done business development in the past. So hence, we would deploy this in a — in a calibrated manner and wherever we find good opportunities. And we are not in a super hurry to deploy them, deploy it because we not necessarily just because we have cash we need to deploy it.
Puneet Gulati
And what’s the need to buy land here? You had significant amount of land here have — and you’re still spending close to INR280 crores this quarter as well. So where-is it?
Jagadish Nangineni
Some of the cash outflow that we are seeing is not necessarily in the new — in new land that we are acquiring, but a part of it is being — majority of the part is being deployed for the earlier land procurements and to consolidate those land or whatever deals that we have done in the past. So this quarter majority of that cash-flow has gone towards that. Last year, tentatively about we have deployed cash where we have increased our overall value — the sale value we have — or let’s say on a saleable area point-of-view, we have done over 9 million to 9.5 million square feet. So this year, also let’s see how we will deploy it based on the opportunities available. However, the — some of the past development that we have done, those have flown into this year and some of it we have seen in this quarter also.
Puneet Gulati
So in simple terms, is it fair to assume that the INR281 crores is essentially going to the INR175 acres that you had categorized earlier as under various phases of consolidation? That’s where it is getting cleaned up.
Jagadish Nangineni
That’s right. And some of them would be in some of the forthcoming projects where there would be some dues either to the landowner or in terms of certain other payments related to the land.
Puneet Gulati
Understood. That’s very helpful. And lastly, just again on the taxation side, the income tax has been quite low for you in the last few couple of quarters. What has really changed there? Yeah. Like this quarter was INR387 crore, used to be INR67 crore earlier, so 38 versus.
Jagadish Nangineni
Okay. I would like you guys to take that question.
Yogesh Bansal
So income taxes, in current if we are maintaining income tax book separately, where our profit is very-high and we are paying income tax accordingly.
Puneet Gulati
That is recorded as a defer tax for us, okay. And I’m just talking about the cash-and-cash tax which you put out in the cash-flow statement, the INR38.7 crores versus INR65 crores
Yogesh Bansal
Because that cash-flow thing is cash-flow, cash-flow has — see, income tax are two-parts. One is TDS deducted by customer, okay, which is already by customers. Here we are talking about cash-flow from our. So that on an average we are — we are expecting that INR200 crores will pay income tax including this year this year INR200 crores. So out of INR38.7 which you already paid. Including TDS, which is not captured in cash, which is also there. You include in the presentation income tax including TDS. These are two-parts of Punit. One is income tax. Secondly, TDS deductor for our vendors. Okay. So 38.7% is the vendor part of it. And then plus income tax advances PP, both. Okay. And this number should correlate to INR200 for full-year. So this number, yeah, you can correlate to
Puneet Gulati
. Okay. That’s helpful. Thank you so much. All the best. Thank you.
Operator
Thank you. The next question is from the line of from Antique Stock Broking. Please proceed. Thank you.
Biplab Debbarma
Am I audible?
Jagadish Nangineni
Yes, good luck. Now it’s much better.
Biplab Debbarma
Yeah. My question was what is the brokerage structure, like how much is paid and when is it disbursed? Is it disbursed at the time of booking or 10% receipt or staggers? And what is the accounting treatment? Do we fully expense in the — that year or whenever we pay the money? Like I’m just trying to understand is the brokerage an accounting policy of.
Jagadish Nangineni
Good question, Viplav. See the payment of brokerage is typically after at least 20% of the payment by the customer and signing of the agreement with the customer. That’s one. Second is the accounting treatment of brokerage is — if it’s a — if it’s an online project, then it is the entire brokerage state, which is — which we can account to specific unit of the — in the project. Those are accounted as the project cost and recognized as a cost whenever the revenue recognition happens for that project, which is typically at the time of completion and handover. Whereas for the joint development projects, whatever is the share of the brokerage for the landowner that is expensed due as part of the quarterly expenses.
Biplab Debbarma
Okay. Okay. Thank you, thank you. Thank you and all the best, sir.
Operator
Thank you. Thank you. Thank you. Next question is from the line of Parikshit Kandpal from HDFC Securities. Please proceed.
Parikshit Kandpal
Thanks. Thanks for the follow-up. So question was on EBITDA margin. So if you have recognized these five projects, your EBITDA broadly works to be around 12.5% or 13% in that range, which is almost a 4, eight quarters high. So directionally now we will keep battering every quarter and eventually when do we reach that 33% mark. So how many quarters do you think this journey will take us from here 12% to 13% going up to 30% plus?
Jagadish Nangineni
Right., yes, you are right, the EBITDA margin should have been far higher this quarter pending these oceans. Directionally, we are in an upward function. Third is 33% is an EBITDA margin at the project-level. And one — and the EBITDA margin that we see in our P&L is post the — all the expenses which are overheads and other items as well. So EBITDA margin of post all of that, like I was mentioning earlier, it will again depend upon the timing of these recognition of the revenue.
Parikshit Kandpal
But directionally, now in this coming quarter also, I mean in other quarters, like we are bettering that 12% to 13% now. So we’re moving ahead of that now.
Jagadish Nangineni
Yes, it should become better. The only treatment in P&L, one of the things that we need to be cognizant of is on a higher sale, if I’m spending higher sales and marketing costs, that would of course be additional for — as an coming in as expense versus the revenue that we are recognizing. We are today selling at an average of INR12,000 to INR13,000, right? And once this we are recognizing revenue at about INR7,000 and we are recognizing margin. So corresponding sales and marketing as at an increasing function, right. If you look at it will impact the P&L for the current — current year. In a typical, as you — I’m sure you have seen all the P&Ls of real-estate companies, particularly the ones who recognize revenue on completion basis. The — an increase in sales — in the pre-sales for the subsequent years are in fact detrimental to the P&L. So, but that’s how the accounting works and that does not mean that it is we are we are in a worser situation than earlier. But coming back to your earlier point, which is we should be seeing an increasing project-level margins and that should reflect in an overall margin improvement that comes
Parikshit Kandpal
. Okay. I think a couple of quarters back, you said that quarterly run-rate on revenue will now be about INR1,000 crores and this quarter with that OC if they had come, we would have touched INR500 crore. So here as a whole now quarterly averages like how the revenues will move because you did say that 4 million square feet to 4.5 million is delivery, so which would translate to about INR400 crore INR5,000 crores of revenue. So how do we look at the quarterly revenues now or the yearly revenues?
Jagadish Nangineni
Yes, this particular quarter would have been lumpy because this unrecognized revenue of about INR650 crores was pending from a little earlier also and which we surely thought that it would have come in this quarter. While we got it covered from — I mean, actual real-estate revenue, it is about close to INR600 crores and that’s you had added this, then it would have been 1,260 crore, but this would have been slightly higher than typical quarter because the OCs were pending for a longer duration.
Parikshit Kandpal
But quarterly run-rate now. So is it like INR1,000 going much higher from here?
Jagadish Nangineni
Sorry,, largely like we have in initial comments our CFO, has mentioned that we have a unrecognized revenue of INR17,000 crores of which was about INR16,000 crores in a couple of quarters earlier. So if you have — if we have to recognize in the next four years these revenues would be roughly about INR1,000 crores to INR700 crores. Okay. Just lastly on the right. So now as the correction? Yeah, sure. Sir, could you please as there are some participants waiting for their turn.
Parikshit Kandpal
Sure. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please proceed.
Pritesh Sheth
Yeah, just one question as a follow-up. So INR10,000 crore of pending launches for this year, Q2 would be INR1,000 crores because of some slipovers.
Jagadish Nangineni
The next two quarters, should we assume it would be like equally split, INR4,500 crore across both the quarters? And particularly, when are we expecting next launches in sector 63 and Noida the other project that we have? Yesterday. So we should be seeing these launches in the next two quarters after Q3 and Q4, but largely they are skewed towards end of Q3 or beginning of Q4. Okay, and Gurgaon and Noida Noida also similar. Sure, okay.
Pritesh Sheth
Okay. Thanks. That’s it from my side. Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen, due to time constraints, that was the last question for the day. I would now like to hand the conference over to the management for closing comments. Over to you, sir.
Jagadish Nangineni
Thank you. Thank you everyone for participating on the call. Given a nice Saturday. We really appreciate that. We hope that we have answered most of your questions in case if we do not we can connect with you through our Investor Relations subsequently. Like I mentioned in the earlier — in the opening comments, we are looking — we are at a good juncture in terms of a stable demand environment and we have built a good brand around ourselves and we have exceptional experience in terms of developing the projects across India. And this we think that with the current financial structure and with the kind of brand and experience that we have built, it’s an opportune time for us to have a very long-term growth and we continue to invest in opportunities, people, processes and technology to enable this long-term growth. Thank you everyone for participating and have a good weekend
Operator
[Operator Closing Remarks]