Sobha Ltd Unveils ₹22,000 Crore Expansion Plan for 2025

Introduction

Bengaluru-based real estate developer Sobha Ltd has announced one of its most significant expansion strategies in recent years, with plans to launch new projects valued at ₹22,000 crore. This move is designed to capitalize on the sustained demand for premium and luxury housing across India. The announcement comes on the back of record-breaking sales performance and robust financial growth, positioning the company to strengthen its market presence over the next 18 months.

A Nationwide Project Rollout

Sobha Ltd has outlined a detailed pipeline of 15 new projects set to launch over the next four to six quarters. This includes 13 residential projects with a total saleable area of nearly 16 million square feet and two commercial projects covering 0.74 million square feet. The combined development will span 16.7 million square feet.

The expansion is geographically diverse, targeting key real estate markets across the country. The new projects will be located in Bengaluru, Mumbai, Delhi-NCR, Pune, Chennai, Calicut, Thrissur, and Trivandrum. This strategic spread aims to tap into the growing urban demand for high-quality, branded residential and commercial spaces. Beyond this immediate pipeline, the company is already planning an additional 24 million square feet of projects for future development.

Strong Sales Momentum Continues

The company's expansion plans are supported by exceptional operational performance. In the second quarter of the 2025-26 financial year, Sobha recorded a 61% year-on-year growth in sales bookings, reaching ₹1,902.6 crore compared to ₹1,178.5 crore in the same period last year. During this quarter, the company sold 1.39 million square feet of property at an average price of ₹13,648 per square foot.

For the first half of the current fiscal year, Sobha achieved its highest-ever sales bookings of ₹3,981.4 crore, marking a 30% increase from the previous year. This strong sales velocity, even without major new launches in the quarter, indicates powerful demand for its existing inventory and underscores the trust consumers place in the Sobha brand.

Financial Health and Profitability

Sobha's financial results mirror its strong sales performance. The company's consolidated net profit for the second quarter of FY2025-26 nearly tripled, rising to ₹72.52 crore from ₹26.08 crore in the corresponding quarter of the previous year. Total income also saw a significant increase, growing to ₹1,469.3 crore from ₹965.29 crore a year earlier. This surge in profitability highlights the company's ability to maintain healthy margins through efficient cost management and strong price realization.

Managing Inventory and Targeting Future Growth

As of the end of the September 2025 quarter, Sobha Ltd holds unsold inventory from its ongoing projects valued at approximately ₹13,000 crore, spread across 10 million square feet. Despite this, the management remains confident that the robust demand for premium housing will facilitate quicker sales. Further bolstering its financial outlook, the company has ₹18,000 crore in unrecognized revenue from sales that have already been completed but are yet to be reflected in its accounts, ensuring a stable revenue stream for the upcoming quarters.

Looking ahead, Sobha has set an ambitious pre-sales target of ₹8,500 crore for the fiscal year 2025-26, which would represent a growth of over 30% from the previous year.

Management's Perspective on Growth

Jagadish Nangineni, Managing Director of Sobha Ltd, attributed the company's strong performance to the steady demand for luxury residential real estate within a growth-oriented economy. He noted that favorable macroeconomic conditions and timely government initiatives have supported the sector. "With a clear pipeline of 16.69 million sq. ft. of future launches in the next six quarters, a strong balance sheet, and a stable demand environment, Sobha is well positioned for growth and ready to capitalize on upcoming opportunities," Nangineni stated.

The Rising Tide of Premium Housing Demand

Sobha's success is indicative of a larger trend in the Indian real estate market. There is a clear and growing preference for high-quality, branded homes, particularly in the premium and luxury segments. Factors such as rising disposable incomes, stable interest rates, and an increasing desire for better living standards are driving this demand. Cities like Bengaluru, Pune, and Delhi-NCR continue to lead this trend, and developers with a reputation for quality and timely delivery, like Sobha, are best positioned to benefit.

Conclusion

Sobha Ltd's aggressive ₹22,000 crore expansion plan is a confident step forward, backed by strong financial health and record sales. The company's strategic focus on India's top urban markets, combined with a robust project pipeline, prepares it to meet the evolving needs of homebuyers. As it moves into its next phase of growth, Sobha is set to reinforce its position as a leading player in India's competitive real estate landscape.