Sobha Limited ($SOBHA)

Ladies and gentlemen, good day, and welcome to SOBHA Limited Q4 FY '26 Earnings Conference Call hosted by ICICI Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. [indiscernible] from ICICI Securities. Thank you, and over to you, sir.

Yes. Good evening, everyone. On behalf of ICICI Securities, I'd like to welcome everyone on the SOBHA Limited call today. From the management, as always, we have with us Mr. Jagadish 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.

Thank you. Good evening, everyone, and thank you for joining us on this call for Q4 FY '26. In today's call, we'll briefly go through the operational highlights of the year and a little bit about the future. FY '26 has been an exceptional year for the company. Our real estate sales reached an all-time high of INR 8,136 crores with strong and consistent average quarterly run rate of approximately INR 2,000 crores. We have achieved an average price realization of INR 14,675 per square feet compared to INR 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 FY '27 as well. Bangalore recorded its highest ever annual sales of about INR 4,500 crores with both new launches doing well and sustained sales also doing well during the year. NCR region delivered the highest ever annual sales of about INR 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 INR 800 crores and other regions contributing about INR 400 crores. In terms of project launches, we launched about 6.04 million square feet during FY '26. 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 project in Gurgaon, which is Soba 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, Thrissur and Pune that we will be able to do in the next -- overall, we have a pipeline of 20.067 million square feet in various stages of design and approval, which we plan to launch in the next 6 to 8 quarters. OpEx, about INR 10 million we expect to launch in this FY '27 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, 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 of the real estate, we delivered 1,087 homes during the fourth quarter, taking the total to 3,188 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 certificates, which were delayed in the third quarter earlier. We currently have an unrecognized real estate revenue of about INR 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% to 26%, significant improvement from this year. And hence, we expect significant improvement in our P&L even in FY '27 with improving margins over the quarters and probably a 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 the growth momentum in FY '27 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. .

Good evening, everyone. I am pleased to present our financial performance for the fourth quarter and financial year '25/'26. FY '26 was [ reflected ] by strong operating requisition and disciplined capital allocation. We delivered record sales while strengthening liquidity and [indiscernible], ending the year in a net debt negative position. Our focus remains constant accelerated collection on the construction and land investment through operating cash flow and improve our quality of earnings through lower finance costs. I will briefly walk you through our capital performance covering both the quarter and year along with our outlook. And then I will still move on the P&L. During the quarter, from all businesses, we collected INR 1,990 crores and for the full year, total collections was INR 7,798 crores, recording a healthy 26.1% growth over last financial year. In Q4, real estate collection stand at INR 1,807 crores and, for financial year, INR 7,067 crore. Contractual and manufacturing contributed INR 183 crores in Q4 and INR 732 crores during the financial year. Next, operating cash flow level, INR 366 crores in the quarter and INR 1,637 crores in full year, registering growth of 39% over FY '25. As on March 31, 2026, gross debt stood at INR 1,004 crores, while cash and cash equivalents was INR 1,802 crores, maintaining net cash position. Coming to P&L. For the quarter, we recorded a total income of [indiscernible], taking the full year FY '26 total to INR 5,384 crores. Revenue recognition strengthened during the quarter, aided by completion certificate of multiple projects. EBITDA for Q4 was INR 194 crores -- for EBITDA of FY '26, INR 503 crores. PAT Q4 was INR 92 crores and FY '26 we recorded INR 193 crores. Growth rate reduced to INR 1,002 crores and cash equivalents was INR 1,800 crores, resulting in net debt INR 800 crores. The cash balance provides resilience through cycles and enable us to fund launches, construction momentum and land investments. A combination of strong collections, lower cost of funds and a net debt negative position strengthens our ability to execute our development pipeline with a disciplined financial position. Looking ahead, company confidence is underpinned by strong operating momentum and [ ability ] across P&L performance, revenue, cash flow and land availability. Revenue yet to be recognized from sales done until March 31 stands at INR 18,647 crores. [indiscernible] was collected, marginal cash flow from completed ongoing [indiscernible] INR 9,560 crores and postponed projects adds an additional projected margin cash flow of INR 8,699 crores. We are aiming in FY '27 a net operating cash flow of [indiscernible]. As we scale, our priority remains the same: strengthen our balance sheet, improve cash flow and maintain steady execution. With this operating framework, we believe SOBHA is positioned for sustained long-term value creation. Once again, thank you all for your participation. With this, we can now open the call for questions.

[Operator Instructions] The first question is from the line of Parikshit Kandpal from HDFC Securities.

Congratulations on a decent quarter. So the sales are lower expectation than our expectation was more like INR 10,000 crores. I understand one of the launch got postponed. So just to understand if you have... [Technical Difficulty]

I'm sorry to interrupt. Your voice is muffled. Can you use your handset mode, please?

Am I audible now? Is it better?

Yes. Please proceed.

My question was on the launch of INR 15,000 crores, about 10 million square feet and 15,000. So if you can highlight some of the key launches in Q1, Q2, Q3, Q4. So how will these launches be phased out and some of the key launches that you can highlight for us?

Parikshit, so some of our key launches for this financial year will be our Phase 1 of our Hoskote project, which we are expecting to launch in the first quarter. And along with that, we already, like I mentioned in the comments, we have already launched Phase 1 of our project. Both these put together itself will be about close to 6.1 million, 6.2 million square feet. In addition to that, then in Q2, we have a couple of launches in Kerala, which are in [indiscernible]. In addition to those, we expect to launch a couple of more products in Bangalore. Essentially one of the projects that earlier we launched as a project in Bangalore, we canceled the project and we are launching it with apartments. But 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 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.

Okay. And sir, on the project Rivana, so what exactly happened? I mean, it's a large project, and you were expecting a very strong sale from this. So what I understand on your presentation, you have given about INR 600 crores LCR. So if you can highlight what was the inventory which was open and how much you have closed and how has been the momentum in Q1 from this project? So how do you raise the response to this project given that Q4 end, we had this geopolitical issue? So if you can highlight a bit on this one.

Like you would have seen, Parikshit, that Rivana is a large project. It's about 2.5 million square feet, 1,384 units. We launched our Phase 1 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 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.

Next question is from the line of Puneet Gulati from HSBC.

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?

Yes. Puneet, the gross margin, like I was mentioning, will start coming through for the product completions that we have on the ongoing projects, which are scheduled to start getting completed in end of Q2 and Q3. And that's where we think that the gross margins will significantly start to see there is a significant uptick on that. So as we progress during this financial year, FY '27, Q3 and Q4 should start looking far better, and you will start seeing the EBITDA margins that we have been projecting, Of course, the entire remaining revenue to be recognized. But those bids will start kicking in and then, hence, the higher profitability.

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 doing in the market?

Well, 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 and given the kind of ticket sizes that we will be able through which we'll be able to achieve higher sales momentum. It seemed to be a much better utilization of land and, hence, we are making an attempt to change, which would leave, for the same land, probably will get better both valuation and overall margins as well. So from that perspective, it's a very positive change which will add to the overall sales value and the margins.

Next question is from the line of Girish Choudhary from Avendus Spark.

Jagadish, congratulations for a strong year. My first question is again on the first quarter launch. If you can give us some more color on the total size of the project, break it up between Phase 1, Phase 2, the GDV. And where are we in terms of the approvals of both on the design and then also timelines?

Right. So thank you, Girish. So this project will be about 5.3 million square feet on the residential portion. So we should be able to receive a RERA in Q1 itself and launch the project. We are in very advanced stages of the launch. And the overall GDV for the project should be about INR 7,000 crores. So it's a large launch for us. And we expect to see sustained demand for this kind of project.

Okay, okay. And second question in terms of -- just wanted your outlook or how to look at business development and aim 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, I mean, what's your budgeted outlay for the land?

Right. So from a BD point of view, we are continuously adding those 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 million to 20 million square feet at any point of time. So the business development that you would have seen that last year, we have spent close to about INR 1,050 crores, INR 1,060 crores on land. I think the kind of cash flow that's being generated, there are 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 developments in these locations. So Hyderabad, while we plan to do that, we are looking to launch our second project this financial year. We are on the approval stage. And we're looking at tenders. We're looking at new opportunities in Hyderabad as well.

So from a cash flow point of view, can we look at the similar INR 1,000 crores, INR 1,200 crores kind of a spend in fiscal '27?

Yes. That is exactly what I was alluding to. So not only that we have done that. A lot of the payments that are required for -- pending payments for the existing lands. Once those bids are also done, we should be able to do it in the first half. then most of the additional cash flow will be going into new business development.

Next question is from the line of Biplab Debbarma from Emkay Global.

Congratulations on excellent results. So I just wanted to know how is the performance to the new launches in Sohar Rivana and Crescent? I mean how much you have sold until date in these projects?

So thank you, Biplab. Rivana, like I mentioned last quarter, which we launched -- I mean, towards the last week of the quarter is quite decent in terms of considering the uncertainty around that time. And we are seeing positive sustained sales as well. So whatever we launched, we sold about 25% of that. In Crescent, which we launched in April 1 -- 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 cases, we can continue to see good momentum.

In rupees crore, how much is the projects?

In present, it's about INR 1,100 crores.

And Rivana?

Rivana, it's about INR 500 crores.

And sir, what is the current deal pipeline visibility in MMR and Noida, Greater Noida?

In MMR, we are pursuing a couple of projects, which we should be able to conclude during this year, which one is a redevelopment project and one is we are trying to buy land. Small projects, but at the same time, it will give us a good understanding of how we can upgrade 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 performing 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 2 projects there. So we have additional 2 to 3 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.

Next question is from the line of Fenil Brahmbhatt from Choice Institutional Equities.

Congratulations for the strong set of numbers. So my first question is on the guidance. Like do we have any specific guidance for presales and average selling price for FY '27/'28? If yes, then it would be helpful if you can share.

Fenil, I have mentioned this in the opening remarks. So I think this year, we have achieved about 30% growth in our presales, and similar is what we can expect in FY '27 as well.

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 momentum considering your last quarter performance, specifically in Bangalore and the other new cities which you expanded?

Yes. So from a pricing point of view, it's quite stable for the last 3 to 4 quarters, and we expect the stability in terms of pricing to continue. And hence, the increase would come more from volume than pricing and both in terms of NCR and in in Bangalore. Both seem to be on a similar path, which is where the demand also has stabilized and effectively 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 continues.

Next question is from the line of Pritesh Sheth from Axis Capital.

First question, again, on Rivana, just happing a bit on the response that you got versus what we have got in Crescent? 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 in terms -- to get a better response versus what we have seen for other peers? Even we had got some pricing feedback that it sits higher than what was expected. So was it intentional in terms of pricing that project is higher to get a very sustained kind of a response as a kind of sales from this project?

Pritesh, so on Rivana, one, you should understand that it was launched in the last week of the month of March. So typically, we do have a preparation phase after we receive RERA. And this, we have launched some of the timing difference between once we get Rivana and the launch, it has been quite low because we wanted to launch this in FY '26 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. But post that also, our sustaining sales also seem to be quite good. And with the current kind of momentum, we should see good sustaining sales, which is, frankly, it's something that we are quite fine with it and considering that this is a large project and over the period you 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 receival 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 Greater Noida, which is SOBHA Auram specifically, there is a small difference in the pricing. But that should be okay and it's quite well accepted and it's doing well.

Sure, sure. Got it. That's helpful. And just second on Hoskote, you talked about the residential portion. Are we also planning to build any rental yielding assets in Hoskote considering we have a large 100-acre land parcel as part of our space in overall 250, 300 acres. So your thoughts on building a rental yielding assets in this project

Absolutely, that is one of the plans. But however, the Phase 1, 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 commercial developments in Phase 2 and 3. The exact design mix and the actual development is still in the design stage. So once we have that clarity, then we'll definitely showcase that. That's part of the future development and how much of it is going to be commercial. .

Next question is from the line of Parikshit Kandpal from HDFC Securities.

Sir, my question is on the demand. So how do you read the demand across markets NCR and Southern India, especially in light of the AI conferences people have, which a large part of our clients 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 presales? So if you can give some color how you the demand.

I understand the concern with respect to both the macro and specifically related to AI and its impact. While that's a concern that's existing across the industry, on the ground, what we are seeing which are our leading indicators, which is visible for us, there doesn't seem to be a big slowdown or anything of that. So there seems to be a 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 INR 3 crores or so. The demand seems to be quite robust. So hence, there is some -- probably the demand side, it might not be on a very high increase part, which we had seen in between '21, '22, '23. But the demand seems to be steady as of now. With respect to how it's actually unfolds in terms of how things are going to happen in the future with respect to AI and any of the other technology or any other macro aspects, that, we'll have to wait and watch. But what I believe is apparently the demand seems to be quite good. In NCR as well, for the right kind of pricing of product, there seems to be a good demand, which is witnessed in both of our launches. So from actual real outcomes perspective, it seems to be positive. If there any concern in future because of any other reasons, we'll have to wait and see.

And sir, just on the business development, INR 1,100 crores was spent. So how much of the GDV addition in FY '23? And what kind of GDV we are addition looking at FY '27 in value terms?

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 will continue to work upon. And currently, like you have seen, we have about 20 million square feet, which is 2 years of new launches. So we are quite good in terms of visibility for the next 2 years. And we continue to generate good cash flow from operations, and that will be deployed. And I think that's big enough for us to sort of add to the [ timing ] 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 business development and visibility of the project launches perspective.

And sir, one last question, if I may. The rentals which you currently are talking, so our earlier strategy, I think we tried [indiscernible] to ramp up the rental, but it did not pick up. So now next 4, 5 years, how do we look at the rental trajectory going even in Hoskote regarding some of the commercial assets on a share basis? So any sense, any color on how do you think about that [indiscernible] and potentially in Q4 how big this could be on an annualized basis?

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 new projects like immediately. And hence, although we have opportunities for that in a few areas, like Hoskote and like in Gurgaon, we have a commercial project. So these lands, we can definitely build towards building rental. 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 Hoskote or in Gurgaon or small other developments that we are doing in Gurgaon also. So hence, clear visibility. Right now, we have about 2 to 2.5 million square feet. Going forward, if we decide to have this as a separate vertical and strategy for that, we'd 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 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.

Next question is from the line of Puneet Gulati from HSBC.

Can you also talk about what you are seeing in terms of approval process in Bangalore? And there was also a potential FSI change that's supposed to come. Where is it in the pipeline now?

Right. Puneet, the approval 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, it's still an ongoing matter that's in various quorums 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'll develop. So the exact clarity of that is [indiscernible] 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.

Next question is from the line of Akash Gupta from Nomura.

Am I audible?

Yes. Please proceed.

Congratulations on great performance. Sir, my question is more, again, from the demand perspective. Just wanted to know your thoughts on, number one, footfalls and consequent conversions? And then are you seeing timing 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.

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 products, which are investment. 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. I mean, the same project also, there seems to be a continued interest. So on both these parameters, these seem to be quite good. And of course, there is a concern related to the macro environment, related to how the -- basically the geopolitical events that are occurring and unfolding. But when you actually look at the ground reality, it seems to be quite stable. Second, in terms of the labor shortage, what you had just asked, so that is, of course, everyone throughout the industry has faced a labor shortage or issue because of the elections that has occurred in the 4 states. So that, I think, is a brief interruption to the steady flow of the requirement. But I think once it stabilizes, then we are back 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. Of course, surely, there is 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 a 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 actually come and hit us in terms of margins. Because typically, any of the projects, we do have a little bit of escalation that we take into account. It doesn't look like 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 future. So once we get a probably much better sense of it in the next 3 to 6 months, then we will be able to get a good handle in terms of the impact of that. While that's the case, how much we'll be able to increase prices and, hence, there is offset, but that's always the case. Again, we had done that earlier in the past with COVID, where there was significant pricing -- cost increases and, hence, correspondingly, 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 there was a pent-up demand as well which we could capture. But this time, again, this is an event-led inflation and whereas demand seems to be quite stable. So it all depends on, again, demand/supply and how we can react to that. So it's currently wait and watch mode for us. We will take the call once things get ahead.

Understood, sir. And sir, just one question 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 Gurgaon project just from an investment perspective? Is there any change that you're picking up?

The reason for investment in the Middle East and volumes per investment in local markets might be quite different. So immediately, we have not seen anything, any huge changes. But we do see some changes in our Kerala market where the inquiry flow is slightly better considering a 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 renewed interest in India.

Next question is from the line of Biplab Debbarma from Emkay Global.

Sir, what would be the GDV of the Mumbai deal pipeline, the 2 deals that you mentioned earlier? There development and outside.

Both the new projects, both put together should be about INR 2,000 crores, Biplab.

That's quite big. And the second question is, sir, you mentioned SOBHA Rivana, still they sold INR 500 crores and represent INR 1,100 crores in terms of the presales rate. So does this indicate that Crescent has received a stronger market response compared to Rivana? I thought it would be other way around.

Right. Like I mentioned, Biplab, 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 to 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 with the timing, which is in March versus April. And as you know, in March, things were quite -- I mean, everyone is quite uncertain as how things were going to pan out. So given that, I think it's a quite -- we started out quite positively, and that should continue.

Next question is from the line of Parvez Qazi from Nuvama Group.

So my first question is of the 10-odd million square feet that we plan to launch in FY '27, what would be the GDV of these projects?

Parvez, so if you take an average pricing of about what we have done this time, which is about INR 2,700 and similar maybe around INR 15,000, that would be about INR 15,000 crores.

And we have either released or unreleased inventory of about INR 1,200 crores, INR 1,300-odd crores in our existing products. So is that a fair way to look? We'll have maybe close to INR 27,000 crores, INR 28,000 crores?

That's right. That's right, Parvez.

Next question is from the line of [ Murli ] from Sundaram Mutual Fund.

I just want to understand on 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 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.

So thanks for the question, Murli. The ability to generate sales from new launches is also dependent on the timing when we launch the project. right? So the earlier we launch in the year, the higher would be the contribution from those new launches during the year. Last year, we did -- I mean, this year, FY '27, we expect roughly about 45% to 50% from sustenance and 50% to 55% from new launches.

Next question is from the line of Parikshit Kandpal from HDFC Securities.

Just one question on Rivana, sir. So you said that you had a very limited window. So out of 2,000, we had sold about 25% so until now -- until May. So have you seen again like comeback in that project? Do you think that you still -- I mean, you achieved 50% or more in this project now?

We are seeing good sustaining sales more, Parikshit. It's -- the launch what we did, like I mentioned, was in an uncertain environment. But we are seeing good response from assessment 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 to 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 to gain momentum, but I see very good sustained sales. And for this project to do well, 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 2 or subsequent towers of the project 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.

Okay... [Technical Difficulty]

I'm sorry to interrupt. Sir, can you repeat your question? You're not audible.

So the Hoskote is about INR 7,000 crores of GDV. So Phase 1 is how big? And typically, this has been one in the large layout, it is like Hoskote's response initially. So how do you think -- because you've already been collecting [indiscernible] for some time now, I remember from March and sometime in that period. [indiscernible] given how much the margin [indiscernible] impact. So if you can give on this.

Yes. I understand, Parikshit. The phases of the launches is also dependent on the kind of demand that comes through. And we have the mix of the product across multiple towers basis the demand across the unit size mix, we will continue to open new towers, which is typically done in any large project. Here also, we will follow the same. First is the dependency of the opening of phases and the towers is clearly on demand and also the construction schedule that we follow. So that's what we are going to follow. And here, to start with at least half of it, we should be leading. And if the demand is quite good, then we will immediately introduce the subsequent ones also because we get results from the entire project at once.

So about INR 3,500 crores is worth to potentially come as a launch depending on the demand, and it can be upside type of demand actually [indiscernible]. Is that right?

Yes, absolutely. You're right.

And any initial comment on [ scaling ] the EOI here because this has been out in the market for some time. So how are you seeing any large projects? Typically projects see a good traction. So on the initial sense on how the footfall and EOI has been for this project?

There is good interest in the project given the scale of the project. right? 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 how things progress and the momentum that's created. And obviously, it's going to flow into our operation date at the end of the quarter.

Then this should be INR 3,500 crores to INR 4,000 crores, which [indiscernible]. So it should be a INR 3,000 crores last time in this quarter?

We hope so. I mean I really hope what you're estimating comes through. So our job is to make sure all the preparation, everything happens. And then whatever result comes, we'll aim for the best result, Parikshit.

Thank you. That was the last question for today. I would now like to hand the conference over to the management for closing comments.

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 over 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 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 I wish you all the very best.

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.

Thank you.