Sobha's FY25 pre-sales decreased; new markets will determine future success

Sobha, a real estate developer, reported a 6% year-over-year decrease in pre-sales for the fiscal year ending 2025. While Q4 saw a 22% increase in pre-sales, the company missed its initial yearly targets due to slower conversions and delayed project approvals. The company launched new projects in FY25, but much of its sales still came from Bengaluru. Expansion into new markets like Gurgaon, Pune, and Mumbai is underway to reduce regional concentration. Despite the challenges, Sobha saw improved average realisations, which were up 23% year-on-year, reaching a record high. Future growth will rely on success in newly launched projects and performance in these newer markets.