Bengaluru-based developer Sobha achieved its highest-ever half-year sales of ₹5,862 crore during the First Half of Financial Year 2026-27, representing a 47.2% increase compared to the corresponding period of the previous financial year. The company sold 3.76 million square feet of residential space covering 2,260 homes, with sales volume increasing 32.4% year-on-year, indicating growth supported by higher volumes alongside new project activity. The strong performance was driven by new project launches and continued demand across key residential markets, with the company completing 1,391 homes covering 2.56 million square feet of saleable area during the first half. Sobha has already met 59% of its FY27 guidance in the first half and is poised to exceed the full-year target with strong project launches lined up.
For Q2 FY27, Sobha reported a 16% year-on-year increase in total sales value to ₹2,206 crore, according to an exchange filing issued on October 2. However, the company experienced a 40% sequential decline from ₹3,656 crore recorded in the June quarter. The quarter's sales area stood at 1.42 million square feet, representing a 2.2% year-on-year increase but a significant 39.3% quarter-on-quarter decline. The company also completed 828 homes covering 1.42 million square feet of saleable area during the first half. Sobha's share of the total sales value was ₹1,882 crore in Q2 FY27, showing a 22.4% year-on-year increase but a 37.1% quarter-on-quarter decline. This marks Sobha's second-highest quarterly pre-sales after a record ₹3,660 crore in Q1FY27, with strong traction in existing projects Sobha OneWorld and Sobha Neopolis in Bengaluru, along with Sobha Crescent and Sobha Aranya in Gurugram.
Bengaluru remained the company's largest market, contributing ₹3,385 crore to first-half sales, representing 57.7% of total sales, while the National Capital Region recorded a significant contribution of ₹1,974 crore or 33.7% of total sales. These two markets highlight the importance of urban residential demand to Sobha's overall sales performance. The company launched two new projects during Q2FY27—Sobha Boulevard, a premium plotted development project in Mysuru, and Sobha Bellevue, a super-luxury residential development in Kozhikode in Kerala. Sobha has been diversifying its geographical mix beyond south India and has a presence in Pune and Mumbai, with key markets and IT hub Bengaluru contributing almost 58% to pre-sales in H1, followed by the National Capital Region at 34%, and other markets such as Kerala and Hyderabad.
The average price realisation during Q2 FY27 stood at ₹15,522 per square foot, marking a 13.7% increase from ₹13,648 per square foot in the corresponding period last year. On a sequential basis, average price realisation declined marginally by 0.9%. Sobha's performance demonstrates excellent pricing power and customer trust, with rising realization levels protecting the company from inflationary pressures in land acquisition and construction materials, supporting margin sustainability. The company's focus on premium housing and branded real estate positions it well to benefit from the sustained consolidation in favor of tier-1 developers in India's real estate market.
HDFC Securities expects ₹6,000 crore of new launches in Q3 including projects in Bengaluru, Gurugram and Hyderabad, with Sobha needing ₹4,140 crore in pre-sales in H2FY27 to hit its ₹10,000 crore guidance. This is below the Q2 run rate and with strong Q3FY27 launches, it seems doable and likely to beat guidance. Sobha is targeting project launches spanning about 21 million square feet across geographies over the next six-eight quarters, with these projects estimated to have a gross development value of about ₹29,600 crore. However, the Sobha stock has declined 18% so far in 2026, underperforming the Nifty Realty index, which is down 4%. Reported margins remain Sobha's key pain point and hover in single digits at 9.3% in FY26, though ongoing projects have a higher mix of high-margin projects expected to come up for recognition from H2.
