Sobha Limited has announced plans to invest ₹11,500 crore in FY27 for land acquisition across 10 million sq ft in Bengaluru, Gurugram, Hyderabad, and Pune. According to latest reports, the company expects to launch 30% of these projects in FY27 as part of its aggressive expansion strategy. This follows a record ₹1,160 crore land acquisition spend in the previous year, demonstrating the company's commitment to rapid growth in key metropolitan markets.
After a disappointing FY25, Sobha witnessed a strong rebound in FY26 with pre-sales of ₹81.4 billion, representing a 30% year-on-year growth. As reported by Emkay Global, the company continued this momentum into 1QFY27 with record pre-sales of ₹36.6 billion, marking a 76% year-on-year increase. The brokerage attributes this recovery to visibility of a strong launch pipeline and continued healthy absorption in the Bengaluru market, with the company now targeting 10 million sq ft of new launches across multiple cities in FY27.
Sobha has strengthened its momentum in launches with a total of 14.8 million square feet launched in FY26, with expected 15 million square feet orders in FY27. In 1QFY27, the company launched 6.9 million square feet, with a strong launch pipeline of 8.2 million square feet remaining for the year, including projects in Gurugram, Bengaluru, Chennai, Hyderabad, and Thrissur with GDV of ₹120 billion. The company is also expected to benefit from robust demand in the Bengaluru real-estate market, with easing hurdles in the real-estate environment potentially leading to surge in supply from well-funded developers.
According to Emkay Global's analysis, while reported margins remain a key monitorable, the firm expects margins to improve from 3QFY27 onward, likely reaching the 20% level in 2HFY27 and improving progressively thereafter. The improvement is anticipated to be driven by the company's strong launch pipeline and continued healthy market absorption, particularly in the Bengaluru region, supported by the aggressive land acquisition strategy and focus on premium projects across multiple cities. Despite expectations of margin improvement, margins remained muted in FY23-26 with FY26 and Q1FY27 margins at around 6%, though ongoing projects have higher mix of high-margin projects including owned projects with project level EBITDA margins upward of 35%.
Emkay Global Financial has issued a buy rating on Sobha with a target price of ₹1,900 in its research report dated September 21, 2026, indicating a 56.3% upside in valuation. The recommendation is based on 8x Sep-28E EV/embedded EBITDA valuation at a 21% premium to NAV, while the stock currently trades at a 23% discount to NAV. The stock was trading 0.25% higher at ₹1,235.10 per share on BSE with a market capitalisation of ₹13,207.27 crore, having recovered from an intraday low of ₹1,223.35 per share. Despite the positive analyst outlook, the stock has declined 12-14% year-to-date and 39% over the past two years, with a 52-week high of ₹1,730.90 and low of ₹1,131.10.
