Sobha Ltd shares rose 0.78% to settle at ₹1,460 following the company's announcement of record quarterly pre-sales for Q1FY27. According to Nuvama Institutional Equities, the Bengaluru-based realty developer delivered record pre-sales of ₹3,660 crore, representing a 76% year-on-year and 79% quarter-on-quarter increase. The company's share of bookings surged 74% YoY to ₹2,990 crore, demonstrating exceptional market demand across its project portfolio. The stock has risen 12.18% over the past month, reflecting strong investor confidence in the company's performance trajectory. Kotak Securities has maintained an 'ADD' rating with a fair value of ₹1,700, citing the company's backward-integrated business model and strong operational performance.
Sobha delivered exceptional Q1FY27 booking value of ₹3,660 crore, which was 41% above JM Financial's estimate of ₹2,600 crore. As reported by The Hindu BusinessLine, the sales area for the quarter stood at 2.3 million sq ft, with 1,432 homes and plots sold during the period. The company's average price realization improved to ₹15,655 per sq ft, demonstrating strong market demand and pricing power. Nuvama Institutional Equities noted that realization rose 9% YoY to ₹15,655 per sq ft in Q1FY27, indicating sustained pricing power across the portfolio. Kotak Securities highlighted that sales volumes rose 62% YoY to 23.4 lakh sq ft, with the strong start enabling Sobha to achieve nearly 35% of its annual pre-sales target.
Bengaluru emerged as the primary growth driver, delivering its strongest-ever quarterly sales at ₹2,067 crore, representing 56.5% of total sales. According to The Hindu BusinessLine, NCR followed with ₹1,384 crore in sales, accounting for 37.9% of total quarterly sales. Kotak Securities noted that the company has built a diversified presence across key residential markets, with Bengaluru as its largest market, while also maintaining a strong footprint in Gurugram/NCR, Pune, Kochi, Chennai, and Hyderabad. Nuvama Institutional Equities highlighted that Bengaluru's share in overall sales (by value) surged to 57% during the quarter, demonstrating the region's continued dominance in the company's performance.
During Q1FY27, Sobha launched three new projects with combined saleable area of 6.9 million sq ft across Bengaluru and Gurugram. As reported by The Hindu BusinessLine, the company launched SOBHA Crescent, Phase 1 in Gurugram comprising 336 homes across 0.9 million sq ft with an estimated sales potential of ₹2,200 crore. In Bengaluru, the company introduced Sobha OneWorld, a 47.4-acre luxury residential project in Hoskote with 3,484 homes across 5.4 million sq ft, having an estimated sales potential of over ₹7,500 crore. Kotak Securities attributed the strong performance to the robust launch pipeline, including the much-awaited Hoskote project. The company has a robust pipeline of 13 residential projects spanning 2 crore sq ft over the next 4–6 quarters, backed by 218 acres earmarked for upcoming developments.
Management has guided for 30% pre-sales growth in FY27, supported by an H1-heavy launch pipeline of around 1 crore sq ft. Kotak Securities expects margin improvement from completed projects beginning H2FY27. Looking ahead, Sobha has a robust pipeline of 13 residential projects spanning 2 crore sq ft over the next 4–6 quarters, backed by 218 acres earmarked for upcoming developments and an additional 1,752-acre land bank. The company also expects ₹9,560 crore of positive cash flows from ongoing and completed projects. At ~7.4x FY27E EV/EBITDA, valuations remain attractive according to Kotak Securities, maintaining their 'ADD' rating with a SoTP-based fair value of ₹1,700.
