HDFC Securities Maintains BUY on Sobha Limited with ₹1,930 Target Price After Record Q1 FY27 Performance
HDFC Securities Maintains BUY Rating After Record Quarter
HDFC Securities maintained its BUY rating on Sobha Limited with a target price of ₹1,930 per share, citing the company's exceptional operational momentum in the quarter ended June 2026.
The rating follows Sobha's record presales value of ₹36,561 million in Q1 FY27, marking a 76% year-over-year increase from ₹20,788 million in Q1 FY26, alongside a 79% sequential jump from ₹20,393 million in Q4 FY26.
Operational Highlights from the Quarter
Total volume sold expanded 62% year-over-year to 2.34 million square feet across 1,432 residential units and plots. Average price realization improved to ₹15,655 per square foot, up 8.8% from ₹14,395 per square foot in the prior year and up 2.5% sequentially.
During the quarter, Sobha completed 671 homes across eight projects, totalling 1.08 million sft of saleable area.
Regional Performance and New Launches
Bangalore recorded its strongest-ever quarterly sales with a value of ₹20.67 billion, contributing 56.5% of total sales. The NCR region followed with sales of ₹13.84 billion, accounting for 37.9% of the total, while Kerala and other cities contributed the remainder.
The quarter's performance was anchored by new project launches, including SOBHA OneWorld and Sacred Grove in Bangalore, and SOBHA Crescent in Gurgaon. Sobha introduced 6.8 million square feet of new saleable area across three projects, including the large-format SOBHA OneWorld with an estimated sales potential of over ₹75 billion.
Analyst Perspective on Growth Trajectory
HDFC Securities noted that while the broader Bengaluru market may see a slowdown in investor-driven projects, Sobha is well-positioned to continue its growth trajectory, leveraging its brand equity to dominate the premium, end-user segment.
The quarter reinforced the demand resilience, brand-led pricing strength, and execution consistency that have underpinned Sobha's recent growth trajectory, setting a strong base for the rest of FY27.
About Sobha Limited
Sobha Limited, incorporated in 1995, is a real estate developer engaged in construction and operations of townships, housing projects, commercial premises, and other related activities, as well as manufacturing activities related to interiors, glazing and metal works, and concrete products. The company's real estate segment accounts for 81% of revenue, with a significant focus on luxury projects.
Sobha Limited has delivered 500+ projects across 27 cities and 14 Indian states, with Bangalore as its biggest and most active market in India.