Sobha Limited FY27 Guidance: ~10 Msf New Launches, 30% Sales Growth, ₹2,000 Cr Net OCF Targeted

Sobha Charts Ambitious FY27 Expansion: 10 Million Sq Ft Launch Pipeline

During its Q4 FY26 management concall, Sobha Limited outlined FY27 guidance targeting ~10 million sq ft of new launches across Bangalore, Gurgaon, Hyderabad, Thrissur, and Pune, with ~30% sales growth, EBITDA margins of at least 30%+ on unrecognized real estate revenue of INR18,600 crores, net operating cash flow of INR2,000 crore, and land acquisition spend of INR1,100–1,200 crores.

The announcement comes on the heels of a record-setting fiscal 2026, in which Sobha Limited reported its highest-ever annual sales value of ₹81.36 Bn in FY26, up 30% year-on-year, with Sobha's share of sales value rising 35% to ₹67.06 Bn. Standalone Profit After Tax surged 168.47% to ₹3,013.09 million, while consolidated revenue grew 29.33% to ₹53,837.65 million.

Multi-City Expansion Across High-Growth Corridors

In FY27, Sobha plans to launch nearly 10 million square feet of projects across Bengaluru, Gurgaon, Hyderabad, Thrissur, and Pune. For FY27, management projects new launches to contribute 50% to 55% of sales, with the remaining 45% to 50% coming from sustenance sales. This balanced sales mix is designed to support consistent revenue generation while new projects gain traction across key urban markets.

Two recent launches have already demonstrated market traction. SOBHA Crescent, launched in April in Gurgaon, achieved roughly about 50% of the sale, totaling about INR1,100 crores. SOBHA Rivana in Greater Noida saw 25% sales of INR500 crores within weeks of launch. The launches showcase Sobha's execution capability and pricing power in premium residential segments across the National Capital Region.

Profitability and Cash Generation Targets

The company anticipates an EBITDA margin of at least 30% plus on its unrecognized real estate revenue of INR18,600 crores. Projects nearing completion in the next 12 months are expected to deliver higher margins in the range of 24% to 26%.

On the capital allocation front, Sobha aims for net operating cash flow growth to INR2,000 crore in FY27. The company expects to spend a similar amount on land acquisition in FY27 as it did in FY26, approximately INR1,100–1,200 crores, signaling continued investment in replenishing its land bank to support future growth.

Strengthened Balance Sheet Underpin Growth

The company expanded to 13 cities, launched 6.04 million square feet of new projects and maintained a net cash position with ₹18,020 million in cash against gross debt of ₹10,023 million as on March 31, 2026. As on March 31, 2026, the company had 41.93 million square feet of ongoing developable area and a forthcoming pipeline of 20.67 million square feet across 13 residential projects in 7 cities and an upcoming commercial asset.

The company also has a strong pipeline of 20.67 million square feet planned over the next six to eight quarters. This visibility—alongside a launch pipeline GDV of approximately ₹15,000 Cr in FY27, with Hoskote Phase 1 projected to have a GDV of around ₹7,000 Cr—provides meaningful earnings visibility well into FY28.

Track Record and Operating Model

Founded by Mr. PNC Menon, SOBHA is a multinational real estate and construction enterprise that has been instrumental in reshaping the global real estate landscape for over three decades. Since inception, Sobha has developed a cumulative 152.69 million square feet across real estate and contractual verticals, spanning over 30 cities across 14 states in India.

Its core operational strength is its backward integration model, giving it complete control over every element of construction, from design and engineering to final craftsmanship. This model has consistently supported on-time delivery and margin discipline across market cycles.

FY27 Dividend and Shareholder Returns

A dividend of ₹6 per equity share was recommended for FY26. The Board of Directors recommended a dividend of ₹6 per equity share of ₹10 each (fully paid-up) for FY26, subject to shareholder approval at the 31st Annual General Meeting scheduled for July 18, 2026. The company proposes to transfer ₹301.31 million of current profits to the General Reserve.