Sobha Reports Highest-Ever Quarterly Pre-Sales of ₹2,080 Crore in Q1 FY27; Nuvama Maintains BUY with ₹1,784 Target

Record Quarterly Sales: ₹2,080 Crore in Q1 FY27

Sobha Limited reported its highest ever quarterly real estate sales of INR 2,078.80 crores in Q1, driven by the successful launch of Sobha Aurum in Greater Noida, which contributed INR 833.00 crores. The result marks a sustained acceleration in the developer's pre-sales velocity and underscores strong demand across its geographic footprint, particularly in the National Capital Region.

Aurum's Breakout Launch Performance

The Sobha Aurum project in Greater Noida, the company's first venture in the region, received an exceptional response from customers. Launched towards the end of June, the project sold approximately 80% of its inventory during the launch week, demonstrating strong demand in the National Capital Region (NCR) market. This debut entry into Greater Noida marks a geographic expansion that had been flagged by credit agencies as a growth driver for the developer.

The company sold 1.44 million square feet across its markets, achieving an average realization of INR 14,395.00 per square foot.

Analyst Response and Target Pricing

Nuvama Institutional Equities has maintained its 'Buy' rating on Sobha Ltd., with a target price of ₹1,784, after the company reported its highest-ever quarterly pre-sales of ₹2,080 crore in Q1. Multiple brokerages issued positive views following the announcement, with analysts citing the developer's execution track record and robust project pipeline as key investment drivers.

Financial and Pipeline Updates

Sobha reported total income of INR 901.00 crores, EBITDA of INR 73.00 crores, and PAT of INR 13.60 crores. However, financial results were impacted by delays in obtaining Occupancy Certificates for five Bangalore projects. This prevented the recognition of INR 650.00 crores in revenue and INR 150.00 crores in Profit Before Tax (PBT).

The company maintains a strong liquidity position with INR 1,706.00 crores in cash against INR 1,019.00 crores in gross debt. Sobha has a significant pipeline of unrecognized revenue, with INR 17,245.00 crores from sold units yet to be recognized. The company plans to launch 7-8 million square feet worth approximately INR 10,000.00 crores in the remaining fiscal year.

Developer Context: Three Decades of Execution

Sobha Limited was incorporated on 07 August 1995. The company is engaged in the business of real estate construction, development, sale, management and operation of all or any part of townships, housing projects, commercial premises and other related activities. Record FY26 sales of ₹8,135.9 Cr — highest in the company's 30-year history. Net-debt-negative balance sheet at FY26-end (-₹800 Cr) and ICRA AA- (Stable) credit rating.

Sobha has a zero-abandonment track record across 600+ projects in 30 years and 148 million sqft delivered. Post-RERA (2017+), Sobha's on-time possession track record has been consistent — typically within 3–6 months of the RERA-committed date.

Nomura sees strong Q1FY27 launches from Godrej, Oberoi, Sobha. Emkay expects Mahindra Lifespace and Sobha to emerge as key outperformers, supported by robust launch pipelines and medium-term presales CAGR (compound annual growth rate) of about 20-25 per cent over the next three to four years.

Market Positioning

Sobha's Bengaluru portfolio is the city's second-largest premium residential footprint after Prestige, with 200+ delivered projects covering ~68 million sqft. Flagship FY24–FY26 launches in Bengaluru include SOBHA Neopolis (Panathur, Greek-themed), SOBHA Crystal Meadows (Sarjapur Road, London-themed row houses), SOBHA Galera (East Bengaluru / Hoskote corridor), SOBHA Townpark (Hosur Road, NYC-themed 50+ acre township including Madison Heights and Hamptons clusters), SOBHA Ayana (Panathur), and SOBHA Magnus (Bannerghatta Road, eco-luxe 3-4 BHK from ₹3.33 Cr that drove the company's record Q3 FY26 quarter).

Sobha Limited confirmed its maiden Mumbai project, SOBHA Inizio in Parel, featuring 2 and 3 BHK luxury residences. This marks the company's first entry into the Mumbai real estate market. Alongside the Mumbai entry, Sobha Limited launched SOBHA Magnus in Bengaluru and SOBHA Strada, a 2.03 acre serviced apartment and retail development in Sector 106, Gurgaon, with 222 units.