Sobha's first-half pre-sales climb 47 per cent to Rs 5,862 crore

Sobha's first-half sales cross Rs 5,800 crore

Bengaluru-based Sobha Ltd recorded its highest half-yearly sales value in the first six months of FY27, with bookings for April to September reaching Rs 5,862.4 crore, up 47 per cent from Rs 3,981.4 crore a year earlier. The figures were disclosed in the company's operational update for the quarter and half year ended September 30, 2026, which was filed with the stock exchanges the previous week.

Antique Stock Broking kept its Buy rating on the stock and retained a target price of Rs 1,855 per share, implying about 57 per cent upside over the last closing price of Rs 1,183. The brokerage's call comes as the developer's sales volume expanded by 32.4 per cent to 3.76 million square feet across 2,260 residential units.

Volumes, launches and realisations

Second-quarter sales value came to Rs 2,206.3 crore, up 16 per cent year on year. Sobha's own share of sales value, which excludes the portion attributable to landowners and joint development partners, stood at Rs 4,873.8 crore for the half. Its share of total bookings rose to 83.1 per cent from 81.7 per cent a year earlier.

Average price realisation climbed to Rs 15,522 per square foot. During the first half the company launched projects totalling about 7.9 million square feet, carrying a gross development value of Rs 11,200 crore, and completed 2.56 million square feet of area.

• Q2 sales area of 1.42 million square feet, up 2.2 per cent year on year
• Q2 sales value down 40 per cent from Rs 3,656 crore in Q1, reflecting the lumpy timing of project launches
• Targeted launch pipeline of 7.2 million square feet with a gross development value of about Rs 10,800 crore
• Ongoing inventory of 13.9 million square feet with a gross development value of Rs 22,400 crore

Antique noted that first-half pre-sales equal around 55 per cent of full-year guidance and said the company is positioned to comfortably surpass its FY27 pre-sales target. The brokerage expects pre-sales to grow at a compound annual rate of around 24 per cent between FY26 and FY29, pointing to visibility from the current project pipeline.

Where the bookings come from

Bengaluru remains the anchor market, accounting for 58 per cent of pre-sales in the half, followed by the National Capital Region at 34 per cent. Demand for luxury residential projects in both core markets has supported the growth. In Gurugram, Phase 1 of the Crescent project, launched in April 2026, has already achieved around 50 per cent sales.

The company has outlined around 10 million square feet of launches for FY27 across Bengaluru, Gurugram, Hyderabad and Pune, with further phases planned in Kerala, including Calicut, and in Bengaluru.

A Bengaluru builder with a national footprint

Sobha was founded in 1995 by PNC Menon and now has a presence in 27 cities across 14 states. The company has extended its operations internationally to Oman and Dubai under the Sobha Realty brand. Its business spans real estate and contractual manufacturing, with luxury apartments, villas, row houses and plotted developments.

In FY26 the company recorded its highest-ever annual sales bookings of Rs 8,135.9 crore, selling 5.54 million square feet at an average realisation of Rs 14,675 per square foot. Pre-sales for the year rose 30 per cent, and operating margin stood at 9.3 per cent. In the June quarter of FY27, bookings rose 76 per cent year on year to Rs 3,656.1 crore, and the company ended the quarter with a net cash position of Rs 659 crore.

Launches and margins ahead

Nine projects remain to be launched in FY27, covering 8.2 million square feet and implying about Rs 12,000 crore in gross development value at current pricing. Emkay Global, which holds a Buy rating with a target of Rs 1,900, expects FY27 pre-sales of Rs 11,000 crore to Rs 12,000 crore. Its view depends on converting the strong half-year booking pace into second-half launches and recognised earnings.

Market analysts expect the margin profile to turn from the third quarter of FY27. The average analyst target for the stock stands at Rs 1,752, with Antique's Rs 1,855 target sitting above that average.