Quarterly Financial Results

SOBHA Q1 FY27 Results: Record Real Estate Sales Drive 274% YoY PAT Growth; Company Remains Net Cash Positive

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SOBHA Limited reported a strong start to FY27, achieving its highest-ever quarterly real estate sales driven by robust demand across Bengaluru and NCR.
Total sales value increased to ₹36.56 billion, while consolidated revenue stood at ₹13.30 billion.
Profit After Tax (PAT) surged to ₹508 million, supported by higher real estate revenue, healthy operational cash generation and disciplined financial management.
The company also remained net cash positive, launched three new projects with a combined saleable area of 6.89 million sq. ft., and maintained a strong development pipeline across key markets.

PRICE-SENSITIVE TRIGGER

Event: SOBHA Limited released its Investor Presentation and Financial Performance Update for Q1 FY27.

Type: Quarterly Financial Results

Impact: Positive

Immediate Effect: The company delivered record quarterly sales, strong profit growth, healthy cash generation and maintained a net cash position despite continued investments in new launches and land acquisition.

Metrics:

Key Metrics:

Total Revenue: ₹13.30 billion (+47.6% YoY)
Real Estate Revenue: ₹11.07 billion (vs ₹6.90 billion YoY)
EBITDA: ₹1.30 billion (+76.8% YoY)
EBITDA Margin: 9.7% (vs 8.1% YoY)
Profit Before Tax (PBT): ₹691 million (vs ₹187 million YoY)
PAT: ₹508 million (vs ₹136 million YoY, +274% YoY)
PAT Margin: 3.8% (vs 1.5% YoY)

Segment Performance:

Real Estate Sales Value: ₹36.56 billion.
SOBHA Share of Sales: ₹29.92 billion (81.8% of total sales).
Saleable Area Sold: 2.34 million sq. ft.
Units Sold: 1,432.
Average Realisation: ₹15,655 per sq. ft.

Highlight:

SOBHA recorded its highest-ever quarterly real estate sales of ₹36.56 billion while remaining net cash positive with net cash of ₹6.59 billion, reflecting strong demand and disciplined capital allocation.

What Happened ?

SOBHA began FY27 on a strong footing with record residential sales supported by successful launches across Bengaluru and Gurgaon. The company benefited from healthy customer demand, higher selling prices and improved project execution, resulting in significant improvement in revenue and profitability.

Alongside operational growth, SOBHA maintained a robust balance sheet, generated positive operating cash flow and expanded its development pipeline through new launches and future land development opportunities.

key details

Business & Operational Updates:

Achieved record quarterly sales value of ₹36.56 billion, up from ₹20.79 billion in Q1 FY26.
New sales area increased to 2.34 million sq. ft., compared with 1.44 million sq. ft. last year.
Bengaluru contributed 56.5% of quarterly sales, while NCR accounted for 37.9%.
Average sales realisation improved to ₹15,655 per sq. ft., reflecting stronger pricing power.
Completed 671 homes across 1.08 million sq. ft., including 7 towers and 4 villas.

New Project Launches:

During Q1 FY27, the company launched three major residential projects:

SOBHA OneWorld, Hoskote (East Bengaluru)
- 47.4 acres
- 5.39 million sq. ft.
- 3,484 homes
- Estimated sale potential: ₹75 billion
Sacred Grove, Chikka Tirupati (Bengaluru)
- 26.1 acres
- 625,172 sq. ft.
- 388 plots
- Estimated sale potential: ₹2.5 billion
SOBHA Crescent, Sector 63A, Gurgaon
- 6.2 acres
- 869,578 sq. ft.
- 336 premium homes
- Estimated sale potential: ₹22 billion

Project Pipeline & Growth Outlook:

50 projects currently under development.
20.77 million sq. ft. of forthcoming launches.
36.94 million sq. ft. of future land development potential.
₹205.53 billion revenue pending recognition from sold inventory.
₹194.81 billion projected marginal cash flow from current and upcoming projects.
Management expects project-level EBITDA margins exceeding 30% across future developments.

Balance Sheet & Cash Flow:

Gross debt stood at ₹11.10 billion.
Cash and cash equivalents increased to ₹17.69 billion.
Net debt remained at negative ₹6.59 billion, indicating a net cash position.
Operational cash inflow reached ₹19.24 billion.
Net operational cash flow stood at ₹3.12 billion.
Average borrowing cost declined to 7.62%.

Note:

The investor presentation primarily focuses on quarterly financial performance, project launches, sales achievements and development pipeline.
No merger, acquisition or equity fundraising announcement accompanied this update.

Risk Analysis

Summary:

SOBHA continues to benefit from strong residential demand, premium pricing and disciplined financial management. However, future performance remains linked to execution of ongoing projects, housing demand and macroeconomic conditions affecting the real estate sector.

Key Risks:

Any slowdown in residential demand could moderate sales momentum.
Delays in project approvals or construction may affect revenue recognition.
Rising construction material and labour costs could impact margins.
Interest rate changes may influence homebuyer affordability.
Real estate remains sensitive to regulatory and macroeconomic developments.

Worst Case:

If residential demand weakens or project execution slows, sales growth and profitability could moderate despite the company’s strong balance sheet and healthy project pipeline.

Risk Level: Medium

Company Commentary

Management highlighted record quarterly sales performance driven by successful launches in Bengaluru and NCR.
The company remains committed to disciplined growth supported by a backward-integrated operating model.
SOBHA continues to maintain a net cash-positive balance sheet despite ongoing investments.
Future growth will be supported by a strong launch pipeline, substantial revenue visibility from sold inventory and continued execution excellence.
The company remains focused on long-term value creation through quality execution, financial resilience and sustainable expansion.

Official Exchange Filing: SOBHA Limited

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