SOBHA's FY27 Launch Pipeline: Five Cities, One Big Bet

SOBHA Limited is entering FY27 with one of its most ambitious launch calendars in recent years. Sobha's management outlined FY27 guidance during a concall, targeting ~10 million sq ft of new launches across Bangalore, Gurgaon, Hyderabad, Thrissur, and Pune, with a total pipeline of 20.67 million sq ft. The plan spans the developer's home turf in Bengaluru as well as fast-growing markets in North India, the Deccan, Kerala and Western India.

The FY27 launches are part of a much larger runway. Sobha has a pipeline of 20.67 million square feet in various stages of design and approval, which it plans to launch in the next 6 to 8 quarters, of which about 10 million sq ft is expected to launch in FY27. Bengaluru continues to dominate this pipeline. Sobha's total project pipeline stands at about 31.2 million square feet, with 20.7 million square feet for residential projects, and a substantial 15 million square feet of this residential pipeline is in Bengaluru, reflecting the company's home-market focus.

On the ground, the calendar is already moving. Key launches for the year include Phase 1 of the Hoskote project, expected in the first quarter, which together with another launch adds up to close to 6.1-6.2 million sq ft. This is followed by a couple of launches in Kerala — in Calicut and Thrissur — along with a couple more projects planned in Bangalore. Analysts estimate the Hoskote project alone carries significant scale, with Hoskote Phase 1 projected to have a GDV of around ₹7,000 crore.

Gurgaon has already delivered early proof points for the FY27 strategy. SOBHA Crescent in Gurgaon achieved 50% sales worth ₹1,100 crore, while Rivana in the NCR saw 25% sales worth ₹500 crore post-launch. Management flagged this momentum on the Q1 FY27 earnings call, with strong bookings attributed directly to these new projects. Jagadish Nangineni, Managing Director of SOBHA Limited, said achieving the highest-ever quarterly sales was driven by successful new project launches in Bangalore and Gurgaon.

The financial backdrop supports this expansion. Management guided for a launch pipeline GDV of approximately ₹15,000 crore in FY27, with approximately 10 million sq ft planned for launch. New launches are expected to carry most of the sales load going forward. Management expects 50 percent to 55 percent of total sales to come from new launches, while the remaining sales will come from existing projects.

Profitability targets remain healthy despite the scale-up. Sobha expects strong profitability, with EBITDA margins of over 30 percent from its unrecognized real estate revenue of Rs. 18,600 crore, and projects nearing completion in the next 12 months are expected to deliver margins between 24 percent and 26 percent. To sustain this pipeline, land buying continues at pace. Sobha significantly boosted its land acquisition, spending an estimated ₹11.5–11.6 billion in FY26, and plans to invest a similar amount in FY27, aiming to acquire about 10 million square feet of land each year.

Recent quarters give homebuyers a sense of momentum already building. SOBHA's quarterly sales value reached a record ₹36,560 million in Q1 FY27, registering a sharp 76% YoY growth, with area sold expanding 62% YoY to 2.34 million sq ft, and new launches of 6.89 million sq ft of saleable area across three projects in two target cities. For prospective buyers, this points to a steady stream of new inventory hitting the market in Bengaluru, Gurgaon, Hyderabad, Thrissur and Pune through the rest of FY27, alongside SOBHA's continued push into newer markets like Greater Noida and Mumbai. The company has also expanded into Mumbai with a 1.3-acre land parcel bought for about ₹180 crore, and into Greater Noida via a joint development, with a combined GDV of ₹2,700 to ₹3,000 crore for these two projects.