Sobha's FY27 Growth Push

Sobha Limited has laid out an aggressive growth roadmap for FY27, with plans to launch approximately 10 million square feet of new residential projects across Bengaluru, Gurugram, Hyderabad and Pune. The announcement comes on the back of a record-breaking FY26, positioning the Bengaluru-headquartered developer for another year of double-digit expansion in India's residential real estate market.

According to management commentary during the company's investor concall, Sobha's total project pipeline now stands at roughly 31.2 million square feet, with 20.7 million square feet earmarked for residential development. A significant chunk of this residential pipeline, close to 15 million square feet, is concentrated in Bengaluru, underscoring the developer's continued reliance on its home market where it enjoys strong brand recall and deep local expertise. Later phases of the FY27 launch calendar are also expected to extend into Kerala and Chennai.

The FY27 launch guidance follows a landmark year for the company. Sobha closed FY26 with record real estate sales bookings of ₹8,136 crore, up 30% year-on-year, and sold 5.54 million square feet at an average realisation of ₹14,675 per square foot. Bengaluru contributed 55% of total sales value at ₹4,478 crore, its best-ever performance, while Delhi-NCR added ₹2,455 crore, or 30% of bookings. The company also achieved a net cash-positive balance sheet for the first time, ending FY26 with net cash of ₹800 crore.

Momentum has carried into the new fiscal year. Sobha's Q1 FY27 real estate sales came in at a record ₹3,656 crore, up 76% year-on-year, driven by strong early demand for new projects including Sobha One World in Bengaluru's Hoskote micro-market and Sobha Crescent in Gurugram. Phase 1 of Sobha Crescent reportedly saw 50% of inventory sold within weeks of its April launch, while Sobha One World's first phase carries an estimated GDV of around ₹7,000 crore alone, signalling healthy absorption in both the NCR and Bengaluru markets.

To sustain this launch velocity, Sobha is also ramping up land acquisition. The company spent an estimated ₹1,150-1,160 crore on land purchases in FY26 and has guided for a similar outlay of ₹1,100-1,200 crore in FY27, with an internal target of adding about 10 million square feet of land to its bank every year. This steady replenishment strategy is designed to secure well-located parcels ahead of demand cycles, particularly in high-growth corridors of Bengaluru and the NCR.

Management has guided for around 30% year-on-year growth in sales bookings for FY27, targeting gross sales of roughly ₹10,400-10,600 crore, supported by a launch pipeline with an estimated gross development value (GDV) of approximately ₹15,000 crore. The company's unrecognised real estate revenue of about ₹18,600 crore is expected to underpin cash flows and profitability through the rest of the fiscal year, even as it navigates near-term cost pressures from labour availability and rising construction material prices.

Brokerages have responded positively to the outlook. Analysts have flagged Sobha among their preferred picks in the listed real estate space for FY27, citing improving execution, healthy pre-sales momentum in Bengaluru and Gurugram, and a scalable launch pipeline extending into FY28. For homebuyers, the scale-up signals more project choices across established micro-markets in the coming quarters, though early movers in fast-selling launches like Sobha Crescent and Sobha One World may find inventory tightening quickly given the pace of bookings seen so far.