SOBHA Posts Highest-Ever Quarterly Sales in Q1 FY27

SOBHA Limited has delivered its strongest quarter ever. Sobha reported unprecedented real estate sales of ₹36.56 billion in Q1 FY27, representing a 76% year-over-year increase from ₹20.79 billion in the same quarter last year. In rupee terms, the company's total sales value jumped 75.88% YoY to Rs 3,656.1 crore in Q1 FY27, led by strong response for its new project launches, SOBHA OneWorld and Sacred Grove in Bangalore and SOBHA Crescent in Gurgaon.

The volume numbers tell the same growth story. Sales area climbed 61.72% to 23,35,486 square feet in Q1 FY27, compared with 14,44,117 sq.ft in Q1 FY26. A total of 1,432 units, including homes and plots, were sold, marking a 78% increase. Pricing power also improved, with the average price standing at Rs 15,655 per sq.ft in Q1 FY27, up 8.75% YoY.

Bangalore remained the engine of growth for the developer. Bangalore recorded its strongest-ever quarterly sales, registering sales value of Rs 2,067 crore, accounting for 56.5% of the company's total sales. The National Capital Region wasn't far behind, with the NCR region recording total sales value of Rs 1,384 crore, contributing 37.9% of total sales. Kerala region contributed Rs 134 crore (3.7%), while other cities collectively contributed Rs 71 crore, representing 1.9% of total sales value.

Managing Director Jagadish Nangineni credited the timing and quality of new launches for the jump. Managing Director Jagadish Nangineni attributed the performance to well-prepared project launches, including Sobha One World and Sobha Crescent, which collectively contributed significantly to the record booking value. On the earnings call, management framed the quarter as a turning point. The quarter was described as a landmark period for sales, with Sobha selling INR 3,656 crores of homes, its highest quarterly real estate sales ever, supported by strong demand at new launches and a favorable product mix.

The balance sheet strengthened alongside sales. Sobha achieved a significant financial milestone by transitioning to a net cash positive position of ₹6.59 billion. Profitability also improved sharply, with profit after tax of Rs 50.7 crore compared to Rs 13.5 crore in Q1 FY26. Management expects further improvement ahead, noting that EBITDA margin seen moving from about 9.7% now toward 17% to 20% by Q4.

Looking forward, SOBHA isn't slowing its launch pipeline. Management guided for at least 30% presales growth for FY27 and outlined plans to launch 8.2 million square feet across nine projects in the remaining nine months of the financial year. For homebuyers, this signals a steady stream of new inventory across Bangalore and NCR in the coming quarters, alongside a developer whose improved cash position and delivery track record add confidence to ongoing and upcoming projects.

For prospective buyers, the record quarter is a useful signal. Strong absorption at newly launched projects like SOBHA OneWorld, Sacred Grove, and SOBHA Crescent suggests healthy end-user and investor demand in SOBHA's key micro-markets, even as average price realisations continue to inch upward. Buyers considering premium homes in Bangalore or Gurgaon may want to track upcoming SOBHA launches closely, given the pace at which recent projects have sold out inventory.