Sobha (SOBHA) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly real estate sales of INR 3,656 crore (₹36.56 Bn), up 76% year-over-year, with 2.34 million sq ft sold across 1,432 homes at an average realization of INR 15,655 per sq ft.

• Major launches in Bengaluru and NCR drove record sales, with Bangalore contributing 57% and NCR delivering its highest-ever quarterly sales; three new projects totaling 6.89 million sq ft were launched.

• Completed 1.08 million sq ft (677 homes) during the quarter, further strengthening delivery track record.

• Recognized for excellence in safety, quality, and township development with multiple awards.

• Board approved unaudited financial results for Q1 FY27 and the issue of non-convertible debentures up to ₹1,000 crore.

Financial highlights

• Total income/revenue for Q1 FY27 was INR 1,330 crore (₹13.30 Bn), up 48% year-over-year; real estate revenue rose 60% to INR 1,107 crore (₹11.07 Bn).

• EBITDA increased 78.1% YoY to ₹1.30 Bn, with a margin of 9.7%; PAT surged 264.3% YoY to ₹0.51 Bn, with a margin of 3.8%.

• Standalone net profit for Q1 FY27 was ₹580.42 million, consolidated net profit was ₹508.46 million.

• Operational cash inflow reached ₹19.24 Bn (+8.2% YoY); net operational cash flow at ₹3.12 Bn.

• Net debt position improved to negative ₹6.59 Bn, with a D/E ratio of -0.14 and average interest cost at 7.62%.

Outlook and guidance

• Pre-sales growth guidance of at least 30% for FY27, with potential upside if launches proceed as planned.

• Inventory pipeline includes 14.94 Mn sq ft (₹192.24 Bn sale value) and 20.77 Mn sq ft forthcoming launches (₹295.57 Bn sale potential).

• Margin expansion expected in H2 FY27, with EBITDA margin projected to rise from 9.7% to 17–20% by Q4.

• Launches of 8.2 million sq ft in the next nine months, translating to a GDV of about INR 12,000 crore.

• Board authorized the Investments and Borrowings Committee to finalize terms for the ₹1,000 crore NCD issue.