Sobha (SOBHA) Q2 26/27 earnings summary

Executive summary

• H1 FY27 real estate sales reached a record ₹58.62bn, up 47.2% YoY, across 3.76mn sft and 2,260 units.

• H1 operational cash inflow was a record ₹40.09bn; net operational cashflow was ₹7.55bn.

• Q2 sales were ₹22.06bn, up 16% YoY; management said sales were on track to meet or exceed FY27 guidance.

• Healthy sustenance demand, a 20.42mn sft launch pipeline and a ₹220.41bn sold-unit revenue backlog supported the outlook.

Financial highlights

• H1 total income was ₹23.47bn, EBITDA ₹2.485bn versus ₹2.306bn, and PAT excluding OCI ₹839mn versus ₹861.45mn; consolidated PAT was ₹838.05mn.

• Q2 total income was ₹10,172.17mn versus ₹14,693mn YoY; consolidated revenue from operations was ₹9,670.64mn and PAT ₹329.59mn versus ₹725.27mn.

• H1 consolidated revenue from operations was ₹22,452.16mn versus ₹22,595.50mn; real estate revenue was ₹18,558mn and contractual and manufacturing revenue ₹3,962mn.

• H1 net operational cashflow was ₹7.55bn; consolidated operating cash flow was an outflow of ₹3,424.03mn. Net cashflow after financing and capital outflow was negative ₹4.86bn.

• Q2 operational cash inflow was ₹20.84bn and operational outflow ₹16.42bn, resulting in positive operational cashflow of ₹4.42bn; H1 real estate collections were a record ₹40.09bn.

Outlook and guidance

• Management expects FY27 PAT growth of at least 50% YoY; EBITDA margin is expected to exceed 15% in H2 FY27 and trend toward 20% or more from FY28.

• FY27 delivery plan is ~6mn sft: 2.56mn sft completed in H1 and ~3.5mn sft planned for H2; completion timing may differ from revenue recognition and handovers.

• Forthcoming launches comprise 20.42mn sft with ₹313.53bn sale potential; management expects at least two to three launches in Q3, subject to approvals and readiness.

• Revenue of ₹220.41bn remained to be recognized from units sold through 30 Sep 2026; projected real estate project-level marginal cashflow was ₹197.48bn across completed, ongoing and forthcoming projects.

• Forthcoming and subsequent land bank totals 347 acres across 8 cities, with 35.97mn sft development potential; project-level EBITDA margin is projected above 30%.