Sobha Limited Q2 FY27: Strongest Half-Year Ever with Sales Value at ₹5,862 Crore
Sobha Limited reported its strongest H1 FY27 with sales value at ₹5,862 crore, up 47.2% YoY. Q2 FY27 sales stood at ₹2,206 crore, up 16% YoY. The company maintained a net cash position of ₹322 crore and expects over 50% PAT growth in FY27. Sobha plans to launch 9 projects in the rest of FY27.
The announcement details record financial performance, strong growth trajectory, and positive future outlook, which are highly material for investors and significantly impact the company's valuation and market perception.
The company reported record-breaking sales figures for H1 FY27, significant year-on-year growth in both sales value and volume, improved price realization, and a strong cash position. Management provided optimistic guidance for future growth and profitability.
Sobha Limited has announced its financial and operational performance for the quarter and half-year ended September 30, 2026. The company reported its strongest ever first half year with a sales value of ₹5,862 crore, marking a significant 47.2% year-on-year growth. Sales volume increased by 32.4% to 3.76 million square feet across 2,260 units, with Sobha's share of sales value reaching a record ₹4,874 crore.
In the second quarter of FY27, Sobha achieved its second highest quarterly sales at ₹2,206 crore, a 16% year-on-year increase, with sales volume at 1.42 million square feet across 828 units. The average price realization improved by 13.7% to ₹15,522 per square feet in Q2 FY27 from ₹13,648 in the same period last year. For the first half, realization increased to ₹15,604 per square feet compared to ₹14,028 in the prior year.
Bangalore remained the largest market, contributing ₹3,385 crore (58%) to the first-half sales, followed by NCR with ₹1,974 crore (34%), Kerala with ₹357 crore (6%), and other cities at 2.5%. The company launched two new projects in Q2 FY27: Sobha Boulevard (plotted development in Mysore) and Sobha Bellevue (high-rise apartment project in Calicut). In the first half, five projects were launched across Bangalore, Gurgaon, and Calicut, with an estimated sales potential of nearly ₹11,200 crore.
The company's execution front saw completion of 720 homes (1.49 million square feet) in Q2 FY27 and 1,391 homes (2.56 million square feet) in H1 FY27. Sobha maintained a net cash position of ₹322 crore with a competitive borrowing cost of 7.75%, aiming to sustain a zero net debt position throughout FY27. Q2 collections reached over ₹2,000 crore, with a net operational cash flow of ₹422 crore. As of September 30, 2026, the company had ₹22,040 crore in revenue yet to be recognized from sold units.
Contracts, manufacturing, and retail businesses generated approximately ₹225 crore in Q2 FY27, a 31% increase quarter-on-quarter, with an external order book of ₹540 crore. The commercial rental portfolio contributed ₹24 crore in income. Sobha also acquired a small fire and safety business from SPTL to enhance execution expertise.
Looking ahead, Sobha plans to launch at least 9 projects exceeding 11 million square feet in the remainder of FY27. The company expects margins to improve significantly, with a projected over 50% growth in PAT for the full financial year. The management anticipates EBITDA margins to be much higher than 15% for the second half of FY27 and to reach over 20% by FY28.
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Sobha Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Sobha Limited. Read the original for the full detail.