Sobha Ltd

Sobha Limited reported strong financial and operational performance for Q2 and H1 FY27, with sales value reaching INR5,862 crores, a 47.2% YoY growth. Sales volume grew by 32.4% across 2,260 units, with average price realization increasing to INR15,604 per square foot. Bangalore contributed 58% of sales, followed by NCR at 34%. The company launched 5 projects in H1, aggregating 7.91 million square feet with an estimated sales potential of INR11,200 crores. The upcoming launch pipeline remains robust at 20.42 million square feet across 18 projects. Cash flows were strong, with a net cash position of INR322 crores and operational cash inflows of INR2,084 crores in Q2. Management guided that EBITDA margins are expected to improve significantly, with a projected PAT growth of over 50% for FY27. The company emphasized its focus on maintaining a healthy balance sheet, optimizing borrowing costs, and ensuring disciplined capital allocation. Management also discussed the acquisition of a fire and safety business to enhance execution capabilities and noted that new launches and sustenance sales are on track to meet or exceed guidance. The company’s existing portfolio provides visibility on future cash flow and revenue, with projected project-level marginal cash flow of INR19,748 crores including forthcoming projects.

The document highlights strong sales growth, improved margins, and positive outlook for future performance.