SOBHA
Large CapSobha Limited
Real Estate
Sobha Limited is an Indian real estate developer primarily focused on residential projects. The company also operates backward integrated non-real estate businesses including manufacturing, contracting, and retail, which support its core real estate operations and ensure quality delivery. Key markets include Bangalore and NCR.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/6 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 77/100Rev +60% YoY · PAT +124% YoY · +111% QoQ · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,988 Cr | +60.2% | +110.8% |
| EBITDA | ₹152 Cr | +61.7% | +289.7% |
| Operating margin | 8.0% | +0 bps | +400 bps |
| PAT | ₹92 Cr | +124.4% | +513.3% |
| PAT margin | 4.6% | +133 bps | +304 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Sobha Limited achieved record FY26 real estate sales of INR 8,136 crores, a 30% YoY growth, with strong collections and a net cash positive position. Q4 FY26 saw improved revenue recognition and margins driven by delayed occupancy certificates.
Management delivered record sales and collections, achieving a net cash position and building a robust launch pipeline. While some launches were delayed, the company expects significant margin expansion in H2 FY27 from nearing completion projects. Sustenance sales remain good, but the pace of new launch conversions and commodity price impacts warrant monitoring.
Annual Sales by Geography (FY26)
Latest issuer-disclosed distribution across 4 reported categories.
Robust Launch Pipeline
The company plans to launch about 10 million square feet in FY27 across Bangalore, Gurgaon, Hyderabad, Thrissur, and Pune, with a total pipeline of 20.67 million square feet for the next 6-8 quarters.
Geographic Expansion
Expansion into Greater Noida contributed to NCR's highest-ever annual sales. The company is actively pursuing new opportunities in Hyderabad and Mumbai.
Margin Expansion from Project Completions
Projects nearing completion and expected to be recognized in the next 12 months are likely to deliver higher margins in the range of 24% to 26%, a significant improvement from this year.
Backward Integrated Model
Non-real estate businesses (manufacturing, contracting, retail) continue to perform steadily, strengthening the backward integrated model and ensuring consistent delivery of quality.
FY27 Planned Launches
The company plans to launch approximately 10 million square feet in FY27 across Bangalore, Gurgaon, Hyderabad, Thrissur, and Pune.
Gurgaon Project Launch
SOBHA Crescent Phase 1 in Gurgaon was successfully launched in April '26 and has received a good response, with about 50% of sales achieved.
Hoskote Project Launch
Phase 1 of the Hoskote project (5.3 million square feet residential, GDV ~INR 7,000 crores) is expected to launch in Q1 FY27, with RERA approvals anticipated in Q1.
Mumbai Deal Pipeline
The company is pursuing two projects in MMR (one redevelopment, one land acquisition) with a combined GDV of about INR 2,000 crores, expected to conclude this year.
Robust Demand in Key Markets
Bangalore and NCR regions recorded their highest-ever annual sales, contributing 85% of total sales. Demand for projects below INR 3 crores ticket size remains robust.
Strong Interest in Large Developments
Large communities are a differentiating factor for customers in cities like Bangalore, attracting good interest in projects like Hoskote.
Renewed Investor Interest
The Kerala market is seeing slightly better inquiry flow, with potential for renewed interest in India from Middle East investors.
Geopolitical Uncertainty
Geopolitical events are causing uncertainty in the macro environment, though current ground reality for demand appears stable.
Commodity Price Increases
Significant, short-term price increases in some commodities and materials are a dynamic situation, with the full impact on margins yet to be estimated.
Labor Shortage
The industry faced a brief interruption in labor availability due to elections in four states, which is expected to stabilize.
Impact of AI on IT/ITeS Sector
Concerns exist regarding the impact of AI on the IT/ITeS sector, which constitutes a large part of the client base, though no significant slowdown is currently observed.
Ability to Pass on Cost Increases
The ability to offset commodity price increases through corresponding price hikes depends on the demand-supply situation, which is currently a wait-and-watch mode.
Project Launch Execution
Some planned launches were delayed in FY26 due to multiple factors, highlighting execution risk for the ambitious FY27 launch pipeline.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall annual growth in sales, collections, and deliveries, reflecting the long-term nature of real estate cycles. QoQ comparison is relevant for tracking sequential momentum in revenue recognition and margin improvement, especially when specific events like occupancy certificate receipts impact quarterly results.
Real Estate Sales Value
FY26 real estate sales reached an all-time high of INR 8,136 crores, reflecting a 30% growth over the previous year. The company achieved a consistent average quarterly run rate of approximately INR 2,000 crores.
Average Price Realization
Average price realization for FY26 was INR 14,675 per square foot, a 9.4% growth compared to INR 13,412 per square foot in the previous year.
Collections (All Businesses)
Total collections for FY26 were INR 7,798 crores, recording a healthy 26.1% growth over the last financial year. Q4 collections were INR 1,990 crores.
Project Launches (Area)
The company launched about 6.04 million square feet during FY26. Some planned launches were delayed due to multiple factors.
Sustained Sales Growth
Management expects to grow at a similar rate as last year, targeting approximately 30% growth in sales for FY27.
FY27 Operating Cash Flow Target
The company is aiming for net operating cash flow close to INR 2,000 crores in FY27.
Focus on Financial Discipline
Priority remains to strengthen the balance sheet, improve cash flow, and maintain speedy execution, with land investments funded through operating cash flow.
Long-Term Value Creation
Management believes Sobha is well-positioned for sustained long-term value creation, underpinned by strong operating momentum and high visibility across P&L, cash flow, and land availability.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Presales Growth | 30% in FY26 (INR 8,136 crores) | Sustained 30% growth in FY27, reaching approximately INR 10,500 crores. |
| Net Operating Cash Flow | INR 1,637 crores in FY26 | Achievement of the target close to INR 2,000 crores in FY27. |
| EBITDA Margin Expansion | FY26 EBITDA INR 503 crores | Significant improvement in margins, particularly in Q3 and Q4 FY27, driven by project completions. |
| Project Launch Cadence | 6.04 million sq ft launched in FY26 | Successful launch of approximately 10 million square feet in FY27 as planned. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Forthcoming projects are expected to be launched over the next 6-8 quarters.
"expected to be launched over next 6-8 quarters"
Forthcoming projects are projected to generate a marginal cashflow of ₹73.09 Bn.
"Marginal Cashflow – Forthcoming Projects ₹ Bn 73.09"
The developable land bank has a development potential of 42.79 Mn sft SBA.
"Development Potential (SBA in Mn sft) 42.79"
Balance revenue yet to be recognized from sales done till December 31, 2025, is ₹186.06 Bn.
"Balance revenue yet to be recognized from sales done till 31 December 2025 was ₹186.06 Bn"
Multiple initiatives are rolled out to reduce cost, improve efficiency & productivity through increase in use of automation and adapting new technologies.
"Multiple initiatives rolled out to reduce cost, improve efficiency & productivity"
The company aims to scale up its project delivery sustainably.
"scale up our project delivery sustainably"
Trend score and candlestick chart
42NeutralSMA20 -4.2% / mo
Technical chart
SOBHAweekly · 3Y-18.3%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 40.
- SMA20 falling (~4.4% over last month) — short-term momentum negative.
- RSI(14) at 40 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 24% off 52W high · 15% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 15/25 to the score.
- Cash flow contributes 6/10 to the score.
- Balance sheet contributes 4/15 to the score.
Main drags
- Altman Z is 1.3, in distress territory.
- Fair-value margin of safety is negative at -118.4%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Real estate valuation: NAV, pre-sales, debt, and inventory quality
Real estate valuation depends more on project economics and balance sheet than simple PE.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 49th percentile of the scored universe and 73rd percentile within Real Estate. Main check: financial discipline is weak at 48/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Altman Z is 1.30.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Real Estate: 73rd pctile, median 61 · Large: 28th pctile, median 74
104 documents indexed, but claim history is not strong enough yet.
6 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.4%.
- ▸9 years of positive FCF.
- ▸3/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Altman Z is 1.30.
- ▸ROCE is low at 6.9%.
- ▸ROE is low at 4.2%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 71.80
- P/B
- 2.95
- EV/EBITDA
- 35.92
- Market Cap
- 13887.00Cr
Profitability
- ROE
- 4.17%
- ROCE
- 6.90%
- ROA
- 0.99%
- Dividend Y
- 0.23%
Growth (CAGR)
- Revenue 5Y
- 20.00%
- EPS 5Y
- 25.00%
- Revenue 3Y
- 16.00%
- EPS 3Y
- 23.00%
Balance Sheet
- Debt/Equity
- 0.22
- Interest Coverage
- 2.26×
- Altman Z
- 1.30
- Book Value
- 441.00
Cash Flow
- FCF Yield
- 2.40%
- FCF Positive Y
- 9/5
- OCF
- 430.00 Cr
- EPS TTM
- 18.09
Shareholding
- Promoter Hold
- 52.88%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 28%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Real Estate — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.