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Earnings Call Transcript

Sobha Earnings Call Transcript: Key Takeaways

Sobha delivered record sales in Q1FY27, driven by strong Bangalore and NCR launches. However, low reported EBITDA margins and high land investment outflows indicate execution and cash cycle pressures.

Guidance and delivery
Management target Other 30.0% FY27
Highlights
Revenue growthReal estate revenue up 60% YoY; total income grew 48% to ₹1,330cr.
MarginsEBITDA margin at 9.7%; expected to reach 17-20% by Q4FY27.
Order bookRevenue yet to be recognized stands at ₹20,550 crores.
Demand visibilityStrong visibility across Bangalore and NCR with healthy launch pipeline.
Management confidenceHigh on sales momentum; defensive on current margins due to legacy mix.

Growth

Real estate sales value surged 76% YoY to ₹3,666 crores, with average realization hitting ₹15,655 per square foot.

Outlook

Guided 30% pre-sales growth for FY27; targeting 8.2 million square feet of launches in next nine months.

Risks

Low 9.7% EBITDA margin due to legacy projects; high land acquisition spends caused ₹149 crore net cash outflow.

Last quarter's promises, checked

Delivered

  • Guided 8-9 msft launches for FY26 → delivered 6.89 msft in Q1FY27 alone (= BEAT)
  • Guided ₹8,500cr pre-sales for FY26 → delivered strong trajectory with ₹3,981cr in H1 (= BEAT)
  • Guided ₹18,000cr unrecognized revenue → delivered ₹20,550cr (= BEAT)

Partly delivered

  • Guided Mumbai launch in H2FY26 → launch achieved but impact pending in Q1FY27 (= PARTIAL)

Missed

  • Guided EBITDA margin 30-35% on sold units → delivered 9.7% reported EBITDA (= MISS)
  • Guided 5.5 msft project completions for FY26 → delivered 2.25 msft in H1 (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: SOBHA. Summary written with AI assistance from the document.

Read the document ↗

Sobha Ltd: key numbers

Share price
₹1,226.60
Market cap
₹13,118 Cr
Revenue (annual)
₹5,190 Cr
Net profit (annual)
₹193.4 Cr
P/E (TTM)
56.9×Sector 35.8×
Promoter holding
52.88%+0.00% QoQ
FII holding
6.12%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Promoter Buying

Sobha Promoter Buying: ₹0.43 Cr

Sobha promoter Ravi P N C Menon bought 3,500 shares on NSE for ₹0.43 Crore on 18-Sep-2026. Post-trade holding remains at 3.36%.

Value
₹0.43 Cr