14-07-2025
Sobha Ltd eyes big FY26 comeback with launches beyond Bengaluru
Real estate developer Sobha Ltd has staged an impressive rebound after a lacklustre performance in FY25.
In the June quarter (Q1FY26), the company reported its highest-ever quarterly pre-sales at ₹2,079 crore—up 11% year-on-year and 13% sequentially. With this, the company crossed the ₹2,000 crore threshold in pre-sales for the first time.
This recovery was driven by new project launches totalling 1.62 million square feet (msf) in Q1, which included Sobha Aurum, the company's debut in the Greater Noida market, and the final four towers at the Marine One project in Kochi.
On the execution front, Sobha completed 1.07 msf of developments during the quarter, delivering 594 homes across projects such as Sobha Royal Pavilion and Sobha Windsor in Bengaluru, Sobha City in Gurugram, and Sobha Conserve and Sobha Arbor in Chennai.
Importantly, the share of its core market Bengaluru stood at 32% by volume in Q1FY26, but the National Capital Region led with a 49% share in geographical mix aided by traction in the Greater Noida project. In value terms, Bengaluru remained a key market, contributing ₹602.4 crore, supported by sales in existing projects like Sobha Town Park, Sobha Ayana, and Sobha Neopolis.
A broader geographical footprint is expected to lower Sobha's concentration risk and sustain sales momentum. The company plans to launch new projects in the second half of FY26 across key markets including Gurgaon (Sector 63A), Pune, Mumbai, and Bengaluru.
'With 19.27 msf of upcoming projects and an additional 24.27 msf of developable land, Sobha has strong visibility into future growth. We expect 9-10 msf to be launched in FY26," AntiqueStock Broking said in a report dated 8 July. If all the planned launches materialize, Sobha may touch ₹10,000 crore in FY26, estimates Antique.
Sobha had ended FY25 with pre-sales of ₹6,280 crore, missing its guidance of ₹8,500 crore given at the beginning of the year.
If current momentum holds, it could pave the way for a stock recovery. Shares of Sobha have fallen 23% in the past year, underperforming the Nifty Realty index's 12% decline. Launch delays weighed on the company's performance last year.
HDFC Securities' analysts noted that regulatory approvals are now back on track, especially in key markets such as the NCR and Bengaluru. This easing of bottlenecks is expected to accelerate Sobha's project launches over the next two to three quarters. 'This revival will not only assist with project pipeline visibility but also help inventory monetization and scale-based margin recovery," said the HDFC Securities report dated 8 July.
