Sobha Q2 Sales Up 16% as H1 Bookings Hit Record Rs 5,862 Cr

Sobha Limited recorded a 16 per cent year-on-year jump in sales bookings to Rs 22.06 billion for the September quarter, its operational update showed, as the Sobha Q2 performance set up a record first half ahead of the company's analyst and investor call on October 19.

In the Sobha Q2 operational update dated October 2, the Bengaluru-based developer reported total sales value of Rs 22.06 billion for the second quarter of FY27, up from Rs 19.03 billion in the year-ago quarter, according to its exchange filing. Sales area stood at 1.42 million square feet, up 2.2 per cent year on year, while Sobha's share of the total sales value rose 22.4 per cent to Rs 18.82 billion across 828 units.

Average price realisation during the quarter stood at Rs 15,522 per square foot, rising 13.7 per cent from Rs 13,648 per square foot in the year-ago period. The Sobha Q2 sales bookings were, however, down about 40 per cent sequentially from Rs 36.56 billion in the June quarter, reflecting the lumpy effect of project launches rather than a year-on-year contraction.

Sobha Q2 sales outpace last year despite sequential dip

Sobha Q2 sustenance sales remained strong during the quarter, with significant contributions from SOBHA OneWorld and SOBHA Neopolis in Bengaluru, and SOBHA Crescent and SOBHA Aranya in Gurugram, the company said. The quarter also saw new launches of 1.03 million square feet of saleable area covering two projects, one each in Calicut and Mysore.

The company's share of sales value reached 85.3 per cent of total sales in the quarter, underscoring the strength of its owned inventory and joint venture structures. For the half year, Sobha sales bookings touched a record Rs 58.62 billion, up 47.2 per cent year on year, making it the highest-ever half-yearly sales value in the company's history.

Bengaluru drives record first half as Sobha Q2 bookings hold up

Sales area for the first half rose 32.4 per cent to 3.76 million square feet, with 2,260 units sold, while the average price for the half year climbed to Rs 15,604 per square foot from Rs 14,028 a year earlier. Sobha Q2 data showed the company's share of the half-yearly sales value reached a historic high of Rs 48.74 billion.

Bengaluru real estate contributed Rs 33.85 billion, accounting for 57.7 per cent of total sales, the NCR recorded Rs 19.74 billion (33.7 per cent), Kerala contributed Rs 3.57 billion (6.1 per cent) and other cities together contributed Rs 1.46 billion (2.5 per cent). The Bengaluru real estate market remains Sobha's core, contributing well over half of all sales. During the half year, the company launched 7.91 million square feet of saleable area across five projects in Bengaluru, Gurgaon and Calicut, with a sale potential of Rs 112 billion, and completed 1,391 homes totalling 2.56 million square feet.

What to watch in the Sobha Q2 analyst call

The next dated investor event is the Sobha Q2 analyst and institutional investor call on October 19 at 6:30 pm IST, covering the quarter and half year ended September 30. Analysts will look for management commentary on launch timelines for the second half and on converting the strong booking pace into recognised earnings.

Emkay Global Financial Services retained a Buy rating on the Sobha share price with a Sobha Emkay target of Rs 1,900 in a note dated October 6, citing the launch pipeline and expected margin improvement. The sequential drop in quarterly sales keeps execution and launch timing central to the full-year outlook, even with the Sobha Emkay target in place. The Sobha share price will be in focus when the company hosts its call, with investors watching for updates on second-half launches.

For context, in the first quarter of FY27, the company had reported a 264.3 per cent year-on-year increase in net profit to Rs 51 crore, with operational revenue expanding 50 per cent to Rs 1,278.1 crore and EBITDA rising to Rs 77.6 crore. With record Sobha sales bookings in a Sobha Q2-led first half, the focus now shifts to how quickly the developer can turn pre-sales into completed deliveries and revenue recognition in the second half.