SOBHA Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹1,278 Cr
verified against source
Revenue YoY
48%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Sobha delivered a landmark Q1 FY27 with record quarterly sales of Rs 3,656 crore (+76% YoY), driven by successful launches of Sobha One World and Sobha Crescent. Revenue from operations grew ~48% YoY to Rs 1,330 crore with real estate revenue up 60% to Rs 1,117 crore. PAT surged to Rs 50.7 crore from Rs 13.5 crore. Bangalore (57% contribution) and NCR (both achieving highest-ever quarterly sales) were key drivers. The company launched 6.89 million sq ft across 3 projects with Rs 10,000 crore potential GDV. With 20.77 million sq ft forthcoming pipeline and 14.94 million sq ft unsold inventory, growth visibility remains strong. Net cash position of Rs 659 crore provides flexibility. Margins remain compressed at ~9.7% currently but management guides for recovery to 17-20% by Q4 FY27 as high-margin projects complete. Risks include labor cost pressures from Karnataka wage hikes, Mumbai approval uncertainties, and collections timing delays due to Q1-end concentrated sales.
Colored figures show movement against the previous available record.
Guidance to track
- Management guided for at least 30% growth in pre-sales for FY27, potentially higher if all planned launches (8.2 million sq ft) execute on schedule within the next 9 months.
- Margins currently ~9.7% are expected to improve significantly by Q4 FY27 as high-margin projects complete and handover. Sequential improvement expected from Q3 onwards.
- Land payments expected at Rs 1,500-1,600 crore for FY27 (vs Rs 1,160 crore last year), including Rs 370 crore already invested in Q1. New opportunities being pursued in Bangalore, NCR, and Mumbai.
Risks flagged
- Margins remain compressed at ~9.7% with Q2 likely similar; Q3-Q4 recovery dependent on timely completion of high-margin projects. Joint development model reduces incremental cash flow.
- 60% minimum wage increase in Karnataka (May 2026) yet to be fully assessed; while technicians are above minimum wage, overall construction costs may increase and require monitoring.
- Mumbai land acquisition (Rs 180 crore for 1.3 acres) has unclear timeline due to approval uncertainty; not included in current 8.2 million sq ft launch guidance for FY27.
- Gurgaon 6 lakh sq ft commercial project removed from pipeline; management evaluating retention for rental income vs sale model—decision pending and could impact near-term cash flows.
Key quotes
- Q1 FY27 has been a landmark quarter for Sobha in terms of sales. We achieved our highest ever quarterly real estate sales recording sales value of 3,656 crores representing a 76% increase year-on-year.
- We are at about 9.7% [margin]. So as we reach the end of Q4 maybe hopefully we should be able to do closer towards 17 to 20%.
- The main difference for the new forthcoming majority... the mix of the projects a greater mix is towards joint development and hence the incremental marginal cash flow would have reduction.
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