Sobha Limited (SOBHA)
Large CapReal Estate stocks · Large cap · NSE
Sobha Limited is a Bengaluru-headquartered real estate developer with over 30 years of experience. It operates a backward integrated model covering design, manufacturing, construction, and delivery, focusing on residential real estate. The company also has contracting, manufacturing, and retail segments.
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 · 2/6 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 90/100Rev +50% YoY · PAT +264% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,278 Cr | +50.0% | -35.7% |
| EBITDA | ₹78 Cr | +225.0% | -48.7% |
| Operating margin | 6.0% | +320 bps | -200 bps |
| PAT | ₹51 Cr | +264.3% | -44.6% |
| PAT margin | 4.0% | +235 bps | -64 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Sobha reports record Q1 FY27 real estate sales of ₹36.56 Bn (+76% YoY) and 2.34 Mn sft (+62% YoY), driven by strong launches in Bangalore and NCR. PAT surged 264% YoY to ₹0.51 Bn, despite a negative net cashflow of (₹1.49) Bn due to increased land investments.
The company delivered record quarterly sales and strong profit growth, supported by new launches and a robust project pipeline. However, increased land investments led to negative net cashflow for the quarter, which warrants monitoring despite a net cash positive balance sheet.
Q1 FY27 Sales Value Mix by Price Band
Latest issuer-disclosed distribution across 4 reported categories.
New Market Entries
Company entered 2 new markets, Greater Noida & Mumbai, in 2026 with SOBHA Aurum & SOBHA Inizio.
Strong Launch Performance
Strong launch performance of SOBHA Crescent helped achieve historic quarterly high sales in NCR. Bangalore achieved its best ever quarterly sales.
Robust Project Pipeline
20.77 Mn sft forthcoming launches with a sale potential of ₹295.57 Bn over 6-8 quarters.
Developable Land Bank
361 acres of developable land bank across 8 regions with 36.94 Mn sft potential for future growth.
New Project Launches Q1 FY27
SOBHA OneWorld (Hoskote, Bangalore), SOBHA Crescent (Sector 63A, Gurgaon), SOBHA Sacred Grove (Chikka Tirupati, Bangalore) launched.
Credit Rating Upgrade
Ind-RA upgraded Outlook to AA- Positive, reflecting stable financial footing.
Strong Market Response
Bangalore achieved its best ever quarterly sales, backed by good response to SOBHA OneWorld and Sacred Grove launches.
Increased Sales & Marketing Spend
Sales & marketing spend is at ₹0.88 Bn (+79% YoY) in Q1 FY27, on account of higher sales.
Increased Land Investment
Land investment increased to ₹3.70 Bn (+31% YoY) in Q1 FY27.
Negative Net Cashflow
Net Cashflow after Land and Financial outflow is at (₹1.49) Bn for Q1 FY27, despite positive operational cashflow.
Execution Risk for Projections
Forward-looking statements involve risks and uncertainties which could cause actual results to differ from projections made by the company.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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 growth against seasonal fluctuations in the real estate sector. QoQ provides insight into sequential momentum, especially for sales and cashflow trends, which are both relevant here.
Presales (New Sale Area)
New sale area Q1 FY27: 2.34 Mn sft, up from 1.44 Mn sft in Q1 FY26 (+62% YoY).
Presales (Total Sale Value)
Total sale value Q1 FY27: ₹36.56 Bn, up from ₹20.79 Bn in Q1 FY26 (+76% YoY).
Collections (Real Estate)
Real estate collections Q1 FY27: ₹17.56 Bn, up from ₹15.99 Bn in Q1 FY26 (+9.9% YoY).
Launches (New Saleable Area)
New Launches Q1 FY27: 6.89 Mn Sft saleable area across 3 projects in 2 cities.
Future Revenue Recognition
₹205.53 Bn revenue to be recognized from sales done till June 30, 2026.
Projected Project Level EBITDA Margin
Management projects 30%+ project level EBITDA margin.
Total Marginal Cashflow
₹194.81 Bn marginal Cashflow expected from current & forthcoming projects.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Operational Cashflow | ₹3.12 Bn (Q1 FY27) | Improvement from YoY decline and sustained positive trend in subsequent quarters. |
| Net Cashflow | (₹1.49) Bn (Q1 FY27) | Return to positive territory and efficient funding of land investments without significant debt increase. |
| Real Estate Sales Value | ₹36.56 Bn (Q1 FY27) | Continued growth momentum and successful performance of new launches in upcoming quarters. |
| Realization (₹/sft) | ₹15,655/sft (Q1 FY27) | Sustained price increases across regions, indicating strong demand and pricing power. |
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 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"
Forthcoming projects are projected to generate a marginal cashflow of ₹73.09 Bn.
"Marginal Cashflow – Forthcoming Projects ₹ Bn 73.09"
Outcome check: OPM moved from 4.1% to average 7.0% (+2.9 pp).
The developable land bank has a development potential of 42.79 Mn sft SBA.
"Development Potential (SBA in Mn sft) 42.79"
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"
Outcome check: Revenue YoY averaged 55.1% across 2 later quarter(s).
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"
Trend score and candlestick chart
19Strong Bearfull bear SMA stack · SMA20 -8.0% / mo · MACD −
Technical chart
SOBHAdaily · 1Y · AUTO-6.7%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 39. Wait for confirmation.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~8.7% over last month) — short-term momentum negative.
- RSI(14) at 39 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 27% off 52W high · 12% 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.
Relative Strength & Trend Stage
- Price is within 7.5% of the 30-week proxy.
- The 30-week proxy changed -1.6% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 27 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 27 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
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 3/15 to the score.
Main drags
- Altman Z is 1.3, in distress territory.
- Fair-value margin of safety is negative at -63.8%.
- Valuation is weaker at 0/30; 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: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Management has 100% delivered/partly-delivered outcomes on 2 checked claims. It ranks around the 49th percentile of the scored universe and 76th 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 1.32.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Real Estate: 76th pctile, median 61 · Large: 26th pctile, median 73
98 documents have extracted text, but claim history is not strong enough yet.
2/6 claims checked · 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 2.5%.
- ▸9 years of positive FCF.
- ▸3/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Altman Z is 1.32.
- ▸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.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 58.60
- P/B
- 2.87
- EV/EBITDA
- 30.68
- Market Cap
- 13514.00Cr
Profitability
- ROE
- 4.16%
- ROCE
- 6.86%
- ROA
- 1.18%
- Dividend Y
- 0.47%
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
- 2.62×
- Altman Z
- 1.32
- Book Value
- 441.00
Cash Flow
- FCF Yield
- 2.46%
- FCF Positive Y
- 9/5
- OCF
- 430.00 Cr
- EPS TTM
- 21.57
Shareholding
- Promoter Hold
- 52.88%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 22%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Real Estate, ranked by similarity
Peers
Business-comparable names in Real Estate, ranked by similarity
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.