Bengaluru-based realty developer Sobha Ltd has announced its highest-ever quarterly pre-sales, reaching approximately Rs 3,660 crore during the June quarter (Q1 FY27). This represents a significant 76 percent year-on-year and 79 percent quarter-on-quarter increase, marking a record performance for the company.
The strong sales momentum has positively impacted Sobha's stock, which settled at Rs 1,452 on Monday, following a 0.78 percent rise. Over the past month, the stock has climbed 12.18 percent, reflecting investor confidence in the company's growth trajectory.
Brokerages Maintain 'Buy' Ratings
Following the impressive results, leading institutional brokerages Nuvama Institutional Equities and JM Financial have reiterated their 'Buy' ratings on Sobha Ltd, citing robust demand and a strong project pipeline.
Nuvama highlighted that Sobha's share of bookings surged 74 percent year-on-year to Rs 2,990 crore. The brokerage attributed this stellar performance to the launch of 6.9 million square feet of new projects during the quarter, including the highly anticipated Hoskote project. Nuvama maintains its target price of Rs 1,702, suggesting a potential upside of 17.22 percent from Monday's closing price.
JM Financial echoed this positive sentiment, noting that the quarterly pre-sales surpassed the company's previous peak run rate. The brokerage emphasized the strong demand for new project launches across key markets. JM Financial has set a 12-month target price of Rs 1,775 for Sobha, indicating a potential gain of 22.25 percent.
Geographical Diversification and Strong Realization
The stellar performance was significantly bolstered by strong contributions from key regions. Bengaluru emerged as a dominant market, delivering its strongest-ever quarterly sales at Rs 2,067 crore, accounting for 56.5 percent of total sales. The National Capital Region (NCR) also showed robust growth, contributing Rs 1,384 crore (37.9 percent) to the total sales.
Sobha Ltd launched three new projects during the quarter, spanning 6.9 million square feet across Bengaluru and Gurugram. Additionally, the company completed 671 homes across eight projects, covering 1.1 million square feet. Realization rates also saw a healthy increase, rising 9 percent year-on-year to Rs 15,655 per square foot in Q1 FY27. Analysts believe Sobha's sales will continue to improve, driven by enhanced geographical diversification and sustained demand in its core markets.