Target: ₹2,500
CMP: ₹1,447.80
Sobha Ltd. announced its Q4 pre-sales figures, reporting a total of ₹2,040 crore, reflecting an 11% increase year-on-year. This performance was buoyed by approximately 1.3 million square feet of sales volume, with Bengaluru contributing 51% of the total, followed by the National Capital Region (NCR) at around 30%, and Kerala at about 13%. The quarterly momentum was enhanced by the late launch of Sobha Rivana in Greater Noida, which accounted for ₹500 crore in bookings, equating to roughly 25% of Phase 1 sales, despite a limited launch period and steady sales in key markets.
For the full fiscal year 2026, Sobha’s pre-sales reached ₹8,100 crore, marking a 30% increase year-on-year. This growth was predominantly fueled by 6 million square feet of new launches across nine projects, as well as strong demand for existing inventory, with Bengaluru and NCR driving the upward trend at 55% and 30%, respectively.
The management of Sobha targets approximately 30% pre-sales growth for the next fiscal year, aiming to launch about 10 million square feet with a projected Gross Development Value (GDV) of roughly ₹15,000 crore. The company plans to maintain ₹12,000-13,000 crore in inventory, suggesting a total pipeline of ₹27,000-28,000 crore for FY27. Operating cash flow (OCF) is expected to reach ₹2,000 crore, representing an increase of about 22%. As the first quarter of FY27 begins, early momentum is notable, highlighted by Sobha Crescent in Gurugram, which recorded ₹1,100 crore in bookings, with about 50% sold in the first month. Additionally, the Hoskote Phase 1 project (5.3 million square feet, GDV of ₹7,000 crore) is nearing launch readiness.
The current stock price indicates a greater than 30% discount relative to our estimated Net Asset Value (NAV) for March 2027. We have adjusted our pre-sales forecasts upward by as much as 23% for FY27-28, while reinforcing our Sum-of-the-Parts (SOTP) target price at ₹2,500.
Published on May 6, 2026
