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In spite of limited launches in the September quarter (Q2FY27), residential realty company Sobha Ltd’s pre-sales or bookings rose 16% year-on-year to ₹2,206 crore. This marks its second-highest quarterly pre-sales after a record ₹3,660 crore in Q1FY27.
While Q1 pre-sales were driven by new launches, strong traction in existing projects Sobha OneWorld and Sobha Neopolis in Bengaluru, along with Sobha Crescent and Sobha Aranya in Gurugram, buoyed pre-sales in Q2. There were two new launches during the quarter—Sobha Boulevard, a premium plotted development project in Mysuru, and Sobha Bellevue, a super-luxury residential development in Kozhikode in Kerala.
Pre-sales touched ₹5,862 crore in H1FY27, up 47% year-on-year—the highest half-yearly sales by value. It sold 3.76 million square feet (msf) of area. Its key market and IT hub Bengaluru contributed almost 58% to pre-sales in H1, followed by the National Capital Region (34%), and other markets such as Kerala and Hyderabad. Sobha has been diversifying its geographical mix beyond south India and has a presence in Pune and Mumbai.
Sobha has met 59% of its FY27 guidance. HDFC Securities expects ₹6,000 crore of new launches in Q3 including projects in Bengaluru, Gurugram and Hyderabad. So, the company needs ₹4,140 crore in pre-sales in H2FY27 to hit ₹10,000 crore guidance. This is below the Q2 run rate and with strong Q3FY27 launches, it seems doable and likely to beat guidance, said HDFC.
Sobha is targeting project launches spanning about 21 msf across geographies over the next six-eight quarters, the management had said during its Q1 earnings call. These projects are estimated to have a gross development value or revenue potential of about ₹29,600 crore.
Still, the Sobha stock has declined 18% so far in 2026, underperforming the Nifty Realty index, which is down 4%. Reported margins remain Sobha’s key pain point and hover in single digits—at 9.3% in FY26, said Emkay Global Financial Services.
However, ongoing projects have a higher mix of high-margin projects, which are expected to come up for recognition from H2, and this can help an uptick in margins from Q3, Emkay added in a report dated 4 October.
Meanwhile, the second-order effects of the artificial intelligence-led impact on real estate demand in the Bengaluru market amid affordability concerns is monitorable.
Harsha Jethmalani is a Deputy Editor at Mint with over a decade of experience covering stock markets and corporate India. As a key member of the Mark to Market team, she specializes in delivering cutting-edge commentary on market trends, the economy, and corporate financial reports.<br><br>Born and raised in Mumbai, Harsha’s entry into business journalism was a serendipitous pivot. Graduating during the 2008–2009 financial crisis, her initial goal of becoming a research analyst at an MNC was rerouted. However, what began as a chance career move quickly became a conscious choice; she discovered that financial journalism is a powerful storytelling tool capable of influencing and empowering the financial decisions of a massive audience.<br><br>Harsha began her career in 2009 at IRIS Business Services (Myiris.com), tracking mutual funds and interviewing fund managers. In 2011, she joined the Network18 Group, writing extensively on equity market trends for Moneycontrol.com and hosting pre- and post-market audio updates. Following a stint covering personal finance at Dalal Times, she joined Mint in 2016 as a Content Producer, steadily rising through the ranks to her current editorial position.<br><br>A defining highlight of her tenure at Mint was her extensive coverage of India's historic Goods and Services Tax (GST) reform. She chronicled the massive indirect tax overhaul from its initial conceptual and execution hurdles to its eventual streamlining. Her impactful reporting earned official recognition when her article exposing a spike in gold smuggling ahead of the GST rollout was formally acknowledged by the Office of the Director General of Audit (Central), Kolkata. Currently, Harsha closely tracks the IT, cement, real estate, and paint sectors. Her sharp news sense and ability to spot emerging trends consistently bring fresh, actionable perspectives to market analysis.<br><br>She holds a postgraduate degree in financial markets from Indira Gandhi National Open University and a Bachelor of Management Studies from Vivekanand Education Society, Chembur, Mumbai.
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