Sobha Ltd H1 FY27 Results: Sales Peak at ₹58.62 Bn

Sobha Limited reported record half-yearly real estate sales of ₹58.62 Bn for H1 FY27, backed by a net cash positive balance sheet of ₹(3.22) Bn.

Reader Takeaway: Strong sales velocity and net cash position provide stability, though net operational cash flow saw a 19% decline.

What just happened

Sobha Limited posted record-breaking real estate sales of ₹58.62 Bn in the first half of FY27, selling 3.76 million square feet across 2,260 units. While total operational revenue of ₹23.47 Bn was marginally lower (down 1% YoY), the company improved its EBITDA margin to 10.6% from 9.7% in the previous year. Profit after tax stood at ₹0.84 Bn.

Why this matters

The company’s ability to generate record operational cash inflows of ₹40.09 Bn highlights strong demand for its premium residential projects. Being net cash positive is a significant advantage in the capital-intensive real estate sector, offering the firm financial flexibility to acquire land and scale operations without aggressive borrowing.

The backstory

In H1 FY27, Sobha launched 5 new projects totaling 7.92 million square feet. The company successfully completed 2.56 million square feet of projects, delivering 1,391 homes. These efforts reflect a steady execution pace aimed at clearing existing inventory and keeping the development cycle moving.

Risks to watch

Investors should keep an eye on the 19.1% YoY decline in net operational cash flow to ₹7.55 Bn. Increased expenditure on land acquisition and marketing may pressure short-term liquidity. Additionally, the average realization per square foot of ₹15,604 requires monitoring to ensure future margin stability remains protected against rising input costs.

Future outlook

Sobha has a strong roadmap with 20.42 million square feet of forthcoming launches, carrying an estimated sales potential of ₹313.53 Bn. Furthermore, the company holds a 347-acre land bank across 8 cities, providing long-term development visibility. With ₹220.41 Bn in revenue yet to be recognized from sold units, the company maintains high revenue visibility.