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Sobha Limited
(SOBHA)
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Rating:61Neutral
Price Target:
₹1,253.00
▼(-8.08% Downside)
Action:Reiterated
Date:10/19/26
The score is driven primarily by improving fundamentals and balance-sheet strength alongside upbeat guidance for stronger FY2027 profitability and margins. This is tempered by current margin pressure and inconsistent cash-flow conversion, while technicals remain weak and valuation is stretched (high P/E with low yield).
Positive Factors
Strong sales growth and launch pipeline
Rapid sales growth and a substantial project pipeline indicate strong demand, active market penetration, and a continuing source of future bookings. The combination of new launches and healthy sustenance sales can support revenue visibility and operating scale over the next several quarters.
Negative Factors
Compressed margins and thin profitability
Lower gross and EBITDA margins show that strong revenue growth is not yet translating proportionally into profit. Thin net margins leave less protection against project-mix changes, cost inflation, or weaker realization, making earnings less resilient until higher-margin projects become a larger share of recognition.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong sales growth and launch pipeline
Rapid sales growth and a substantial project pipeline indicate strong demand, active market penetration, and a continuing source of future bookings. The combination of new launches and healthy sustenance sales can support revenue visibility and operating scale over the next several quarters.
Read all positive factors
Sobha Limited (SOBHA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹124.17B
Dividend Yield0.52%
Average Volume (3M)8.78K
Price to Earnings (P/E)64.9
Beta (1Y)1.37
Revenue Growth9.57%
EPS Growth28.50%
CountryIN
Employees4,451
SectorGeneral
Sector StrengthN/A
IndustryReal Estate - Development
Share Statistics
EPS (TTM)17.86
Shares Outstanding106,953,835
10 Day Avg. Volume6,768
30 Day Avg. Volume8,778
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)2.69
Price to Sales (P/S)2.45
P/FCF Ratio48.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,900.00Price Target Upside39.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)44.63
Revenue Forecast (FY)₹60.47B
Sobha Limited Business Overview & Revenue Model
Company Description
Headquartered in Bengaluru, India, Sobha Limited is a prominent Indian enterprise established in 1995, specializing in the development, construction, sale, and management of a diverse portfolio of residential and commercial properties. Initially k...
How the Company Makes Money
Sobha Limited primarily makes money from real estate development by (1) selling completed units and (2) selling under-construction units (typically via customer collections linked to construction milestones). Revenue is generated from the sale/tra...
Sobha Limited Earnings Call Summary
Earnings Call Date:Oct 19, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 05, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall, supported by record H1 sales, 47.2% year-on-year sales growth, healthy sustenance demand, a substantial launch pipeline, positive operating cash flow, a net cash balance, and expectations for improving margins and at least 50% FY2027 PAT growth. The main negatives were lower reported Q2 revenue and profitability, current margin pressure from project mix and revenue timing, negative overall net cash movement after investments, launch-timing uncertainty, and acknowledged macroeconomic caution.Positive Updates
Strongest Half-Year Sales in Company History
H1 FY2027 was described as SOBHA's strongest half-year, with sales value of INR 5,862 crore, up 47.2% year-on-year. The company sold 3.76 million square feet across 2,260 units, with sales volume growing 32.4%, while SOBHA's share of sales value reached a record INR 4,874 crore.
Negative Updates
Lower Reported Quarterly Revenue
Q2 total income was INR 1,017 crore, down from INR 1,469 crore in Q2 of the previous year. Real estate revenue was INR 749 crore. Management said revenue recognition was lower because of the number of handovers and completions achieved during the quarter.
Read all updates
Q2-2027 Updates
Positive
Negative
Strongest Half-Year Sales in Company History
H1 FY2027 was described as SOBHA's strongest half-year, with sales value of INR 5,862 crore, up 47.2% year-on-year. The company sold 3.76 million square feet across 2,260 units, with sales volume growing 32.4%, while SOBHA's share of sales value reached a record INR 4,874 crore.
Read all positive updates
Company Guidance
Management said it was on track for its guidance and would hopefully exceed sales for the entire financial year, while working towards exceeding the guidance from a sales point of view; it is confident of launching at least nine projects, exceeding 11 million square feet during the remainder of FY 2027, with about eight projects lined up in Q3 and Q4 covering about 12 million square feet and a value of close to about INR 18,000 crore. It plans deliveries of about 6 million square feet for FY 2027, including about another 3.5 million in the second half. PAT is expected to grow at least 50% over last financial year by the end of FY 2027; EBITDA margin for the second half of FY 2027 should fairly be much higher than 15%, from FY 2028 it will go towards 20%, and beyond, and should stabilize over about 20%+ in terms of EBITDA. The company remains focused on sustaining a zero net debt position throughout FY 2027, while its contracts manufacturing, retail, and commercial rental businesses are expected to maintain steady performance with the scope for marginal growth.Sobha Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.76B | 51.90B | 40.17B | 30.63B | 32.75B | 25.56B |
| Gross Profit | 15.00B | 10.70B | 13.27B | 11.37B | 11.57B | 11.26B |
| EBITDA | 4.71B | 5.03B | 4.10B | 3.78B | 4.48B | 5.95B |
| Net Income | 1.91B | 1.93B | 946.86M | 491.13M | 1.04B | 1.73B |
Balance Sheet | ||||||
| Total Assets | 211.33B | 195.18B | 172.21B | 136.96B | 125.76B | 115.42B |
| Cash, Cash Equivalents and Short-Term Investments | 17.83B | 15.04B | 18.09B | 705.48M | 9.23B | 3.28B |
| Total Debt | 15.62B | 10.57B | 11.83B | 19.40B | 20.27B | 25.29B |
| Total Liabilities | 163.98B | 147.98B | 126.61B | 111.82B | 100.81B | 91.19B |
| Stockholders Equity | 47.36B | 47.20B | 45.61B | 25.14B | 24.95B | 24.23B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.61B | -288.88M | 5.23B | 10.27B | 8.01B |
| Operating Cash Flow | 0.00 | 4.69B | 1.02B | 6.47B | 11.50B | 8.21B |
| Investing Cash Flow | 0.00 | -2.55B | -12.53B | -4.75B | -2.37B | 382.70M |
| Financing Cash Flow | 0.00 | -1.66B | 11.63B | -3.38B | -7.73B | -8.84B |
Sobha Limited Technical Analysis
Negative
1363.15
Price Trends
1225.21
Negative
1308.48
Negative
1349.63
Negative
Market Momentum
-16.29
Negative
42.17
Neutral
45.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOBHA, the sentiment is Negative. The current price of 1363.15 is above the 20-day moving average (MA) of 1188.20, above the 50-day MA of 1225.21, and above the 200-day MA of 1349.63, indicating a bearish trend. The MACD of -16.29 indicates Negative momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 45.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOBHA.
Sobha Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ₹1.66T | 36.11 | ― | 1.19% | -29.29% | 6.62% | |
70 Outperform | ₹1.01T | 24.38 | ― | 0.42% | 26.04% | 38.93% | |
69 Neutral | ₹579.95B | 22.13 | ― | 0.49% | 15.93% | 17.82% | |
61 Neutral | ₹124.17B | 64.95 | ― | 0.52% | 9.57% | 28.50% | |
57 Neutral | ₹478.65B | 35.42 | ― | 0.63% | 16.90% | -13.70% | |
56 Neutral | ₹175.69B | 18.94 | ― | 0.37% | 4.81% | -7.86% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:SOBHA
Sobha Limited
1,160.95
-409.61
-26.08%
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IN:DLF
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IN:GODREJPROP
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1,589.00
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-30.57%
IN:LODHA
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1,010.00
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IN:OBEROIRLTY
Oberoi Realty Limited
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-8.38%
Sobha Limited Corporate Events
Sobha Limited Sets October 19 Conference Call on Q2 FY27 Results
Oct 13, 2026
Sobha Limited is a Bengaluru-based real estate developer operating in India’s residential and commercial property markets, with a focus on premium housing and integrated projects. The company is listed on both the BSE and the National Stock ...
Sobha Limited Posts Record Half-Year Sales and Expands Project Pipeline
Oct 2, 2026
Sobha Limited reported its highest-ever half-year sales performance for H1 FY27, achieving sales value of ₹58.62 billion from 3.76 million square feet across 2,260 units, with Sobha’s share at a record ₹48.74 billion. Sales value...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.