SOBHA

Ends FY26 with Record Pre-Sales

closed FY26 on a strong note, reporting its best-ever pre-sales of ₹8,136 crore, up 30% YoY, driven by new launches and geographical diversification. Despite missing its ₹8,500 crore target, the company’s performance highlights robust demand in core markets like Bengaluru and growing traction in NCR and Kerala. However, investor sentiment remains cautious, with the stock down 16% YTD amid sector-wide concerns over AI-led disruption and war-linked inflation risks. Pre-Sales & Launch Activity - FY26 pre-sales: ₹8,136 crore, up 30% YoY. - Q4FY26 pre-sales: ₹2,039 crore, aided by three new launches. - Nine projects launched across six cities in FY26, including forays into Mumbai and Greater Noida. - Gurugram Sector 63A project delayed to FY27 due to pending RERA approval; Antique Stock Broking estimates FY26 pre-sales could have reached ₹8,500–9,000 crore if launched. Geographical Mix - Bengaluru: ₹4,478 crore pre-sales (55% of total), highest-ever contribution. - NCR: ₹2,455 crore (30%), supported by new launches in Greater Noida and Gurugram. - Kerala: 10% contribution, aided by Marina One towers in Cochin and a new Trivandrum project. - Other cities: 5% of total sales. Operational Metrics - Area sold: 5.5 million sq. ft., up 18.5% YoY. - Average realisation: ₹14,675/sq. ft., up 9% YoY. - Balance sheet remains healthy, supporting expansion. Stock Performance & Outlook - Sobha shares down 16% YTD, outperforming Nifty Realty’s 23% decline. - Risks: AI-led job losses and war-driven inflation could dampen mid-income and premium housing demand. - Nuvama Research notes Bengaluru remains a growth driver, but exposure to IT hubs like Pune adds vulnerability. - Future trajectory hinges on pace of new launches and customer response amid macro uncertainty.