SOBHA

Records Best-Ever H1 Pre-Sales, Driven by Bengaluru Demand

→ Realty developer

recorded its best-ever H1 pre-sales in the first half of FY26, achieving strong momentum. Pre-sales in Q2 FY26 surged by 61.4% year-on-year (y-o-y) to reach ₹1,903 crore. → This strong Q2 performance contributed to a total H1 FY26 pre-sales figure of ₹3,981.4 crore, putting the company well on its way toward its FY26 target of ₹8,000−8,500 crore. The robust Q2 pre-sales were largely driven by strong absorption in the existing Sobha Town Park project in Bengaluru. → The company's sales volume in Q2 improved by 49% y-o-y to 1.4 million square feet (msf), while the average realization rose by 8% y-o-y to ₹13,648 per sq. ft.. → A planned key launch, Sobha Magnus (with a gross development value of ∼₹900 crore), was slipped from Q2 to Q3 due to approval-related issues, preventing the company from surpassing ₹2,000 crore in pre-sales for the second consecutive quarter. → Sobha's ability to surpass its full-year pre-sales guidance is dependent on the pace of its planned new launches in the remaining half of FY26. The firm has planned pan-India projects in high-value markets, including the Mumbai Metropolitan Region, Pune, Greater Noida, and Gurugram, alongside multiple launches slated for Bengaluru. → Concerns exist regarding potential softness in demand due to mass IT sector layoffs in Bengaluru, as the city accounts for a significant portion of Sobha's residential demand, which will be a key focus for the management's Q2 earnings commentary. → Sobha commands strong brand equity and pricing power (with prices 15-20% higher than peers) due to its high-quality developments, larger layouts, and end-user driven demand.