Sales Update
Emkay keeps Buy and INR 1,900 target on Sobha after H1 FY27 sales rise 47%
Emkay Global Financial Services kept its Buy rating and INR 1,900 target on Sobha Ltd after the Bengaluru-headquartered developer reported first-half FY27 sales value of INR 58.62 billion, up 47.2% from the year-earlier period. Sobha's second quarter was weaker than its first, and the company's margins remain the main open question for investors.
| H1 FY27 sales value | INR 58.62 billion (INR 5,862 crore), up 47.20% year on year, per the company's 2 October 2026 operational update |
|---|---|
| Q2 FY27 sales value | INR 22.06 billion (INR 2,206 crore), up 16% over Q2 FY26; down about 40% from Q1 FY27 (INR 36.56 billion) |
| H1 FY27 sales area | 3.76 million sq ft, up from 2.84 million sq ft (a 32.4% increase) |
| H1 FY27 residential units | 2,260, against 1,746 in H1 FY26 (ScanX News report) |
| Emkay call | Buy; INR 1,900 target; expects FY27 pre-sales of INR 110-120 billion against company guidance of INR 106 billion (report dated 6 October 2026) |
| Other broker call | Antique Stock Broking maintained Buy with a Rs 1,855 target on 9 October 2026, against a close of Rs 1,183 |
| FY27 company guidance | At least 30% growth in pre-sales, with the possibility of doing better if planned launches are completed on time |
What happened
On 6 October 2026, Emkay Global Financial Services maintained its Buy rating on Sobha Ltd with an analyst target price of INR 1,900. The note followed Sobha's operational update for the first half of fiscal 2027, which the company filed on 2 October 2026. The update reported total sales value of INR 58.62 billion for the half year ended 30 September 2026, which the company described as the highest it has recorded for any half-year period.
Emkay's note also said it expects Sobha to exceed its FY27 pre-sales guidance. Company guidance is at least 30% growth, which the note puts at about INR 106 billion. Emkay's own estimate is INR 110-120 billion.
Date note: Reports give different dates for Emkay's Buy and INR 1,900 call. A DSIJ piece cites an Emkay company update dated 21 September 2026 that retained Buy and Rs 1,900. Another report cites a 4 October 2026 note. The 6 October date comes from a later report. Emkay also initiated coverage with a Buy and Rs 1,900 target earlier in 2026, when the stock was reported at about Rs 1,377. That earlier note is not confirmed as the same report.
The numbers
The first half of FY27 combined a strong first quarter with a softer second quarter. Q1 FY27 sales bookings were INR 3,656.1 crore, up 76% from INR 2,078.8 crore a year earlier. Q2 FY27 sales value was INR 2,206 crore, on 1.42 million sq ft sold across 828 units. That Q2 figure is 16% above Q2 FY26, but it is about 40% below Q1. Sobha attributes the quarter-on-quarter drop to the timing of project launches rather than a year-on-year decline.
Average realisation for H1 FY27 was reported at INR 15,604 per sq ft, against INR 14,028 per sq ft in H1 FY26. Q2 average price was INR 15,522 per sq ft. Q2 sales area was up only 2.2% year on year, so most of the H1 growth came from the first quarter.
Sobha's own share of H1 sales value was reported at INR 48.74 billion, or 83.1% of the total, up from 81.7% in H1 FY26. The filing does not explain the remaining share in the summary figures used here.
Where the sales came from
By geography, Bengaluru contributed 57.7% of H1 FY27 sales value, at INR 33.85 billion. The National Capital Region (NCR) contributed 33.7%, at INR 19.74 billion. Together, Bengaluru and NCR accounted for over 94% of total sales value in Q1 FY27, according to Outlook Business.
The company named two recently launched projects in its update: Sobha One World in Bengaluru and Sobha Crescent in Gurugram. Sobha One World is in Hoskote, Bengaluru Rural. Its launch covers 3,484 apartments across 14 wings on a 48-acre net site at Amanidoddakere Village, Kasaba Hobli. Six phase-wise Karnataka RERA registrations were issued for the project on 8 May 2026. The lead registration number is PRM/KA/RERA/1250/304/PR/080526/008634. Reports on the price differ. One cites prices from INR 14,720 per sq ft during an expression-of-interest window that closed on 20 May 2026. A project page cites a starting price of INR 1.09 crore. These figures are not reconciled, so no price is stated as settled here. Details on Sobha Crescent were not found in verified form.
Margins, balance sheet and the stock
Sales growth has not yet translated into strong margins. Operational revenue for Q1 FY27 rose 50% year on year to INR 1,278.1 crore. EBITDA rose to INR 77.6 crore from INR 23.7 crore. On the management call, total income rose 48% to INR 1,330 crore and profit after tax rose 66% to INR 50.7 crore. Sobha reported a net cash position of INR 659 crore at the end of Q1 FY27.
On the stock, one report puts the last traded price at INR 1,190.70 on the NSE on 6 October 2026. Another gives a prior close of INR 1,183. Market capitalisation was reported at INR 127.3 billion as of 6 October 2026. The 52-week range is INR 1,130 to INR 1,732. The stock has been reported as down nearly 20% in 2026, as investors weigh thin operating margins. One non-broker analysis said the shares fell about 12% after the record Q1 update. That analysis is a single commentary and is not a broker call.
Analyst coverage is broadly positive. Investing.com lists 18 analysts: 16 Buy, 2 Hold, and no Sell. The average 12-month target is INR 1,752.17, with a high of INR 1,930 and a low of INR 1,480. Emkay's estimated net asset value is Rs 1,571 per share.
What it changes for buyers, investors and the market
For investors, the update shows that sales volume and value grew in H1 FY27, but the growth was concentrated in the first quarter and margins are still under review. Analysts' targets, including Emkay's INR 1,900 and Antique's Rs 1,855, sit well above the recent price, so the investment case depends on margin recovery being delivered.
For home buyers, the reported figures do not show any change in buyer terms, prices, delivery timelines or inventory levels across Sobha's projects. Buyer-level impact was not found in reliable sources beyond the project details above. Anyone considering a Sobha One World unit should check current pricing and the RERA registration directly, because reported prices differ.
For the wider market, Sobha's H1 numbers are one data point. The company's average realisation rose about 11% year on year, which shows the price trend in its own sales mix rather than the market as a whole.
What happens next
- Management has guided to at least 30% growth in pre-sales for FY27, and said it could do better if planned launches are completed on time.
- The company has nine projects left to launch in FY27, covering 8.2 million sq ft. At current pricing, it implies about INR 12,000 crore in gross development value.
- Market analysts expect margin recovery to begin in the third quarter of FY27, according to Whalesbook.
- The date of Sobha's next results has not been confirmed. Past Q2 results have typically come in mid-October, but no 2026 date was found.
Frequently asked questions
What did Emkay say about Sobha?
Emkay Global Financial Services kept its Buy rating and INR 1,900 target on Sobha. It said it expects Sobha to exceed its FY27 pre-sales guidance, with its own estimate at INR 110-120 billion against company guidance of INR 106 billion. Reports differ on the exact date of the note, citing 21 September, 4 October and 6 October 2026.
How much did Sobha sell in the first half of FY27?
Sobha reported total sales value of INR 58.62 billion (INR 5,862 crore) for the half year ended 30 September 2026. That is up 47.20% from the year-earlier period and is the highest half-year figure the company has recorded, according to its operational update filed on 2 October 2026.
Why did sales fall in the second quarter?
Sobha's Q2 FY27 sales value was about 40% below Q1 FY27. The company attributes the drop to the timing of project launches, not to a year-on-year decline. Q2 sales value was still 16% higher than Q2 FY26.
What is the risk for investors?
Margins are the main concern. Q1 FY27 EBITDA rose to INR 77.6 crore from INR 23.7 crore, but reports note that margins remain thin and that the stock has been down nearly 20% in 2026. Analysts expect a margin recovery from Q3 FY27, but that is an expectation, not a reported result.
Is there any new information for buyers?
The reports reviewed do not describe changes to buyer terms, prices or delivery timelines. For Sobha One World in Hoskote, the Karnataka RERA registrations were issued on 8 May 2026, but reported prices differ across sources, so buyers should verify current pricing and registration details directly.