Sobha Ltd is a backward-integrated real estate developer with residential and commercial projects across 13 cities, and the big question this quarter is when its depressed EBITDA margin finally turns. The print will speak to two things: whether Q2 margin holds near the guided 'similar' level of 9.7% before the promised Q3/Q4 inflection, and how the record H1 presales momentum converts into recognized revenue and cashflow.
| Results date | October 19, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 13,302 Mn total income (+47.6% YoY) |
| Previous quarter PAT | Rs. 508 Mn (3.8% margin) |
| Previous quarter EBITDA margin | 9.7% |
| Net debt (latest quarter) | Net cash Rs. 659 Cr at Jun 30, 2026 (gross debt Rs. 1,110 Cr; cash Rs. 1,769 Cr) |
| Market cap | Rs. 12,669.4 Cr |
| CMP | Rs. 1,184.8 |
Per the board-meeting intimation, the Board of Directors will meet on October 19, 2026 (Bengaluru) to approve the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The trading window has been closed from October 1, 2026 until 48 hours after the results.
An analyst/investor call is scheduled for October 19, 2026 at 6:30 PM IST to discuss Q2/H1 FY27 performance. Speakers are MD Jagadish Nangineni and CFO Yogesh Bansal, and the call is organized by ICICI Securities.
The presales trajectory is already disclosed and running ahead of plan: Q2 FY27 sales of Rs. 22,063 Mn (+16% YoY) took H1 FY27 to Rs. 58,624 Mn (+47.2% YoY), well above the run-rate needed for the FY27 guidance of at least 30% growth. The P&L itself leans on completion-based recognition, with management having guided Rs. 200-300 Cr of recognition spillover from Q1 into Q2, alongside H1 completions of 1,391 homes (2.56 mn sq ft). On margins, management said Q2 EBITDA margin 'might be similar' to Q1's 9.7% before sequential improvement in Q3 and Q4 toward 17-20% exiting Q4 FY27, as high-margin projects complete; the unrecognized revenue backlog of Rs. 20,553 Cr carries estimated embedded margins of 30-35%. Cost inputs were not a spike factor in the quarter — the all-India cement trade price averaged Rs. 351/bag in Q2 FY27, down Rs. 1 sequentially — though construction costs remain firm and the April-May labour shortage that hit milestone billing straddles into Q2 collections. The call will likely cover the margin bridge, the spillover quantum, launch execution on the balance of the 9-project/8.2 mn sq ft slate, and updates on the pending regulatory matters.
Performance vs guidance tracking: Where Sobha stands against its stated FY27 targets:
Margin checkpoint and recognition spillover
Launch execution and Mumbai approvals
Regulatory and litigation follow-ups
Cashflow and NCD trajectory
Management has guided that Q2 FY27 margin 'might be similar' to Q1's 9.7%, with sequential improvement in Q3 and Q4 as high-margin projects complete, reaching closer to 17-20% exiting Q4 FY27. Margins on the Rs. 20,553 Cr unrecognized revenue backlog are estimated at 30-35%.
H1 FY27 sales value was a record Rs. 58,624 Mn (Rs. 5,862.40 Cr), up 47.2% YoY, with Q2 FY27 sales of Rs. 22,063 Mn up 16% YoY — the second-highest quarter ever. Bangalore and NCR together contributed 91.4% of H1 sales.
Management has attributed the gap to accounting methodology — Sobha recognizes revenue on completion/handover, unlike peers using percentage-of-completion — along with cost increases in construction and joint-development land. Management has said margins on the unrecognized revenue backlog are 'extremely protected' at an estimated 30-35%.
Yes — the guidance is at least 30% growth for FY27, and H1 FY27 presales grew 47.2% YoY, ahead of the required run-rate. H1 FY27 has already delivered 72% of FY26's full-year presales of Rs. 8,136 Cr.
Sobha has disclosed an ED provisional attachment of Rs. 201.61 Cr of land (appeal pending), an income-tax demand of Rs. 84.20 Cr for AY 2015-16 to 2023-24 (appeals pending), and a customer arbitration claim of Rs. 295.61 Cr. Appeals are pending in each case.