Sobha Q1 FY27: consolidated PAT ₹51 Cr, ~4x YoY as revenue climbs 50%; record pre-sales

Sobha posted a strong year-on-year first quarter on the P&L. Consolidated revenue from operations rose ~50% YoY to ₹1,278 Cr (from ₹852 Cr) and consolidated PAT reached ₹50.85 Cr versus ₹13.62 Cr a year ago, lifting net margin to 3.98% from 1.51%. That headline +273% PAT jump overstates the underlying acceleration, however: the year-ago consolidated base was depressed by subsidiary losses (year-ago consolidated PAT of ₹13.6 Cr sat well below standalone ₹45.9 Cr). On a standalone basis — a cleaner proxy for core operations — PAT grew a more grounded +26.5% YoY to ₹58.04 Cr on revenue of ₹1,258 Cr (+36.8%). Consolidated profit undershoots standalone because the 20 subsidiaries collectively ran roughly at breakeven this quarter (auditor-noted subsidiary net profit of just ₹8.98 Cr on ₹155.6 Cr revenue).

Sequentially the print is down — revenue −35.7% and PAT −44.6% versus Q4 FY26's ₹1,988 Cr / ₹91.8 Cr — but that is the normal seasonality/recognition pattern for a developer, where Q4 carries year-end completions and Q1 is the soft quarter; it is not a deterioration. The operating story sits on the pre-sales line, which the P&L doesn't capture: Q1 pre-sales hit a record ₹3,656 Cr, up 76% YoY and 79% QoQ, on 2.34 msf sold — running well ahead of management's ~30% FY27 pre-sales guidance and confirming the confident, bullish tone struck on the Q4 concall. There is no published brokerage P&L consensus for Sobha (the street tracks pre-sales and collections for developers), so a beat/miss on earnings can't be scored, but the operational leading indicator clearly beat.

The stock went into the print at ₹1,455.7, up 2% over the past month of trading.

Contingent overhangs unchanged and unprovided — ED/PMLA attachment of ₹201.6 Cr land parcels, ₹84.2 Cr income-tax demand under appeal, SAPL contract-termination arbitration.

Against guidance the quarter is on-track rather than complete: management guided that P&L margin expansion would be H2-weighted as higher-margin projects are recognised, so Q1's ~4% net margin is consistent with a back-half build, not a shortfall. The land-and-development cost line (₹682 Cr consolidated) remains the dominant swing item on the expense side. Concurrent with results, the board approved a ₹1,000 Cr NCD issue on private placement (terms to be finalised by the borrowings committee), and the ₹6/share final dividend for FY26 (₹64.2 Cr) was approved at the July 18 AGM — both consistent with the stated intent to fund land investment while keeping a net-cash balance sheet.