SOBHA: Emkay targets 33% upside as mega launches drive RS 3,000 cr Q1 pre-sales momentum

Emkay Global sees 33% upside for SOBHA, citing robust launches and strong pre-sales—consider buying now for potential gains!

Written by Sparsh Bansal

June 22, 2026 14:33 IST

Close-up of a digital tablet screen displaying a chart of 'SOBHA EBITDA Margin Expansion (Estimated)', showing a steep upward line from 6% to 20.4%, with an overlay of a 'BUY' stamp and corporate skyscrapers.

Brokerage analysis projects Sobha's core earnings margins to more than triple by FY28. (Image: Canva)

Emkay Global Financial Services sees 33% upside for Sobha while maintaining a ‘Buy’ rating with a target price of Rs 1,900. The robust launch response and pre-sales momentum have led to a bullish stance on the stock. The brokerage house expects the company to surpass its FY27 guidance as well.

Here’s a detailed analysis of the investment rationale driving the stock recommendation –

Robust launch response and pre-sales momentum

SOBHA has seen a strong response to recent major launches, specifically Sobha One World in Bengaluru and Sobha Crescent in Gurugram. Emkay Global expects these two projects alone to contribute over Rs 2,500 crore in pre-sales during the first quarter of FY27, with total quarterly pre-sales likely surpassing Rs 3,000 crore.

“Over the past five years, SOBHA’s pre-sales delivered 21% CAGR, increasing from Rs 3,140 crore in FY21 to Rs 8,140 crore in FY26, marking its highest-ever pre-sales performance,” said the brokerage firm in a research report.

High confidence in surpassing FY27 guidance

Due to healthy demand in key markets like Bengaluru and Greater Noida, the report said that Sobha is positioned to “comfortably surpass” its FY27 pre-sales guidance of Rs 10,000 crore. This represents a significant double digit-growth year-on-year from its record FY26 performance.

Aggressive long-term growth targets

The company has set an ambitious target to reach over Rs 20,000 crore in pre-sales by FY31. This growth is expected to be driven primarily by its core markets in Bengaluru and the National Capital Region (NCR), which are projected to contribute approximately 60% of pre-sales over the next five years.

“The management expects Bengaluru and NCR to remain its key growth markets, together contributing 60% of pre-sales over the next five years. While Hyderabad, Mumbai, and Pune remain important markets, the company indicated that its Mumbai operations are still in the learning phase,” said Emkay Global.

Strengthened financial health and margins

SOBHA turned net cash positive in FY25 and is expected to maintain a net cash position of Rs 565 crore by FY27. Furthermore, Emkay Global estimated a significant expansion in EBITDA margins, rising to an estimated 14% in FY27 and 20.4% in FY28 from 6% in FY26.

“It intends to pursue acquisitions only when attractive opportunities arise and is comfortable taking incremental debt for the right investments, while maintaining a prudent approach to leverage and cash deployment,” said the report.

Sobha Q4FY26

The company posted a jump of 125% year-on-year in net profit to Rs 91.83 crore for the fourth quarter of FY26, compared with Rs 40.4 crore in the corresponding period last year. Its revenue for the quarter surged 60% YoY to Rs 2,300 crore, driven by continued demand for premium housing across key markets.

For the whole of FY26, the real-estate firm posted a surge of 30% in sales value to Rs 8,135 crore, up from Rs 6,276 crore in FY25. Sales value in Q4 FY26 came in at Rs 2,039 crore.

Sobha share price performance

The share price of SOBHA has risen 3.33% in the last five trading sessions. The stock has remained little changed in the past one month. However, the stock price fell 4% in the last six months. SOBHA’s share price has declined 5.3% in the past 12 months.

This article was first uploaded on June twenty-two, twenty twenty-six, at thirty-three minutes past two in the afternoon.