Multibagger realty stock Sobha share price jumps 7%, then wipes out gains despite 292% profit surge in Q1 results

Sobha Q1 Results 2026: Shares of Sobha gave up most of their early gains on Tuesday despite the real estate developer reporting a strong financial and operational performance for the quarter ended June 2026 (Q1 FY27).

The stock surged more than 7% in early trade to an intraday high of ₹1,559.15 after the Q1 results announcement. However, it later reversed course, falling over 6% from the day's high to an intraday low of ₹1,460.50. At the time of writing, the stock was trading less than 0.5% higher than its previous closing price.

Sobha reported a 292% jump in consolidated net profit to ₹51 crore for Q1 FY27, compared with ₹44 crore in the corresponding quarter last year. Revenue from operations increased 50% year-on-year to ₹1,278 crore during the quarter, up from ₹852 crore reported in Q1 FY26.

At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) rose to ₹77 crore from ₹24 crore in the year-ago period. The company's EBITDA margin also expanded to 6.03% in Q1 FY27 from 2.82% in the corresponding quarter of the previous fiscal.

Other Q1 highlights

Sobha's collections stood at ₹1,924 crore during Q1 FY27, registering an 8% year-on-year increase. The company also maintained a net debt position of ₹-6.59 billion, with a net debt-to-equity ratio of -0.14.

The company's quarterly real estate sales value climbed 76% year-on-year to ₹3,656 crore, while the average price realisation during the quarter stood at ₹15,655 per sq. ft. The new area sold increased 62% year-on-year to 2.34 million sq. ft.

During the quarter, Sobha sold 1,432 homes and plots covering 2.34 million sq. ft. It also completed 671 homes across eight projects, representing a total saleable area of 1.08 million sq. ft.

"Achieving our highest-ever quarterly sales—driven by successful new project launches in Bangalore and Gurgaon—is a significant milestone for SOBHA," said Jagadish Nangineni, Managing Director of the company.

Additionally, Sobha launched 6.89 million sq. ft. of saleable area across three projects in two cities during Q1 FY27.

"With a strong pipeline of projects ahead, we are well-positioned to sustain this momentum. We remain focused on operational excellence and disciplined growth, delivering best-in-class homes while creating lasting value for our stakeholders," said Nangineni.

Fundraising plans via NCDs

Sobha's board of directors has approved a proposal to raise up to ₹1,000 crore through the issuance of non-convertible debentures (NCDs). The fundraising will be undertaken in one or more tranches through private placement.

The company said the board has authorised the Investments and Borrowings Committee to determine and finalise the terms and conditions of the proposed issuance. It added that further details will be disclosed in due course.

Sobha stock performance

The stock has risen around 4% in 1 month, over 7% in 3 months and 9% in 6 months; however, it has shed over 13% in the last 1 year. Meanwhile, it has given multibagger returns in the last 5 years, surging 142%.

It had hit its 52-week high of ₹1,732.45 in July last year and its 52-week low of ₹1,131.10 in April 2026.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.