Shares of Sobha Ltd rallied sharply today, climbing over 5% to touch an intraday high of Rs. 1,570.30, the highest level in more than a month. The stock opened firm at Rs. 1,522.20, compared with the previous close of Rs. 1,492.15, and was trading around Rs. 1,556 by late morning, outperforming the broader market. Volumes were healthy, with close to 0.9 million shares changing hands on the NSE, while the counter remains below its 52-week high of Rs. 1,732.45 and well above the 52-week low of Rs. 1,075.70, indicating sustained buying interest.

The buying momentum followed Sobha’s strongest-ever quarterly sales performance in Q3FY26, underlining a sharp rebound in residential demand across key markets. The company reported a 52.3% year-on-year jump in real estate sales value to Rs. 2,115 crore for the quarter, with Bengaluru emerging as the standout contributor. Bengaluru alone delivered 51% YoY growth, accounting for 71.5% of total sales value, supported by new sales of 1.02 million sq ft. NCR added Rs. 349 crore, driven by the successful launch of Sobha Strada in Gurugram, while Kerala recorded 18% YoY growth, contributing Rs. 154 crore during the quarter.

Operationally, Sobha continues to broaden its geographic footprint while maintaining pricing discipline. During Q3FY26, the company launched three new projects across Bengaluru, Gurugram and Mumbai, including Sobha Inizio, marking its entry into the Mumbai market. Average price realisations stood strong at Rs. 15,436 per sq ft, reflecting demand for premium offerings. For the nine months ended FY26, Sobha achieved Rs. 6,097 crore in sales value on new sales area of 4.21 million sq ft, reinforcing confidence in its growth trajectory.

At current levels, Sobha trades at a premium to several listed residential peers on near-term earnings, but the market appears to be pricing in superior execution, improving cash flows and a sustained upcycle in premium housing demand across core urban markets.