Sobha Q2 FY26 Earnings Results

Sobha Limited, incorporated in 1995, is a real estate developer engaged in construction to operations of townships, housing projects, commercial premises, and other related activities. The Company is also engaged in manufacturing activities related to interiors, glazing and metal works, and concrete products. Presenting below are its Q2 FY26 earnings results.

 

Q2 FY26 Earnings Results

• Revenue from Operations: ₹1,408 crore, up 51% YoY from ₹965.3 crore and 63% QoQ, driven by higher project completions and strong sales realizations.​

• Net Profit (PAT): ₹72.52 crore, up 178% YoY and 433% QoQ, reflecting strong topline growth and reduced finance costs.​

• EBITDA (Operating Profit): ₹95.65 crore, up 19% QoQ; EBITDA margin fell to 6.8% (vs. 8.3% in Q2 FY25) due to rising employee and construction costs.​

• Finance Costs: ₹32.23 crore, down 35% YoY, aiding profitability.​

• Employee Expense: ₹127.96 crore, 29% YoY increase, reflecting expansion in workforce for project execution.​

• Net Cash Flow from Operations: ₹2,046 crore, up 49% YoY, marking historic cash inflows for the company.​

• Net Debt: Negative ₹751 crore, resulting in a net debt-to-equity ratio of -0.16, signifying surplus cash position.​

• Dividend Paid: ₹3 per share (final dividend for FY25), totaling ₹32.09 crore payout during the quarter.​

 

Q2 FY26 Operational Highlights

• Sales Bookings: ₹1,903 crore, up 61% YoY.

• Saleable Area Sold: 1.39 million sq. ft., a 50% YoY increase in volume.​

• Average Realization: ₹13,648 per sq. ft., up 5.6% YoY.​

• New Launches: 2.25 million sq. ft. across 13 towers, 9 villas, and 1 plotted development, mainly in Bengaluru and NCR.​

• Regional Performance:

  • Bengaluru: ₹1,326 crore in sales value (2.2x YoY).

  • NCR: Strong contribution from ongoing premium projects; Kochi, Pune, and Hyderabad also reported steady growth.​

• H1 FY26 sales performance: ₹3,981 crore, up 30% YoY: Sobha’s highest-ever half-year sales.​

• Collections (H1 FY26): ₹3,824 crore (+49% YoY), underlining robust financing and customer payback discipline.​​

 

Management Commentary & Strategic Outlook

• J.C. Sharma, Vice Chairman and MD:
  “Sobha’s Q2 FY26 marks a landmark quarter with record sales, collections, and strong financial results. Our sustained operational discipline and project delivery competence have strengthened our cash position while maintaining customer trust.”.​

• The company continues to focus on execution discipline, cash flow generation, and profit growth, while selectively investing ₹632 crore in land acquisition for upcoming projects.​

• Future inflows: Expected at ₹22,867 crore from the ongoing residential and commercial portfolio, providing strong visibility for the next 24 months.​

• Credit Ratings: Upgraded by India Ratings to reflect improved balance sheet strength and operational cash generation.​

 

Strategic Targets

• The company aims to achieve ₹8,500 crore in sales by FY26 and expand to 30% gross margin by FY27 (vs. current ~20%).​

• Plans to expand presence further in north and west India while maintaining dominance in Bengaluru and southern markets.​

• Proactive cost controls and design standardization will help offset potential margin headwinds from raw material inflation.​

 

 

Q1 FY26 Earnings Results

• Revenue: ₹900 crore, up 42% YoY.​

• Net Profit: ₹13.6 crore.​

• EBITDA Margin: 6.1%.​

• Sales Bookings: ₹2,078 crore, up 55% YoY; average realization ₹14,028/sq. ft..​

• Net Debt: Negative ₹732 crore at Q1 end.

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.