Sobha Ltd has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26. The filing, submitted pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details the company's environmental, social, and governance (ESG) performance. The report includes an Independent Assessment Statement on BRSR Core conducted by BSI Group India Pvt. Ltd., confirming alignment with SEBI criteria.

The company reported a total workforce of 4,468 employees and 25,470 workers as of March 31, 2026. Women comprised 13.9% of the total employee count and 2.8% of the total workforce. The Board of Directors included seven members, with female representation at 14.3%. The report highlights that 100% of permanent employees are covered by health and accident insurance.

Environmental Initiatives

Sobha Ltd disclosed that it sources 80% of its electricity for corporate offices and facilities from solar energy. The company has commissioned rooftop solar installations of 225 kW and 750 kW at its Glazing and Interiors divisions. To manage water scarcity risks, the firm deployed smart water meters across all projects and implemented integrated rainwater harvesting systems.

The company implemented a 4R (Reduce, Reuse, Recycle, Recover) waste management strategy. Its Concrete Products Division is an authorized concrete waste recycling unit, where waste from external sources accounts for around 15% of raw materials. The report also noted the use of low-carbon blended cement (GGBS) and 60% PEFC-certified wood in interiors.

Governance and Targets

The company has established long-term ESG targets to be achieved by FY2030. These include reducing Scope 1 & 2 emissions by 10%, sourcing 15% of energy from renewable sources, and achieving 35% water recycled and reused. Safety goals include achieving zero Total Recordable Incident Rate (TRIR) and conducting 25,000 hours of safety training.

Financial and Operational Details

For the financial year 2025-26, the company reported a turnover of ₹53,676.64 million and a net worth of ₹46,892.32 million. Construction of residential and commercial projects accounted for 78.9% of the total turnover, while building completion and finishing services contributed 21.1%. The company operates 87 locations nationally, with no international operations included in the report data.

Sobha Limited delivered its strongest operational and financial performance in FY26, recording its highest-ever annual sales value and expanding its geographic footprint to new markets. The company's results reflect sustained demand for premium residential real estate, disciplined capital allocation and a backward-integrated operating model that supports consistent delivery quality across markets.

Financial Performance: Standalone and Consolidated

On a standalone basis, Sobha posted total revenue of ₹55,869.80 million in FY26, compared to ₹42,024.79 million in the previous year, registering growth of 32.94%. Profit Before Tax rose to ₹4,044.03 million from ₹1,537.55 million, while Profit After Tax increased 168.47% to ₹3,013.09 million from ₹1,122.32 million.

On a consolidated basis, revenue for FY26 was ₹53,837.65 million, an increase of 29.33% from the previous year. Profit Before Tax increased by 95.39% and Profit After Tax (after considering minority interest) increased by 104.26% compared to FY 2024-25.

Sales and Operational Highlights

FY26 marked several milestones for the company's real estate business. Total sales value reached ₹81.36 Bn, with Sobha's share of sales value at ₹67.06 Bn—a 35% increase. New sales area stood at 5.54 million square feet, up approximately 19% from 4.68 million square feet in FY25. Average price realisation was ₹14,675 per sq. ft., reflecting 9% growth over the previous year's ₹13,412 per sq. ft.

Bangalore contributed 55.0% of total sales value and recorded its highest-ever annual sales of approximately ₹45,000 million. NCR contributed 30.2%, driven by the company's expansion into Greater Noida. Kerala contributed 9.9% and Tamil Nadu and other regions contributed 4.9%.

Cash Flows and Balance Sheet

Total operational cash inflow for FY26 was ₹77,985 million, with net operating cash flow of ₹16,367 million—a 39.4% increase over FY25. Real estate collections stood at ₹70,668 million, while contractual and manufacturing contributed ₹7,317 million. As on March 31, 2026, gross debt stood at ₹10,023 million against cash and cash equivalents of ₹18,020 million, maintaining a net cash position. Net worth stood at ₹47,199 million. The average borrowing cost as of March 2026 stood at 7.69%.

Geographic Expansion and Project Portfolio

Sobha expanded its real estate presence to 13 cities during FY26, entering Greater Noida through SOBHA Aurum and Mumbai through SOBHA Inizio. The company launched 9 new projects across 6 cities with total saleable area of 6.04 million square feet. As on March 31, 2026, the company had 41.93 million square feet of ongoing developable area and a forthcoming pipeline of 20.67 million square feet across 13 residential projects in 7 cities and an upcoming commercial asset.

Since inception, Sobha has developed a cumulative 152.69 million square feet across real estate and contractual verticals, spanning over 30 cities across 14 states in India.

Dividend and Capital Structure

The Board of Directors recommended a dividend of ₹6 per equity share of ₹10 each (fully paid-up) for FY26, subject to shareholder approval at the 31st Annual General Meeting scheduled for July 18, 2026. The company proposes to transfer ₹301.31 million of current profits to the General Reserve. As on March 31, 2026, the issued, subscribed and paid-up capital stood at ₹1,069,434,055, divided into 106,932,977 fully paid-up equity shares of ₹10 each and 20,857 partly paid-up shares of ₹5 each.

Credit Ratings and ESG

The company's borrowings were rated AA-/Positive by ICRA and IND AA-/Stable by India Ratings and Research during the year. On the ESG front, Sobha recycled 246.7 ML of water, generated 1,732 MWh of energy from renewable sources and recorded 60.78 million man-hours across its projects during FY26. The company targets a 10% reduction in Scope 1 and 2 GHG emissions by 2030. SOBHA City, Thrissur, Kerala, received India's first Net Water Positive (Platinum) Rating.

Corporate Governance

The Board of Directors comprised seven directors as on March 31, 2026, including four Non-Executive Independent Directors, one Non-Executive Non-Independent Director and two Executive Directors. The Board met four times during FY26 on May 29, 2025, July 25, 2025, October 17, 2025 and January 16, 2026. The Statutory Auditors, M/s. Walker Chandiok & Co LLP, expressed an Unmodified Opinion on both standalone and consolidated financial statements for the year ended March 31, 2026, with no qualifications or adverse remarks.