Sobha delivered a strong performance in Q4 and the full financial year FY26, with consolidated net profit more than doubling on both a quarterly and annual basis. The company's audited financial results for the quarter and year ended March 31, 2026, were reviewed and approved by the Board of Directors on May 04, 2026. Q4 net profit rose to ₹918 Mn from ₹408.6 Mn in Q4 of the previous year, while full-year PAT surged 104% to ₹1.93 Bn from ₹0.95 Bn in FY25. Q4 revenue stood at ₹19.88 Bn compared to ₹12.4 Bn in Q4 of the previous year, with Q4 EBITDA at ₹1.5 Bn versus ₹940.6 Mn YoY and an EBITDA margin of 7.66% against 7.58% in the prior-year quarter. Total revenue for FY26 stood at ₹53.84 Bn, up from ₹41.63 Bn in FY25, driven by robust real estate sales and steady contractual and manufacturing contributions. The board has also recommended a dividend of ₹6 per share for FY2026, signalling continued commitment to shareholder returns.

Key Financial Performance

The following table presents the consolidated Profit & Loss highlights across quarterly and annual periods:

FY26 EBITDA improved to ₹5.03 Bn from ₹4.18 Bn in FY25, while PBT margin expanded to 4.8% from 3.2% year-on-year. The significant improvement in PAT margin from 2.3% in FY25 to 3.6% in FY26 reflects enhanced operational leverage and disciplined cost management across the business.

Real Estate Sales and Operations

Sobha achieved record real estate sales of ₹81.36 Bn in FY26, with a saleable area of 5.54 Mn sft across its operating markets. In Q4 alone, sales value reached ₹20.39 Bn, with a total saleable area of 1,335,691 sft. The company's Sobha share of sales stood at ₹67.06 Bn for FY26, representing 82.4% of total sales, with a blended realisation of ₹14,675 per sft for the full year. The following table presents the region-wise sales breakdown:

On the completions front, Sobha delivered 5.40 Mn sft comprising 3,188 homes across 39 towers, 58 row houses and villas in FY26. In Q4 alone, completions totalled 1,757,199 sft across 1,087 units. The company also launched 6.04 Mn sft across 9 projects in 6 cities during FY26, and expanded its operating footprint to 13 real estate cities across 8 states, including new entries in Greater Noida and Mumbai.

Cashflow and Balance Sheet

Sobha reported total operational cash inflow of ₹77.98 Bn for FY26, with net operational cashflow of ₹16.37 Bn, up from ₹11.74 Bn in FY25. Net cashflow for the year stood at ₹1.69 Bn. The company's balance sheet strengthened considerably, with gross debt declining to ₹10.02 Bn as of March 31, 2026, against a cash balance of ₹18.02 Bn, resulting in a net-debt negative position. The average interest cost stood at 7.69%. The following table summarises the consolidated cashflow highlights:

The consolidated balance sheet as on March 31, 2026 reflected total assets of ₹195,178 Mn, compared to ₹172,210 Mn as on March 31, 2025. Total equity stood at ₹47,199 Mn, while inventories were at ₹128,263 Mn. Sobha's credit rating outlook was upgraded to AA- Positive by Ind-RA, with ICRA maintaining its rating at AA- Stable.

Value Creation Pipeline and Land Bank

Sobha's investor presentation outlined a robust pipeline for future growth. FY27 inventory stands at 10.53 Mn sft with a sales value of ₹170.30 Bn and revenue to be recognised of ₹186.47 Bn, with a projected EBITDA margin of 30%+ at the project level. Forthcoming projects span 20.67 Mn sft with a potential sales value of ₹271.65 Bn. The total inventory visibility across completed, ongoing, and forthcoming projects amounts to 31.20 Mn sft with a combined sales value of ₹441.95 Bn.

The company's developable land bank totals 409 acres across 8 cities, with a development potential of 40.91 Mn sft and Sobha's share at 84.1%. Total future marginal cashflow from completed and ongoing projects is estimated at ₹95.60 Bn, with an additional ₹86.99 Bn from forthcoming projects.

Dividend Recommendation

The board has recommended a dividend of ₹6 per share for FY2026, accompanying the strong full-year results and representing a direct return to shareholders.

Sobha Limited has formally communicated to stock exchanges that it does not qualify as a Large Corporate under the Securities and Exchange Board of India's debt securities framework. The disclosure was made on April 13, 2026, addressing the regulatory requirements for companies regarding their borrowing status and compliance obligations.

Regulatory Compliance Disclosure

The company submitted its disclosure pursuant to two key SEBI circulars that govern fund raising by Large Corporates. The regulatory framework is established under SEBI Circular No. SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021, which was subsequently amended by circular No. SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172 dated October 19, 2023. These circulars specifically address fund raising through issuance of debt securities by entities classified as Large Corporates.

Financial Position and Credit Rating

Sobha Limited provided detailed financial information as part of its regulatory disclosure. The company's financial standing and creditworthiness are reflected in the following key metrics:

The outstanding borrowing figure of Rs. 9,685.48 million represents provisional figures that are subject to audit. This borrowing level, combined with other applicability criteria, confirms that Sobha Limited does not meet the threshold requirements to be classified as a Large Corporate under the SEBI framework.

Corporate Information and Authorization

The disclosure was authorized by key company officials, with Bijan Kumar Dash, Company Secretary & Compliance Officer, and Yogesh Bansal, Chief Financial Officer, providing digital signatures on the regulatory filing. The company operates under CIN L45201KA1995PLC018475 and maintains its registered and corporate office in Bengaluru, Karnataka.

Regulatory Implications

By confirming its non-applicability to the Large Corporate framework, Sobha Limited clarifies its regulatory obligations regarding debt securities issuance. The disclosure ensures transparency with stakeholders and compliance with SEBI's mandate for companies to clearly communicate their status under the debt securities framework. This classification affects the company's fund raising requirements and regulatory compliance obligations going forward.