Sobha Limited Files Rights Issue Fund Utilization Statement for Q3FY26

Sobha Limited has filed its Statement of Deviation or Variation of funds in proceeds of Rights Issue for the quarter ended December 31, 2025, pursuant to Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statement was reviewed by the Audit Committee at its meeting held on January 16, 2026.

Rights Issue Fund Details

The company raised ₹1,999.03 crores through rights issue on July 11, 2024, with ICRA Limited serving as the monitoring agency. Out of the total funds raised, the company has utilized ₹1,744.55 crores towards the objects stated in the Letter of Offer dated June 12, 2024, leaving ₹254.48 crores unutilized as of December 31, 2025.

Parameter:	Details
Amount Raised:	₹1,999.03 crores
Date of Fund Raising:	July 11, 2024
Total Utilized:	₹1,744.55 crores
Unutilized Amount:	₹254.48 crores
Monitoring Agency:	ICRA Limited

Fund Utilization Breakdown

The company has allocated funds across five key objectives as outlined in the original Letter of Offer. The largest allocation was towards debt repayment, which has been fully utilized.

Original Object:	Original Allocation (₹ Cr):	Funds Utilized (₹ Cr):	Status:
Debt Repayment:	905.00	905.00	Fully Utilized
Land Acquisition & General Corporate:	658.59	632.09	Partially Utilized
Project Related Expenses:	212.36	153.58	Partially Utilized
Equipment & Machinery:	210.03	41.15	Partially Utilized
Issue Related Expenses:	13.05	12.73	Nearly Complete

Key Highlights

The statement indicates no deviation from the original objects for which funds were raised. The company has fully utilized the allocated amount of ₹905.00 crores for repayment or prepayment of certain borrowings. For funding acquisition of land parcels and general corporate purposes, ₹632.09 crores has been utilized out of the allocated ₹658.59 crores.

Additional Financial Information

The company has earned ₹28.70 crores as interest income from temporary investments, which has not been included in the unutilized amount calculation. Out of the ₹254.48 crores unutilized amount, ₹0.32 crores relates to issue-related expenses lying in the monitoring account.

Regulatory Compliance

The filing demonstrates Sobha Limited's adherence to regulatory requirements under SEBI guidelines. The statement confirms that there has been no deviation in the objects or purposes for which the funds were raised, and no change in terms of contracts mentioned in the fund-raising documents. The information has also been made available on the company's website at www.sobha.com for public access.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.43%	-0.12%	+5.36%	-1.14%	+17.67%	+223.47%

SOBHA Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance with quarterly revenue declining and EBITDA compression while demonstrating strong nine-month growth. The Bengaluru-based real estate developer's Board of Directors approved the results at their meeting held on January 16, 2026.

Quarterly Financial Performance

The company's Q3FY26 performance showed revenue contraction across both standalone and consolidated results with significant EBITDA decline despite improved standalone profitability. Key quarterly metrics demonstrate margin pressure amid challenging market conditions.

EBITDA Performance:

Metric	Q3FY26	Q3FY25	Change (%)
EBITDA	₹388.00 million	₹673.00 million	-42.3%
EBITDA Margin	4.11%	5.50%	-139 bps

Standalone Results:

Metric	Q3FY26	Q3FY25	Change (%)
Revenue from Operations	₹9,801.10 million	₹12,467.95 million	-21.4%
Total Income	₹10,285.72 million	₹12,826.92 million	-19.8%
Net Profit	₹306.85 million	₹275.45 million	+11.4%
Basic EPS	₹2.87	₹2.73	+5.1%

Consolidated Results:

Metric	Q3FY26	Q3FY25	Change (%)
Revenue	₹9.43 billion	₹12.20 billion	-22.8%
Net Profit	₹154.00 million	₹217.00 million	-29.0%

Nine-Month Performance Shows Strong Growth

The nine-month results for FY26 revealed significant improvement across key financial parameters, indicating strong underlying business momentum despite quarterly variations.

Parameter	9M FY26	9M FY25	Growth (%)
Revenue from Operations	₹33,829.51 million	₹27,921.99 million	+21.1%
Total Income	₹35,552.87 million	₹28,952.66 million	+22.8%
Net Profit	₹1,802.93 million	₹621.83 million	+190.0%
Basic EPS	₹16.86	₹6.28	+168.5%

Segment-wise Business Performance

SOBHA operates through two primary business segments: Real Estate and Contractual & Manufacturing. The segment analysis reveals the contribution of each division to overall performance.

Real Estate Segment:

Parameter	Performance
Q3FY26 Revenue	₹7,384.92 million vs ₹10,609.62 million (Q3FY25)
Nine-month Revenue	₹26,870.57 million vs ₹22,663.09 million (9M FY25)
Nine-month Profit	₹2,998.81 million

Contractual and Manufacturing Segment:

Parameter	Performance
Q3FY26 Revenue	₹3,040.16 million vs ₹2,390.43 million (+27.2%)
Nine-month Revenue	₹8,796.84 million vs ₹6,478.50 million (+35.8%)
Nine-month Profit	₹786.87 million

Financial Position and Regulatory Matters

The company maintained a stable capital structure with paid-up equity share capital of ₹1,069.40 million as of December 31, 2025. Total assets stood at ₹1,85,190.95 million compared to ₹1,56,739.50 million in the previous year, representing an 18.1% increase.

SOBHA disclosed several ongoing regulatory proceedings in its financial results. The company faces provisional attachment of land parcels valued at ₹2,016.05 million under the Prevention of Money Laundering Act, 2002, related to a joint development arrangement in Gurugram, Haryana. Additionally, the Income Tax Department has raised aggregate demands of ₹672.00 million for assessment years from AY 2015-16 to AY 2023-24, against which the company has filed appeals.