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:

Standalone Results:

Consolidated Results:

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.

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:

Contractual and Manufacturing Segment:

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.

SOBHA Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, demonstrating compliant utilization of its rights issue proceeds. The report, prepared by ICRA Limited as the monitoring agency, confirms no deviation from the objects disclosed in the offer document.

Rights Issue Overview

The company conducted a rights issue during June 28 to July 4, 2024, raising ₹1,999.03 crore. The net proceeds credited to the monitoring account stood at ₹1,984.25 crore as on December 31, 2025, as part payment has been received against the rights issue.

Proceeds Utilization Status

The monitoring report reveals that ₹1,744.56 crore has been utilized across various objects as of December 31, 2025, leaving ₹252.74 crore unutilized. The utilization pattern shows strategic deployment across the company's stated objectives.

Complete Debt Repayment Achievement

The company has successfully completed the repayment of borrowings worth ₹905.00 crore, representing 100% utilization of the allocated amount for this object. This strategic move strengthens the company's balance sheet by reducing debt obligations.

General Corporate Purpose Deployment

Under general corporate purposes, SOBHA has deployed ₹632.09 crore across various operational requirements. The major components include:

• Land Purchases: ₹206.90 crore across multiple quarters
• Employee Expenses: ₹233.22 crore spanning Q2FY25 to Q1FY26
• Refundable Deposits: ₹164.70 crore for operational requirements
• Other Expenses: Including approvals, marketing, and IT-related expenses

Unutilized Funds Management

The company has prudently invested the unutilized proceeds of ₹252.74 crore in fixed deposits across multiple banks. These investments are generating returns ranging from 3.25% to 7.30% annually, with total earnings of ₹1.88 crore during the quarter.

Compliance and Timeline Adherence

ICRA Limited confirmed that all utilizations align with the offer document disclosures, with no material deviations requiring shareholder approval. The implementation timeline for all objects remains on schedule as per the FY2025-FY2028 timeframe outlined in the offer document. The monitoring agency found no unfavorable events affecting the viability of the stated objects, maintaining the integrity of the rights issue framework.