Sobha Limited delivered mixed Q3 FY26 results, achieving record quarterly sales while experiencing a decline in profitability amid increased operational expenditure. The company posted a quarterly profit after tax (PAT) of ₹15.40 crores, down from ₹21.60 crores in Q3 FY25, marking a 29% year-on-year decline. Revenue fell to ₹943.10 crores from ₹1,224 crores, representing a 23% drop, while EBITDA contracted 42% to ₹38.90 crores.

Record Sales Performance Despite Financial Challenges

Despite the dip in financial metrics, Sobha achieved its highest-ever Q3 sales value of ₹2,115 crores, representing a remarkable 52% year-on-year and 11% quarter-on-quarter growth. The new area sold stood at 1.37 million square feet, up 35% YoY, with an average price realisation of ₹15,436 per square foot.

Increased Construction Costs and Strategic Land Investments

The company reported increased construction costs and sales expenditure during Q3 FY26 and the first nine months, aligning with the robust sales growth trajectory. Net land payments totaled ₹240 crores in Q3 FY26 and ₹872 crores for the first nine months, signaling the company's commitment to strengthening its growth pipeline through strategic land acquisitions.

Operational Achievements and Project Completions

The company completed 915 homes during the quarter, contributing to cumulative nine-month deliveries of 2,100 units. Bangalore emerged as the strongest performer, contributing ₹15.12 billion or 71.5% to Q3 FY26 sales value, representing the highest ever quarterly performance for the region. Gurgaon showed impressive growth with sales value increasing by 119.2% over Q2 FY26, supported by the successful launch of SOBHA Strada.

Management Commentary and Future Growth Strategy

Managing Director Jagadish Nangineni noted that procedural delays in securing Occupancy Certificates (OCs) had temporarily moderated quarterly profitability. However, he expressed confidence in accelerating project completions and sustaining momentum in the coming months. The company launched three significant projects during Q3 FY26 with total saleable area of 931,171 square feet, including SOBHA Strada in Gurgaon, SOBHA Magnus in Bangalore, and SOBHA Inizio in Mumbai.

Strong Development Portfolio and Future Outlook

Sobha's real estate development portfolio spans 89.99 million square feet of total developable area, with 65.26 million square feet completed and 36.82 million square feet under development across 27 cities and 14 states. The company maintains 422 acres of developable land bank with development potential of 42.79 million square feet. The projected marginal cashflow from visible inventory stands at ₹90.64 billion from completed and ongoing projects, with additional ₹73.09 billion from forthcoming projects.

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.