Sobha Q3 FY26: Record Sales of ₹2,115 Crores but Profit Declines 29% YoY
Sobha Limited delivered mixed Q3 FY26 results with record sales of ₹2,115 crores marking 52% YoY growth, while profit declined 29% to ₹15.40 crores due to procedural delays in securing Occupancy Certificates. Despite financial challenges, the company completed 915 homes and maintains a robust development portfolio spanning 89.99 million square feet across 27 cities.
*this image is generated using AI for illustrative purposes only.
Sobha Limited delivered mixed Q3 FY26 results, achieving record quarterly sales while experiencing a decline in profitability. 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.
| Financial Metric | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Revenue | ₹943.10 Cr | ₹1,224 Cr | -23% |
| PAT | ₹15.40 Cr | ₹21.60 Cr | -29% |
| EBITDA | ₹38.90 Cr | - | -42% |
| EBITDA Margin | 4.12% | 5.51% | - |
| Sales Performance | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Sales Value | ₹2,115 Cr | - | +52% |
| New Area Sold | 1.37 Mn sft | - | +35% |
| Price Realisation | ₹15,436/sft | - | - |
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.
| Project Completions Q3 FY26 | Location | Units | SBA (sft) |
|---|---|---|---|
| SOBHA Windsor (Wing 6 & 9) | Bangalore | 138 | 262,280 |
| SOBHA Dream Acres (Wing 23 & 24) | Bangalore | 237 | 237,727 |
| SOBHA Manhattan Towers (Wing 4) | Bangalore | 138 | 206,861 |
| SOBHA City (Tower C6) | Gurgaon | 96 | 212,303 |
| SOBHA Arbor (Wing 2 & 4) | Chennai | 48 | 80,367 |
Management Commentary and Market Performance
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's share closed at ₹1,532, down ₹17.40, or 1.12%, reflecting investor concerns over the profit decline despite record sales performance.
Historical Stock Returns for Sobha
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.43% | -0.12% | +5.36% | -1.14% | +17.67% | +223.47% |
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