Sobha Limited , a prominent real estate developer, has announced its unaudited financial results for the first half of FY2026, showcasing remarkable improvement in its financial performance.

Key Highlights

• Achieved highest ever half-year sales value of ₹39.81 billion in H1 FY26, a 30% increase year-over-year
• Sold 2.84 million square feet of saleable area with an average price realization of ₹14,028 per square foot
• Total revenue grew 45% to ₹23.71 billion, with real estate revenue contributing ₹18.89 billion
• Generated record operational cash inflows of ₹38.24 billion
• Maintained a net cash position of ₹7.51 billion with gross debt of ₹10.10 billion
• EBITDA increased 19% to ₹2.31 billion with a margin of 9.7%
• Profit after tax grew 168% to ₹861 million

Operational Performance

Sobha Limited demonstrated strong operational growth in the first half of FY2026. The company completed 1,185 homes spanning 2.25 million square feet and launched 3 new projects across 2 cities. Notably, Sobha expanded its operations to 12 cities with the addition of Greater Noida, further strengthening its market presence.

Financial Performance

The company's financial results for H1 FY26 reflect robust growth across key metrics. The record-breaking half-year sales value of ₹39.81 billion represents a significant 30% increase compared to the previous year. This growth was supported by strong sales volume and improved price realization.

Total revenue saw a substantial increase of 45%, reaching ₹23.71 billion, with the real estate segment contributing ₹18.89 billion. The company's profitability also showed impressive growth, with profit after tax surging by 168% to ₹861 million.

Sobha's financial position remained strong, with the company maintaining a net cash position of ₹7.51 billion against a gross debt of ₹10.10 billion. The generation of record operational cash inflows amounting to ₹38.24 billion further underscores the company's solid financial management.

Improved Credit Rating

In recognition of its strong financial performance, Sobha Limited received credit rating upgrades. India Ratings and Research (Ind-RA) upgraded the company's outlook to positive, reflecting increased confidence in its financial stability and growth prospects.

Conclusion

Sobha Limited's H1 FY26 results demonstrate robust growth in revenue, profitability, and operational performance. The company's ability to achieve record sales, expand its geographical presence, and maintain a strong financial position indicates improved market performance and operational efficiency. With positive credit rating upgrades and a solid project pipeline, Sobha Limited appears well-positioned for continued growth in the real estate sector.

Sobha Limited , a prominent real estate developer, has reported exceptional sales performance for the first half of the fiscal year, setting a new benchmark in the company's history.

Record-Breaking Half-Yearly Performance

Sobha has achieved its highest-ever half-yearly sales value of Rs 3,981.00 crore, marking a significant 30.4% increase compared to the same period in the previous fiscal year. This remarkable growth underscores the company's strong market position and robust demand for its properties.

Q2 Performance

For the second quarter, Sobha reported impressive figures:

The substantial year-on-year growth of 61.44% in total sales value for Q2 demonstrates Sobha's continued success in attracting buyers and closing deals. However, the 8.5% quarter-on-quarter decline suggests some moderation in sales momentum compared to the previous quarter.

Analysis

The record-breaking performance indicates several positive factors for Sobha:

1. Strong Market Demand: The significant growth in sales value suggests robust demand for Sobha's properties, potentially driven by favorable market conditions or the company's product offerings.

2. Effective Sales Strategies: The consistent growth over the past year may be attributed to successful marketing and sales initiatives implemented by the company.

3. Market Confidence: The substantial increase in sales value could reflect growing consumer confidence in the real estate sector and Sobha's brand in particular.

4. Potential for Future Growth: With such strong H1 performance, Sobha appears well-positioned for continued success in the remaining half of the fiscal year, barring any unforeseen market challenges.

While the quarter-on-quarter decline in Q2 sales value warrants attention, it's important to note that real estate sales can be subject to seasonal fluctuations and other short-term factors. The overall half-yearly growth remains impressive and indicative of the company's strong market position.

Investors and market observers will likely keep a close watch on Sobha's performance in the coming quarters to see if this growth trajectory continues and how it translates into the company's financial results and market valuation.