Sobha Limited , a leading real estate developer, has announced robust financial results for the first quarter of fiscal year 2026, marking significant growth across key operational metrics.

Record-Breaking Sales

The company achieved its highest-ever quarterly real estate sales value of ₹20.79 billion, surpassing the ₹2,000 crore milestone for the first time. This represents an 11% year-over-year increase in sales value. The new sales area stood at 1.44 million square feet, up 23% compared to the same period last year.

Financial Highlights

• Total revenue reached ₹9.01 billion, registering a 35% year-over-year growth.
• Profit After Tax (PAT) stood at ₹136 million, marking a substantial 123% increase from Q1 FY2025.
• Collections contributed ₹17.78 billion, showing a 15% year-over-year rise.

Improved Financial Position

Sobha Limited further strengthened its balance sheet by reducing net debt. As of Q1 FY2026, the company reported a negative net debt of ₹6.87 billion, resulting in a Net Debt-to-Equity ratio of -0.15.

Operational Performance

The company launched new projects with a saleable area of 1.62 million square feet during the quarter. The average price realization stood at ₹14,395 per square foot.

Geographical Expansion

Sobha Limited expanded its footprint in the National Capital Region (NCR) by entering Greater Noida with the successful launch of SOBHA Aurum, which contributed ₹8.34 billion to the overall sales.

Rights Issue Fund Utilization

The company's monitoring agency report for Q1 FY2026, prepared by ICRA Limited, confirmed no deviation in the utilization of proceeds from its Rights Issue. The report covers the utilization of ₹1,983.64 crore from the Rights Issue conducted from June 28 to July 4, 2024.

Key allocations include:

The total unutilized amount of ₹310.18 crore has been deployed in fixed deposits with various banks, earning returns between 4% to 7.8%.

Management Commentary

Jagadish Nangineni, Managing Director of SOBHA Limited, stated, "We achieved our highest-ever quarterly sales, fueled by robust demand across cities of our real estate operations. The successful launch of our first project in Greater Noida marks a pivotal milestone, reinforcing our brand's strength. Our unique backward integrated delivery model continues to drive consistent performance, supported by ongoing investments in operational excellence."

Future Outlook

With a strong balance sheet and stable demand environment, Sobha Limited is well-positioned for sustained growth. The company remains committed to delivering value to customers through quality, reliability, and transparency while investing in new opportunities, people, technology, and processes.

All project timelines for FY2025-FY2028 remain on schedule, indicating the company's commitment to timely project delivery.

Sobha Limited , a leading real estate developer, has reported strong financial results for the first quarter, with sales reaching an all-time high and profit more than doubling compared to the same period last year.

Record-Breaking Sales Performance

The company achieved its highest-ever quarterly real estate sales value of ₹20.79 billion (₹2,079 crore), crossing the ₹2,000 crore milestone for the first time. This represents an 11% year-over-year increase in sales value. The new sales area stood at 1.44 million square feet, marking a significant 23% growth compared to the previous year's first quarter.

Profit Surge and Revenue Growth

Sobha's net profit saw a remarkable 123% year-over-year increase, reaching ₹0.13 billion. The company's revenue also showed strong growth, rising by 35% to ₹9.01 billion compared to the same quarter last year.

Operational Highlights

Total collections registered a 15% year-over-year increase.

Financial Position Strengthens

Sobha's financial position improved significantly, with net debt reducing to -₹6.87 billion, resulting in a negative net debt-to-equity ratio of -0.15. This indicates a strong balance sheet and improved liquidity position for the company.

Geographical Expansion

The company expanded its footprint in the National Capital Region (NCR) with a successful entry into Greater Noida. The launch of its first project in Greater Noida contributed to the overall sales, showcasing the company's ability to capitalize on new markets.

Management Commentary

The company attributed its performance to strong demand across cities and its backward integrated delivery model. This unique approach continues to drive consistent performance, supported by ongoing investments in operational excellence.

Future Outlook

With a strong balance sheet and stable demand environment, Sobha appears well-positioned for continued growth. The company remains committed to delivering value to customers through quality, reliability, and transparency while investing in new opportunities, people, technology, and processes.

As Sobha continues to demonstrate strong performance and strategic expansion, investors and industry observers will be keenly watching the company's future developments and its ability to maintain this growth trajectory in the coming quarters.