Sobha Limited , a prominent real estate developer, has unveiled ambitious growth plans for the coming years, setting its sights on substantial sales growth and margin expansion.

Sales Target

The company has set a sales target of INR 8,500 crores for the fiscal year 2026 (FY26). Management has expressed optimism about potentially surpassing this figure, indicating strong confidence in the company's growth trajectory.

Margin Expansion Plans

In addition to the sales target, Sobha has outlined plans for significant margin improvement:

The company aims to increase its gross margins from the current 20% to 30% by the fiscal year 2027 (FY27). However, it's important to note that precise estimates for this margin expansion are still pending.

Management's Outlook

The management's statements suggest a positive outlook for Sobha's future performance. The combination of an ambitious sales target and plans for substantial margin improvement indicates a strategic focus on both top-line growth and profitability enhancement.

It's worth noting that while the company has set these targets, actual performance may vary based on market conditions, execution of strategies, and other factors that could influence the real estate sector.

Investors and market observers will likely keep a close eye on Sobha's progress towards these goals in the coming years, as achieving these targets could significantly impact the company's financial performance and market position.

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.