Earnings Review
Sobha Q1 PAT, revenue jump sharply, miss Street estimate
This story was originally published at 20:22 IST on 20 July 2026
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--Sobha Ltd Apr-Jun consol net profit INR 508.46 mln
--Analysts saw Sobha Ltd Apr-Jun consol net profit INR 725.83 mln
--Sobha Ltd Apr-Jun consol revenue INR 12.78 bln
--Analysts saw Sobha Ltd Apr-Jun consol revenue INR 13.64 bln
--Sobha Ltd Apr-Jun consol PAT INR 508.46 mln vs INR 136.18 mln yr ago
--Sobha Ltd Apr-Jun consol revenue INR 12.78 bln vs INR 8.52 bln year ago
--Sobha Ltd to issue NCDs worth INR 10 bln on private placement basis
--Sobha Ltd Apr-Jun consol EBITDA INR 1.30 bln, up 78.1% on year
--Sobha Ltd Apr-Jun consol EBITDA margin 9.7% vs 8.1% year ago
--Sobha Ltd incurred capex INR 697 mln in Apr-Jun vs INR 373 mln yr ago
By Pratyush Kumar
MUMBAI – Real estate company Sobha Ltd. reported a strong on-year rise in its revenue from operations for the June quarter. The revenue growth drove the company's consolidated net profit up nearly four times on year. The company's land and related costs more than tripled and its other expenses grew faster than its revenue growth but a fall in the cost of project materials and sub-contractor costs limited the rise in total expenses.
The company reported a consolidated net profit of INR 508 million for the June quarter, up nearly four times on year but down 44% sequentially from INR 918 million. Sobha's revenue from operations was INR 12.78 billion, up 50% on year but down 36% sequentially. Sobha's reported consolidated profit and revenue from operations were below the Street's estimate. Analysts had expected the company to report a net profit of INR 726 million and revenue from operations of INR 13.64 billion.
The company announced it will raise INR 10 billion through the issue of non-convertible debentures on a private placement basis.
Sobha's earnings before interest, taxes, depreciation, and amortisation were INR 1.30 billion in the June quarter, up 78% on year but down 33% sequentially. The company's EBITDA margin was 9.7% in the June quarter, up 160 basis points on year and up 10 bps sequentially.
Sobha launched 6.89 million square feet of saleable area across three projects in two cities during the June quarter. The company's real estate business contributed INR 11.07 billion to the June quarter earnings, up 60.5% on year. Its other two segments – contractual, and manufacturing and retail -- contributed INR 1.71 billion to the revenue. Bangalore was the top contributor to the company's quarterly sales, followed by the National Capital Region, Kerala, and Tamil Nadu.
The company has total receivables of INR 319.51 billion as of June 30, including both completed and ongoing projects. Sobha's June quarter inventory was 14.94 million square feet with a sale value of INR 192.24 billion. Sobha's collections in the June quarter were INR 19.24 billion, up 8% on year.
Shares of Sobha ended at INR 1,455.70 on the National Stock Exchange Monday, down slightly from Friday. The company announced its earnings after market hours.
The real estate company's realisations for the June quarter grew 9% on year to INR 15,655 per square feet. The company said it had acheived its highest quarterly sales due to strong performance of the Crescent property, launched in Gurgaon.
The developer has 20.77 million square feet of forthcoming launches with a sale potential of INR 295.57 billion. The company has 361 acres of forthcoming and subsequent developable land bank. The company has a land bank of 181 acres in Bengaluru, followed by land banks in Gurgaon, Greater Noida, Kerala, and Tamil Nadu. The land development potential for the company is 36.94 million square feet.
Sobha had a gross debt of INR 11.10 billion at the end of June against which the company had a cash equivalent of INR 17.69 billion. The net debt of the company was (-)INR 6.59 billion, and its net debt-to-equity ratio was (-)0.14 at the end of June.
The company spent INR 880 million on sales and marketing in the June quarter, up 79% on year. Its capex in the June quarter was INR 697 million, up 87% from INR 373 million in the year-ago quarter. Its net operational cash flow declined 21% on year to INR 3.12 billion. Sobha's land investment rose 31% on year to INR 3.70 billion from INR 2.81 billion. The net cash flow of the company after land purchases and financial outflow was (-)INR 1.49 billion compared with INR 568 million in the year-ago quarter. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Pankaj Aher
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