Sobha (SOBHA) Q2 25/26 earnings summary

Executive summary

• Achieved record H1 FY26 sales value of ₹39.81 bn (INR 3,981 crore), with 2.84 mn sq ft sold and 81.7% share attributed to the company; Bangalore contributed 48%, NCR 38%, and Kerala 10%.

• Q2 FY26 sales were INR 1,902 crore (770 homes), with Bangalore accounting for 70% despite no major new launches.

• Net cash position achieved, with net operational cashflow of ₹9.09 bn in H1 FY26 and net cashflow of ₹1.20 bn.

• Total revenue for H1 FY26 grew 44.9% year-over-year to ₹23.71 bn, with EBITDA of ₹2.31 bn (9.7% margin) and PAT of ₹0.86 bn (3.6% margin).

• Expansion into Greater Noida and increased presence in 12 cities, with 2.25 mn sq ft completed and 1.65 mn sq ft launched in H1 FY26.

Financial highlights

• Q2 total income was INR 1,469 crore; H1 total income was INR 2,371 crore, with consolidated revenue for Q2 at ₹14,076.16 million.

• Q2 EBITDA was INR 157 crore (10.7% margin); H1 EBITDA was INR 231 crore (9.7% margin); PAT for Q2 was INR 72.5 crore (4.9% margin), H1 PAT was INR 86 crore (3.6% margin).

• Operational cash inflow reached ₹38.24 bn in H1 FY26, up 31% year-over-year; net operational cashflow improved 79.6% year-over-year to ₹9.09 bn.

• Gross debt at ₹10.10 bn, net cash at ₹7.51 bn as of 30 Sep 2025; average interest cost at 8.25%.

• Net cash from operating activities for the half year was ₹2,906.33 million.

Outlook and guidance

• Targeting launches of 8–9 million sq ft in FY26 across 7–8 projects, with a strong residential pipeline of 15.96 million sq ft and commercial pipeline of 0.74 million sq ft.

• Guidance maintained at INR 8,500 crore pre-sales for FY26, with potential for upside if momentum continues.

• Inventory visibility of 26.98 mn sq ft and sales value of ₹395.05 bn, with 84.2% effective share in forthcoming projects.

• Management expects continued growth in real estate and contractual segments, supported by a robust project pipeline and strong demand.

• Margins expected to improve as higher-margin projects are completed, especially from next financial year.