Sobha (SOBHA) Q3 25/26 earnings summary

Executive summary

• Achieved record real estate sales of INR 6,097 crores (₹60.97 Bn) in the first nine months of FY 2026, with Q3 sales at an all-time high of INR 2,115 crores (₹21.15 Bn), reflecting strong demand and successful new launches across multiple cities.

• Expanded presence to 13 cities, including first project launch in Mumbai, strong performance in Bangalore and NCR, and strategic expansion into new business verticals.

• Non-real estate businesses (manufacturing, contracting, retail) contributed INR 575 crores (₹5.71 Bn) in nine months, expected to reach INR 750 crores for the year.

• Backward integrated model supports in-house delivery, with 580+ completed projects and presence in 27 cities across 14 states.

• Recognized with multiple awards for CSR, leadership, and branding in Q3 FY26.

Financial highlights

• Q3 operational cash inflow was INR 1,985 crores, up 34% year-on-year; nine-month inflow at INR 5,809 crores, up 32% year-on-year.

• Net operational cash flow for Q3 was INR 362 crores, a 78% year-on-year increase; nine-month net operational cash flow at INR 1,270 crores, surpassing the previous full year.

• Q3 total income was INR 983 crores (₹9,831.03 million); nine-month total income at INR 3,354 crores (₹33,538.37 million).

• Q3 EBITDA was INR 78 crores; nine-month EBITDA at INR 309 crores (₹3.09 Bn, 9.2% margin), up 5.1% year-on-year.

• Gross debt at quarter-end was INR 997 crores (₹9.97 Bn), with a cash balance of INR 1,790 crores (₹17.90 Bn); net debt position turned negative in FY25 and remained so in 9M FY26.

Outlook and guidance

• Targeting FY 2026 sales of INR 8,500 crores, a 35% increase over last year, contingent on timely project launches in Q4.

• Expecting to launch 8.5 million sq ft in FY 2026, with major projects in Gurgaon, Greater Noida, Chennai, and Calicut.

• Project completions expected to reach 5.2-5.3 million sq ft for the year, a 15-17% increase over last year.

• Margins expected to improve as delayed revenue recognition (INR 500 crores) is realized in Q4 and as higher-margin projects are completed.

• Outlook upgraded to AA- Positive by Ind-RA; ICRA rating at AA- Stable.