Sobha (SOBHA) Q2 25/26 earnings summary

Executive summary

• Achieved record H1 FY26 sales value of INR 3,981 crore (₹39.81 bn), up 30% year-over-year, with Bangalore, NCR, and Kerala as key contributors and 2.84 mn sq ft sold.

• Q2 FY26 sales were INR 1,902 crore (770 homes), with Bangalore accounting for 70% despite no major new launches; expansion into Greater Noida and presence in 12 cities.

• Consolidated revenue for Q2 FY26 was INR 1,407.62 crore (₹14,076.16 million), up from INR 933.59 crore (₹9,335.89 million) in Q2 FY25; H1 total income was INR 2,371 crore (₹23,707.34 million).

• Net cash position achieved, with net operational cash flow of INR 909 crore (₹9.09 bn) and net cash flow of INR 120 crore (₹1.20 bn) in H1 FY26.

• Upgraded credit rating to AA- Positive by Ind-RA and ICRA at AA- Stable; received multiple awards including Forbes India Developers Award.

Financial highlights

• Q2 EBITDA was INR 157 crore (margin 10.7%); H1 EBITDA was INR 231 crore (margin 9.7%).

• Q2 PAT was INR 72.5 crore (margin 4.9%); H1 PAT was INR 86 crore (margin 3.6%).

• Real estate revenue rose 50.3% year-over-year to ₹18.89 bn; contractual & manufacturing revenue at ₹3.71 bn.

• Operational cash inflow reached ₹38.24 bn in H1 FY26, up 31% year-over-year; net operational cash flow 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%.

Outlook and guidance

• Targeting launches of 8–9 million sq ft in FY26 across 7–8 projects; strong pipeline of 15.96–16.69 million sq ft residential and 0.74 million sq ft commercial.

• Guidance for FY26 pre-sales remains at INR 8,500 crore, with potential 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.

• Expecting improved margins as higher-margin projects complete in FY27; project-level gross margins currently over 20%, aiming for 30% next year.

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