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 key cities including Bangalore, NCR, and Mumbai.

• Expanded presence to 13 cities, with notable launches such as SOBHA Magnus in Bangalore and SOBHA Inizio in Mumbai; planning further launches in Gurgaon, Greater Noida, Chennai, and Calicut in Q4.

• 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.

• Project completions reached 2,100 homes (3.65 million sq ft) in nine months, targeting 5.2–5.3 million sq ft for the year, a 15–17% increase over last year.

• 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 operational inflow at INR 5,809 crores, up 32% year-on-year.

• Net operational cash flow for Q3 was INR 362 crores, up 78% year-on-year; nine-month net operational cash flow at INR 1,270 crores, surpassing FY 2025 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 (₹780 million); nine-month EBITDA at INR 309 crores (₹3,090 million), with a margin of 9.2%.

• Gross debt at quarter-end was INR 997 crores (₹9.97 Bn), with 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 annual sales of INR 8,500 crores, a 35% increase over last year, contingent on timely project launches in Q4.

• Expecting margin expansion as more revenue is recognized from higher-margin projects; margins for projects completing in next 12–15 months projected at 18–19%, and 34% for those beyond 15 months.

• Clear visibility of future cash flows: INR 9,000 crores from ongoing projects and INR 7,300 crores from forthcoming projects over the next several years.

• Growth visibility for 15–20% annual growth over the next two to three years, with Bangalore and NCR as key contributors.

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