Sobha Q3FY26 results: Net profit slips to ₹15 cr, revenue down 22%

Bengaluru-based realtor Sobha Limited reported a drop in net profit to Rs 15.42 crore in the quarter ended December 2025, compared to Rs 21.7 crore during the same period last year, while revenue fell by 21.7 per cent year on year to Rs 983.1 crore in the same period. While the drop in revenue was attributed to delays in securing occupancy certificates (OCs), a larger scale of unsold inventory in the December quarter of 2025 versus the year before was reflected in the hit to profits.

 

Despite the drop in key financials, Sobha reported its highest-ever sales value in Q3 FY26 at Rs 2,115 crore, up 52 per cent year on year and 11 per cent sequentially. The company sold 1.37 million square feet during the quarter, up 35 per cent from a year earlier, while average price realisation stood at Rs 15,436 per square foot.

 

Further, Sobha noted that the manufacturing and contracting businesses continued to perform steadily, strengthening the backward-integrated execution model that ensures quality and timely delivery.

 

“The first nine months of FY26 have been truly exceptional for Sobha, with our real estate sales reaching an all-time high of Rs 6,097 crore. This is a testament to the enduring trust of our customers and the dedication of our aligned teams across every function and business vertical,” said Jagadish Nangineni, managing director, Sobha.

 

“We are confident that this strong momentum will sustain, fuelled by our planned new project launches in a resilient Indian macroeconomic environment, even as we navigate heightened geopolitical volatility. A significant milestone this period was our entry into the vibrant Mumbai market with the launch of Sobha Inizio, expanding our real estate presence to 13 cities across India,” Nangineni added.

 

“In Q3, we completed 915 homes, taking cumulative deliveries for the first nine months to 2,100 homes. While procedural delays in securing occupancy certificates (OCs) have temporarily moderated quarterly profitability, we remain fully confident of accelerating project completions going forward, which will drive substantial improvements in our P&L performance,” Nangineni noted.

 

Sobha said its balance sheet, with gross debt at a prudent Rs 910 crore and a negative net debt position, places the company in a strong position to capitalise on emerging opportunities while effectively navigating the inherent cyclicality of the residential real estate sector.

 

On the full-year performance front, Sobha reported a profit after tax (PAT) of Rs 102 crore in the first nine months of FY26, marking a robust 89 per cent year-on-year growth over 9M FY25, with Rs 15 crore contributed in Q3 FY26. In addition, revenue for the period stood at Rs 3,353 crore, up 16 per cent year on year, of which Rs 983 crore was recorded in the third quarter.

 

Further, collections rose sharply to Rs 5,809 crore in 9M FY26, registering a 32 per cent growth compared with the same period last year, with Q3 FY26 accounting for Rs 1,985 crore. Meanwhile, net debt continued to decline and stood at a negative Rs 792 crore, translating into a net debt-to-equity ratio of -0.17.

 

Sobha Limited declared its results on Friday after market hours. Ahead of the results, its shares closed up 0.19 per cent at Rs 1,527.30 apiece on the BSE.