Sobha Q4 FY26: Full Year Sales ₹81.36 Bn, Strong Operational Performance

Record FY26 Performance Caps Strong Year for Sobha

Sobha Ltd reported record annual sales of ₹81.36 billion for FY26, marking a 30% increase year-on-year. The company announced the results on May 5, 2026, during an investor call, capping a year of sustained expansion across its core markets and into new territories.

Quarterly and Annual Financial Highlights

The developer reported a 125 per cent increase in net profit to Rs 91.83 crore in Q4 FY26, compared to Rs 40.4 crore during the same period the previous year, while revenues rose by 59.8 per cent year-on-year to Rs 2,300 crore. Q4 FY26 sales value reached Rs 2,039 crore.

Full-year PAT surged 104% to ₹1.93 Bn from ₹0.95 Bn in FY25. Total collections for FY26 reached Rs 7,798 crore.

Balance Sheet Strength and Cash Generation

Sobha reported total operational cash inflow of ₹77.98 Bn for FY26, with net operational cashflow of ₹16.37 Bn, up from ₹11.74 Bn in FY25. The company's net debt reduced substantially to negative Rs 800 crore, resulting in a net debt-to-equity ratio of -0.17.

The company's balance sheet strengthened considerably, with gross debt declining to ₹10.02 Bn as of March 31, 2026, against a cash balance of ₹18.02 Bn, resulting in a net-debt negative position.

Geographic and Market Performance

In FY 2026, Bangalore led the charge, registering a historic sales value of ₹44.78 billion, contributing 55% to the total sales. The NCR region followed with a sales value of ₹24.55 billion, contributing 30%. Kerala contributed ₹8.08 billion to total sales, supported by new towers launched in Marina One, Cochin, and a new project in Trivandrum.

Expansion Strategy and Unit Completions

The company achieved a new sales area of 5.54 million square feet at an average realisation of ₹14,675 per square foot. The average realisation improved by 9% over FY25 to ₹14,675 per square foot.

Sobha launched two new residential projects in Greater Noida and one serviced residences project in Gurgaon during the year. The company extended its real estate presence to Greater Noida and Mumbai, launching 6.01 million square feet of saleable area across nine projects in six cities in FY26. Sobha completed 3,188 homes, amounting to 5.40 million square feet of saleable area across multiple projects.

Q4 Launch Activity

Notable Q4 launches included Sobha Woods Whispering Hill in Trivandrum, Sobha Altair in East Bangalore, and Sobha Rivana in Greater Noida.

Shareholder Returns

Sobha's board has recommended a dividend of Rs 6 per fully paid-up equity share of face value Rs 10 each, along with a pro-rata dividend on partly paid-up equity shares for the quarter.

Operational Model and Market Context

The company operates a vertically integrated model, aiming for enhanced control over costs and quality. The growth was fuelled by demand for premium housing backed by its brand presence across key Indian markets. Despite global uncertainties, India's residential real estate sector remained resilient, supported by robust domestic consumption and a stable home-buying environment.