Sobha Q4 FY26 Results: Net Profit Surges 104% YoY to ₹1.93 Bn
Record Profitability and Sales Growth Drive Sobha's FY26 Performance
Sobha Limited's full-year profit after tax surged 104% to ₹1.93 Bn from ₹0.95 Bn in FY25, marking the strongest earnings expansion in the developer's recent history. Q4 net profit rose to ₹918 Mn from ₹408.6 Mn in Q4 of the previous year, demonstrating momentum sustained through the fiscal year-end quarter.
The profit expansion reflected broad operational gains. Q4 revenue reached ₹19.88 Bn with record real estate sales of ₹81.36 Bn and a net-debt negative balance sheet. FY26 EBITDA improved to ₹5.03 Bn from ₹4.18 Bn in FY25, while PBT margin expanded to 4.8% from 3.2% year-on-year.
Record Real Estate Sales Across Operating Markets
Sobha achieved record real estate sales of ₹81.36 Bn in FY26, with a saleable area of 5.54 Mn sft across its operating markets. The developer reported sales value growth of 30 per cent YoY to Rs 8,135 crore in FY26, up from Rs 6,276 crore in FY25, with Q4 FY26 sales value at Rs 2,039 crore.
Bangalore remained the company's primary engine, registering its best-ever sales value of ₹44.78 billion, contributing 55% to the total annual sales. NCR (National Capital Region) contributed ₹24.55 billion (30%), supported by new launches in Greater Noida and Gurgaon. Kerala contributed ₹8.08 billion (10%), bolstered by expansion in Cochin and a new launch in Trivandrum.
The company expanded its geographical footprint during the year. Sobha launched 6.04 Mn sft across 9 projects in 6 cities during FY26, and expanded its operating footprint to 13 real estate cities across 8 states, including new entries in Greater Noida and Mumbai.
Execution Momentum and Collections
On the completions front, Sobha delivered 5.40 Mn sft comprising 3,188 homes across 39 towers, 58 row houses and villas in FY26. In Q4 alone, completions totalled 1,757,199 sft across 1,087 units.
Collections for Q4 FY26 stood at Rs 1,989 crore, registering an 11 per cent quarter-on-quarter (Q-o-Q) growth and a 26 per cent YoY increase. Total collections for FY26 reached Rs 7,798 crore.
Balance Sheet Strengthened to Net-Debt Negative Position
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.
Sobha's credit rating outlook was upgraded to AA- Positive by Ind-RA, with ICRA maintaining its rating at AA- Stable.
Shareholder Returns and Valuation Improvements
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. The significant improvement in PAT margin from 2.3% in FY25 to 3.6% in FY26 reflects enhanced operational leverage and disciplined cost management across the business.
Developer Context: Three Decades of Execution
Sobha Limited was founded on 7 August 1995 by P. N. C. Menon. The 148 million sqft delivered and zero-abandonment track record over 30 years places Sobha in the absolute top tier of Indian developers on execution reliability. Sobha has a zero-abandonment track record across 600+ projects in 30 years and 148 million sqft delivered.
It remains the only backward-integrated real estate company in India – managing everything from design to manufacturing, construction, and delivery under one roof. The company's contractual and manufacturing arm services a broader 27-city footprint across 14 states, executing EPC work for clients including Infosys, Wipro, HCL, Bosch, Dell, Biocon, ITC and the Taj Group of Hotels.