Sobha Reports 9M FY26 PAT Growth of 89% YoY to ₹102 Crore
Sobha Reports Strong 89% Profit Growth in 9M FY26 Amid Operational Headwinds
Sobha reported a profit after tax (PAT) of ₹102 crore in the first nine months of FY26, marking a robust 89 per cent year-on-year growth over 9M FY25. The result, announced on 16 January 2026, reflects a sharp recovery in profitability even as the December quarter faced short-term operational delays.
Sales Hit All-Time High
Real estate sales reached an all-time high of ₹6,097 crore in the first nine months of FY26. In Q3 alone, Sobha reported its highest-ever sales value at ₹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 ₹15,436 per square foot.
Collections Momentum and Balance Sheet Strength
Collections rose sharply to ₹5,809 crore in 9M FY26, registering a 32 per cent growth compared with the same period last year. Net debt continued to decline and stood at a negative ₹792 crore, translating into a net debt-to-equity ratio of -0.17. This cash generation underscores the strength of Sobha's balance sheet and its ability to fund expansion without external leverage.
Quarterly Profit Decline and Occupancy Certificate Delays
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. Procedural delays in securing occupancy certificates (OCs) have temporarily moderated quarterly profitability, with management remaining confident of accelerating project completions going forward.
Delivery Momentum and Execution Model
The company completed 915 homes in Q3, taking cumulative deliveries for the first nine months to 2,100 homes. Sobha noted that the manufacturing and contracting businesses continued to perform steadily, strengthening the backward-integrated execution model that ensures quality and timely delivery.
Mumbai Entry and Geographic Expansion
A significant milestone this period was Sobha's entry into the vibrant Mumbai market with the launch of Sobha Inizio, expanding the real estate presence to 13 cities across India. This marks the company's strategic move into India's largest metro after nearly three decades of operations anchored primarily in Bangalore, Chennai, Hyderabad, Pune, and Kerala.
Financial Outlook and Guidance
Sobha's balance sheet, with gross debt at a prudent ₹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.