Sobha Reports ₹13.61 Crore Net Profit in Q1 FY26 on Record Sales Growth

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Sobha Limited posted a consolidated net profit of ₹13.61 crore for the first quarter of the financial year 2025–26, marking a significant increase from ₹6.05 crore in the same period last year. The company also reported a 34.6 percent year-on-year rise in total income, which reached ₹901.40 crore, compared to ₹669.85 crore in the first quarter of FY25.

The strong quarterly results were backed by record-breaking real estate sales and improved demand for premium residential projects. During the quarter, Sobha achieved its highest-ever quarterly sales bookings amounting to ₹2,079 crore, reflecting an 11 percent increase over the corresponding period last year. The company sold 1.44 million square feet of real estate space, up by 23 percent year-on-year.

Sobha also launched 1.62 million square feet of salable area during the quarter. The average price realisation for the projects stood at ₹14,395 per square foot. The total collections from customers during the period amounted to ₹1,778 crore, registering a 15 percent increase over the previous year.

Managing Director Jagadish Nangineni stated that the company delivered its best-ever quarterly performance in terms of sales. He attributed the growth to increased demand for quality housing and improved market conditions. He also noted that Sobha’s backward-integrated model and strong execution capability played a major role in the company’s success.

In terms of financial strength, Sobha reported a net debt of negative ₹687 crore as of June 30, 2025, resulting in a net debt-to-equity ratio of –0.15. This reflects a surplus cash position and improved financial stability. The company expects continued momentum in upcoming quarters as it focuses on scaling up launches and strengthening its project pipeline.

Market analysts see this performance as a positive indicator for Sobha’s growth trajectory. With regulatory bottlenecks easing and homebuyer sentiment remaining strong, the real estate company is expected to maintain its upward trend in sales and profitability.

Sobha shares closed marginally lower at ₹1,612.65 on the BSE following the earnings announcement, but analysts remain optimistic about its long-term outlook given its strong fundamentals and ongoing demand for premium housing.