Sobha Profit Plunges 29% Despite Record Sales Surge

REAL-ESTATE

Overview

Sobha Limited's Q3 FY26 profit dropped 29% to ₹15.4 crore, defying record sales value of ₹2,115 crore. Revenue and EBITDA also declined. Managing Director Jagadish Nangineni cited delays in obtaining Occupancy Certificates as the primary reason for the dip in profitability, expressing confidence in future project completions.

Profit Dips Amidst Sales Surge

Sobha Limited reported a significant 29% year-on-year decline in its net profit after tax (PAT) for the third quarter of fiscal year 2026, settling at ₹15.4 crore. This downturn occurred despite the real estate developer achieving its highest-ever Q3 sales value, which surged by 52% year-on-year to ₹2,115 crore.

Operational Metrics Signal Strength

Revenue for the quarter contracted by 23% to ₹943.1 crore, down from ₹1,224 crore in the prior year's corresponding period. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a substantial 42% fall to ₹38.9 crore. Consequently, profit margins narrowed to 4.12% from 5.51% a year ago. On the operational front, the company sold 1.37 million square feet, a 35% increase year-on-year, with average price realization at ₹15,436 per square foot.

Executive Cites OC Delays

Managing Director Jagadish Nangineni attributed the moderated quarterly profitability to procedural delays in securing Occupancy Certificates (OCs). He expressed optimism for the coming months, anticipating accelerated project completions and sustained business momentum. Sobha's shares closed down 1.12% on the NSE at ₹1,532 on January 16, 2026.

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