Sobha Q1 Results: Revenue rises 50%, profit more than triples as margins improve

Real estate developer Sobha Ltd. reported a strong set of earnings for the quarter ended June 2026 today, post-market hours, led by robust execution in its real estate business.

Consolidated revenue from operations surged 50% year-on-year to ₹1,278.2 crore from ₹851.9 crore in the corresponding quarter last year. However, revenue declined 35.7% sequentially from ₹1,987.8 crore recorded in the March quarter, reflecting the seasonality typically seen in the business.

The company's profitability improved sharply during the quarter. Net profit more than tripled to ₹50.8 crore, registering a 273% year-over-year growth from ₹13.6 crore in Q1 FY26. On a sequential basis, however, profit declined 44.6% from ₹91.8 crore reported in Q4 FY26.

The improvement in earnings was supported by healthy operating performance.

The company's real estate segment continued to remain the key growth driver, with segment revenue increasing to ₹1,109.8 crore from ₹689.7 crore a year ago, while the contractual and manufacturing business contributed ₹232.9 crore during the quarter.

On the operating front, the EBITDA jumped to ₹77.6 crore from ₹23.7 crore in the same period last year, while margins have expanded by 330 basis points YoY to 10.1%, indicating better operating efficiency despite softer sequential revenues, as per the company's regulatory filing.

Overall, the June quarter reflected strong year-on-year growth in Sobha's core business, with healthy revenue expansion, a sharp rise in profitability, and improved operating margins, even as performance moderated sequentially after a stronger March quarter.

Alongside its Q1 results, the board approved raising up to ₹1,000 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis in one or more tranches.

Shares remain volatile

The company's shares have remained volatile in recent months, ending most trading sessions in the red and eroding significant shareholder value. However, the stock's long-term performance remains intact.

From the November high of ₹1,732 apiece, the stock has declined 16%, and this correction has left it trading 33% below its all-time high of ₹2,155. Looking at the broader picture, however, the stock is still up 169% over the last three years and 141% over the past five years.

From its 2020 low of ₹117 apiece, the stock has delivered a staggering return of 1,150%, emerging as one of the biggest wealth creators in the Indian stock market.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.