Sobha share price rallies 9.5% after strong Q4 as profit doubles, sales hit record levels

Shares of Sobha Ltd rallied 9.5% on Monday after the real estate developer reported a strong set of numbers for the March quarter, led by higher income and improved operational performance. The company posted a consolidated net profit of ₹91.83 crore, marking a sharp jump of around 124% compared to ₹40.85 crore in the year-ago period.

Revenue for the quarter rose 60.2% year-on-year to ₹1,908 crore from ₹1,215 crore earlier, reflecting strong demand and execution across key markets. Operationally, EBITDA increased 62% to ₹152 crore from ₹94 crore a year ago, while EBITDA margin remained stable at 8% on a year-on-year basis.

The company also recommended a dividend of ₹6 per equity share of face value ₹10 for FY26, along with a pro-rata dividend on partly paid-up shares, subject to shareholder approval at the upcoming AGM. Additionally, the board approved the re-appointment of Jagadish Nangineni as Managing Director and Raman Mangalorkar as Non-executive Independent Director for further five-year terms starting April 1, 2027, subject to necessary approvals.

Other Q4 Highlighhts

The company reported record sales bookings of ₹8,136 crore in FY26, with its own share at ₹6,706 crore. Bengaluru remained the largest contributor, accounting for ₹4,478 crore or 55% of total sales, while the NCR region contributed ₹2,455 crore, supported by expansion into Greater Noida and new launches in Gurgaon.

On the cost side, project outflows rose 18% to ₹3,083 crore, while sales and marketing expenses increased sharply by 84% to ₹303 crore, indicating higher spending to drive growth. Despite this, the company maintained healthy cash flows, with net operational cash flow at ₹1,637 crore. Land investments grew 23% to ₹1,160 crore, while net cash generation stood at ₹169 crore, marking consistent positive cash flows over the past six years.

For the full financial year FY26, Sobha’s net profit doubled to ₹193.40 crore from ₹94.68 crore in the previous year. Total revenue rose 29.3% year-on-year to ₹5,384 crore, led by the real estate segment, which contributed ₹4,420 crore, up 30.8%. The contracts and manufacturing segment added ₹771 crore to the topline.

Sobha Stock Performance

The stock added as much as 9.5% to its day's high of ₹1,575.50 on BSE today.

The realty stock is now just 9% away from its 52-week high of ₹1,732.45, hit in July 2025. Meanwhile, it touched its 52-week low of ₹1,131.10 in April 2026.

It has jumped 29% in the last 1 month but has shed 8% in 6 months. Moreover, in the past 1 year, the stock has advanced by over 12%.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.