Sobha reports strong Q2 FY26 with record collections and profit surge

Sobha Limited reported a 178% year-over-year increase in profit after tax to INR 0.73 bn and a 52% year-over-year increase in revenue to INR 14.69 bn for Q2 FY26. The company achieved its highest-ever cash flow performance, crossing INR 2,000 Crore with collections reaching INR 20.46 bn, a 49% year-over-year increase. Net debt continuously reduced to INR -7.51 bn, resulting in a net debt-to-equity ratio of -0.16.

Operational highlights include the highest-ever H1-FY26 sales value of INR 39,814 mn, a 30% growth over H1-FY25. Quarterly sales value reached INR 19.03 bn, with new area sold amounting to 1.39 mn sq. ft., a 50% year-over-year increase, and an average price realization of INR 13,648 per sq. ft.

In a separate filing, a monitoring agency report from ICRA Limited confirmed no deviation in the utilization of funds from the rights issue as of September 30, 2025. The total amount raised was INR 1,999.03 Crore, with INR 1,718.25 Crore utilized towards purposes such as repayment of borrowings, funding project-related expenses, and equipment purchases.