Sobha Limited reports record Q2 collections, strong sales, and strategic growth plans

Sobha Limited announced a strong Q2 FY '26 performance, achieving a historic high in quarterly collections of INR2,046 crores from all businesses, surpassing the INR2,000 crore milestone for the first time. Real estate contributed INR1,846 crores to this total. For the first half of FY '26, total collections reached INR3,824 crores, reflecting a 30.9% growth over H1 FY '25. The company generated INR513 crores in net operational cash flow for the quarter, and INR909 crores for H1, a 79.1% increase, enabling further investment in growth. A net cash flow of INR63.5 crores was recorded for Q2, closing the quarter with a net cash position of INR751 crores.

During Q2, Sobha achieved real estate sales of INR1,902 crores, comprising 770 homes, with Bangalore contributing 70% despite no significant new project launches. H1 FY '26 real estate sales value totaled INR3,981 crores, a 30% increase year-on-year. The company aims to launch 8-9 million square feet across 7-8 projects in the second half of the financial year, including Sobha Magnus in South Bangalore. Total inventory stands at approximately 10 million square feet with a potential sales value of INR13,000 crores. Total balance revenue to be recognized from already sold units as of September 30, 2025, is close to INR18,000 crores.

The company completed 1.18 million square feet (591 homes) in Q2, with a target of 5.5 million square feet for the full financial year. Despite increased input costs, Sobha maintains profitability through its backward-integrated model, real-time cost monitoring, and strategic pricing. EBITDA for Q2 was INR157 crores (10.7% margin), and for H1, INR231 crores (9.7% margin). PAT for Q2 was INR72.5 crores (4.9% margin), and for H1, INR86 crores (3.6% margin). A provision of INR27 crores was made in Q2 for ground rent from Bangalore authority.