Sobha Limited has continued its upward trajectory in Q3 FY26, reporting record quarterly sales of Rs. 2,115 crore, a 52% increase compared to the same period last year and an 11% rise sequentially. The company sold 1.37 million sq. ft. during the quarter, a 35% increase year-on-year, with an average price realization of Rs. 15,436 per sq. ft.
The strong sales performance reflects growing demand across Sobha’s residential portfolio, with its expansion into the Mumbai market providing a fresh boost. The launch of Sobha Inizio in Mumbai marks the company’s entry into its 13th city, underlining its strategy to grow its national presence while tapping high-potential urban markets.
Financial Performance Strengthens
Sobha’s financial performance over the first nine months of FY26 demonstrates a combination of top-line growth and improving profitability. Net profit after tax (PAT) reached Rs. 1,020 crore, an 89% increase compared to the same period last year, with Rs. 150 crore contributed in Q3 FY26 alone. Revenue for the nine-month period rose 16% to Rs. 33,530 crore, supported by Rs. 9,830 crore generated in the quarter.
Collections were robust at Rs. 5,809 crore for the nine months, a 32% rise from FY25, with Rs. 1,985 crore collected in Q3. The company’s disciplined approach to debt management has resulted in a negative net debt of Rs. 792 crore, giving a net debt-to-equity ratio of -0.17. This positions Sobha with a strong balance sheet capable of funding growth and navigating market cyclicality.
Operational Highlights and Project Deliveries
Sobha’s operations continued smoothly, completing 915 homes in Q3 and delivering a total of 2,100 homes in the first nine months. The company’s integrated backward model, spanning manufacturing, contracting, and real estate development, continues to support timely project execution and maintain high quality standards.
While procedural delays in securing Occupancy Certificates (OCs) slightly moderated quarterly profitability, Sobha expects accelerated completions to improve margins going forward. The company remains confident that its operational momentum and expansion into new cities will continue to drive sustainable growth.
Strategic Expansion into Mumbai
The launch in Mumbai is a key milestone in Sobha’s growth strategy. Sobha Inizio adds a presence in one of India’s most competitive real estate markets, complementing its portfolio in 12 other cities. According to Sobha Managing Director Jagadish Nangineni, the entry into Mumbai is a natural extension of the company’s national expansion plan, aimed at capturing high-potential markets and meeting growing urban housing demand.
The company’s focus on large-scale project launches, coupled with its strong operational capabilities, positions it to capitalize on the resilient Indian macroeconomic environment despite geopolitical volatility.
Strong Balance Sheet Supports Future Growth
Sobha’s net debt position remains negative, with gross debt at a prudent Rs. 910 crore. This financial strength allows the company to fund new projects, expand into new markets, and manage the cyclical nature of real estate development efficiently. Combined with robust collections, disciplined cost management, and high-quality project execution, Sobha is well-equipped to maintain its growth trajectory.
With record Q3 sales, continued expansion into key markets, and a strong balance sheet, Sobha Limited has reinforced its position as a leading player in India’s residential real estate sector. Investors and homebuyers alike are keeping a close eye on the company as it scales operations, enhances profitability, and delivers on its expansion plans.
