Sobha Q2 profit falls 55% to about ₹33 crore as revenue declines

Bengaluru-based Sobha Limited reported a 54.5% year-on-year fall in consolidated net profit to ₹32.96 crore for the September 2026 quarter, in results filed with the Bombay Stock Exchange on Monday, 19 October 2026. Revenue from operations declined 31.3% to ₹967.06 crore from ₹1,407.66 crore in the year-earlier quarter.

Total income for the quarter was ₹1,017.21 crore, down from ₹1,469.32 crore a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) were ₹68.73 crore. The company reported an EBITDA margin of 7.1%.

Bookings rose in the first half

The decline in quarterly revenue and profit came alongside higher sales bookings. Sobha’s first-half sales bookings reached a record ₹5,862.4 crore, up 47% from ₹3,981.4 crore in the same period last year. The company said this was close to 59% of its full-year bookings guidance of ₹10,000 crore.

Second-quarter bookings increased 16% to ₹2,206.3 crore. Sobha sold 1.42 million sq ft across 828 units during the quarter. For the six months to September, sales volume rose 32.4% to 3.76 million sq ft from 2.84 million sq ft a year earlier. The company sold 2,260 units over the first half.

First-half net profit was ₹83.80 crore, compared with ₹86.14 crore in the year-earlier period. Collections reached a record ₹4,009 crore, up 4.8% year on year. Bengaluru contributed 57.7% of the company’s first-half sales. Sobha launched 7.92 million sq ft of saleable area across five projects in Bengaluru, Gurugram and Calicut during the period; two launches in Mysuru and Kozhikode took place in the September quarter.

Revenue conversion remains a focus

The results show a difference between the increase in bookings and the fall in quarterly revenue and profit. Bookings measure sales made during the period, while revenue is recognised as projects progress under accounting rules. The timing of that recognition can affect reported financial results, so investors will watch whether the strong sales translate into higher recognised revenue in coming quarters.

Managing Director Jagadish Nangineni attributed the first-half performance to customer trust, the brand and project execution, and said the company was focused on new launches. Sobha has a pipeline of forthcoming launches spanning 20.42 million sq ft, with an estimated sales potential of ₹31,353 crore. It expects to recognise ₹22,041 crore in revenue from units already sold.

Separately, the board approved the acquisition of Sobha Projects and Trade Private Limited’s fire and safety division for ₹12.7 crore. The company said the related-party transaction would be on arm’s-length terms and is expected to be completed within three months. Sobha shares closed 1.04% lower at ₹1,176 on Monday. The pace of revenue recognition against bookings, alongside progress towards the full-year guidance, will be key figures to track in the coming quarters.