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Procedural delays weigh on quarterly earnings even as demand, cash flows remain robust.

Sobha’s Q3 FY26 Profit Declines 28.9% Despite Robust Sales Growth

Bengaluru-based real estate developer Sobha reported a 28.87 per cent fall in net consolidated profit for the quarter ending 31 December 2025. Profit after tax decreased to ₹15.42 crore in Q3 FY26 from ₹21.68 crore a year earlier, according to a BSE filing. Net consolidated income declined 21.78 per cent year-on-year to ₹983.10 crore. Despite the profit decrease, operational and sales performance remained strong. Sales value rose 52 per cent year-on-year to ₹2,115 crore, while area sold increased 35 per cent to 1.37 million sq ft, with an average realisation of ₹15,436 per sq ft. Collections during the quarter reached ₹1,985 crore. Managing Director Jagadish Nangineni attributed the margin pressure to procedural delays in securing occupancy certificates, expressing confidence in improved profitability going forward. For the first nine months of FY26, Sobha’s net profit grew 89 per cent to ₹102 crore. The company also reported negative net debt of ₹1,792 crore, highlighting a robust balance sheet.