SOBHA Limited announced a strong Q2 FY26 performance, highlighted by real estate sales of INR1,902 crores and total collections of INR2,046 crores, a historic high. The company is focused on new project launches in the second half of the year and aims to complete 5.5 million square feet of projects in FY26. SOBHA ended the quarter with a net cash position of INR751 crores.
Financial Highlights
SOBHA Limited reported a robust financial performance for Q2 FY26:
- Real estate sales reached INR1,902 crores in Q2.
- Total collections hit a record high of INR2,046 crores.
- Net operational cash flow for H1 FY26 was INR909 crores, a 79.1% increase.
- The company closed the quarter with a net cash position of INR751 crores.
Operational Performance
The company highlighted key operational achievements:
- Real estate sales value for H1 FY26 was INR3,981 crores, a 30% increase compared to last year.
- 2.84 million square feet of sales across all operational markets at an average price realization of INR14,028 per square feet.
- Completed 1.18 million square feet (591 homes) during the quarter.
Future Outlook
SOBHA Limited outlined its plans for future growth:
- Aiming to launch 8 to 9 million square feet of projects in the second half of FY26.
- Launching Sobha Magnus in South Bangalore.
- Targeting overall completion of at least 5.5 million square feet in FY26.
- Existing inventory of approximately 10 million square feet with a potential sales value of INR13,000 crores.
Segmental Performance
Key contributions by region:
- Bangalore contributed 48% to overall sales.
- NCR contributed 38% to overall sales.
- Kerala contributed 10% to overall sales.
EBITDA and Margins
- EBITDA for Q2 FY26 was INR157 crores with a margin of 10.7%.
- EBITDA for H1 FY26 was INR231 crores with a margin of 9.7%.
- PAT recorded for Q2 was INR72.5 crores with a margin of 4.9%.
- PAT recorded for H1 was INR86 crores with a margin of 3.6%.
The company expects improved profitability with increased project completions and steady contributions from contractual and manufacturing operations, contributing approximately INR700 crores in revenue for the financial year.
Land Acquisition and Future Cash Flow
- Spent INR632 crores on land-related activity in H1 FY26.
- Visibility of future cash flow of INR22,867 crores from ongoing and forthcoming inventory.
- Marginal cash flow potential of close to INR9,800 crores at project level post sales and marketing spend.
- Expect to generate INR7,100 crores of marginal cash flow from forthcoming projects of 16.69 million square feet.
Source: BSE