- Home
- Results news
- Sobha
- Q2 FY27 results
Sobha Q2 FY27 results: net profit down 54.6% to ₹32.96 crore, revenue down 31.3%
Sobha Limited reported consolidated Q2 FY27 revenue of ₹967.06 crore, EBITDA of ₹68.73 crore and a net profit of ₹32.96 crore. Revenue and profit were lower than both Q2 FY26 and Q1 FY27, while EBITDA margin rose to 7.1%. On a standalone basis, revenue was ₹909.68 crore and profit after tax was ₹20.71 crore.
Key points
- Consolidated Q2 FY27 revenue was ₹967.06 crore, down 31.3% from Q2 FY26 and 24.3% from Q1 FY27.
- EBITDA was ₹68.73 crore, with a margin of 7.1%, up 0.3 percentage points year on year and 1.0 percentage points sequentially.
- Net profit was ₹32.96 crore, down 54.6% from Q2 FY26 and 35.2% from Q1 FY27; basic EPS was ₹3.08.
- H1 FY27 revenue was ₹2,245.22 crore and profit after tax was ₹83.81 crore, compared with ₹2,259.55 crore and ₹86.14 crore in H1 FY26.
- Sobha reported a net cash position of ₹322 crore on 30 September 2026, with gross debt of ₹15.05 billion.
How did Sobha perform in Q2 FY27?
Sobha reported consolidated revenue of ₹967.06 crore for Q2 FY27, down 31.3% from ₹1,408 crore in Q2 FY26 and 24.3% from ₹1,278 crore in Q1 FY27. EBITDA fell to ₹68.73 crore from ₹95.64 crore and ₹77.72 crore, respectively, while the margin increased to 7.1% from 6.8% and 6.1%.
Profit before tax was ₹47.13 crore, down 52.4% from Q2 FY26 and 32.0% from Q1 FY27. Net profit was ₹32.96 crore, down 54.6% and 35.2% against those quarters, while basic EPS was ₹3.08. On a standalone basis, revenue was ₹909.68 crore, down 38.7% year on year, and profit after tax was ₹20.71 crore.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 967.06 | 1,278 | 1,408 | −31.3% | −24.3% |
| Other income | 50.15 | 52.02 | 61.71 | −18.7% | −3.6% |
| Total expenses | 970.09 | 1,261 | 1,370 | −29.2% | −23.1% |
| EBITDA | 68.73 | 77.72 | 95.64 | −28.1% | −11.6% |
| EBITDA margin | 7.1% | 6.1% | 6.8% | +0.3 pp | +1.0 pp |
| Profit before tax | 47.13 | 69.26 | 98.92 | −52.4% | −32.0% |
| Tax | 14.02 | 18.28 | 26.40 | −46.9% | −23.3% |
| Net profit | 32.96 | 50.85 | 72.53 | −54.6% | −35.2% |
| EPS (₹) | 3.08 | 4.75 | 6.78 | −54.6% | −35.2% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Sobha's costs and profit?
Total expenses fell to ₹970.09 crore in Q2 FY27 from ₹1,370 crore in Q2 FY26, while other income declined to ₹50.15 crore from ₹61.71 crore. Cost of materials decreased by ₹2.14 crore, but employee cost rose by ₹13.73 crore, finance costs by ₹7.91 crore and depreciation by ₹5.40 crore. Other expenses declined by ₹216.58 crore.
There was no exceptional item in either Q2 FY27 or Q2 FY26. Tax was ₹14.02 crore, down ₹12.38 crore from Q2 FY26, but the lower profit before tax meant that net profit fell by ₹39.57 crore to ₹32.96 crore. The filing did not state a reason for the year-on-year decline in revenue or profit.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 99.02 | 101.16 | −2.14 | −2.1% |
| Employee cost | 141.69 | 127.96 | +13.73 | +10.7% |
| Finance costs | 40.14 | 32.23 | +7.91 | +24.5% |
| Depreciation | 31.61 | 26.21 | +5.40 | +20.6% |
| Other expenses | 1,030 | 1,247 | −216.58 | −17.4% |
| Total expenses | 970.09 | 1,370 | −400.31 | −29.2% |
| Other income | 50.15 | 61.71 | −11.56 | −18.7% |
| Tax | 14.02 | 26.40 | −12.38 | −46.9% |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
In H1 FY27, Sobha reported revenue of ₹2,245.22 crore, down 0.6% from ₹2,259.55 crore in H1 FY26. Total income declined by 1.0% to ₹2,347.39 crore, while profit before tax was ₹116.39 crore, down 1.0% from ₹117.57 crore.
Profit after tax for the first half was ₹83.81 crore, down 2.7% from ₹86.14 crore, and basic EPS declined to ₹7.83 from ₹8.06. The investor presentation separately showed H1 real estate sales of ₹58.62 billion and EBITDA of ₹2.48 billion.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 2,245 | 2,260 | −0.6% |
| Profit before tax | 116.39 | 117.57 | −1.0% |
| Net profit | 83.81 | 86.14 | −2.7% |
| EPS (₹) | 7.83 | 8.06 | −2.9% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2026, total assets were ₹21,133.35 crore, compared with ₹19,517.81 crore at 31 March 2026. Total equity was ₹4,735.55 crore, borrowings were ₹1,505.19 crore and cash was ₹141.35 crore, against ₹4,719.93 crore, ₹1,002.31 crore and ₹174.36 crore, respectively.
H1 FY27 operating cash flow was negative ₹342.12 crore, compared with ₹290.63 crore in H1 FY26. Investing cash flow was negative ₹58.26 crore against negative ₹72.47 crore, while financing cash flow was ₹367.65 crore against negative ₹209.09 crore; capital expenditure was ₹146.37 crore compared with ₹93.33 crore.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 21,133 | 19,518 |
| Total equity | 4,736 | 4,720 |
| Borrowings | 1,505 | 1,002 |
| Cash and equivalents | 141.35 | 174.36 |
| Inventories | 14,070 | 12,826 |
| Trade receivables | 261.43 | 276.82 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | −342.12 | 290.63 |
| Cash from investing | −58.26 | −72.47 |
| Cash from financing | 367.65 | −209.09 |
| Capital expenditure | 146.37 | 93.33 |
Source: Company's results filing (XBRL).
How has Sobha done over the last 8 quarters?
Revenue reached ₹1,987.84 crore in Q4 FY26 before falling to ₹1,278.15 crore in Q1 FY27 and ₹967.06 crore in Q2 FY27. Profit followed the same direction, declining from ₹91.83 crore to ₹50.85 crore and then ₹32.96 crore.
The EBITDA margin reached 7.7% in Q4 FY26, fell to 6.1% in Q1 FY27 and rose to 7.1% in Q2 FY27. Across the earlier period shown, revenue was lowest at ₹851.93 crore in Q1 FY26, while profit was lowest at ₹13.62 crore in the same quarter.
Which businesses drove the quarter?
Real Estate revenue was ₹742.68 crore, down 38.1% from ₹1,199.03 crore in Q2 FY26. Segment EBIT was ₹107.52 crore, compared with ₹134.57 crore, and the reported EBIT margin was 14.5%.
Contractual and manufacturing revenue was ₹290.3 crore, up 6.6% from ₹272.32 crore in the year-ago quarter. EBIT was ₹55.51 crore against ₹31.64 crore, with a reported EBIT margin of 19.1%. Unallocable finance and other income contributed EBIT of ₹22.0 crore, while the share of loss in equity-accounted investees was ₹0.15 crore.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| Real Estate | 742.68 | −38.1% | 107.52 | 14.5% |
| Contractual and manufacturing | 290.30 | +6.6% | 55.51 | 19.1% |
| Unallocable finance and other income | 0 | 22 | ||
| Share of loss in equity accounted investees (Net) | 0 | −0.15 |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
Alongside the results, Sobha filed its Q2 FY27 investor presentation. The board also approved the acquisition of the fire and safety division of Sobha Projects and Trade Private Limited on a slump-sale basis as a going concern, including assets, liabilities, employees, contracts, licences, permits and approvals. The audit committee approved it as a related-party transaction on an “as is where is” and arm’s-length basis.
The Rights Issue Committee approved a final reminder-cum-forfeiture notice for 20,857 partly paid rights equity shares. Holders were asked to pay ₹825.50 per share from 10 November 2026 to 24 November 2026; failure to pay would make the partly paid shares, including the amount already paid, liable to forfeiture.
What did the auditors point out?
Walker Chandiok & Co LLP reported that nothing had come to its attention that caused it to believe the standalone statement did not disclose the information required under Regulation 33 of the Listing Regulations or contained any material misstatement. It did not express an audit opinion because the review was substantially less in scope than an audit.
The auditors drew attention to regulatory proceedings involving provisional attachment of land parcels with a value of ₹2,016.05 million. They said the outcome and recoverability of the land advance were presently uncertain, but their conclusion was not modified. They also noted income-tax demand orders for which the company had filed appeals, and said no adjustments were required to the statement.
What did Sobha's management say?
Management planned FY27 deliveries of about 6 million sq ft, including about 3.5 million sq ft in H2, and expected a zero-net-debt or net-cash position throughout FY27. It identified launch timing, interest rates, geopolitical and macroeconomic uncertainty, legacy low-margin projects, and the timing of completions and revenue recognition as risks.
Management said the effect of higher-margin projects would start showing over the next two quarters. On the earnings call, it also discussed sustained sales after recent launches, the premium sales mix and greater visibility from unsold inventory, while noting that approvals, readiness and external economic conditions could affect launch and demand plans.
How did Sobha shares react?
After the filing appeared after market hours, the stock was down 0.7% after five minutes, 1.4% after 15 minutes and 2.1% after 30 minutes. It closed the first tradable session up 1.3% from the pre-results close; by the next day’s close, it was up 1.4%, and by five sessions, it was down 1.9%.
The Residential Commercial Projects median fell 2.6% on the reaction day, 3.2% by the next day and 3.3% over five sessions. Sobha therefore outperformed the industry median by 3.9 percentage points on the reaction day, 4.7 percentage points by the next day and 1.4 percentage points over five sessions. Earlier reaction-day moves included declines of 0.6% on 20 July 2026 and 3.1% on 16 January 2026.
| After the filing | Stock | Residential Commercial Projects median |
|---|---|---|
| 5 minutes | −0.7% | |
| 15 minutes | −1.4% | |
| 30 minutes | −2.1% | |
| Reaction day | +1.3% | −2.6% |
| Next day | +1.4% | −3.2% |
| 5 days | −1.9% | −3.3% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 20 July 2026 | −0.6% |
| 4 May 2026 | −0.7% |
| 16 January 2026 | −3.1% |
| 25 July 2025 | −2.5% |
| 29 May 2025 | +2.4% |
| 6 February 2025 | −1.8% |
| 14 November 2024 | −1.1% |
| 8 August 2024 | +0.8% |
Source: MarketPing price-reaction measurement.
How did other Residential Commercial Projects companies do?
Thirty-five other Residential Commercial Projects companies had filed results for the quarter as of 4 November 2026. Their median revenue growth was 27.1%, compared with Sobha’s year-on-year revenue decline of 31.3%.
Four peers grew revenue more slowly than Sobha, while 31 grew faster than Sobha. Of the 35 peers whose profit was compared, 21 reported higher profit.
| Sobha revenue growth (YoY) | −31.3% |
|---|---|
| Median of 35 other Residential Commercial Projects companies | +27.1% |
| Companies with slower revenue growth than Sobha | 4 of 35 |
| Companies with faster revenue growth than Sobha | 31 of 35 |
| Companies whose net profit rose | 21 of 35 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Sobha's revenue in Q2 FY27?
Revenue from operations was ₹967.06 crore, down 31.3% from ₹1,408 crore in Q2 FY26 (consolidated).
Did Sobha make a profit in Q2 FY27?
Yes. Net profit was ₹32.96 crore, against a net profit of ₹72.53 crore in Q2 FY26.
What was Sobha's EPS in Q2 FY27?
Basic earnings per share were ₹3.08, against ₹6.78 in Q2 FY26.
How did Sobha shares react to the Q2 FY27 results?
On the reaction day the stock moved +1.3% from the previous close; the median Residential Commercial Projects stock moved −2.6%.
When did Sobha announce its Q2 FY27 results?
On 19 October 2026, in a filing to the BSE.
Sources
- Board Meeting Intimation for The Quarter And Half Year Ended September 30, 2026 To Be Held On October 19, 2026, Inter Alia, To Consider And Approve Unaudited Standalone And Consolidated Financial Results Of The Company. (BSE, 12 October 2026) · PDF
- Board Meeting Outcome for Outcome Of Board Meeting Held On October 19, 2026 (BSE, 19 October 2026) · PDF
- The earnings call (26 October 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
This is information, not investment advice. MarketPing does not recommend buying or selling any security.