Shares of Sobha declined in early trade on January 19, slipping 2.83% to Rs 1,484.10 on NSE, after the Bengaluru-based real estate developer reported a decline in its Q3 FY26 net profit and revenue, even as sales bookings hit a record high.
Q3 FY26 financial performance
Sobha reported a standalone net profit of Rs 15.42 crore for the quarter ended December 2025, compared with Rs 21.7 crore in the same period last year. This marked a noticeable year-on-year decline. Revenue from operations also fell sharply, coming in at Rs 983.1 crore, down 21.7% YoY.
The company attributed the drop in revenue largely to delays in securing occupancy certificates (OCs) and a higher level of unsold inventory during the December quarter compared with the previous year, which also weighed on profitability.
Record-high sales bookings in Q3
Despite the pressure on profits, Sobha reported its highest-ever quarterly sales value in Q3 FY26 at Rs 2,115 crore, registering a 52% year-on-year growth and an 11% sequential increase. During the quarter, the company sold 1.37 million square feet, up 35% YoY, while the average price realisation stood at Rs 15,436 per square foot.
Strong nine-month performance
For the first nine months of FY26, Sobha’s real estate sales reached an all-time high of Rs 6,097 crore, underlining strong demand momentum despite near-term execution challenges. The company also stated that its manufacturing and contracting businesses continued to perform steadily, supporting its backward-integrated execution model focused on quality and timely delivery.
Management commentary and expansion plans
Commenting on the performance, Managing Director Jagadish Nangineni said the first nine months of FY26 had been exceptional, reflecting sustained customer trust and execution strength across business verticals. He added that the company remains confident of maintaining momentum, supported by planned new project launches and a resilient domestic macro environment.
A key strategic development during the period was Sobha’s entry into the Mumbai market with the launch of Sobha Inizio, expanding its real estate footprint to 13 cities across India.
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