Real estate developer Sobha Ltd reported a strong start to fiscal year 2026, with a consolidated net profit of ₹13.61 crore in the quarter ended June 2025—more than double the ₹6.05 crore posted during the same period last year.
Financial Highlights
- Net Profit: ₹13.61 crore, up from ₹6.05 crore year-on-year
- Total Income: ₹901.40 crore, up around 34 percent from ₹669.85 crore in Q1 FY25
Operational Momentum
Sobha achieved its highest-ever quarterly real estate sales during the period, propelled by strong demand across its core markets. A key milestone was the launch of its first project in Greater Noida, signaling strategic geographic expansion.
Growth Drivers
The profit growth reflects sustained demand for premium apartments with modern amenities, as well as Sobha’s disciplined pricing strategy. The 33 percent rise in revenue points to both pricing power and faster sales cycles.
Industry analysts observe a continuing post-pandemic trend where homebuyers prefer larger, well-appointed residences. With regulatory delays easing post-elections, many believe FY26 could be a turnaround year for Sobha and other listed developers.
Strategic Moves and Outlook
Sobha’s board approved an investment in renewable energy via a captive consumption model. The company will acquire a 26 percent stake in Altilium Solar 1 Pvt Ltd, a special purpose vehicle (SPV) for solar energy procurement. The remaining 74 percent will be held by Altilium Energie Pvt Ltd. This initiative supports Sobha’s long-term sustainability goals and could also help lower operational costs.
Managing Director Jagadish Nangineni emphasized the strength of Sobha’s backward-integrated delivery model, which includes in-house manufacturing of construction materials and interiors. He stated that the company is financially well-positioned and expects strong demand to continue driving performance.
Summary Table
| Metric | Q1 FY26 (June 2025) | Q1 FY25 (June 2024) | YoY Growth |
|---|---|---|---|
| Net Profit (₹ crore) | 13.61 | 6.05 | +125% |
| Total Income (₹ crore) | 901.40 | 669.85 | +34% |
Outlook
With robust pre-sales, successful new launches, and efficient cost controls, Sobha is well-placed to build on this momentum. As market demand for quality housing remains steady and execution improves, further growth in both revenue and profitability is anticipated in the upcoming quarters.
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