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Sobha Q2: Record H1 Sales Rs 5,862 Crore, Profit Down 55%

  • by- Grihik
  • Oct 24, 2026
Sobha's Q2 profit fell 55% to Rs 33 crore as revenue dropped 31%, but H1 sales hit a record Rs 5,862 crore and realisation rose 14%
Sobha Q2: Record H1 Sales Rs 5,862 Crore, Profit Down 55%

Bengaluru developer Sobha Limited reported consolidated net profit of Rs 32.96 crore for July-September 2026, down 54.5% from Rs 72.52 crore, while setting a record for half-year sales. The results were announced on Monday, October 19.

What are the numbers?

  • Q2 revenue from operations: Rs 967 crore, down 31.3% from Rs 1,408 crore; total income was Rs 1,017 crore against Rs 1,469 crore

  • Sequentially: profit fell 35.2% from Q1 and revenue 24.3%

  • Versus forecasts: analysts had expected profit of about Rs 82.5 crore

  • H1 profit: Rs 83.8 crore, against Rs 86.1 crore a year earlier

  • H1 sales value: Rs 5,862 crore, up 47.2%, the strongest half-year in the company's history, covering 3.76 million sq ft across 2,260 units (up 32.4% in volume)

  • Q2 sales value: Rs 2,206 crore, up 16%, from 828 units and 1.42 million sq ft

Why do profit and sales point in opposite directions?

Developers book revenue as projects are built and handed over, not when homes are sold. Sobha explained that Q2 had lower revenue recognition and a mix of lower-margin legacy projects, a cyclical dip between handovers.

 

What about pricing?

Average price realisation was Rs 15,522 per sq ft in Q2, up 13.7% from Rs 13,648, and Rs 15,604 for the half year against Rs 14,028.

What about the balance sheet?

Sobha ended the quarter in a net cash position, with net debt of minus Rs 340 crore. It spent Rs 987 crore on land in the first half, which pushed cash flow lower even though operating cash flow was positive.

What does it mean?

Strong sales today usually become profit later, as the homes are built. Management said it plans more launches in the second half. The risk is that rising rates could slow that sales momentum.