S

Sobha Ltd

Q2 FY26

Sobha Q2 FY26 earnings call: Revenue & Margins

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹1,188

Market cap₹12.7K Cr

P/E55.1

Updated16 Oct 2026

Read5 min read

The short version

Sobha aims for around 33% growth in sales over FY25's INR6,400 crores, targeting INR8,000+ crores in FY26. Sobha Limited aims to grow topline by approximately 33% over last year, targeting INR8,000+ crores in sales for FY ’26, consistent with past growth trends.

From Sobha Ltd's Q2 FY26 earnings-call transcript · updated 16 Oct 2026.

Revenue & Sales Performance

Sobha aims for around 33% growth in sales over FY25's INR6,400 crores, targeting INR8,000+ crores in FY26.
The target for FY27 is approximately INR10,000 crores in sales.
Volume growth is linked directly to new project launches and geographic diversification; volume steady at 5.5-6 million sq.ft. range over last 4 years.
Future growth will be more driven by new project launches rather than price increases, as ticket sizes have increased recently.
New launches and expanded presence in key markets like Bangalore, NCR, Mumbai, and Hyderabad support growth.

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Profitability & Margins

Sobha Limited aims to grow topline by approximately 33% over last year, targeting INR8,000+ crores in sales for FY ’26, consistent with past growth trends.
Project-level gross margins currently over 20%, with an expectation to move towards 30% by next year (FY ’27).
EBITDA margins on current projects estimated around 30-35%, expected to improve significantly as higher margin project completions increase from next financial year.
Recognized revenue backlog of ~INR18,000 crores from already sold units with strong embedded margins, providing earnings visibility.
Future cash inflows estimated at INR22,867 crores from ongoing projects and INR7,100 crores from forthcoming projects over 4-6 years, supporting sustainable profit growth.

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Capital Expenditure Plans

Sobha Limited has raised capital (INR1,700 crores through a rights issue) to enable increased business development.
The company is focusing on strategic market expansion with business development pipelines in Bangalore, NCR, Mumbai, and Hyderabad.
New business development is pursued cautiously due to higher acquisition costs, emphasizing margin safety.
The company is actively looking for and acquiring quality land parcels in these markets to build a strong project pipeline.
There is ongoing investment in project approvals and redesigns, such as the Gurgaon commercial project, where they are loading TDR and completing necessary purchases.

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Fundraising & Capital Structure

There is no explicit mention of any current or planned new fundraising through debt or equity in the provided transcript.
The company has recently raised capital through a rights issue, having spent INR1,700 crores for business development.
They currently maintain a net cash position of INR751 crores, indicating a strong financial footing and no immediate need for fresh fundraising.
The management emphasizes using existing capital for expansion and business development rather than seeking new funds.

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Order Book & Pipeline

Sobha Limited has a robust order book with INR18,000 crores of unrecognized revenue from already sold units as of September 30, 2025.
The company expects to recognize this revenue along with associated margins over the next 4 to 5 years.
Additionally, forthcoming projects cover approximately 16.69 million square feet, expected to be launched over the next 6 quarters.
These forthcoming projects are anticipated to generate about INR7,100 crores of marginal cash flow over a 5- to 6-year timeframe.
Overall, Sobha's pipeline stands at around 40 million square feet, combining past business development and forthcoming launches.

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Sobha Ltd — Quarterly revenue & net profit

Revenue Net profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹2.0K Cr, net profit ₹92 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.

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What Sobha Ltd's management said in earlier quarters

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Frequently Asked Questions

What were Sobha Ltd Q2 FY26 results?

Sobha aims for around 33% growth in sales over FY25's INR6,400 crores, targeting INR8,000+ crores in FY26. Sobha Limited aims to grow topline by approximately 33% over last year, targeting INR8,000+ crores in sales for FY ’26, consistent with past growth trends.

What is Sobha Ltd share price analysis?

Sobha Ltd currently shows a neutral. The stock trades at a P/E of 55.1 with a market cap of ₹12,708 Cr. Investors should review the full earnings analysis for detailed insights.

Is Sobha Ltd planning capital expenditure?

Sobha Limited has raised capital (INR1,700 crores through a rights issue) to enable increased business development. - The company is focusing on strategic market expansion with business development pipelines in Bangalore, NCR, Mumbai, and Hyderabad. - New business development is pursued cautiously due to higher acquisition costs, emphasizing margin safety. - The company is actively looking for and acquiring quality land parcels in these markets to build a strong project pipeline. - There is ongoing investment in project approvals and redesigns, such as the Gurgaon commercial project, where they are loading TDR and completing necessary purchases. - Future launches planned include significant projects in Bangalore (Hoskote phase 1: 5 million+ sq.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.