Sobha Limited Earnings Summary — Q4 FY2026

• Revenue for Q4 FY2026 experienced a sharp 102.5% sequential jump to ₹19.85 billion.
• The Board recommended a dividend of ₹6 per equity share, up from the prior year's payout.
• The Real Estate segment remains the primary driver, contributing ₹17.51 billion to quarterly revenue.
• Debt reduction efforts continue, with finance costs decreasing significantly compared to the prior year period.
• The company faced a high-value provisional land attachment by the Enforcement Directorate, which is currently under appeal.
• Operating margins show signs of recovery, reaching nearly 10% in the latest quarter compared to lower single digits in early FY25.
• Full-year FY2026 performance shows robust growth with total income reaching ₹55.87 billion.

Management is pivoting toward a high-volume, lower-margin luxury execution phase with a focus on deleveraging and site-level efficiencies.

Improving

A strong Q4 performance characterized by sharp sequential revenue growth and expanding operating margins suggests successfully navigating previous inflationary pressures.

Sobha maintains a strong outlook in the premium South India market, specifically Bangalore, supported by their vertically integrated model. However, regulatory uncertainties regarding land parcels and internal fire clearance disputes remain key watch items.