Sobha Limited Earnings Summary — Q4 FY2026
Sobha Limited Reports Surge in Q4 Revenue and Profitability Amid Luxury Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 35.7% sequentially in Q1 FY2027.
- Revenue of ₹1,278 Cr is 50.0% higher year-on-year.
- Revenue has compounded at 25.8% annualised over the last 10 quarters.
- Net profit of ₹51 Cr is 273.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 141.0% annualised across the period.
- Operating margin stands at 6.1% in Q1 FY2027.
- Operating margin expanded by 327 bps year-on-year.
- Over the last two years operating margin has contracted by 266 bps.
- PBT margin is 5.4%.
- Expense growth of 45.0% remained below revenue growth of 50.0%.
- Operating profit of ₹78 Cr is 225.7% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 61/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 1,278 | 1,988 | 943 | 1,408 | 852 | 1,241 | 1,224 | 934 | 640 | 763 |
| Expenses | Volatile | 1,201 | 1,836 | 905 | 1,312 | 828 | 1,147 | 1,157 | 856 | 584 | 701 |
| Operating Profit | Volatile | 78 | 152 | 39 | 96 | 24 | 94 | 67 | 77 | 56 | 62 |
| Operating Margin | Volatile | 6.1% | 7.7% | 4.1% | 6.8% | 2.8% | 7.6% | 5.5% | 8.3% | 8.7% | 8.1% |
| Other Income | Improving | 52 | 42 | 40 | 62 | 49 | 30 | 33 | 32 | 29 | 28 |
| Interest | Softening | 32 | 44 | 30 | 32 | 31 | 45 | 47 | 49 | 54 | 59 |
| Depreciation | Improving | 28 | 28 | 28 | 26 | 24 | 23 | 23 | 23 | 20 | 21 |
| Profit Before Tax | Accelerating | 69 | 122 | 21 | 99 | 19 | 56 | 29 | 36 | 11 | 11 |
| Tax | Accelerating | 18 | 30 | 5 | 26 | 5 | 15 | 8 | 10 | 5 | 4 |
| Net Profit | Improving | 51 | 92 | 15 | 73 | 14 | 41 | 22 | 26 | 6 | 7 |
| Net Margin | Improving | 4.0% | 4.6% | 1.6% | 5.2% | 1.6% | 3.3% | 1.8% | 2.8% | 0.9% | 0.9% |
Key Takeaways
- 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 Guidance
Management is pivoting toward a high-volume, lower-margin luxury execution phase with a focus on deleveraging and site-level efficiencies.
Sentiment Shift
Improving
A strong Q4 performance characterized by sharp sequential revenue growth and expanding operating margins suggests successfully navigating previous inflationary pressures.
Outlook
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.
From the Annual Report (Key Quotes)
“The Management, based on its overall assessment... believes that these transactions have been carried out in accordance with all the applicable laws and regulations.”
“The Board Recommended a dividend of ₹ 6/- per equity share... for the Financial Year ended March 31, 2026.”
“The company has absolute rights over land parcels acquired by TDPL... acquired from advances given by the Company.”
Official Quarterly Documents
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This summary is AI-generated from Sobha Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.