Sobha Ltd shares jumped over 9% following the company's stellar fourth quarter results for FY26. According to a regulatory filing, the Bengaluru-based real estate developer reported a more than two-fold jump in consolidated net profit to ₹91.83 crore for Q4 FY26, compared to ₹40.85 crore in the corresponding period of the previous year. The strong performance was driven by significant revenue growth and improved operational metrics.
Total income for Q4 FY26 rose substantially to ₹2,029.92 crore from ₹1,270.73 crore in the year-ago period, as reported in the regulatory filing. Collections for the quarter stood at ₹1,990 crore, registering an 11% quarter-on-quarter growth and 26% year-on-year increase. For the full fiscal year FY26, total collections reached ₹7,798 crore, demonstrating consistent performance across the year. The company's working capital management showed significant improvement with debtor days reducing from 50 to 19 days and inventory days decreasing from 10,072 to 2,063 days.
The company achieved significant improvement in its financial position during FY26. According to the press release, net debt reduced to ₹-8.00 billion, resulting in a net debt-to-equity ratio of -0.17. This positive net debt position reflects the company's strong cash generation and disciplined capital structure management throughout the fiscal year. The company's return on equity improved to 36% for FY26, while free cash flow reached ₹1,034 crore, demonstrating robust operational efficiency.
For the complete fiscal year 2025-26, Sobha Ltd's profit doubled to ₹193.40 crore from ₹94.68 crore in the preceding year. Total income for FY26 grew to ₹5,383.76 crore from ₹4,162.75 crore registered in 2024-25 financial year, as reported in the regulatory filing. The company's backward-integrated execution model and focus on delivering quality products with high reliability and transparency contributed to these strong results. Earnings per share increased to ₹18.09 from ₹8.86 in the previous year, reflecting the company's enhanced profitability.
Jagadish Nangineni, Managing Director of SOBHA Limited, expressed satisfaction with closing the fiscal year on a high note, highlighting the company's improving operating excellence across all metrics. As reported by the company, the management's focus for FY27 is on sustaining the upward trajectory with significant launches planned across cities. The company believes it is well-positioned to capture growth opportunities given the resilient structural demand for premium housing and its execution excellence, strategic land bank, and disciplined capital structure. With promoter holding at 52.9% and the company maintaining a healthy dividend payout of 41.7%, Sobha is positioned for continued growth in the real estate sector.
