The Bangalore-based developer, Sobha Limited, reported a significant drop in net consolidated profit by 54.5% in the September quarter. The profit amounted to ₹32.96 crore, according to results presented by the company on the Bombay Stock Exchange on Monday.
Concurrently, revenue from operations decreased by 31.3% year-on-year, reaching ₹967.06 crore compared to ₹1,407.66 crore the previous year. Looking at sequential changes, both profit after tax and revenue from operations decreased by 35.2% and 24.3%, respectively.
The company's EBITDA in Q2FY27 was ₹68.73 crore, which is 32.4% less than ₹101.64 crore in the same period last year. Nevertheless, the developer demonstrated strong sales performance, noting a growth of 47.2% in the first half of the financial year, and collections increased by 4.8% over the same period.
Jagadish Nangneneni, Managing Director of Sobha Limited, commented on the results, stating that the performance in the first half of FY27, marked by record sales, reflects consistent customer trust, the strength of the SOBHA brand, and the successful execution of the business strategy. He added that the second half of the year will be built on this momentum, supported by planned project launches, a strong development portfolio, and sustained demand for quality housing.
In Q2FY27, Sobha reported an average realization price of ₹15,522 per square foot. The company also specified that in the first half of FY27, projects totaling approximately 7.92 million square feet (msf) were launched, with an estimated sales potential of nearly ₹11,200 crore.
Nangneneni emphasized that the company's focus will remain on improving execution efficiency, maintaining financial discipline, and utilizing a unique reverse integration model to ensure superior quality and reliability. He expressed confidence in the company's ability to capitalize on emerging opportunities and create long-term value for customers and stakeholders.