Company Results
Sobha Shares Hit 52-Week Low After Q2 Profit Falls 55%
Sobha Ltd shares hit a fresh 52-week low of Rs 1,122.15 on 21 October 2026, two days after the developer reported a 54.56% fall in consolidated net profit for the September quarter, even as it recorded its highest-ever half-year sales.
| Stock move (21 Oct 2026) | Fresh 52-week low of Rs 1,122.15 intraday; down about 5% from the previous close of Rs 1,174.45 |
|---|---|
| Consolidated net profit, Q2 FY27 | ₹32.96 crore (₹329.59 million), down 54.56% from ₹725.27 million in Q2 FY26 |
| Consolidated revenue from operations, Q2 FY27 | ₹967.06 crore, down 31.29% year on year |
| EBITDA, Q2 FY27 | ₹68.73 crore; EBITDA margin 7.1% |
| Record H1 FY27 sales | ₹5,862 crore, up 47.2% year on year |
| Q2 FY27 sales | ₹2,206 crore from 828 units and 1.42 million sq ft, up 16% |
| Collections, H1 FY27 | ₹4,009 crore, up 4.8% year on year |
| Year to date (as of 21 Oct 2026) | Shares down 26.9%, against an 11.6% fall in the Sensex over the same period |
What happened to the share price
Sobha Ltd shares fell to a fresh 52-week low of Rs 1,122.15 intraday on 21 October 2026. The stock had closed lower for four consecutive sessions before that low. Against the previous close of Rs 1,174.45, the day's move was a fall of about 5%. The 52-week high stood at Rs 1,732.00 as of 21 October 2026, and the company's market capitalisation was Rs 12,561.19 crore.
The shares were already under pressure before the results. Sobha had also hit a 52-week low of Rs 1,148.30 in January 2025, on growth concerns.
Q2 FY27 results
The board approved the standalone and consolidated unaudited results for the quarter and the half year ended 30 September 2026 on 19 October 2026.
- Consolidated net profit attributable to owners was ₹32.96 crore, down 54.56% year on year. Basic and diluted earnings per share fell to Rs 3.08 from Rs 6.78.
- Consolidated revenue from operations was ₹967.06 crore, down 31.29% from ₹1,407.62 crore in the year-earlier quarter.
- Consolidated total income was ₹1,017.21 crore, against ₹1,469.32 crore a year earlier, a fall of 30.8%.
- Analysts had expected a profit of about ₹82.5 crore.
Compared with the first quarter of FY27, net profit fell 35.2% and revenue from operations fell 24.3%. The first-quarter net profit was ₹50.85 crore and revenue was ₹1,278.15 crore.
On margins, EBITDA was ₹68.73 crore and the EBITDA margin rose by 30 basis points to 7.1% from 6.8% a year earlier. For the first half, consolidated revenue from operations was ₹2,347.38 crore and consolidated net profit was ₹83.80 crore, against ₹86.14 crore in the year-earlier half.
Record sales, lower recognised revenue
The company reported its highest-ever half-year sales value. First-half FY27 sales reached ₹5,862 crore, up 47.2%. Second-quarter sales were ₹2,206 crore, up 16%, from 828 units and 1.42 million sq ft. Average price realisation in the quarter was ₹15,522 per sq ft.
Collections for the half year rose to ₹4,009 crore, up 4.8%. Sobha also launched 7.92 million sq ft of saleable area across five projects in Bengaluru, Gurugram and Calicut in the first half. Its pipeline of forthcoming launches covers 20.42 million sq ft, with an estimated sales potential of ₹31,353 crore.
Sales are recognised as revenue only as construction progresses, so bookings made now do not appear in reported profit until later. Managing Director Jagadish Nangineni said the first-half performance, marked by record sales, reflected the continued trust of customers.
Balance sheet, dividend and other filings
- Net debt stood at negative ₹340 crore, which means the company is net cash. The net debt-to-equity ratio was negative 0.07.
- Sobha spent ₹987 crore on land in the first half.
- During the quarter it paid a final dividend of ₹6 per equity share for FY26, amounting to about ₹64.17 crore.
- The board approved the acquisition of a fire and safety business from a related party, Sobha Projects and Trade Private Limited, on a slump sale basis.
- The company disclosed a contractual dispute of ₹296 crore involving a subsidiary. It said it does not expect the matter to adversely affect its standalone unaudited results and has not made a provision for it.
Brokerage views
CLSA upgraded Sobha to 'Accumulate' from 'Hold' and set a target of Rs 1,580. HSBC rated the stock Buy with a target of Rs 1,850. Emkay Research kept its target of Rs 1,900 on 20 October 2026.
CLSA expects margins to improve towards a normalised 20% level on a better product mix. Business commentary on the results noted that brokerages are currently valuing Indian developers on bookings and cash collections, and treating reported income as a lagging indicator.
What it means for buyers and investors
For investors, the main question is how quickly record bookings convert into recognised revenue and profit. The reported quarter shows that gap clearly: sales rose sharply while revenue and profit fell year on year. Shareholders will be watching the next few quarters for that conversion.
Emkay flagged lumpy launches, a 40% fall in Q2 sales from Q1, and a target that depends on delivery in the second half. Its view is that the market has de-rated the realty sector.
What comes next
- Management points to the third quarter of FY27 as the inflection point for earnings.
- CLSA expects Sobha to exceed its FY27 presales growth guidance of 30%, citing a robust launch pipeline, subject to approvals.
- Q3 FY26 sales were a record ₹2,115 crore, up 52% year on year. The company will need to match that pace in the coming quarters for the second-half outlook to hold.
Frequently asked questions
Why did Sobha shares hit a 52-week low?
Sobha shares hit a fresh 52-week low of Rs 1,122.15 on 21 October 2026, after the company reported that consolidated net profit for the September 2026 quarter fell 54.56% to ₹32.96 crore. The stock had also closed lower for four consecutive sessions.
Did Sobha's sales fall in the quarter?
Not on a half-year basis. First-half FY27 sales reached a record ₹5,862 crore, up 47.2%. Second-quarter sales were ₹2,206 crore, up 16% year on year, though they were lower than the first quarter.
Why is profit down while sales are up?
Revenue is recognised as construction progresses, so bookings made in a period do not all show up as profit in that period. Reported revenue from operations fell 31.29% year on year in the quarter.
Is Sobha's balance sheet under pressure?
Net debt stood at negative ₹340 crore as of the quarter end, which means the company is net cash. Its net debt-to-equity ratio was negative 0.07.
What is the ₹296 crore dispute?
It is a contractual dispute involving a subsidiary, disclosed alongside the results. The company said it does not expect the matter to adversely affect its standalone unaudited results and has not made a provision for it.
What does management expect next?
Management points to the third quarter of FY27 as the inflection point. CLSA expects Sobha to exceed its FY27 presales growth guidance of 30%, subject to approvals.