Sobha532784Quarterly results
Board approves Q2 and H1 results; fire and safety division to be bought from a related party
Board met on October 19, 2026 and approved standalone and consolidated unaudited results for the quarter and half year ended September 30, 2026.
By ScoutQuest · · 4 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 9,670.64 | 14,076.16 | −31.3% | 12,781.52 | −24.3% |
| Total income | 10,172.17 | 14,693.28 | −30.8% | 13,301.70 | −23.5% |
| Profit before tax | 469.80 | 989.23 | −52.5% | 691.24 | −32% |
| Profit after tax | 329.59 | 725.27 | −54.6% | 508.46 | −35.2% |
| Total comprehensive income | 290.67 | 686.86 | −57.7% | 507.20 | −42.7% |
| Basic EPS | 3.08 | 6.78 | −54.6% | 4.75 | −35.2% |
- Total income
- Latest 10,172.17; Year ago 14,693.28 (−30.8%); Prev qtr 13,301.70 (−23.5%)
- Profit after tax
- Latest 329.59; Year ago 725.27 (−54.6%); Prev qtr 508.46 (−35.2%)
- Period
- For the 3 months ended 30.09.2026 [Unaudited]
Also decided at the meeting
- Approved acquisition of the fire and safety division of Sobha Projects and Trade Private Limited on a slump sale basis as a going concern; a related party transaction at arm's length, approved by Audit Committee.
Auditor's review
Conclusion: Unmodified
- Emphasis of matter (Note 7): ED/AA-PML confirmed provisional attachment of land parcels worth ₹ 2,016.05 million held by TDPL; appeal pending, recoverability of land advance uncertain.
- Emphasis of matter (Note 10): Income Tax search in March 2023 led to demand orders; appeals shared before CIT(Appeals), management determined no adjustments required.
Notes to the results
- Final dividend of ₹ 6 per equity share amounting to ₹ 641.66 million for FY ended 31 March 2026 paid during the quarter, approved at AGM on 18 July 2026.
- Provisional attachment under PMLA of land parcels valued ₹ 2,016.05 million held by TDPL; appeal shared before Appellate Tribunal; no adverse material impact identified.
- Customer of subsidiary SAPL terminated contract and demanded ₹ 2,956.13 million compensation plus forfeiture of ₹ 227.32 million guarantee; arbitration shared, no provision made.
- Income tax demand orders for AY 2015-16 to AY 2023-24 aggregating ₹ 842 million under appeal; no adjustments made.
What the board approved
- Standalone and consolidated unaudited financial results for the quarter and half year ended September 30, 2026, along with the limited review reports on them.
- Acquisition of the fire and safety division of Sobha Projects and Trade Private Limited on a slump sale basis, as a going concern, together with its assets and liabilities, employees, contracts, licences, permits and approvals.
- That purchase is a related party transaction, undertaken on an 'as is where is' basis and at arm's length, and was approved by the Audit Committee at its meeting on October 19, 2026.
- The board meeting ran from 12:30 P.M. to 04:20 P.M. (IST).
How the quarter looked (standalone, figures in Rs. million)
- Revenue from operations: 9,096.76 for the quarter ended 30.09.2026, against 14,833.70 for the quarter ended 30.09.2025.
- Total income: 9,679.21, against 15,519.53 a year earlier.
- Total expenses: 9,389.69, against 14,118.89.
- Profit before tax: 289.52, against 1,400.64.
- Profit for the period: 207.09, against 1,037.66.
- For the half year, profit for the period was 787.51, against 1,496.47 in the same half of the previous year.
- Basic and diluted EPS: 1.94 each for the quarter, against 9.70 each a year earlier.
Balance sheet pointers (standalone, as at 30.09.2026 versus 31.03.2026, Rs. million)
- Total assets: 2,02,503.05 versus 1,86,299.16.
- Total equity: 46,999.09 versus 46,892.32.
- Non-current borrowings: 6,206.70 versus 3,853.29; current borrowings: 8,566.44 versus 5,832.46.
- Net cash used in operating activities for the half year: 3,812.38, against net cash generated of 4,062.51 in the same period a year earlier.
What the auditor said
The independent auditor's review report on both the standalone and consolidated results is unmodified: the conclusion is not modified in respect of the matters below. These are emphasis of matter items, not qualifications.
- PMLA matter: the Enforcement Directorate has shared a complaint alleging irregularities in the allotment and pricing of certain plots in a Gurugram joint development arrangement, resulting in provisional attachment of land parcels valued at Rs. 2,016.05 million held by Technowbuild Developers Private Limited, over which the company says it has absolute rights through a Memorandum of Understanding. An appeal has been shared before the Appellate Tribunal. The management, backed by an independent legal opinion, believes the transactions followed applicable law; the recoverability of the land advance is presently uncertain.
- Income-tax search: a search was carried out in March 2023 and demand orders were received for several assessment years, with an aggregate demand of Rs. 842 million (including demand, net of MAT and penalty). Appeals are pending before the Commissioner of Income Tax (Appeals), Bengaluru, and no adjustment has been made in the results.
- Contract termination claim: a customer of Sobha Aspha Private Limited terminated a project development contract and demanded compensation of Rs. 2,956.13 million, in addition to forfeiture of a Rs. 227.32 million performance guarantee and Rs. 26.00 million of deposits. The carrying value of the related project assets and receivables is Rs. 24.10 million and Rs. 330.00 million respectively; arbitration has been invoked and no provision has been made.
- Fire NOC matter: a show cause notice was received on fire clearances for one project; the local municipal body passed an order in January 2023 revoking the modified sanction plan and occupancy certificate, which was stayed by the Karnataka Appellate Tribunal. No provision has been made.
Other notes from the results
- During the quarter the company paid a final dividend of Rs. 6 per equity share amounting to Rs. 641.66 million for the year ended March 31, 2026, approved by shareholders at the annual general meeting held on July 18, 2026.
- The company's share in the net profit (including other comprehensive income) of one partnership firm was Rs. 26.74 million for the quarter and Rs. 41.04 million for the six months, reviewed by another auditor.
- Segment revenue for real estate was 6,489.86 and for contractual and manufacturing 3,265.98 for the quarter (standalone, Rs. million).
What it means for a retail reader
- The results are interim and unaudited but have been reviewed by the statutory auditor, whose conclusion carries no modification; the flagged items are disclosures a reader should note while judging the numbers.
- The division purchase brings the fire and safety business in-house, but it is a related party deal, so the terms and pricing are the points to track.
₹ 842 millionAggregate income-tax demand (including demand, net of MAT and penalty
Profit after tax, quarter508.46 (₹ in millions)
Profit after tax, latest quarter329.59 (₹ in millions)
₹1.94-59.2%
Previous₹4.75After₹1.94
Also from Sobha
Sobha receives GST appellate order for Rs. 297.59 million tax; plans GSTAT appeal
23 Oct 2026
Sobha shares under pressure after Q2 profit slumped 55% and revenue fell 31% YoY
21 Oct 2026
Sobha files audio recording link of October 19, 2026 analyst and institutional investor conference call
19 Oct 2026
More numbers
- Standalone revenue from operations, quarter ended 30.09.2026 (Rs. million)9,096.76
- Standalone revenue from operations, quarter ended 30.09.2025 (Rs. million)14,833.70
- Standalone profit for the period, quarter ended 30.09.2026 (Rs. million)207.09
- Standalone profit for the period, quarter ended 30.09.2025 (Rs. million)1,037.66
- Standalone profit for the period, half year ended 30.09.2026 (Rs. million)787.51
- Standalone basic EPS for the quarter (Rs.)1.94
- Land parcels under provisional attachment₹ 2,016.05 million
- Aggregate income-tax demand (including demand, net of MAT and penalty)₹ 842 million
- Total income, latest quarter10,172.17 (₹ in millions)
- Total income, year-ago quarter14,693.28 (₹ in millions)
- Total income, previous quarter13,301.70 (₹ in millions)
- Total comprehensive income, latest quarter290.67 (₹ in millions)
- Total comprehensive income, year-ago quarter686.86 (₹ in millions)
- Total comprehensive income, previous quarter507.20 (₹ in millions)
- Profit after tax, latest quarter329.59 (₹ in millions)
- Profit after tax, year-ago quarter725.27 (₹ in millions)
- Profit after tax, previous quarter508.46 (₹ in millions)
- Revenue from operations, latest quarter9,670.64 (₹ in millions)
- Revenue from operations, year-ago quarter14,076.16 (₹ in millions)
- Revenue from operations, previous quarter12,781.52 (₹ in millions)
- Profit before tax, latest quarter469.80 (₹ in millions)
- Profit before tax, year-ago quarter989.23 (₹ in millions)
- Profit before tax, previous quarter691.24 (₹ in millions)
Source: BSE · 19 Oct 2026
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