- Sobha Ltd shares rose nearly 3% on strong June-quarter profit and revenue growth
- Consolidated net profit surged to Rs 50.8 crore from Rs 13.6 crore year-on-year
- Revenue rose 50% to Rs 1,278 crore with EBITDA margin expanding to 6.1%
Sobha Ltd. shares rose nearly 3% in early trade on Tuesday after the real estate developer reported a nearly three-fold rise in June-quarter profit on higher revenue and improved operating performance. Investors also reacted to the company's decision to raise up to Rs 1,000 crore through privately placed non-convertible debentures.
The stock traded at Rs 1,498 on the NSE, up from its previous close of Rs 1,455.70, even as the broader market remained subdued.
The earnings reflected stronger project execution during the quarter. Consolidated net profit rose to Rs 50.8 crore in the quarter ended June 2026 from Rs 13.6 crore a year earlier. Revenue from operations increased 50% year-on-year to Rs 1,278 crore from Rs 852 crore in the corresponding period last year.
Earnings Growth
Operating performance also improved during the quarter. EBITDA increased to Rs 77.8 crore from Rs 23.8 crore a year earlier, while the EBITDA margin expanded to 6.1% from 2.8%.
The company said it launched 6.89 million square feet of saleable area across three projects in two cities during the first quarter of FY27.
"Achieving our highest-ever quarterly sales - driven by successful new project launches in Bangalore and Gurgaon - is a significant milestone for SOBHA," Managing Director Jagadish Nangineni said.
"It underscores customers' deep trust in our brand, the dedication of our team, and our unique operating model. With a strong pipeline of projects ahead, we are well-positioned to sustain this momentum. We remain focused on operational excellence and disciplined growth, delivering best-in-class homes while creating lasting value for our stakeholders," he said.
Board Approves Fundraise
In a separate filing, the company said its board approved the issuance of non-convertible debentures of up to Rs 1,000 crore through a private placement. The company said the fundraising would provide additional financial flexibility to support its business requirements and growth plans.
Stock Performance
Sobha shares have declined nearly 13% over the past year, compared with an 8.6% decline in the Nifty Realty index.
During the past 52 weeks, the stock has traded between Rs 1,130 and Rs 1,732.50. It is currently valued at a price-to-earnings multiple of 67.36.
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