Sobha Q1 Net Profit Jumps 123% YoY

28 Jul 2025 , 12:49 PM

Sobha Ltd saw a strong start to the financial year with net profit for the June quarter rising to ₹13.6 crore, compared to ₹6 crore in the same period last year. The growth came in at nearly 123% year-on-year.

The company’s revenue from operations climbed to ₹851.9 crore, showing a 33% increase over ₹640.3 crore reported in the first quarter of the previous fiscal.

Despite healthy top-line growth, operating performance weakened. EBITDA fell to ₹23.8 crore from ₹46.9 crore, representing a 49% decline. Margins also compressed, dropping to 2.8% from 7.3% a year earlier.

Sobha achieved its highest-ever quarterly sales value at ₹2,079 crore, crossing the ₹2,000 crore mark for the first time. This represented an 11% increase compared to last year. Collections for the quarter came in at ₹1,778 crore, which was 15% higher on a year-on-year basis.

The company sold 1.44 million square feet during the quarter, up from last year’s volumes by 23%. The average realisation stood at ₹14,395 per square foot. On the development front, Sobha launched 1.62 million square feet of new saleable area during the quarter across multiple locations.

The company also made progress on deleveraging. Net debt declined to ₹687 crore, and the net debt-to-equity ratio stood at -0.15, reflecting a net cash position. Managing Director Jagadish Nangineni credited the strong quarterly sales to demand across all markets. He said the launch of Sobha’s first project in Greater Noida was a key milestone in the company’s expansion journey.

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