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Sobha shares erase gains after strong Q1 profit surge
Sobha reported consolidated net profit up 292% year over year to ₹51 crore for Q1 FY27, alongside a 50% jump in operating revenue to ₹1,278 crore.
Shares of Indian real estate developer Sobha initially rallied more than 7% after the company posted results for the quarter ended June 2026, reaching an intraday high of ₹1,559.15, according to LiveMint Markets. The stock then reversed, falling more than 6% from that peak to an intraday low of ₹1,460.50, and was trading less than 0.5% higher versus the previous close at the time of publication.
Despite the late-day pullback, Sobha said consolidated net profit rose 292% year over year to ₹51 crore in Q1 FY27, compared with ₹44 crore in the prior-year quarter. Operating revenue increased 50% year over year to ₹1,278 crore, while EBITDA climbed to ₹77 crore from ₹24 crore a year earlier, with the EBITDA margin expanding to 6.03% from 2.82%.
The company reported Q1 collections of ₹1,924 crore, up 8% year over year, and said it maintained a net debt position of ₹-6.59 billion, with a net debt-to-equity ratio of -0.14. Sobha also highlighted a 76% year-over-year increase in real estate sales value to ₹3,656 crore, with average price realization at ₹15,655 per sq. ft.
Sobha’s board approved a plan to raise up to ₹1,000 crore through the issuance of non-convertible debentures. In its update, the company attributed the quarter’s sales momentum to new project launches in Bangalore and Gurgaon, and said it launched 6.89 million sq. ft. of saleable area across three projects in two cities during Q1 FY27.