Real estate developer Sobha Ltd reported a 54.8% year-on-year decline in net profit to ₹33 crore for the September quarter of FY27, compared with ₹73 crore in the corresponding quarter last year.
The company’s revenue declined 31.3% to ₹967 crore from ₹1,408 crore a year earlier, according to the company’s exchange filing.
EBITDA fell 28.1% year-on-year to ₹69 crore from ₹96 crore in the year-ago period. The EBITDA margin remained broadly flat at 7%, compared with 7% in the corresponding quarter last year.
Sobha’s project pipeline, revenue visibility
Sobha has a pipeline of forthcoming launches spanning 20.42 million square feet, with an estimated sales potential of ₹31,353 crore.
The company expects to recognise revenue of ₹22,041 crore from units already sold. It has also projected project-level EBITDA margins of more than 30% and marginal cash flow of ₹19,748 crore from current and forthcoming projects.
Sobha discloses dispute involving subsidiary
Sobha disclosed a contractual dispute involving Sabha Assets Private (SAPL), a wholly owned subsidiary of the company.
According to the filing, a customer had terminated a project development contract in earlier years and sought compensation of approximately ₹295.61 crore, in addition to forfeiture of a performance guarantee worth ₹22.73 crore and deposits of ₹2.60 crore. The customer alleged that SAPL had not commenced the contract work.
SAPL has filed an arbitration petition challenging the termination and its grounds, while seeking compensation for business losses and other receivables.
As of September 30, 2026, the carrying value of the project-related assets and receivables stood at ₹2.41 crore in the company’s books and ₹33 crore in SAPL’s books.
Sobha said that, based on its overall assessment and an independent legal opinion, it believes the termination was illegal. The company added that it does not expect the matter to adversely affect its standalone unaudited financial results and has therefore not made any provision.
Shares of Sobha ended 1.04% lower at ₹1,176 on Monday. The stock has declined 3% over the past month and is down 19.5% so far this year.
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