Sobha Limited engages in the construction, development, sale, management, and operation of residential and commercial real estate under the Sobha brand primarily in India. It operates through two segments, Real Estate, and Contractual and Manufacturing. The Company is engaged in the business of construction, development, sale, management and operation of townships, housing projects, commercial premises and other related activities.
Sobha Limited, incorporated in 1995, is a real estate developer engaged in construction to operations of townships, housing projects, commercial premises, and other related activities. The Co. is also engaged in manufacturing activities related to interiors, glazing and metal works, and concrete products. Founded in 1995, Sobha Ltd has delivered over 139.03 million sq ft of developable area across 27 Indian cities.
Business Segments H1FY25 A) Real Estate (81%): Development of residential and commercial properties under the SOBHA brand name with a significant focus on Luxury Projects. B) Contractual and Manufacturing (19%): EPC contracts catering to external institutional clients. In Manufacturing it deals with Construction sector-related production capabilities like Concrete, Glazing, Interiors, etc., supporting in-house projects and servicing external clients.
The company's real estate segment focuses on luxury residential developments including presidential apartments, villas, row houses, luxury and super luxury apartments, plotted development, and aspirational homes. Its Contractual and manufacturing segment comprises development of commercial premises and other related activities, also includes manufacturing activities related to interiors, glazing and metal works and concrete products.
The company reported a significant 93 per cent year-on-year (YoY) increase in Profit After Tax (PAT), rising from ₹49 crore in FY24 to ₹95 crore in FY25. Revenue for FY25 grew by 29 per cent YoY to ₹4,163 crore, compared to ₹3,218 crore in FY24, with Q4 FY25 revenue witnessing a robust 61 per cent YoY growth over Q4 FY24.
Net profit of Sobha rose 481.22% to Rs 40.86 crore in the quarter ended March 2025 as against Rs 7.03 crore during the previous quarter ended March 2024. Sales rose 62.63% to Rs 1240.62 crore in the quarter ended March 2025 as against Rs 762.86 crore during the previous quarter ended March 2024.
- Q4 FY25 Revenue: ₹1,240.62 crore (up 62.63% YoY)
- Q4 FY25 Net Profit: ₹40.86 crore (up 481.22% YoY)
- FY25 Full Year Revenue: ₹4,038.69 crore (up 30.41% YoY)
- FY25 Full Year Net Profit: ₹94.69 crore (up 92.81% YoY)
- Collections Q4 FY25: ₹1,785 crore (up 21% QoQ, 7% YoY)
Collections in Q4 FY25 stood at ₹1,785 crore, reflecting a 21 per cent quarter-on-quarter (QoQ) increase and a 7 per cent YoY growth, while total collections for FY25 reached ₹6,184 crore. Net debt was reduced substantially to ₹630 crore in the March quarter of FY25.
In FY25, the company recorded sales value of Rs 6,27,700 crore with a sold area of 4.68 million square feet and an average price of Rs 13,412 per square foot. Bangalore contributed 58.0% and Gurgaon 19.9% to the total.
Sobha Ltd announced an investment of ₹800 crore for its new luxury housing project, SOBHA Aurum, in Greater Noida, featuring 420 apartments. This marks Sobha's fifth project in the Delhi-NCR region, aiming to expand its presence in the property market.
The average price realization in FY25 rose by 23 per cent year-on-year (YoY) to ₹13,412 per sq. ft. During Q4 FY25, the total sold area amounted to 1.56 million sq. ft, marking a 53 per cent QoQ growth.
The launched saleable area for FY25 increased by 25 per cent YoY, reaching 8.76 million sq. ft. However, total sales value for FY25 declined by 6 per cent YoY to ₹6,277 crore, compared to ₹6,644 crore in FY24.
Market Cap ₹ 16,249 Cr. as of recent data. Promoter holding in Sobha Ltd has gone up to 52.88 per cent as of May 2025 from 52.78 per cent as of Jan 2025.
The stock hit a record high of Rs 2178.74 on 18 Jun 2024. The stock hit a 52-week low of Rs 1175.43 on 18 Mar 2024.
ICICI Securities maintains an 'Add' rating on Sobha, raising the target price to Rs 1,519. Despite a 23% YoY decline in sales bookings, management is optimistic about achieving Rs 100 billion in gross sales bookings for FY26, supported by ongoing projects and new launches.
CLSA has upgraded Sobha Ltd from underperform to hold, increasing its target price to Rs 1,550 due to strong FY26 guidance and improved presales forecast.
Brokerages including Antique, Motilal Oswal, and Nuvama maintain Buy ratings on Sobha Ltd, raising target prices due to a strong launch pipeline and improving margins, despite missing FY25 guidance. Positive medium-term visibility is expected from upcoming projects and cash flow generation.
The company has demonstrated strong operational performance with reduced debt and improved profitability. However, the company has a low interest coverage ratio and has a low return on equity of 2.92% over last 3 years.
"With the real estate sector continuing to perform well, we see strong potential in the year ahead. The current financial year looks promising, with a robust pipeline of project launches and our planned entry into new cities," said Managing Director Jagadish Nangineni.
The company's focus on luxury residential projects, geographical diversification across major Indian cities, and strong brand recognition position it well for future growth in the premium real estate segment.
