1. Opening Hook
While the rest of India spent Diwali hoarding sweets, Sobha spent it hoarding square feet. Bangalore’s poster boy of luxury housing pulled off a ₹1,902 crore quarter without even lighting a new launch — talk about festive minimalism.
MD Jagadish Nangineni was all calm confidence, the kind you get when your buyers don’t haggle over ₹3 crores per apartment. But beneath the Diwali smiles, the CFO’s Excel sheets whispered a different story — margins are still thinner than an 80 GSM brochure.
Stay tuned — because when the man who builds villas starts explaining inflation, you know something’s cooking (and it’s not halwa). 😏
2. At a Glance
- Sales Value ₹1,902 Cr (↑30% YoY):Sold homes like they were HSR plots in 2005.
- Revenue ₹1,469 Cr (↑50% YoY):Builders be building, accountants be cheering.
- EBITDA ₹157 Cr (Margin 10.7%):Still waiting for those luxury margins to arrive home.
- PAT ₹72.5 Cr (Margin 4.9%):More décor than profit — but at least positive.
- Collections ₹2,046 Cr:Cash is king, and Sobha finally got its crown.
- Net Cash ₹751 Cr:The rare real estate company that’s debt-light and hope-heavy.
- Future Inflows ₹22,867 Cr:Pipeline so fat, even inflation can’t eat it all.
3. Management’s Key Commentary
Jagadish Nangineni:“We achieved ₹3,981 Cr sales in H1 — 30% higher YoY.”(Translation: Apparently, luxury buyers aren’t reading RBI’s rate charts.)
Yogesh Bansal:“We hit our highest ever quarterly collection at ₹2,046 Cr.”(Translation: Everyone paid up — miracles do happen before Diwali.)
Jagadish:“Bangalore contributed 70% of Q2 sales without new launches.”(Translation: Why launch new projects when the old ones still sell themselves?)
Yogesh:“Net cash ₹751 Cr — our balance sheet is strong.”(Translation: For once, builders owe less than they sell. Champagne-worthy! 🥂)
Jagadish:“Margins are low due to BBMP ground rent provision of ₹27 Cr.”(Translation: Bureaucracy: the only thing that costs more than marble flooring.)
Yogesh:“We expect ₹9,800 Cr project-level cash flow over 5 years.”(Translation: Assuming approvals don’t age like fine whisky.)
Jagadish:“Premiumization will continue, but affordability matters.”(Translation: Luxury, but make it EMIs.)
4. Numbers Decoded
| Metric | Q2FY26 | YoY Change | One-Line Analysis |
|---|---|---|---|
| Sales Value | ₹1,902 Cr | +30% | Selling faster than Bangalore’s tech salaries rise. |
| Total Income | ₹1,469 Cr | +50% | Diwali sparkle on top line. |
| EBITDA | ₹157 Cr | +40% | Good party, small snacks. |
| EBITDA Margin | 10.7% | Flat | Still allergic to double digits above 15%. |
| PAT | ₹72.5 Cr | +60% | Profits just about visible through construction dust. |
| Collections | ₹2,046 Cr | Record high | Cash flow on steroids. |
| Net Cash | ₹751 Cr | – | Debt-free dreams come true. |
| Unrecognized Revenue | ₹18,000 Cr | – | Future looks rich — P&L not yet invited. |
| Future Cash Flow Potential | ₹9,800 Cr | – | That’s 5 years of “Don’t worry, it’s coming.” |
Mini Verdict:Sobha’s P&L is lagging its site progress — homes are ready before profits.
5. Analyst Questions (and Management Translations)
Axis Capital:“Why was Townpark such a hit?”Sobha:“People love 2–3 Cr homes.”(Translation: Even in a slowdown, India’s rich never cancel home bookings — just yoga classes.)
Antique Broking:“Can you hit ₹10,000 Cr presales this year?”Sobha:“We’ll stick to ₹8,500 Cr, but surprise is possible.”(Translation: Expect ₹9,999 Cr.)
Avendus Spark:“Margins are low again — when do we see 30%?”Sobha:“Next year, when the good projects hit completion.”(Translation: Patience — like cement curing.)
Jefferies:“Volumes flat for 4 years — are we peaking?”Sobha:“No, we just need more launches.”(Translation: More square feet, fewer excuses.)
Sumangal Investments:“Your peer has 60% margin — why not you?”Sobha:“We account on
