Realty stock falls 4% after its net profit decreases by 79% QoQ in Q3

SYNOPSIS: Shobha Ltd’s shares fell 4% after Q3 results, with revenue down 33% QoQ to ₹943 crore and net profit plunging 79% to ₹15.4 crore. Let’s also explore their segment-wise revenue.

The shares of the Small-Cap company specializing in integrated real estate development, known for luxury residential projects, townships, and commercial spaces, uniquely leveraging backward integration through in-house manufacturing, have declined upto 4 percent following their Q3 results.

With a market capitalization of Rs. 16,079.49 Crores on Monday, the shares of Sobha Ltd declined upto 3.9 percent, reaching a low of Rs. 1466.10 compared to its previous close of Rs. 1526.85.

News

Sobha Ltd, engaged in integrated real estate development, is known for luxury residential projects, townships, and commercial spaces, is in the spotlight today as it has announced its Q3 results as follows:

Its Revenue from operations declined by 23 percent YoY from Rs. 1,224 Crores in Q3FY25 to Rs. 943 Crores in Q3FY26, and it declined by 33 percent QoQ from Rs. 1,408 Crores in Q2FY26 to Rs. 943 Crores in Q3FY26.

Its Net Profit YoY declined by 29 percent from Rs. 21.7 Crores in Q3FY25 to Rs. 15.4 Crores in Q3FY26, and on a QoQ basis, it declined by 79 percent from Rs. 72.5 Crores in Q2FY26 to Rs. 15.4 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 1.44, compared to Rs. 2.15 in the previous year’s quarter. 

The company demonstrates strong financial health, with a decent Return on Capital Employed (ROCE) of 6.44% and a low debt-to-equity ratio of 0.23, indicating prudent leverage. Additionally, it has been maintaining a healthy dividend payout of 39.7%, reflecting a consistent commitment to returning value to shareholders.

Revenue Segmentation

In December 2025, the company’s total revenue declined to Rs. 1,005.5 crore from Rs. 1,277.3 crore in December 2024. The real estate segment fell from Rs. 1,062.7 crore to Rs. 744.5 crore, while the contractual and manufacturing segment grew from Rs.  214.6 crore to Rs. 261.0 crore over the same period.

SOBHA Ltd. is a major Indian real estate developer, known for its backward integration model, giving it control over construction quality from design to finishing, with focus on luxury residential projects, townships, and commercial spaces across India.

In 9M FY26, the company achieved robust real estate sales, recording a sales value of Rs. 60.97 Bn across a saleable area of 4.21 Mn sft. During this period, completions totaled 3.64 Mn sft, comprising 26 towers, one plotted development, and 10 villas, reflecting steady delivery across its portfolio.

The company also launched 2.58 Mn sft of new projects across six developments in five cities. Expansion continued with a presence now in 13 cities, including key growth in Mumbai and Greater Noida, strengthening its operational footprint and market reach.

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