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Sobha Q2 Profit Plunges 54.5% to ₹33 Crore Despite Record H1 Sales
Sentiment: NeutralHigh Priority
What Happened?
Sobha Limited reported a 54.5% decline in consolidated net profit to ₹32.96 crore for Q2 FY27, with revenue falling 31.3% year-on-year. However, the company achieved record sales growth of 47.2% in the first half of the financial year.
Key points
- Consolidated net profit for Q2 FY27 was ₹32.96 crore.
- Revenue from operations fell to ₹967.06 crore from ₹1,407.66 crore.
- Earnings before interest, tax, depreciation, and amortization (Ebitda) decreased to ₹68.73 crore.
- Sobha reported an average price realization of ₹15,522 per square foot.
- The company launched projects with a saleable area of 7.92 million square feet in H1 FY27.
Key insights
- The significant profit drop may raise concerns about operational efficiency.
- Strong sales growth indicates sustained demand for Sobha's projects.
- Future project launches could further enhance revenue potential.
Why it matters
The decline in profit highlights challenges in the real estate sector despite strong sales growth.
Tags
Entities
Sobha Limited· CompanyBengaluru· CityBombay Stock Exchange· Organization
Source
Business Standard
