Sobha share rallies 6% as Q2 profit climbs 75% YoY; check details here

Sobha share price: Shares of real estate developer Sobha Limited climbed up to 5.92 per cent to hit an intraday high of Rs 1,623 per share on Monday, November 18, 2024. 

 

The rise in Sobha share price came on the back of stellar show in the September quarter of financial year 2025 (Q2FY25).

 

Sobha’s profit zoomed 74.5 per cent year-on-year (Y-o-Y) to Rs 26 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 14.9 crore in the same quarter a year ago (Q2FY24).

 

The company’s revenue from operations soared 25.9 per cent Y-o-Y to Rs 933.5 crore in Q2FY25, as against Rs 741.2 crore in the same quarter a year ago (Q2FY24).

 

 

At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda), soared 2.3 per cent Y-o-Y to Rs 77 crore in Q2FY25, from Rs 75.3 crore in the same quarter a year ago. 

 

Ebitda margin, however, contracted 190 basis points to 8.3 per cent as against 10.2 per cent in the same quarter last year. 

 

Meanwhile, quarterly sales value stood at Rs 1,178 crore.The average price realisation of Rs 12,674 per sqft, up 24 per cent Y-o-Y, the company said in a statement.

 

Jagadish Nangineni, managing director, Sobha said, “Our Q2FY25 performance reflects continued strength in our operations, fueled by our team’s efforts across functions and sustained demand in residential real estate. The geographical diversification of our project portfolio is paying rich dividends, with the ability to cater to demand across all our eleven operating cities. With solid financial strength of the company, post successful completion of rights issue, coupled with deep operational expertise and international brand recognition, we are effectively positioned to ride the growth wave. Our focus on delivering benchmark quality residences, construction products and services through our unique backward integrated operating model would continue to be our mainstay as we pursue scale.” 

 

Sobha Limited, founded by PNC Menon in 1995, is a real estate developer.  With a strong presence in 27 cities across 14 states, the company has expanded its operations internationally to Oman and Dubai under the brand Sobha Realty. 

 

Sobha Limited operates in two primary segments including real estate and contractual manufacturing, offering a diverse range of products, including luxury apartments, villas, row houses, and plotted developments. In addition to its real estate ventures, Sobha Limited also focuses on manufacturing, producing interiors, glazing, metal works, and concrete products. 

 

The company boasts a robust portfolio of corporate clients, including major names such as Infosys, Biocon, Dell, and HP. 

 

At 11:16 AM, Sobha shares were trading 0.35 per cent higher at Rs 1,537.55 per share. In comparison, BSE Sensex was trading 0.67 per cent lower at 77,059.57 levels.