Sobha Ltd
SOBHASobha Ltd's earnings have outrun its stock. EPS grew +104.2% in a year against a −13.8% price move.
The sharpest disagreement: annual EPS moved +104.2% against a −13.8% price move — the market has not yet caught up with the delivery.
The price is in a downtrend (21 weeks in) while the P/E sits at the 62nd percentile of its own 10-year range. Underneath, the last four quarters read improving — profit +264.3% year on year, and 379% of the last 3 years' profit arrived as cash. What settles it: whether the price catches up with earnings that have already moved.
Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.
Sobha Ltd trades at ₹1,462, in a downtrend and 21 weeks into that stage. That is +2.6% against its own 200-day average. It sits at 50% of a 52-week range of ₹1,228 to ₹1,701. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.
Today the stock is in a downtrend — week 21 of stage 4. At ₹1,462 it trades +2.6% versus its 200-day average and sits at 50% of its 52-week range (₹1,228–₹1,701).
Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +503% while the NIFTY 500 moved +274% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.
What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.
→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 62nd percentile of its own range.
Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.
Sobha Ltd trades at 63.2× P/E, mid-range by its own standards (62nd percentile). Its long-run median P/E is 46.7×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.
Today's P/E of 63.2× is mid-range by its own standards (62nd percentile), against a long-run median of 46.7× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.
Why the multiple sits where it does: over the past year annual EPS moved +104.2% against a −13.8% price move — earnings outran the price, pushing the multiple DOWN its own range.
The price move, decomposed: over 5y, of the +17.9%/yr price move, ~+30.0%/yr came from earnings growth and ~−12.1 pp from the multiple (compressing); over 10y, of the +16.4%/yr price move, ~+5.6%/yr came from earnings growth and ~+10.8 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.
Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.
→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.
Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).
Sobha Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: revenue growth has eased from +50.3% at its peak to +32.1% but is still expanding, ROCE holding at 8.3%. The read is built from 12 quarters across 4 curves, on full evidence.
Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.
| 1yr | 3yr | 5yr | 10yr | |
|---|---|---|---|---|
| Revenue | +28.5% | +16.2% | +19.7% | +10.3% |
| Profit | +103.2% | +22.9% | +25.5% | +3.4% |
| EPS | +104.2% | +22.9% | +25.5% | +3.8% |
| Share price | −13.8% | +39.3% | +17.9% | +16.4% |
→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.
4-Factor Sector Score
57.0/100 — rank 4 of 7 in Realty - National · 87% evidence confidence
Sobha Ltd scores 57.0 out of 100 against the 7 companies it is compared with in Realty - National, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.
The four contributions add to the total exactly: 29.3 + 9.8 + 3.5 + 14.4 = 57. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.
What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.
Revenue Revenue is the top line: everything the company billed its customers in the period.
Sobha Ltd reported ₹1,278 Cr of revenue in the Jun 26 quarter, +50.0% year on year. That is the 2nd straight quarter of year-on-year growth. Over 10 years it has compounded at 10.3% a year. The last full year, FY26, came in at ₹5,190 Cr. The last four reported quarters add to ₹5,617 Cr.
Sobha Ltd reported ₹1,278 Cr of revenue in the Jun 26 quarter, +50.0% year on year. That is the 2nd straight quarter of year-on-year growth. Over 10 years it has compounded at 10.3% a year. The last full year, FY26, came in at ₹5,190 Cr. The last four reported quarters add to ₹5,617 Cr.
FY26 revenue came in at ₹5,190 Cr (+28.5% on the year), capping 10 years at 10.3% compound. The latest quarter (Jun 26) printed ₹1,278 Cr, +50.0% year on year — the 2nd consecutive quarter of year-over-year growth.
Pace check: the last four quarters averaged +34.5% growth against the decade's 10.3% — the current year is running faster than its own long-run rate.
Acceleration check: trailing-twelve-month revenue grew +32.1% over the last 4 quarters against +40.9%/yr over the last 8 — rolling over; TTM profit +124.3% vs +131.8%/yr — rolling over.
→ Revenue grew — did margins hold as it scaled? Next: 6.0% this quarter (+3.0 pp YoY).
Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.
Sobha Ltd's operating margin is 6.0% in the Jun 26 quarter, +3.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 6.0% to 32.0%. The current quarter sits inside that band.
Sobha Ltd's operating margin is 6.0% in the Jun 26 quarter, +3.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 6.0% to 32.0%. The current quarter sits inside that band.
The latest quarter's operating margin is 6.0%, +3.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 6.0%–32.0%.
Why the margin moved: operating margin went +3.3 pp year on year while gross margin went −18.8 pp — the gain came mostly from the gross line: input costs and pricing.
→ Margins held — did that reach the bottom line? Next: profit +264.3% in the latest quarter.
Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.
Sobha Ltd earned ₹51.0 Cr of net profit in the Jun 26 quarter, +264.3% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹193 Cr. The 10-year compound rate is 3.4%. That is 4.0% of the quarter's revenue. The same quarter a year earlier earned ₹14.0 Cr.
Sobha Ltd earned ₹51.0 Cr of net profit in the Jun 26 quarter, +264.3% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹193 Cr. The 10-year compound rate is 3.4%. That is 4.0% of the quarter's revenue. The same quarter a year earlier earned ₹14.0 Cr.
Jun 26 profit was ₹51.0 Cr, +264.3% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹193 Cr (+103.2%), and the 10-year compound rate is 3.4%.
Why profit moved: revenue contributed +50.0% and the margin +3.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.
Pace comparison, last four quarters: profit +134.4% vs revenue +34.5%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.
→ Profit rose — but did the cash follow? Next: 379% of the last 3 years' profit arrived as cash.
Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.
Over the last 3 fiscal years 379% of Sobha Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹430 Cr of operating cash against ₹193 Cr of profit. After ₹204 Cr of capital spending, ₹226 Cr was left as free cash.
FY26: operating cash of ₹430 Cr against reported profit of ₹193 Cr, leaving free cash of ₹226 Cr after ₹204 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 379% of profit.
Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.
Why conversion sits at 379%: the cash cycle stretched 5,271 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.
Router verdict: the bigger cash user is investment — capital spending ran 1.7× depreciation over three years, so the next section's job is to check what that build-out is buying.
→ So follow the cash to where it goes. Next: ₹476 Cr of building over 3 years.
Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).
Sobha Ltd's cash conversion cycle runs 5,305 days in FY26, up from 34 days in FY21. Capital spending ran ₹476 Cr over the last 3 years. At FY26 sales of ₹5,190 Cr each day of that cycle holds about ₹14.2 Cr, so roughly ₹75,433 Cr sits inside the business at any moment.
FY26: debtors at 19 days, inventory at 5,650 days — roughly 185.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 5,305 days, looser than FY21's 34.
The full loop: cash goes out to suppliers and production on day 0; stock waits 5,650 days to sell; customers pay about 19 days after that; and suppliers themselves are paid at 365 days — netting out to the 5,305-day cycle.
In money terms: at FY26 sales of ₹5,190 Cr, each day of the cycle holds about ₹14.2 Cr — so the 5,305-day loop keeps roughly ₹75,433 Cr sitting inside the business at any moment.
On the investment side: capital spending of ₹476 Cr over the last 3 fiscal years against ₹274 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹27.0 Cr (FY26) — capacity paid for but not yet earning.
The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.
→ Does all this activity actually earn its cost of capital? Next: ROCE is 7% and the ROIC − WACC spread is −7.7 pp.
Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.
Sobha Ltd earns a ROCE of 7% in FY26. That is up from a trough of 6% in FY25. Return on invested capital clears the cost of that capital by −7.7 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 3.7% net margin on 0.27× asset turns.
FY26 ROCE is 7%, recovered from a FY25 trough of 6% — the full ladder below shows the fall and the climb, undoctored.
🚨 Why the return is what it is — the wiring (FY26): 3.7% net margin × 0.27× asset turns × 4.13× balance-sheet leverage ≈ 4.1% on equity. Margin does its share; leverage is a meaningful part of the equation.
The capstone test — ROIC − WACC: 4.3% − 12.0% = a −7.7 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.
→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.22.
Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.
Sobha Ltd carries total debt of ₹1,162 Cr against shareholder equity of ₹4,720 Cr as of Jun 26, a debt-to-equity of 0.25 — effectively unlevered. On the annual view that ratio went from 1.17 in FY22 to 0.25 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.
Jun 26: total debt of ₹1,162 Cr against shareholder equity of ₹4,720 Cr — a debt-to-equity of 0.25. On the annual view, debt-to-equity went from 1.17 (FY22) to 0.25 (FY26). The returns on this page are earned, not borrowed.
→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 7.4 points over 8 quarters.
Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.
Domestic institutions added 7.4 points of Sobha Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 26.0% of the company. Foreign institutions moved −5.4 points over the same window, to 6.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.
The register over the last two years — Domestic institutions: +7.4 points over 8 quarters to 26.0%; Foreign institutions: −5.4 points over 8 quarters to 6.1%; Promoters: +0.6 points over 8 quarters to 52.9%.
Why the register moved: rotation — foreign institutions −5.4 points against domestic institutions +7.4 points over 8 quarters, with promoters +0.6 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.
→ One last check: does the safety math agree? Next: the balance-sheet safety line.
Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.
Sobha Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.
The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.
| Company | P/E | Mkt cap | Revenue | EPS | ROCE | Stage |
|---|---|---|---|---|---|---|
| Sobha Ltd this page | 63.2× | ₹14,567 Cr | Mixed | |||
| DLF Ltd | 38.2× | ₹1.6L Cr | Deteriorating | |||
| Lodha Developers Ltd | 27.7× | ₹1.1L Cr | Mixed | |||
| Prestige Estates Projects Ltd | 57.4× | ₹68,607 Cr | Turning around | |||
| Godrej Properties Ltd | 38.0× | ₹61,110 Cr | Mixed | |||
| Brigade Enterprises Ltd | 26.3× | ₹17,138 Cr | Mixed | |||
| Aditya Birla Real Estate Ltd | — | ₹15,349 Cr | No read |
Frequently asked questions
What is Sobha Ltd's share price today?
Sobha Ltd trades at ₹1,462, −13.8% over the past year. The company is valued at ₹14,567 Cr. The stock sits at 50% of its 52-week range of ₹1,228–₹1,701, +2.6% versus its 200-day average. On the tape, the price is in a downtrend, 21 weeks in. — as of 24 July 2026.
What were Sobha Ltd's latest quarterly results?
Sobha Ltd reported revenue of ₹1,278 Cr and net profit of ₹51.0 Cr for the Jun 26 quarter. Revenue rose 50.0% and profit rose 264.3% year on year. Earnings per share were ₹4.76. The operating margin was 6.0%, 3.0 pp higher than a year earlier. — as of 24 July 2026.
What is Sobha Ltd's revenue?
Sobha Ltd reported revenue of ₹1,278 Cr in the Jun 26 quarter, +50.0% year on year. For the full FY26 fiscal year, revenue was ₹5,190 Cr (+28.5%). Over the last 10 years revenue compounded at 10.3% a year. — as of 24 July 2026.
What is Sobha Ltd's profit?
Sobha Ltd earned ₹51.0 Cr of net profit in the Jun 26 quarter, +264.3% year on year — the 2nd straight quarter of growth. Full-year FY26 profit was ₹193 Cr. The operating margin ran 6.0% in the latest quarter. — as of 24 July 2026.
What is Sobha Ltd's market cap?
Sobha Ltd's market capitalisation is ₹14,567 Cr at a share price of ₹1,462. Market cap is the share price multiplied by shares outstanding, so it is restated whenever the price moves. — as of 24 July 2026.
What is Sobha Ltd's P/E ratio?
Sobha Ltd trades at a P/E of 63.2×, at the 62nd percentile of its own 10-year range, against a long-run median of 46.7×. This is a comparison with the stock's own history, not a value call — as of 24 July 2026.
Does Sobha Ltd pay a dividend?
Yes — Sobha Ltd's dividend payout was 33% of profit in FY26, and it recorded a payout in each of its last 13 reported fiscal years. This page holds the payout ratio, not a per-share amount. — as of 24 July 2026.
Is Sobha Ltd overvalued?
On its own history, Sobha Ltd looks mid-range against its own history: its P/E of 63.2× sits at the 62nd percentile of its 10-year range (long-run median 46.7×). That is a percentile read against the stock's own past, not a price opinion or a direction call. — as of 24 July 2026.
Is Sobha Ltd growing?
Yes — Sobha Ltd is growing: latest-quarter revenue +50.0% year on year, profit +264.3%, and the margin +3.0 pp at 6.0%. The 10-year compound rates are 10.3% (revenue) and 3.4% (profit). The earnings engine currently reads: improving — as of 24 July 2026.
How is Sobha Ltd performing?
Sobha Ltd is in a downtrend, 21 weeks in. Its latest quarter's revenue rose 50.0% and profit rose 264.3% year on year. Against the NIFTY 500 it has been ahead on a trailing-13-week view for 2 weeks. This describes what the data did, not a rating. — as of 24 July 2026.
What stage is Sobha Ltd in?
Mixed — growth is normalizing off a hyper-growth base: revenue growth has eased from +50.3% at its peak to +32.1% but is still expanding, ROCE holding at 8.3%. The read comes from the last 12 quarters of growth (revenue growth +32.1% latest, profit growth +124.3% latest, eps growth +125.6% latest) plus the ROCE curve, classified by deterministic rules — a trajectory read, not a buy or sell call — as of 24 July 2026.
Is Sobha Ltd in an uptrend?
No — the price is in a downtrend (week 21 of stage 4), trading +2.6% versus its 200-day average and at 50% of its 52-week range. Price stages cycle base → advance → top → decline, and the stage names where this stock sits in that cycle — as of 24 July 2026.
Is Sobha Ltd beating the market?
On recent form, yes — Sobha Ltd has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks, the same metric the week-by-week ribbon on this page draws. Separately, on the cumulative view: over the last 10.3 years the stock moved +503% against the NIFTY 500's +274% — ahead of the index over the full window. — as of 24 July 2026.
Will Sobha Ltd's share price go up?
This page publishes no price forecast for Sobha Ltd. What it measures instead: the share price is ₹1,462, the price is in a downtrend 21 weeks in. Its P/E of 63.2× sits at the 62nd percentile of its own 10-year range. Direction is not something this site claims to know. — as of 24 July 2026.
Who owns Sobha Ltd?
Promoters hold 52.9% of Sobha Ltd, foreign institutions 6.1%, domestic institutions 26.0% and the public 15.0% (latest quarter). The biggest move on the register over the last two years: Domestic institutions added 7.4 points over 8 quarters. — as of 24 July 2026.
Does Sobha Ltd have too much debt?
No — Sobha Ltd's debt-to-equity is 0.22, and operating profit covers the interest bill 2×. FY26 borrowings were ₹1,057 Cr against equity of ₹4,720 Cr. The returns on this page are earned, not borrowed — as of 24 July 2026.
What is Sobha Ltd's capex?
Sobha Ltd spent ₹476 Cr on capital expenditure over the last 3 fiscal years, a figure derived from the change in fixed assets plus depreciation. In FY26 alone that was ₹204 Cr, with ₹27.0 Cr in capital work-in-progress — capacity paid for but not yet earning. — as of 24 July 2026.
What is Sobha Ltd's cash flow?
Sobha Ltd generated ₹430 Cr of operating cash flow in FY26 and ₹226 Cr of free cash flow after ₹204 Cr of capital spending. Reported profit that year was ₹193 Cr, so operating cash ran ahead of profit. Cash-flow resolution for India is annual. — as of 24 July 2026.
Is Sobha Ltd's profit real cash?
Yes — over the last 3 fiscal years, 379% of Sobha Ltd's reported profit arrived as operating cash. In FY26, operating cash was ₹430 Cr against reported profit of ₹193 Cr. The cash then goes mostly into building capacity. Cash-flow resolution is annual — as of 24 July 2026.
Where is Sobha Ltd in its business cycle?
Sobha Ltd's FY26 operating margin was 6.0%, against a 13-year band of 6.0%–32.0%: the low end of its own band, which is where recoveries start when they come. The latest quarter ran 6.0%. Profitability versus a company's own long band is the cleanest cycle clock this page holds — as of 24 July 2026.
What could break the Sobha Ltd story?
The sharpest disagreement: annual EPS moved +104.2% against a −13.8% price move — the market has not yet caught up with the delivery. Mechanically, two Friday closes in a row below the 200-day average would end the price trend — that is the exit rule this page tracks — as of 24 July 2026.
Is Sobha Ltd a stock worth studying right now?
This is not investment advice. The machine read: Sobha Ltd's earnings have outrun its stock. EPS grew +104.2% in a year against a −13.8% price move. The sharpest open question: whether the price catches up with earnings that have already moved. Every number on this page is drawn deterministically from the raw series, with no forecasts and no price opinions — as of 24 July 2026.