Board Meeting Details

The Board of Directors meeting was held on October 19, 2026, commencing at 12:30 PM and concluding at 4:20 PM IST.

Key Approvals

1. Standalone Financial Results: Approved Standalone Limited Review Report and Standalone Unaudited Financial Results for quarter and half year ended September 30, 2026.

2. Consolidated Financial Results: Approved Consolidated Limited Review Report and Consolidated Unaudited Financial Results for quarter and half year ended September 30, 2026.

3. Related Party Transaction: Approved acquisition of fire and safety division of Sobha Projects and Trade Private Limited (SPTL) on slump sale basis for ₹127 million. The transaction was approved by Audit Committee on same date and is conducted on arm's length basis.

Standalone Financial Performance (₹ millions)

Quarter Ended September 30, 2026:

  • Total Income: ₹9,679.21
  • Revenue from Operations: ₹9,096.76
  • Other Income: ₹582.45
  • Total Expenses: ₹9,389.69
  • Profit Before Tax: ₹289.52
  • Tax Expense: ₹82.43
  • Profit After Tax: ₹207.09
  • Basic EPS: ₹1.94 (not annualized)

Half Year Ended September 30, 2026:

  • Total Income: ₹22,841.01
  • Revenue from Operations: ₹21,672.63
  • Other Income: ₹1,168.38
  • Profit Before Tax: ₹1,074.03
  • Tax Expense: ₹286.52
  • Profit After Tax: ₹787.51
  • Basic EPS: ₹7.37 (not annualized)

Consolidated Financial Performance (₹ millions)

Quarter Ended September 30, 2026:

  • Total Income: ₹10,172.17
  • Revenue from Operations: ₹9,670.64
  • Other Income: ₹501.53
  • Profit Before Tax: ₹469.80
  • Tax Expense: ₹140.21
  • Profit After Tax: ₹329.59
  • Basic EPS: ₹3.08 (not annualized)

Half Year Ended September 30, 2026:

  • Total Income: ₹23,473.87
  • Revenue from Operations: ₹22,452.16
  • Other Income: ₹1,021.71
  • Profit Before Tax: ₹1,161.04
  • Tax Expense: ₹322.99
  • Profit After Tax: ₹838.05
  • Basic EPS: ₹7.83 (not annualized)

Segment Performance (Standalone)

Real Estate Segment:

  • Q2 Revenue: ₹6,489.86 million
  • Q2 Segment Result: ₹757.08 million
  • H1 Revenue: ₹16,969.64 million
  • H1 Segment Result: ₹2,082.00 million

Contractual and Manufacturing Segment:

  • Q2 Revenue: ₹3,265.98 million
  • Q2 Segment Result: ₹600.98 million
  • H1 Revenue: ₹6,007.10 million
  • H1 Segment Result: ₹982.41 million

Balance Sheet Position (Standalone as of September 30, 2026)

  • Total Assets: ₹202,503.05 million
  • Inventories: ₹132,204.42 million
  • Cash and Cash Equivalents: ₹1,356.05 million
  • Total Equity: ₹46,999.09 million
  • Total Liabilities: ₹155,503.96 million
  • Borrowings (Current + Non-current): ₹14,773.14 million

Auditor's Review

Walker Chandiok & Co LLP issued unmodified review reports for both standalone and consolidated results. The reports include emphasis paragraphs regarding:

1. PMLA Matter: Enforcement Directorate filed complaint regarding joint development arrangement in Gurugram, Haryana. Provisional attachment of land parcels valued at ₹2,016.05 million held by Technobuild Developers Private Limited. Management believes transactions were conducted in accordance with applicable laws. Appeal filed with Appellate Tribunal.

2. Income Tax Matter: Search conducted in March 2023. Multiple demand orders received for AY 2015-16 to AY 2023-24 aggregating ₹842 million. Company has filed appeals before CIT(A), Bengaluru. Management believes no adjustments required based on legal opinions.

3. Reliance on Other Auditors: Consolidated results include 20 subsidiaries, 1 associate, and 1 joint venture. Reliance placed on review reports of other auditors for 20 subsidiaries and 1 associate.

Legal Contingencies

1. Sobha Assets Private Limited: Customer terminated project development contract demanding compensation of ₹2,956.13 million plus forfeiture of ₹227.32 million performance guarantee and ₹26 million deposits. Carrying value of project assets: ₹354.10 million. Arbitration petition filed.

2. Fire Clearance Matter: Local municipal body revoked modified sanction plan and occupancy certificate for one project. Company obtained stay from Karnataka Appellate Tribunal. Criminal case filed and stayed by Karnataka High Court.

Related Party Transaction Details

Acquisition of Fire and Safety Division from SPTL:

  • Transaction Value: ₹127 million
  • Nature: Slump sale of going concern with assets, liabilities, employees, contracts, licenses
  • SPTL Turnover (FY26): ₹1,840.37 million
  • SPTL Paid-up Capital: ₹157.66 million
  • Promoters: Mr. PNC Menon and Mrs. Sudha Menon (common with Sobha Limited)
  • Strategic Rationale: Strengthening backward integration, operational synergies, competitive procurement, GST efficiencies
  • Expected Completion: Within three months

Dividend Information

Paid final dividend of ₹6 per equity share amounting to ₹641.66 million for FY26, approved by shareholders on July 18, 2026.