Sobha Limited filed its quarterly Statement of Deviation for rights issue proceeds under Regulation 32, showing utilization of ₹1,744.55 crores out of ₹1,999.03 crores raised in July 2024. The company has fully utilized ₹905.00 crores for debt repayment while ₹254.48 crores remains unutilized across other objectives including land acquisition, project expenses, and equipment purchase.
Sobha Limited has filed its Statement of Deviation or Variation of funds in proceeds of Rights Issue for the quarter ended December 31, 2025, pursuant to Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statement was reviewed by the Audit Committee at its meeting held on January 16, 2026.
Rights Issue Fund Details
The company raised ₹1,999.03 crores through rights issue on July 11, 2024, with ICRA Limited serving as the monitoring agency. Out of the total funds raised, the company has utilized ₹1,744.55 crores towards the objects stated in the Letter of Offer dated June 12, 2024, leaving ₹254.48 crores unutilized as of December 31, 2025.
Parameter: Details Amount Raised: ₹1,999.03 crores Date of Fund Raising: July 11, 2024 Total Utilized: ₹1,744.55 crores Unutilized Amount: ₹254.48 crores Monitoring Agency: ICRA Limited
Fund Utilization Breakdown
The company has allocated funds across five key objectives as outlined in the original Letter of Offer. The largest allocation was towards debt repayment, which has been fully utilized.
Original Object: Original Allocation (₹ Cr): Funds Utilized (₹ Cr): Status: Debt Repayment: 905.00 905.00 Fully Utilized Land Acquisition & General Corporate: 658.59 632.09 Partially Utilized Project Related Expenses: 212.36 153.58 Partially Utilized Equipment & Machinery: 210.03 41.15 Partially Utilized Issue Related Expenses: 13.05 12.73 Nearly Complete
Key Highlights
The statement indicates no deviation from the original objects for which funds were raised. The company has fully utilized the allocated amount of ₹905.00 crores for repayment or prepayment of certain borrowings. For funding acquisition of land parcels and general corporate purposes, ₹632.09 crores has been utilized out of the allocated ₹658.59 crores.
Additional Financial Information
The company has earned ₹28.70 crores as interest income from temporary investments, which has not been included in the unutilized amount calculation. Out of the ₹254.48 crores unutilized amount, ₹0.32 crores relates to issue-related expenses lying in the monitoring account.
Regulatory Compliance
The filing demonstrates Sobha Limited's adherence to regulatory requirements under SEBI guidelines. The statement confirms that there has been no deviation in the objects or purposes for which the funds were raised, and no change in terms of contracts mentioned in the fund-raising documents. The information has also been made available on the company's website at www.sobha.com for public access.
SOBHA Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance with quarterly revenue declining while demonstrating strong nine-month growth. The Bengaluru-based real estate developer's Board of Directors approved the results at their meeting held on January 16, 2026.
Quarterly Financial Performance
The company's Q3FY26 performance showed revenue contraction despite improved profitability. Key quarterly metrics demonstrate the company's ability to maintain profit margins amid challenging market conditions.
Metric Q3FY26 Q3FY25 Change (%) Revenue from Operations ₹9,801.10 million ₹12,467.95 million -21.4% Total Income ₹10,285.72 million ₹12,826.92 million -19.8% Net Profit ₹306.85 million ₹275.45 million +11.4% Basic EPS ₹2.87 ₹2.73 +5.1%
Nine-Month Performance Shows Strong Growth
The nine-month results for FY26 revealed significant improvement across key financial parameters, indicating strong underlying business momentum despite quarterly variations.
Parameter 9M FY26 9M FY25 Growth (%) Revenue from Operations ₹33,829.51 million ₹27,921.99 million +21.1% Total Income ₹35,552.87 million ₹28,952.66 million +22.8% Net Profit ₹1,802.93 million ₹621.83 million +190.0% Basic EPS ₹16.86 ₹6.28 +168.5%
Segment-wise Business Performance
SOBHA operates through two primary business segments: Real Estate and Contractual & Manufacturing. The segment analysis reveals the contribution of each division to overall performance.
Real Estate Segment:
Q3FY26 revenue: ₹7,384.92 million vs ₹10,609.62 million in Q3FY25
Nine-month revenue: ₹26,870.57 million vs ₹22,663.09 million in 9M FY25
Segment profit for nine months: ₹2,998.81 million
Contractual and Manufacturing Segment:
Q3FY26 revenue: ₹3,040.16 million vs ₹2,390.43 million in Q3FY25 (+27.2%)
Nine-month revenue: ₹8,796.84 million vs ₹6,478.50 million in 9M FY25 (+35.8%)
Segment profit for nine months: ₹786.87 million
Financial Position and Capital Structure
The company maintained a stable capital structure with paid-up equity share capital of ₹1,069.40 million as of December 31, 2025. Total assets stood at ₹1,85,190.95 million compared to ₹1,56,739.50 million in the previous year, representing an 18.1% increase.
Regulatory and Legal Matters
SOBHA disclosed several ongoing regulatory proceedings in its financial results. The company faces provisional attachment of land parcels valued at ₹2,016.05 million under the Prevention of Money Laundering Act, 2002, related to a joint development arrangement in Gurugram, Haryana. The company has filed an appeal before The Appellate Tribunal against the order.
Additionally, the Income Tax Department has raised aggregate demands of ₹672.00 million for assessment years from AY 2015-16 to AY 2023-24, against which the company has filed appeals. Management believes these proceedings will not adversely impact the financial results based on independent legal opinions obtained.
Outlook and Recent Developments
The company's consolidated results showed similar trends, with Q3FY26 consolidated revenue at ₹9,431.13 million and nine-month consolidated revenue reaching ₹32,026.63 million. During the quarter, SOBHA's subsidiary acquired a 20.03% stake in Constrobot Robotics Private Limited, making it an associate company.
The implementation of new Labour Codes effective November 21, 2025, is being evaluated by the company, though management expects the impact to be minimal on financial results.
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