Oberoi Realty delivered impressive financial results for Q1 FY27, with consolidated net profit rising 29% year-on-year to ₹544 crore compared to ₹421 crore in the same quarter last year. According to latest reports from Live Mint, revenue from operations increased 31.7% to ₹1,301 crore from ₹987.6 crore in the previous year, while total income rose 26.8% to ₹1,301 crore. The company's profit before tax surged 40.4% to ₹711.64 crore from ₹506.96 crore, demonstrating strong operational performance across key metrics. EBITDA increased 41% to ₹734 crore with a significant margin expansion of 370 basis points to 56.4%, indicating improved operational efficiency and cost management. As per PL Capital, the brokerage noted that consolidated revenue rose 32% year-on-year to ₹13 billion, EBITDA increased 41% to ₹7.3 billion and profit after tax grew 29% to ₹5.4 billion.
The real estate segment was the primary driver of growth, with revenue increasing 32.7% year-on-year to ₹1,254.02 crore from ₹944.91 crore. As reported by CNBC TV18, the segment result before unallocated income and expenditure, finance charges and tax rose 43.4% to ₹731.20 crore from ₹509.92 crore. The hospitality segment also contributed positively, with revenue growing 9.9% to ₹46.87 crore and segment result increasing 15% to ₹16.98 crore. Leasing income rose 20% year-on-year to ₹3.2 billion, while hospitality revenue increased 10% to ₹469 million. Total segment results rose 45.4% to ₹748.18 crore from ₹514.68 crore, reflecting strong operational performance across both business verticals. The improved performance was driven by higher real estate sales and improved operating margins during the quarter.
Pre-sales stood at ₹1,050 crore in Q1 FY27, in line with Nomura's estimate of ₹1,100 crore, though pre-sales were down 36% year-on-year due to a high base from the previous year when the new tower for Elysian project was launched. According to Moneycontrol, At 360 West, Worli, the company sold one unit during the quarter at a strong price point of ₹154,000 per square foot on carpet area, compared with around ₹120,000 per square foot over the past two quarters. The company also sold two units at its new ultra-luxury Oceanic project on Carter Road at ₹160,000 per square foot on carpet area, while no sales were reported at Fairview, Malabar Hill during the quarter. At Oberoi Garden City, Thane, Nomura noted a pick-up in sales momentum with 49 units sold during the quarter compared with 16-25 units sold in each quarter from Q1 FY26 to Q3 FY26. Motilal Oswal noted that the company commenced bookings at its Carter Road project – Oceanic, which contributed ₹1.5 billion to pre-sales (~14.5% share). PL Capital noted that sales were led by Elysian, the newly launched Oceanic redevelopment project, Jardin, Sky City and 360 West, with the successful Gurugram launch of 360 North recording more than ₹80 billion of gross bookings.
Elara Securities expects a strong launch pipeline through FY27, including projects at Pedder Road, Worli, Thane, Alibaug and Mulund, with more than ₹100 billion of new inventory likely to be released. According to Elara Securities, sustenance sales remained steady across key micro-markets, while the company continues to deliver industry-leading profitability with around 40% PAT margin and residential EBITDA margin of more than 50%. PL Capital expects pre-sales to grow at a 22% CAGR over FY26-FY28, supported by successful launches, faster inventory absorption and sustained demand across the Mumbai Metropolitan Region (MMR). The brokerage also expects annuity income to remain steady at ₹13-14 billion by FY28, providing strong cash flow visibility. Motilal Oswal increased its pre-sales estimates to ₹137 billion in FY27 (+154% YoY) and ₹111 billion in FY28, factoring in staggered sales at the remaining phase of NCR. Elara noted that the stock is "trading attractively" at a 10% discount to its March 2027 estimated NAV, believing the market is underestimating the company's higher residential growth trajectory following the success of its Gurugram project.
Oberoi Realty shares declined 0.91% to ₹1,877.60 on Monday after the company's Q1 FY27 earnings came in below consensus estimates. Despite the earnings miss, Nomura retained its Buy rating on Oberoi Realty and maintained its SOTP-based target price of ₹2,090. PL Capital retained its "Accumulate" rating with a target price of ₹2,100, while Elara Securities maintained its "Buy" call and raised its target price to ₹2,800 from ₹2,500. However, Motilal Oswal recommended a Neutral rating on Oberoi Realty with a target price of ₹2,000 in its research report dated July 20, 2026. According to Moneycontrol, Nomura said "1QFY27 earnings was weaker than consensus due to no revenue recognition from 360 West and slower q-q revenue recognition from projects such as Sky City, Eternia and Elysian." The brokerage's valuation is based on DCF valuation of the residential portfolio and NAV of annuity and hotel assets, with residential valuation implying a 75% premium to Oberoi Realty's residential NAV, while the stock currently trades at a 49% premium to its residential NAV. Collections stood at ₹920 crore, down 8% year-on-year, while annuity revenue stood at ₹330 crore in Q1 FY27, up 18% year-on-year.
