Oberoi Realty, Dalmia Bharat, Metro Brands, Karur Vysya Bank, Ujjivan SFB, Mastek, Shoppers Stop Q2 Review

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HDFC Securities Institutional Equities

Oberoi Realty - Steady show

Oberoi Realty Ltd. registered presales of Rs 13 billion (-10%/-21% YoY/QoQ, Rs 9 billion our estimate) for Q2 FY26. Quarterly print was mainly backed by sustenance sales due to no new launches in the quarter.

Moreover, this quarter, its uber-luxury project 360W managed to sell four units (vs 6/1 in Q2 FY25/Q1 FY26), reflecting gradual traction in the high-end segment, where conversions are finally taking place.

We believe Oberoi Realty is well-positioned to sell the remaining inventory over the next 12–18 months, supported by its strong brand equity and the premium nature of the development.

Average price realization at Rs 51.9kpsf (-1%/+12% YoY/QoQ). Oberoi Realty is actively expanding its real estate footprint with several upcoming launches in H2 FY26, including Gurugram where demolition has begun (Jan-26 RERA expected) along with final tower at Borivali, Carter Road, Peddar Road,and Adarsh Nagar Worli approval in the works.

On the commercial and hospitality front, Sky City mall maintains financial stability with 53% occupancy and international recognition, while the Ritz-Carlton hotel is nearing completion and expected to launch at end of FY26.

Additionally, a new mall, office building, and hotel are planned for the I-Ven land parcel. The company remains cautious on acquiring the Sahara land, adopting a wait-and-watch approach. Its focus on delivering high-quality projects supports premium pricing and strong brand loyalty.

Oberoi Realty’s strong financial position has enabled strategic expansions, including four new projects at prime Mumbai locations and a major land parcel in Alibaug, set to launch post-FY27.

With disciplined land acquisitions and a focus on timely execution, Oberoi Realty is well-placed to capitalize on robust demand across residential and mixed-use segments, ensuring sustained growth.

Given the expected robust cash flows from ready-to-move-in inventory in 360W, we remain constructive on Oberoi Realty and maintain Buy, with a target price of Rs 2,302/share.

Dalmia Bharat - Volume in line with sector; pricing-led healthy margin

We maintain our Buy rating on Dalmia Bharat with an unchanged target price of Rs 2,574/share (12x its Sep-27E consolidated Ebitda). In Q2 FY26, Dalmia’s volume rose 3% YoY, in line with industry and despite pricing dip, unit Ebitda stood strong at Rs 1,009/mt (Rs 359/MT YoY).

We estimate 9% volume CAGR for FY25-28E along with margin recovering to Rs 1,239/MT per MT in FY28E (vs Rs 820/MT in FY25), aided by healthy pricing and various cost efficiency programs.

Metro Brands - Greenshoots in demand visible; margins disappoint

Metro Brands’ topline grew 11.2% YoY to Rs 6.51 billion (our estimate: Rs 6.47 billion). Q2 had a few counterbalancing demand levers - the early onset of festive season did help; however, prolonged monsoons and deferred purchases post-GST rate reduction reined in the festive buoyancy.

The GST rate cut is expected to benefit ~90% of Walkway and 40% of Metro-Mochi products. Sales density remained largely steady at Rs 17.7k in Q2 FY26 (vs Rs 17.9k/sq. ft. in Q2 FY25).

Metro Brands added 38 stores net in Q2, including 4 Footlocker and 10 Walkway stores. Gross margin improved by 22bps YoY to 55.3% (our estimate: 55.5%), while Ebitdam contracted 23bps YoY to 26.2% (our estimate: 26.9%) due to a 100bps YoY rise in marketing spend aimed at brand building. Pre-IndAS Ebitdam contracted by 126 bps YoY to 17.8% in H1 FY26 (vs 19% in H1 FY25) due to higher rentals.

We largely maintain our FY27/28 estimates and our Sell rating holds with a DCF-based target price of Rs 1,050/share, implying 47x Sep-27 P/E.

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