Oberoi Realty Ltd. witnessed robust sales across most projects and is witnessing a steady free cash flow along with strong trends in annuity business, brokerages noted as the realty company reported its results for the first quarter of the financial year ending March 2026 on Monday.
The Vikas Oberoi-led company reported a profit decline of 28% year-on-year to Rs 421 crore during the April-June period, as per its notification to the exchanges.
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Oberoi Realty's topline also saw a 30% downtick to Rs 988 crore, compared to Rs 1,405 crore in the corresponding quarter of the previous fiscal year.
Oberoi Realty Q1 FY26 Highlights (Consolidated, YoY)
Revenue down 29.7% to Rs 988 crore versus Rs 1,405 crore
Ebitda down 36.2% to Rs 520 crore versus Rs 815 crore
Margin contracts to 52.7% versus 58%
Net profit down 27.9% to Rs 421 crore versus Rs 585 crore
Here's what brokerages had to say after Oberoi Realty announced their Q1 results.
JPMorgan On Oberoi Realty
JPMorgan maintained an "overweight" call with an unchanged target price of Rs 2,000.
The brokerage highlighted the realty company's robust sales and steady free cash flow — usually an indicator of financial stability.
JPMorgan also noted a few strong positives for the company such as strong sales driven by new launches at Elysian, Gurgaon and a comfortable net debt to equity of 0.12x.
Oberoi Realty's annuity business has shown strength as well, with steady occupancy rates.
However, JPMorgan has flagged slower collections and development margin slowing to 45% during the quarter — key negatives for the company going forward.
Nomura On Oberoi Realty
Nomura maintained a "buy", call on Oberoi Realty with an unchanged target price of Rs 2000.
Much like JPMorgan, Nomura highlighted the realty company's healthy pre-sales for most projects, including Elysian, Gurgaon.
Nomura believes the revenue and EBITDA decline in the first quarter of the ongoing fiscal was led by no revenue recognition from sales of the 360West project.
The brokerage firm believes pre-sales from the project will likely be visible in upcoming quarters.
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