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Oberoi Realty shares dip 3% after weak Q1; should you buy, sell or hold?
At 9:30 AM, Oberoi Realty shares were trading at ₹1,808.80, down by 1.41 per cent on the National Stock Exchange. In comparison, NSE Nifty was trading in green, up by just 0.15 per cent or 38 points, quoting 25,128.65. The total market capitalisation of the company stood at ₹65,604.75 crore.
Oberoi Realty Q1FY26 earnings
The real estate developer reported subdued results for the quarter ending June 30, 2025, with revenue from operations down by 29.71 per cent to ₹987.6 crore, from ₹1,405.16 crore reported in the first quarter of the previous financial year. Oberoi Realty's profit after tax (PAT) figure also took a hit during the first quarter of FY26 to ₹421 crore, as against ₹584.5 crore recorded in the corresponding quarter of the previous financial year.
During Q1FY26, the real estate firm recorded bookings for 181 units, covering a total carpet area of 3.53 lakh square feet. The gross booking value amounted to ₹1,639 crore. That apart, the company has commenced bookings for Elysian Tower D, Oberoi Garden City, Goregaon.
"Demand for luxury homes remains strong, fuelled by rising aspirations and a growing desire for an enhanced lifestyle. We are pleased to report another healthy quarter, driven by successful tower launch at Elysian, Oberoi Garden City Goregaon...We have started our preparations towards new project launches over the balance part of the year and are also continuing to pursue attractive land acquisitions which will deliver lasting value for all our stakeholders," said Vikas Oberoi, chairman and managing director, Oberoi Realty
The real estate developer's total expenses during the quarter stood at ₹573.7 crore, down from ₹669.1 crore reported in the same period of the previous fiscal year. ALSO READ | Will Titan's 67% acquisition of Damas boost profitability in GCC region?
Should you buy, sell or hold?
While profits were down, Oberoi Realty reported a healthy quarter in terms of pre-sales, which stood at ₹1,638 crore vs global brokerage firm Nomura's estimates of ₹1,320 crore, driven by strong performance in most of the projects.
"(The decline in revenue was) likely driven by no revenue recognition from sales of the 360West project. Over the past two quarters, the company booked pre-sales of ₹750 crore while revenue of only ₹200 crore was recognised. We believe pre-sales will likely be recorded in upcoming quarters," Nomura stated in its report.
The brokerage firm has maintained a 'Buy' rating on the stock with a target price of ₹2,000, citing healthy growth in the company's pre-sales figure (in the residential segment).
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