Synopsis: Oberoi Realty’s Q1 FY27 results showed strong YoY growth in revenue and profit, attracting positive brokerage views. HSBC and Nomura maintained Buy ratings, citing strong launches, premium housing demand, and growth potential, with targets of ₹2,310 and ₹2,090, respectively.
The shares of a Mid-Cap company specialising in developing premium and ultra-luxury real estate across India are in focus after its Q1 results. In this article, let’s see if this is the right time to buy as per HSBC and Nomura.
With a market capitalization of Rs. 68,469.94 crores in the day’s trade, the shares of Oberoi Realty Ltd rose upto 2.1 percent, reaching a high of Rs. 1,924.75 per share compared to its previous closing price of Rs. 1,883.55 per share.
What Happened
Oberoi Realty Ltd, engaged in developing premium and ultra-luxury real estate across India are in focus following its Q1 results and brokerage views as follows. Its Revenue from Operations increased by 31.7 percent YoY, from Rs. 988 crore in Q1 FY26 to Rs. 1,301 crore in Q1 FY27, and decreased by 25.7 percent QoQ, from Rs. 1,750 crore in Q4 FY26 to Rs. 1,301 crore in Q1 FY27.
Its net profit increased by 29.2 percent YoY, from Rs. 421 crore in Q1 FY26 to Rs. 544 crore in Q1 FY27, and decreased by 22.6 percent QoQ, from Rs. 703 crore in Q4 FY26 to Rs. 544 crore in Q1 FY27.
The earnings per share (EPS) for the quarterly period stood at Rs. 14.95, compared to Rs. 11.59 in the previous year’s quarter. At the Board Meeting held on July 17, 2026, the Board of Directors of the Holding Company declared an interim dividend of Rs. 2 per equity share (20% of the face value of the equity share) for the financial year 2026–2027.
Brokerage Views
HSBC on Oberoi Realty
HSBC has been assigned a target price of Rs. 2,310, implying an upside potential of 23% from its previous closing price of Rs. 1,883.55. The target reflects analysts’ positive outlook on the company’s future growth prospects.
Reason for the Target
- Near-term sales outlook remains strong: Although 1Q pre-sales were softer than expected, HSBC believes this is only a temporary slowdown. The upcoming large Gurugram project launch in 2Q is expected to more than offset the weak quarter, driving a sharp rebound in bookings and easing investor concerns.
- Strong launch pipeline: HSBC expects a significant acceleration in new project launches over the coming quarters. A robust pipeline across key markets should support sustained pre-sales growth, improve revenue visibility, and strengthen Oberoi Realty’s long-term earnings trajectory.
- Continued demand for premium housing: The brokerage remains positive on the demand outlook for high-quality residential projects, where Oberoi Realty has a strong brand and execution track record. Healthy demand in the premium segment is expected to support pricing power, faster inventory absorption, and healthy margins.
- Confident long-term growth outlook: HSBC maintains its Buy rating with a target price of Rs. 2,310, as it believes the company’s strong execution, premium project portfolio, and upcoming launches position it well to deliver sustained growth despite short-term fluctuations in quarterly pre-sales.
Nomura on Oberoi Realty
Nomura has been assigned a target price of Rs. 2090, implying an upside potential of 11% from its previous closing price of Rs. 1,883.55. The target reflects analysts’ positive outlook on the company’s future growth prospects.
Reason for the Target
- Raised growth outlook: Nomura has increased its FY27/FY28 pre-sales estimates by 14%/17%, reflecting stronger demand and execution across Oberoi Realty’s project pipeline. Higher expected bookings improve revenue visibility and support the company’s long-term earnings growth outlook.
- Strong pre-sales momentum: Nomura expects around 40% CAGR in pre-sales during FY26–FY28, driven by new launches, healthy customer demand, and strong sales velocity. Sustained pre-sales growth enhances cash flows and provides confidence in the company’s ability to deliver consistent financial performance.
- Healthy balance sheet supports expansion: Oberoi Realty’s robust cash generation and low leverage enable it to aggressively acquire new projects and invest in business development without stressing its finances. This financial strength positions the company to capitalize on growth opportunities while maintaining stability.
- Recurring income to strengthen: Nomura expects annuity and hotel income to grow at 15–20% CAGR during FY26–FY29, supported by the ramp-up of Sky City Mall and two new hotels expected to commence operations from FY27. Higher recurring income improves earnings stability and reduces dependence on residential sales.
- Valuation and key risk: Despite trading at a 46% premium to NAV, Nomura maintains its Buy rating with a target price of ₹2,090, citing strong growth prospects. The primary downside risk remains an adverse DTCP Haryana ruling related to the Gurgaon 360 North project, which could delay approvals or impact project economics.
Company Overview & Others
Oberoi Realty Limited is one of India’s leading real estate developers, headquartered in Mumbai, Maharashtra. The company focuses on premium residential, commercial, retail, and hospitality projects, with a strong presence in the Mumbai Metropolitan Region. It is known for developing high-quality properties with modern designs and lifestyle-focused amenities.
It has built a reputation for luxury housing projects and Grade-A commercial spaces. The company emphasizes sustainable development, customer satisfaction, and creating long-term value through well-planned real estate developments.
Oberoi Realty Ltd. shows strong financial efficiency with a ROCE of 17.3% and ROE of 14.6%, indicating effective use of capital and shareholders’ funds to generate returns. The company maintains a low debt-to-equity ratio of 0.16, reflecting a healthy balance sheet with limited reliance on debt.
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