Synopsis:
Oberoi Realty is in focus after announcing Q1FY26 results and an interim dividend, with analysts maintaining a positive outlook despite a revenue dip.
A Mid-cap real estate company is in focus today after declaring financial results for Q1FY26 and declaring an interim dividend. Check the article below to know about their performance and future target given by the analyst.
With a market capitalization of Rs. 65,747 crores, the shares of Oberoi Realty were trading at Rs. 1,808, down by 1.5 percent from its previous closing price of Rs. 1,834.60.
Q1FY26 Results
Oberoi Realty reported Rs. 1,073.98 crores in revenue for the first quarter of FY26, a slight 11.48 percent decrease over the Rs. 1213.33 crores for the same period in FY25. However, from Rs. 1441.95 crores in Q4 FY25, revenue decreased by about 25.51 percent sequentially.
The consolidated net profit for the first quarter of FY26 was Rs. 421 crores, which was 2.8 percent lower than the Rs. 433.17 crores reported in the previous quarter and 27.96 percent higher year over year than the Rs. 584.5 crores in Q1 FY25.
Profit growth was also reflected in earnings per share (EPS), which decreased to approximately Rs. 11.59 in Q1 FY26 from Rs. 16.08 in Q1 FY25 and Rs. 11.91 in Q4 FY25.
The net profit margin of the company stands at 39.22 percent. The company’s cash from operations in Q1FY26 was Rs. 25,220 crores. After Q1 results, the company’s RONW is 10.61 percent, ROCE is 10.35 percent, whereas the net debt to equity ratio is at 0.01, and the current ratio is 4.06.
Interim Dividend
For the first quarter of FY26, Oberoi Realty has declared an interim dividend of Rs. 2 per equity share. Shareholders who hold shares on the record date, which has been set as July 25, 2025, are eligible for the dividend. The dividend will be paid out on August 7, 2025, in accordance with the company’s filing with the stock exchanges.
Management View
Mr. Vikas Oberoi commented on the Q1FY26 results, stating that in spite of global challenges, India’s economy is growing strongly and steadily. He pointed out that growing aspirations and lifestyle demands continue to fuel the high demand for luxury homes. A new tower at Elysian in Goregaon was successfully launched, which helped Oberoi Realty have a strong quarter. The company is still committed to creating sustainable communities, hotels, retail establishments, and high-quality homes. In order to generate long-term value, it is also exploring land acquisitions and preparing to launch new projects.
About the company
Mumbai-based Oberoi Realty Ltd. is one of the leading real estate firms in India. Its primary focus is on upscale retail, hospitality, commercial, residential, and social infrastructure projects. The company, which is well-known for its powerful brand and stellar performance history, strives to produce high-end, distinctive developments. With a combination of modern technology and creative planning, Oberoi Realty has successfully completed 42 projects throughout Mumbai.
Analyst Outlook
On Oberoi Realty, Nomura has kept its ‘Buy’ rating with a Rs. 2,000 target price. The business reported strong pre-sales for the majority of its projects in Q1. However, the lack of revenue recognition from the 360West project was the primary reason for the decline in revenue and EBITDA. Nomura anticipates that these pre-sales will support future financial performance in the upcoming quarters.
JPMorgan maintained its ‘Overweight’ rating on Oberoi Realty following a robust first quarter, with a target price of Rs. 2,000. The company experienced stable free cash flow, low debt levels with a net debt-to-equity ratio of just 0.12x, and strong sales aided by the launch of the Elysian project in Goregaon. With steady occupancy, its rental business remained robust as well. Some weak points included a decline in profit margins to 45 percent and slower money collections.
Written by Akshay Sanghavi
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