Oberoi Realty shares rise 3% as it inks MHADA project pact for Versova land

Oberoi Realty shares gained 3.4 per cent in trade on the BSE, logging an intra-day high at ₹1467.2 per share. The buying came after the company entered into a development agreement for lands situate at Aram Nagar, Versova, Andheri West, Mumbai, belonging to Maharashtra Housing and Area Development Authority (MHADA).

 

At 12 PM, Oberoi Realty’s share price was trading 1.55 per cent higher at ₹1,440.6. In comparison, Sensex was down 0.01 per cent at 75,496.09. 

 

“We write to inform you that the Company has today entered into a development agreement for lands situate at Aram Nagar, Versova, Andheri West, Mumbai, belonging to Maharashtra Housing and Area Development Authority (MHADA),” the filing read. 

 

 

In the disclosure made to stock exchanges, Oberoi Realty said that based on the current provisions of the Development Control and Promotion Regulations (DCPR) for Greater Mumbai, 2034, it expects its share of the free-sale component to be about 17.18 lakh square feet (RERA carpet area) from development of the project land. 

 

The company added that this estimate excludes its share of the rehabilitation component meant for existing tenants and remains subject to statutory approvals and applicable regulations.

 

That apart, in Q3FY26, the company’s consolidated net profit grew 0.7 per cent year-on-year (Y-o-Y) to ₹623 crore, as compared to ₹618.4 crore.

 

Its revenue grew 5.8 per cent on year to ₹1,493 crore from ₹1,411.08 crore a year ago. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 1 per cent Y-o-Y to ₹857 crore in Q3FY26 from ₹856 crore in Q3FY25. 

 

In the post result note, Motilal Oswal said near-term upside in the stock appears limited at the current valuation, with the key trigger for a potential re-rating being the strategic reinvestment of the substantial cash flows expected from Oberoi Realty’s nearly completed projects.  

 

The brokerage noted that the company’s residential segment is currently valued at ₹27,800 crore, factoring in recent business development activity and a planned outlay of ₹3,000 crore towards future land acquisitions. Motilal Oswal reiterated its 'Neutral' rating on the stock and cut the target price to ₹1,723 per share.