Oberoi Realty target price cut by brokerages; check Q3 results, outlook

Oberoi Realty reported that its consolidated net profit grew 0.7 per cent on year to ₹623 crore in Q3, compared to ₹618.4 crore in the same period a year ago

Shares of Oberoi Realty Ltd. received multiple target price cuts from analysts after the company reported muted third quarter earnings for the current financial year (Q3-FY26). 

The company reported that its consolidated net profit grew 0.7 per cent on year to ₹623 crore in the December quarter, compared to ₹618.4 crore in the same period a year ago.  

Its revenue grew 5.8 per cent on year to ₹1,493 crore from ₹1,411.08 crore a year ago, the company said in an exchange filing. 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.  

 

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.   ALSO READ | Persistent Systems slips 5% on profit booking despite strong Q3 show 

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. 

Antique Stock Broking maintained a 'Buy' rating on Oberoi Realty, while revising the target price to ₹1,861 from ₹2,269 earlier. The brokerage said the company remains comfortable on cash flows, supported by a strong land bank, steady sales in ready-to-move inventory and an expected uptick in rental income. 

Antique now expects Oberoi Realty to achieve pre-sales of around ₹5,400 crore in FY26, lower than its earlier estimate of ₹6,000-6,500 crore, as some launches spill over. The brokerage noted that a significant number of project launches are lined up for FY26-27, including developments in Gurugram, Peddar Road, Worli and the final tower of Elysian.  ALSO READ | Rallis India falls 4%, hits nine-month low post Q3 nos; trims losses later

Oberoi Realty share price history

The realty company's stock fell as much as 1.2 per cent during the day to ₹1,505.6 per share. The Oberoi Realty stock pared losses to trade 0.2 per cent higher at ₹1,527 apiece, compared to a 0.52 per cent decline in Nifty 50 as of 10:29 AM.  

Shares of the company fell for the third straight session and currently trade at 9.1 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 8.5 per cent this year, compared to a 4 per cent decline in the benchmark Nifty 50. Oberoi Realty has a total market capitalisation of ₹55,574.78 crore. 

 

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