Oberoi Realty’s 360 North bookings underpin pre-sales growth and collections
Oberoi Realty Ltd.
BUY
₹1,676
₹1,742.5
₹2,100
25.30%
Investment View and Q2FY27 Highlights
Prabhudas Lilladher’s October 21, 2026 Q2FY27 result update on Oberoi Realty Ltd describes a strong quarter led by the newly launched 360 North project in Gurugram. The broker upgraded the stock to BUY from Accumulate after a recent share-price correction, while retaining its Rs 2,100 target price.
The investment thesis is founded on successful new launches, fast inventory absorption in existing projects, sustained demand in the Mumbai Metropolitan Region and growing annuity income that should support cash-flow visibility.
Residential Pre-sales and Collections
Oberoi Realty reported Q2FY27 pre-sales of Rs 91,500 million, an increase of about 604 per cent year on year and broadly in line with Prabhudas Lilladher’s Rs 90,000 million expectation. 360 North accounted for the majority of bookings.
| Project | Q2FY27 bookings (Rs million) |
|---|---|
| 360 North | 78,900 |
| Elysian | 3,500 |
| 360 West | 2,800 |
| Sky City | 1,800 |
| Jardin | 1,200 |
Average realisation increased about 12 per cent year on year to Rs 57,801 per square foot. Collections rose about 40 per cent year on year and 106 per cent quarter on quarter to Rs 19,000 million.
Q2FY27 Financial Performance
Consolidated Q2FY27 revenue was Rs 16,710 million, down 6.1 per cent year on year and 14.6 per cent below the broker’s estimate of Rs 19,569 million. EBITDA was broadly flat year on year at Rs 10,192 million and 5.3 per cent below estimate. However, the EBITDA margin expanded to 61.0 per cent from 57.4 per cent a year earlier and 56.4 per cent in Q1FY27.
PAT was flat year on year at Rs 7,617 million, 2.6 per cent below the estimate of Rs 7,822 million, and increased about 40 per cent sequentially. For H1FY27, revenue grew 7.4 per cent year on year to Rs 29,718 million, EBITDA grew 13.8 per cent to Rs 17,533 million and PAT increased about 10 per cent to Rs 13,100 million.
| Metric | Q2FY27 reported | Broker estimate | Year-on-year / other change |
|---|---|---|---|
| Revenue (Rs million) | 16,710 | 19,569 | Down 6.1% YoY; 14.6% below estimate |
| EBITDA (Rs million) | 10,192 | 10,765 approximately | Broadly flat YoY; 5.3% below estimate |
| EBITDA margin | 61.0% | — | 57.4% in Q2FY26; 56.4% in Q1FY27 |
| PAT (Rs million) | 7,617 | 7,822 | Flat YoY; up about 40% sequentially |
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Annuity Portfolio and Cash Position
The annuity portfolio also performed well. Q2FY27 leasing income increased 18 per cent year on year and about 2 per cent sequentially to Rs 3,200 million. Commercial portfolio occupancy was 98 per cent, while Sky City occupancy rose to 83 per cent from 82 per cent in Q1FY27.
Hospitality revenue increased about 2 per cent year on year to Rs 456 million. Oberoi Realty reported a cash surplus of Rs 9,100 million in Q2FY27, although H1FY27 cash flow was marginally negative at Rs 338 million.
Growth Outlook and Estimates
Prabhudas Lilladher forecasts about 25 per cent residential pre-sales CAGR over FY26 to FY28E, supported by new launches including the last phase of 360 North, existing-project inventory absorption and MMR demand. The broker expects annuity income of Rs 13,000 million to Rs 14,000 million by FY28E.
| Financial year | Revenue (Rs million) | EBITDA (Rs million) | PAT (Rs million) |
|---|---|---|---|
| FY27E | 69,545 | 39,744 | 28,923 |
| FY28E | 82,296 | 46,419 | 34,228 |
| FY29E | 98,640 | 52,678 | 37,625 |
FY28E sales and EBITDA estimates were broadly unchanged. FY29E sales were reduced 4.1 per cent, EBITDA was raised 4.7 per cent and EPS was raised 2.1 per cent.
Valuation and Key Variables
The Rs 2,100 target price is based on a DCF-based NAV sum-of-the-parts approach. Prabhudas Lilladher calculates gross NAV of Rs 585,744 million, comprising residential NAV of Rs 315,817 million, commercial lease NAV of Rs 170,593 million, retail lease NAV of Rs 76,782 million and hospitality NAV of Rs 22,552 million.
| NAV component | NAV (Rs million) |
|---|---|
| Residential NAV | 315,817 |
| Commercial lease NAV | 170,593 |
| Retail lease NAV | 76,782 |
| Hospitality NAV | 22,552 |
| Gross NAV | 585,744 |
| Net NAV after cash, debt and 30% premium | 763,027 |
After adding cash, deducting debt and applying a 30 per cent premium to NAV, the broker derives net NAV of Rs 763,027 million, or Rs 2,100 per share. Execution of launches, inventory absorption, collections and the conversion of planned annuity assets remain important variables for the thesis.
Disclaimer: This is a summary of a research report published by the broker/research house identified above. The views, recommendations, target prices and estimates are those of the respective broker and do not represent DSIJ investment advice. The summary may be AI-assisted, hence please refer to the original report for complete details, disclosures and risks.
