Oberoi Realty’s 360 North launch strengthens FY27 pre-sales and cash flow outlook

Investment View and Key Catalysts

Axis Securities’ October 21, 2026 result update on Oberoi Realty Ltd retains a BUY rating and a DCF-based target price of Rs 2,200 per share. This implies 31 per cent upside from the October 19, 2026 CMP of Rs 1,675. The broker maintained its FY27E and FY28E revenue, adjusted EBITDA and PAT estimates following Q2FY27.

The investment case is led by Oberoi Realty’s successful NCR entry through 360 North in Gurugram, a substantial residential launch pipeline, strong annuity-asset operations and a net-cash balance sheet.

• Phase 1 of 360 North comprises approximately 13.5 lakh square feet of carpet area. Nearly 13.2 lakh square feet across 614 units were booked, generating gross bookings of Rs 7,891 crore.
• Customer collections from the project were Rs 835 crore during Q2FY27, which Axis Securities noted would be sufficient to fund the approximately Rs 1,000 crore construction cost.
• Management plans to launch Phase 2 in FY28, with timing and pricing intended to maximise value creation.
• The broker also highlights the expected Q3FY27 Thane launch, subject to final approvals, along with the Aurelius project at Peddar Road, Alibaug, and commercial developments in Mulund and Sky City.

Q2FY27 Financial Performance

Oberoi Realty reported Q2FY27 net revenue of Rs 1,671 crore, down 6.1 per cent year on year but up 28.4 per cent quarter on quarter. EBITDA was Rs 1,019 crore, broadly flat year on year and up 38.8 per cent quarter on quarter, with a 61 per cent margin. Adjusted PAT was Rs 757 crore, up 1.2 per cent year on year and 40.4 per cent quarter on quarter.

The sharp rise in quarterly pre-sales was principally due to 360 North. Management retained its FY27 pre-sales target of about Rs 13,000 crore, of which the report states 70 per cent had been achieved by Q2FY27.

Annuity Portfolio and Hospitality Operations

The annuity portfolio remained a major support to the thesis. Commerz I, II and III operated at occupancies of 96 per cent, 100 per cent and 98 per cent, respectively, with EBITDA margins of 92 per cent, 95 per cent and 91 per cent.

Commercial assets generated Rs 207 crore of operating revenue at a 92 per cent EBITDA margin. Hospitality operating revenue rose 2.2 per cent year on year to Rs 45.6 crore. At The Westin Mumbai Garden City, ARR rose 14.9 per cent to Rs 15,780 and RevPAR rose 8.1 per cent to Rs 11,933, although occupancy moderated to 75 per cent from 80 per cent a year earlier.

Earnings Outlook and DCF Valuation

Axis Securities expects the following FY27E and FY28E financial performance:

The DCF valuation assigns Rs 1,517 per share to development projects, Rs 468 per share to rental assets based on FY28 EBITDA, and Rs 102 per share to hospitality assets. After net debt of negative Rs 114 per share, the implied equity value is Rs 2,200 per share.

Key Risks

• Approval or launch delays.
• Potentially weaker absorption or regional complexities in Adarsh Nagar and Thane.
• Management’s ability to execute several major launches concentrated over the next two to three quarters.