Oberoi Realty reported a 29% year-on-year profit growth to ₹540 crore for the first quarter of fiscal year 2027. Despite a 36% dip in quarterly pre-sales due to fewer project launches, revenue grew by 32% to ₹1,300 crore, supported by strong margins and steady leasing income.
Detailed Coverage
Oberoi Realty released its financial results for the first quarter of fiscal year 2027, showing strong operating performance even as new project launches remained limited during the period. The company reported a consolidated revenue of ₹1,300 crore, marking a 32% increase compared to the same quarter last year. Profit after tax stood at ₹540 crore, up 29% year-on-year, while EBITDA rose 41% to ₹730 crore.
Operational Performance and Sales Trends
The company's pre-sales for the quarter reached ₹1,050 crore, which is a 36% decrease from the previous year. Management and analysts have noted that this decline was largely due to the absence of major new project launches in the April-June period. Despite this, core residential projects like 360 West, Sky City, and the Elysian development continued to drive sales. The company also benefited from its annuity-based businesses, with leasing income growing 20% to ₹320 crore, while the hospitality division recorded a 10% revenue increase to ₹47 crore.
Expanding Beyond Mumbai
A significant factor for the company's future growth strategy is its expansion into the Gurugram market. The recent launch of the 360 North project in Gurugram has attracted strong interest, with gross bookings reported to exceed ₹8,000 crore. This development is part of a broader plan to release over ₹10,000 crore worth of new inventory across various locations, including Thane, Worli, Pedder Road, Alibaug, and Mulund, throughout FY27.
Financial Health and Market Context
Oberoi Realty maintains a focus on high-margin residential business, with residential EBITDA margins consistently exceeding 50%. The company's annuity business, which includes office spaces and malls, continues to provide stable cash flow. As of the latest update, office assets are operating at near-full occupancy, and the Sky City Mall has reached 82% occupancy. Investors tracking the company should monitor the execution pace of the upcoming project pipeline, as the timing of these launches is essential to maintaining the growth momentum in pre-sales. Additionally, the company’s ability to sustain its premium pricing in a competitive real estate market remains a factor to watch as it scales its operations in new geographic regions.