Oberoi Realty Targets Slashed After Muted Q3 Results

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AuthorVihaan Mehta|Published at:
Oberoi Realty Targets Slashed After Muted Q3 Results
Overview

Oberoi Realty reported muted Q3 FY26 results, with consolidated net profit inching up 0.7% to ₹623 crore and revenue rising 5.8% to ₹1,493 crore. Following the earnings, brokerages like Motilal Oswal and Antique Stock Broking have cut their target prices for the stock. Motilal Oswal cited limited near-term upside and reiterated a 'Neutral' rating, while Antique maintained a 'Buy' but lowered its target to ₹1,861. The stock has fallen 8.5% year-to-date.

Analyst Reactions and Target Revisions

The muted third quarter performance by Oberoi Realty Ltd. has prompted significant downward revisions in analyst target prices, signaling caution among market watchers.
Motilal Oswal noted that near-term stock upside appears constrained by current valuations, emphasizing that a re-rating hinges on the strategic reinvestment of substantial cash flows from upcoming projects. The brokerage maintained its 'Neutral' rating but reduced its price target to ₹1,723 per share.
Antique Stock Broking, while retaining a 'Buy' call, revised its target price downward to ₹1,861 from ₹2,269. The firm cited strong cash flows supported by a robust land bank and steady sales, alongside an anticipated rise in rental income.

Financial Performance Breakdown

Oberoi Realty's consolidated net profit for Q3 FY26 saw a marginal increase of 0.7% year-on-year, reaching ₹623 crore from ₹618.4 crore in the prior year. Consolidated revenue grew 5.8% to ₹1,493 crore. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 1% to ₹857 crore.

Future Outlook and Growth Prospects

Antique now forecasts FY26 pre-sales to reach approximately ₹5,400 crore, a reduction from its earlier estimate of ₹6,000-6,500 crore due to expected launch delays spilling into FY27. The company has a packed launch schedule for FY26-27, including projects in Gurugram, Peddar Road, Worli, and the final tower of Elysian. These analyst adjustments occurred as Oberoi Realty shares experienced volatility, falling up to 1.2% intraday to ₹1,505.6 before paring losses to trade marginally higher. The stock has declined 8.5% year-to-date, underperforming the benchmark Nifty 50's 4% drop.

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