HSBC Raises Oberoi Realty Target to ₹2,310 from ₹2,100, Maintains 'Buy' Rating Post-Q1 FY27 Results
HSBC Lifts Oberoi Realty Target to ₹2,310 on Q1 Strength and NCR Launch Visibility
HSBC maintained its 'Buy' rating on the stock and raised its target price to Rs 2,310 from Rs 2,100, issued shortly after Oberoi Realty reported a strong performance for the first quarter of FY27, driven by strong growth in its real estate business.
Q1 Results and Analyst View
Mumbai-based real estate developer Oberoi Realty's net profit for the first quarter of the financial year 2027 (Q1 FY27) grew by 29.02 per cent year-on-year (Y-o-Y) to ₹543.51 crore, while revenue from operations rose 31.72 per cent Y-o-Y to ₹1,300.89 crore.
However, Oberoi Realty's Q1 pre-sales fell 36% to ₹1,050 crore, with sales bookings falling to Rs 1,049.88 crore from Rs 1,638.68 crore in the same period last year. During the April-June quarter, the Mumbai-based developer sold 161 residential units covering 2.28 lakh square feet.
Q1 pre-sales were relatively subdued but the brokerage expects the large Gurugram project launch in the September quarter to drive sales. The analyst upgrade reflects confidence that this weakness was temporary and tied to project deployment timing rather than underlying demand.
Gurugram Launch Driving Recovery Narrative
Oberoi Realty has entered the Delhi-NCR market with a luxury housing project in Gurugram. The project involves an investment of around Rs 6,000 crore and has an estimated revenue potential of Rs 16,000 crore. In the first week of July, the company announced that it had sold luxury homes worth Rs 8,109 crore in the newly launched project, making it one of its strongest project launches.
Jefferies expects FY27 pre-sales to nearly double to around Rs 13,000 crore, supported by a strong response to the Gurugram project. The launch of the company's first project in the National Capital Region (NCR) marks the beginning of a new growth phase after four decades of operations in the Mumbai Metropolitan Region.
Financial Health and Capital Structure
The debt profile remained highly conservative and underleveraged, at 0.15 down from 0.19 year-on-year. The board of directors declared a first interim dividend for FY27 at the rate of ₹2 per equity share, signalling confidence in the company's cash generation capacity.
Broader Analyst Consensus
HSBC's upgrade was among several analyst moves post-results. Jefferies retained its 'Hold' rating while increasing its target price to Rs 1,970 from Rs 1,735, and Nomura reiterated its 'Buy' rating with a target price of Rs 2,090. The divergence in ratings reflects varied views on the magnitude of the Gurugram opportunity, though consensus remains constructive on the developer's strategic positioning in India's luxury housing market.