ICICI Securities keeps Oberoi Realty on BUY as NCR push takes shape

ICICI Securities has kept its positive view on Oberoi Realty Limited and set a target price of Rs 2,151 per share, based on a 40 per cent premium to its FY27E net asset value. The brokerage holds a BUY rating and links the outlook to the developer's move into the National Capital Region, which followed the launch of the 360 North project in Sector 58, Gurugram.

Historically concentrated in the Mumbai Metropolitan Region, Oberoi Realty has used the 360 North launch to open a new growth market. ICICI Securities expects sales bookings of about Rs 131 billion in FY27 and Rs 139 billion in FY28, compared with an annual average of roughly Rs 53 billion in FY25 and FY26. The report also estimates annuity income from rentals and hotels at Rs 13 billion to Rs 15 billion, which it says could help fund capital spending on new projects, and expects a net cash position of Rs 5 billion by March 2027.

Launch numbers and project details

ICICI Securities attributes sales bookings of INR 81 billion to the 360 North launch. Other reports put the figure at around Rs 8,109 crore recorded within days of launch. The project spans 14.8 acres with seven towers, and the developer has launched six towers with 832 units in the first phase. Estimated sales from the entire project are pegged at Rs 16,000 crore across two phases, while a separate report puts total project investment at about Rs 6,000 crore.

The homes are planned as 4 and 5 BHK residences. ICICI Securities describes unit sizes ranging from 5,000 to 13,000 square feet, while one listing gives 5,600 square feet for a 4 BHK and 8,500 square feet for a 5 BHK.

The land parcel was acquired in November 2023, when Oberoi Realty paid Rs 597 crore for 14.81 acres in Sector 58. The project launch is in line with the company's guidance of Q1FY27.

Court order on new allotments

The Punjab and Haryana High Court has restrained Oberoi Realty from making fresh allotments or creating third-party rights in the 360 North project until the Haryana town planning department decides a challenge to the project licence. The petition was filed by Advance India Projects Ltd, which contends that the grant and subsequent transfer of the licence were contrary to the Haryana Urban Areas Act, 1975, and that the transaction breached foreign direct investment conditions.

When the petition was filed, nearly 350 units had already been allotted and around Rs 750 crore had been collected from buyers. In an exchange filing, Oberoi Realty said the order does not affect existing sales already concluded, and that there is no stay on construction. The company later informed exchanges that the stay on new allotments was extended until September 25, 2026, and that existing bookings worth Rs 7,891 crore and construction activities remain unaffected.

ICICI Securities has described the outcome of the court proceedings as a key risk to its view on the project.

• Court restraint: no fresh allotments or third-party rights until the licence challenge is decided
• Existing bookings worth Rs 7,891 crore and construction continuing
• Stay on new allotments extended until September 25, 2026

Location and connectivity

360 North is located on Golf Course Extension Road in Sector 58, a corridor that links Golf Course Road, Gurugram's original luxury stretch, with Sohna Road and the Southern Peripheral Road. From the site, Cyber City, Udyog Vihar and MG Road are within convenient reach. Indira Gandhi International Airport is roughly 30 to 40 minutes away by car.

Sector 58 does not have a Rapid Metro station inside the sector. A proposed 36 km metro corridor from Sector 56 to Pachgaon, approved by the Haryana Mass Rapid Transit Corporation, is in detailed project report preparation by RITES.

About Oberoi Realty

Oberoi Realty Limited is a Mumbai-based developer founded in 1998, with residential, office, retail and hospitality verticals. In FY26, revenue grew 13.67 per cent year on year to Rs 6,009.06 crore, and profit rose 12.66 per cent to Rs 2,507.43 crore.

In the fourth quarter of FY26, net profit grew 62.35 per cent to Rs 703.28 crore and revenue rose 52.14 per cent to Rs 1,749.83 crore. Bookings in the quarter reached Rs 1,673 crore, up 96.13 per cent, across 229 units against 78 a year earlier. For the full year, provisional bookings stood at Rs 5,447 crore, up 3.14 per cent, subject to final audit and verification. The board has approved raising up to Rs 4,000 crore through non-convertible debentures.

ICICI Securities expects the Marriott hotel at Sky City to open during the first half of FY28 and the Ritz-Carlton at Worli during the fourth quarter of FY27. In October 2024, the company launched Oberoi Garden City in Thane, a 75-acre integrated township that recorded gross bookings of about Rs 1,348 crore in its first three days.

What comes next

The stay on new allotments at 360 North was extended until September 25, 2026. A representation seeking cancellation of the licence under Section 8 of the 1975 Act remains pending before the director of the Director Town and Country Planning department. ICICI Securities expects the NCR launch to support pre-sales in the first half of FY27, particularly in the second quarter, and has indicated that multiple launches are lined up for FY27. The brokerage's balance sheet and bookings projections will be tested against the outcome of the licence proceedings and the company's quarterly results.