Kotak Institutional Equities Raises Oberoi Realty Target to ₹1,900 from ₹1,685, Maintains 'Reduce' Rating

Analyst Raises Price Target Following Strong Q1 Results

Kotak analyst Murtuza Arsiwalla raised the price target on Oberoi Realty Ltd to INR 1,900 (from INR 1,685) while maintaining a Reduce rating. The call came on July 22, two days after the Mumbai-based developer disclosed robust first-quarter results.

Q1 FY27 Performance Drives Upside Revision

Oberoi Realty presented its Q1FY27 results on July 20, 2026, showcasing strong year-over-year growth across its residential development and investment property segments. The company reported revenue from operations of Rs 1,300.89 crore, representing 31.7% growth compared to Rs 987.55 crore in Q1FY26. Net profit reached Rs 543.53 crore, up 29% from Rs 421.25 crore in the year-ago period.

Recent Momentum in Key Markets

The growth reflected strong demand across the company's portfolio. Oberoi Realty sold luxury homes worth ₹8,109 crore in its newly launched project in Gurugram on strong consumer demand, with the company having announced its foray into the Delhi-NCR market with the launch of its first luxury housing project with a total investment of ₹6,000 crore and a revenue potential of ₹16,000 crore.

Margins and Operational Efficiency

The company reported an improvement in profitability, with its operating margin expanding to 56.65 per cent from 52.55 per cent in the year-ago quarter, while the net profit margin improved to 43.44 per cent from 35.87 per cent. Its debt-to-equity ratio declined to 0.17 from 0.21.

Stock Performance and Market Position

The company's stock was trading at Rs 1,889.5 as of the presentation date, positioned near the upper end of its 52-week range of Rs 1,391.2 to Rs 1,986.1. The revised target of ₹1,900 implies limited upside from current levels, consistent with Kotak's cautious stance despite the earnings acceleration.