Motilal Oswal's Buy call on Oberoi Realty rests on its Gurugram launch
Motilal Oswal has started coverage of Oberoi Realty Limited with a Buy rating and a target price of Rs 2,145. The note, dated 21 October 2026, follows the company's second-quarter results for FY27, which were announced on 16 October. The brokerage reiterated its Buy view and said its sum-of-the-parts valuation rose to Rs 2,145 after the residential valuation was rolled forward to FY28.
Pre-sales in the quarter were about Rs 9,150 crore, which Motilal Oswal described as in line with its expectations. The brokerage ties most of the jump in sales to the launch of Three Sixty North in Sector 58, Gurugram. For homebuyers, the report signals that the company's luxury residential business is now selling well beyond its Mumbai base.
Quarterly figures and the Gurugram contribution
Oberoi Realty's own press release puts quarterly booking value at Rs 9,149.69 crore. Of this, about Rs 7,900 crore to Rs 7,900 crore-equivalent bookings came from the Gurugram project, which accounted for roughly 86 per cent of quarterly pre-sales according to Motilal Oswal. Sources differ on the exact Gurugram booking value, but they agree that the project drove the bulk of the quarter's sales.
Reported consolidated figures from the company's release were revenue of Rs 1,736.37 crore, profit after tax of Rs 759.01 crore and EBITDA of Rs 1,084.59 crore. Rental income rose 17 per cent year on year to Rs 3.4 billion, and the Commerz office towers recorded occupancy of 96 to 100 per cent.
Growth in pre-sales against the same quarter last year is reported differently by different analysts. Motilal Oswal and other coverage put it at roughly six-fold, while ICICI Direct puts it at seven times year on year and eight times quarter on quarter. Pre-sales in the second quarter reached about 70 per cent of the Rs 13,000 crore FY27 pre-sales target.
The valuation behind the target
Motilal Oswal raised its weighted average cost of capital slightly to 10.6 per cent and lifted the capitalisation rate on its railway land development authority assets to 8.0 per cent. These inputs feed the revised sum-of-the-parts figure of Rs 2,145. The brokerage's earlier call, a Buy with a Rs 2,130 target set after the first-quarter numbers, was based on a pipeline of Rs 305 billion, with the stock at Rs 1,695.40 on 15 September 2026.
The Three Sixty North project
Three Sixty North is the company's first project in the National Capital Region. It is planned as an ultra-luxury residential development on 14.8 acres along Golf Course Extension Road in Sector 58, Gurugram. The project was announced on 29 June 2026 and will comprise seven residential towers alongside landscaped gardens, a clubhouse and other amenities.
The first phase offers 3 BHK plus study, 4 BHK plus study, duplex and penthouse configurations, with saleable areas from about 5,500 sq ft to over 13,000 sq ft. Pricing starts at around Rs 18 crore plus applicable taxes. Third-party reports place the estimated investment at about Rs 6,000 crore across two phases, with the first phase comprising 432 residences. Each tower is registered separately under Haryana RERA, and registrations for towers C, E, F and G are dated 26 June 2026.
The location
Sector 58 sits on Golf Course Extension Road, one of the established residential corridors of Gurugram. The city is among the country's leading real estate markets because of its proximity to the national capital and its business districts. Demand for luxury housing here is supported by corporate expansion, infrastructure investment and growing interest from high-net-worth buyers.
The developer
Oberoi Realty is a Mumbai-based developer focused on luxury housing. The company bought about 15 acres in Gurugram for Rs 597 crore in November 2023 to develop Three Sixty North. Its Commerz towers are almost fully leased, which gives the company a rental income stream alongside its sales business.
What comes next
Motilal Oswal expects the company to manage its growth carefully beyond Mumbai, and the Gurugram launch will be a key test of that. ICICI Direct notes that a new tower launch is planned at Elysian in Goregaon.
Projects lined up for launch in FY27 include Oceanic on Carter Road, Fairview on Malabar Hill, Jardin Tower A, Ralliwolf in Mulund, Adarsh Nagar in Worli, Peddar Road, Alibaug and a free-sale component in Borivali.
The company was also the highest bidder in February 2026 for an 11-acre railway parcel in Bandra East at Rs 5,400 crore, on a 99-year lease with an upfront payment of Rs 495 crore. The formal award and communication from the railway land development authority are the next steps. The board has also approved the incorporation of a real estate subsidiary and a second interim dividend of Rs 2 per share for FY27.