Motilal Oswal Raises Oberoi Realty Target to ₹2,000, Maintains 'Neutral' Rating Post-Q1 FY27 Results, Cites NCR Momentum

Analyst Raises Oberoi Target as NCR Launch Transforms Outlook

Motilal Oswal Financial Services upgraded its price target for Oberoi Realty to ₹2,000 per share on July 21, 2026, maintaining a Neutral rating following the company's first-quarter results. The revision came after Q1 FY27 reported pre-sales of ₹10.5 billion, largely in line with estimates of ₹9.9 billion, with broader momentum driven by the developer's entry into the National Capital Region.

Q1 Results: Resilient Core Business

Consolidated net profit for the quarter ended June 30, 2026 stood at ₹543.51 crore, representing 29% year-on-year growth compared to ₹421.25 crore in Q1 FY26. Revenue from operations increased 31.7% to ₹1,300.89 crore from ₹987.55 crore.

The company commenced bookings at its Carter Road project, Oceanic, which contributed ₹1.5 billion to pre-sales, representing approximately 14.5% of quarterly bookings. EBITDA increased 31% to ₹794.94 crore.

July NCR Launch Reshapes FY27 Forecast

The decisive shift in outlook came from the developer's foray beyond Mumbai. In July 2026, Oberoi Realty witnessed ₹81 billion in pre-sales at its maiden project in the NCR, marking the company's first major development outside the Mumbai Metropolitan Region. Three Sixty North in NCR represented a significant milestone in the company's growth journey.

The first phase comprises approximately 832 apartments with an investment of ₹4,000 crore, and the total revenue potential for the entire project is ₹16,000 crore at launch prices.

Revised Presales Trajectory and Pipeline

Motilal Oswal increased its FY27 presales estimates to ₹137 billion, representing 154% year-on-year growth, and FY28 presales of ₹111 billion, accounting for staggered sales across the NCR project's remaining phases.

Other projects in the FY27-28 launch pipeline include Fairview at Malabar Hill, Adarsh Nagar and Peddar Road redevelopment, Alibaug, Tardeo, Mulund, and new phases at Forestville, OGC Thane and NCR.

Annuity and Hospitality Growth Drivers

In FY26, revenue from rental increased 37% year-on-year to ₹11.9 billion, with an EBITDA margin of 91%. The company's annuity portfolio, including Commerz I, II, III, and Oberoi Mall, reported near 100% occupancy, while Sky City Mall achieved 82% occupancy in its first year with expectations to reach near 100% within the year.

Analyst View and Valuation

Motilal Oswal maintained its Neutral rating despite the price target upgrade. The analyst values the residential business on a Net Asset Value basis and assigns a 35% premium to capture increased focus on business development.