Prabhudas Lilladher Upgrades Oberoi Realty to Buy on 360 North Sales
Prabhudas Lilladher has upgraded Oberoi Realty to Buy from Accumulate, retaining a target price of Rs 2,100 per share. The rating note, dated 21 October 2026, follows the company's results for the quarter and half year ended 30 September 2026, which the board approved on 16 October 2026. The broker moved to Buy after a recent correction in the share price, and it attributes the quarter's strength largely to the newly launched 360 North project in Gurugram.
On the consolidated numbers, revenue from operations fell 6.1% year on year to Rs 1,670.95 crore. Sales bookings rose to Rs 9,149.69 crore for the quarter, compared with Rs 1,299.06 crore in the same quarter last year. Business Standard reported consolidated net profit of Rs 761.65 crore, flat against the year-ago quarter. Other reports carry slightly different profit figures, so the Business Standard number is the one used here.
How the Rs 2,100 target is built
The target rests on a discounted cash flow based net asset value, applied on a sum-of-the-parts basis. Prabhudas Lilladher's gross NAV stands at Rs 585,744 million. Residential development accounts for Rs 315,817 million, commercial lease assets for Rs 170,593 million, retail lease assets for Rs 76,782 million and hospitality for Rs 22,552 million. After adding cash, deducting debt and applying a 30 per cent premium to NAV, the net figure comes to Rs 763,027 million, or Rs 2,100 per share.
Before this upgrade, the broker held an Accumulate rating with a target of Rs 1,820. It now expects pre-sales to grow at about 25% a year over FY26 to FY28, helped by new launches, including the final phase of 360 North. It also expects annuity income from leased malls and offices to reach Rs 13,000 million to Rs 14,000 million by FY28. Rental cash flow, in the broker's view, cushions the company when new sales move with market cycles.
The 360 North launch
Three Sixty North sits on 14.8 acres on Golf Course Extension Road in Sector 58, Gurugram. It is Oberoi Realty's first residential project in the National Capital Region and its first residential development outside the Mumbai Metropolitan Region. The first phase launched on 29 June and has already sold out the apartments released. Gross bookings at launch were around Rs 8,109 crore, covering about 13.52 lakh sq ft of RERA carpet area. Prabhudas Lilladher cites Rs 7,891.14 crore of sales from 614 units in the late-June launch period, while ICICI Direct puts the quarter's booking value from the project at about the same level.
The homes are offered in 3 and 4 BHK formats, along with studio, duplex and penthouse configurations. One listing describes 4 BHK homes of 5,600 sq ft and 5 BHK homes of 8,500 sq ft, with one home per floor. The first phase was launched at a basic selling price of Rs 35,000 per sq ft. ICICI Direct estimates total sales from the whole project at Rs 16,000 crore across two phases. Sources differ on the phase one layout: ICICI Direct counts six towers with 832 units, while another pre-launch source describes a seven-tower, 640-unit development.
L&T disclosed to the BSE on 23 April 2026 that it had won the EPC contract to build the seven towers. The deal value was not disclosed. One pre-launch source lists expected possession in 2031. The project has appeared on the Haryana RERA website with the status approved and certificate uploaded.
Cash flow and peer views
Cash margin rose to about 80% in the quarter, lifted by collections from 360 North. Chief Financial Officer Saumil Daru explained that the Gurugram launch raised both current assets and liabilities on the balance sheet, because part of the original land consideration was settled in area and that obligation was fair-valued in the launch quarter. Collections were reported at Rs 2,277 crore by ICICI Direct, up 68% year on year, and at Rs 1,890 crore by Nomura, up 40%.
Nomura and HSBC both rate the stock Buy after the quarter, citing a pre-sales beat. Nomura's target is Rs 2,090 and HSBC's is Rs 2,310. ICICI Direct retained Buy with a sum-of-the-parts target of Rs 2,200, and Motilal Oswal reiterated Buy with a target of Rs 2,145. HSBC is watching SkyCity occupancy, which was below 90%. The company's Sky City Mall occupancy improved to 83% from 72% in the fourth quarter of FY26.
The location
Golf Course Extension Road connects to Golf Course Road at the Sector 55-56 junction and to Sohna Road at its southern end. The Southern Peripheral Road runs alongside and links to Dwarka Expressway, NH-48 and the Delhi-Mumbai Expressway. The nearest operational metro is the Sector 55-56 Rapid Metro station, about 1.8 km from the centre of Sector 58. A 36 km metro corridor from Sector 56 to Pachgaon is proposed, and Golf Course Extension Road is planned to widen to eight lanes. Sector 58 is roughly 20 to 25 minutes by car from DLF Cyber City and Udyog Vihar.
About the developer
Oberoi Realty is a Mumbai-based luxury developer with revenue of Rs 4,496 crore in FY24. It has completed more than 35 projects and holds a portfolio of about 30 million sq ft of ongoing and upcoming developments. The company reports a net cash position, with net debt to equity of -0.02. Management kept its FY27 pre-sales target at about Rs 13,000 crore and had reached 70% of it by the end of the second quarter. Other projects contributed Rs 1,259 crore of pre-sales in the quarter, including Rs 351 crore from Elysian and Rs 278 crore from Three Sixty West.
What comes next
Management plans to launch phase two of 360 North in FY28, with timing and pricing to be set to maximise value. Vikas Oberoi described the first Gurugram launch as truly exceptional and said the company received interest from nearly four buyers for every apartment launched. New launches are planned in NCR, Thane, Mulund and Alibaug, and a new tower is planned at Elysian in Goregaon. For buyers, the upgrade does not change any existing project terms, prices or possession dates. The next visible milestones are the phase two launch and the pace of the upcoming launch pipeline over the next few quarters.