Oberoi Realty, one of India’s leading real estate developers, recently announced its financial results for the first quarter of the financial year 2025–26 (Q1 FY26). The company saw a sharp decline in profits and revenues compared to the same period last year. While this may raise concerns, there are also signs of strength in other parts of its business. The question now is — can Oberoi Realty recover and grow again in the coming quarters?
In Q1 FY26, Oberoi Realty reported a net profit of ₹421 crore, which is 28% lower than the ₹585 crore profit it earned in Q1 FY25. This drop in profits came even though the company performed well in terms of bookings and project launches.
The company’s total revenue for the quarter was around ₹988 crore, which is a 30% drop from ₹1,405 crore recorded during the same quarter last year. This decrease in revenue was one of the main reasons why the company’s profits declined.
One major factor behind the fall in profits was a sharp rise in construction and development costs, which went up by 86%. Although the company managed to reduce some other costs, the heavy increase in building expenses affected the overall earnings.
The company’s operational performance was also impacted. The EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) for Q1 FY26 stood at ₹520 crore, which is 36% lower than the previous year. The EBITDA margin, which shows how much of the revenue is left after operating expenses, fell from 58% to 52.7%. This means that even though the company made strong sales, the cost of doing business ate into its profits.
While profits declined, Oberoi Realty’s sales performance was actually strong in the first quarter. The company sold 181 units, compared to 139 units in Q1 FY25 — a 30% increase.
The total carpet area sold increased by 67%, reaching 3.53 lakh square feet. Even more impressive was the gross booking value, which went up by 54% to ₹1,639 crore. This clearly shows that demand for Oberoi’s premium real estate projects remained high.
One of the biggest contributions came from the launch of Tower D in the Elysian project at Goregaon, Mumbai. This single project recorded bookings worth about ₹1,000 crore. It shows that the market is still interested in high-end, luxury residential properties.
Oberoi Realty also announced an interim dividend of ₹2 per share. The company set July 25 as the record date, and shareholders will receive the dividend by August 7. This is a small but positive move for investors, as it shows the company’s intent to return value to its shareholders.
However, the stock market did not respond positively to the Q1 results. The company’s shares fell around 3% after the earnings report was released. Some investors were concerned about falling profits and shrinking margins.
One of the biggest reasons for the dip in Oberoi Realty’s profits was the significant increase in construction and development costs. These include costs of raw materials, labor, permits, and other project-related expenses. When such costs go up and cannot be passed on fully to buyers, it affects the profit margins of developers.
Even though Oberoi Realty reduced some other expenses, such as administrative costs, the spike in construction expenses was too high to balance out.
Despite the short-term decline in profit, Oberoi Realty has a strong pipeline of projects that can support future growth. The company is planning to launch more towers in existing projects like Borivali and also begin new developments in Worli and Gurugram.
Together, these upcoming projects are expected to generate revenue worth ₹2,400 to ₹9,100 crore, depending on size and scale. If these projects are launched and sold successfully, the company’s earnings could improve significantly over the next few quarters.
Apart from residential real estate, Oberoi Realty is also focusing on commercial and hospitality businesses. Its office project Commerz-II is already doing well with nearly full occupancy. The company also owns shopping malls and is working on opening a luxury hotel in Worli under the Ritz-Carlton brand.
The commercial and hospitality arms are important for long-term growth because they offer steady and recurring income through rent and lease payments. These cash flows can help balance out the ups and downs in the residential property market.
In July 2025, Oberoi Realty completed the acquisition of Hotel Horizon in Juhu, Mumbai, for ₹919 crore. This is a major move into the luxury hospitality space and could add long-term value to the company’s portfolio.
After the acquisition news, Oberoi Realty’s stock price went up by about 3%, showing that the market welcomed the deal. The hotel business in Mumbai has strong growth potential, especially in premium locations like Juhu.
Financial analysts have mixed views about Oberoi Realty. Some continue to recommend buying the stock due to the company’s strong project pipeline and demand for luxury homes. Others are more cautious, saying that the stock price already reflects most of the expected growth and that the short-term pressure on margins needs to be watched carefully.
A few brokerage firms have revised their ratings from “Buy” to “Hold” or “Reduce”, especially after the Q1 results. Their main concern is that construction costs are likely to remain high, which could keep profit margins under pressure in the near term.
Yes, Oberoi Realty can bounce back — but it depends on a few important factors:
Cost control: The company must find ways to manage rising construction expenses more efficiently.
Quick project execution: New projects in Borivali, Worli, and Gurugram need to be launched and sold quickly to boost cash flow.
Revenue from rentals: Commercial and hospitality assets need to contribute more regular income to support financial stability.
Market conditions: The broader real estate market, interest rates, and demand for luxury housing will also impact performance.
If these factors are managed well, Oberoi Realty has the potential to not only recover but also grow stronger.
Oberoi Realty’s Q1 FY26 performance showed a fall in profits due to high costs and lower revenue. However, strong bookings, exciting new launches, and growth in the commercial and hospitality segments are positive signs. The coming quarters will be important for the company to prove that this quarter was just a temporary setback and that it can bounce back with better profits, stronger margins, and continued leadership in India’s premium real estate sector.