Oberoi Realty Ltd Q2FY26: ₹1,779 Cr Sales, ₹760 Cr Profit – Mumbai’s Real-Estate Royalty Still Charging Per Square Foot for Oxygen

1. At a Glance

Oberoi Realty, the Rolls-Royce of Mumbai’s skyline, just wrapped up another golden quarter.
The company clocked ₹1,779 crore revenue (up 34.8 % YoY) and ₹760 crore profit (up 29 % YoY), while maintaining Operating Margin at 56 % — because when you sell apartments that come with their own air supply, margins follow naturally.

Market cap? A plush ₹61,781 crore, stock parked at ₹1,699, with a P/E of 27.7× and ROE 14.7 %. Debt-to-equity? Just 0.18 — impressive for a sector that often looks like a Ponzi disguised as a penthouse.

And yes, they’ve declared a ₹2 interim dividend, proving that even the most premium builders occasionally hand back pocket change to shareholders.

2. Introduction

Mumbai has two species of developers:
(1) those who sell dreams that collapse faster than your 5 GHz Wi-Fi, and
(2) Oberoi Realty, which sells 3-BHKs where dreams come with marble flooring and an in-house Starbucks.

Headquartered in Goregaon, the Oberoi empire has built 161 lakh sq ft across 50 projects, and now eyes Thane, Alibaug, and Bandra like a well-fed tiger spotting new forest.

While others shout “affordable housing,” Oberoi whispers “limited inventory.”
Their clientele doesn’t haggle — they only ask if the concierge can walk the dog.

But beneath the luxury polish lies a question: is Oberoi Realty still building mansions or starting to build momentum? Let’s find out.

3. Business Model – WTF Do They Even Do?

Oberoi Realty’s model is straightforward: buy premium land, sell sky at premium rates.

Segments:

Real Estate (96 %) – Residential towers, offices, retail spaces.
Hospitality (4 %) – The Westin Mumbai Garden City (269 rooms, ARR ₹ 13,750, occupancy 81 %).

Revenue streams:

Development Sales – projects like Sky City, Three Sixty West, Forestville, and Elysian keep the cash raining.
Rental & Investment Properties – six assets, incl. Commerz I–III, Oberoi Mall, and Oberoi International Schools. Rental income now = 13 % of revenue (vs 7 % FY24).
Hotel Operations – small but stable cash cow; basically luxury stay for Oberoi’s own customers visiting the site office.

In short, Oberoi builds the playground, rents the swings, and runs the clubhouse.

4. Financials Overview

Metric	Latest Qtr (Sep’25)	YoY Qtr (Sep’24)	Prev Qtr (Jun’25)	YoY %	QoQ %
Revenue (₹ Cr)	1,779	1,320	988	+34.8 %	+80 %
EBITDA (₹ Cr)	1,020	814	520	+25 %	+96 %
PAT (₹ Cr)	760	589	421	+29 %	+80 %
EPS (₹)	20.9	16.2	11.6	+29 %	+80 %

Annualised EPS = ₹ 20.9 × 4 = ₹ 83.6
→ P/E ≈ 20.3× (on forward).

Commentary: Even with developers crying about interest rates, Oberoi posts near-record profits. It’s less “real estate cycle” and more “real estate monopoly.”

5. Valuation Discussion – Fair Value Range Only

Method 1 – P/E Approach
Peers (DLF 45×, Lodha 40×, Godrej 46×).
Oberoi’s quality warrants 28–32× on EPS ₹ 61.4.
→ Fair Range = ₹ 1,720 – ₹ 1,965 per share.

Method 2 – EV/EBITDA
EBITDA FY25 = ₹ 3,015 Cr.
Industry median ≈ 22× → Fair EV ₹ 66,000 Cr. After net debt ₹ 3,000 Cr → Fair Eq Value ₹ 63,000 Cr ≈ ₹ 1,730 per share.

Method 3 – DCF (Luxury Edition)
Assume 12 % CAGR for 5 yrs, terminal growth 6 %, discount 10 %.
→ Intrinsic range ₹ 1,650 – ₹ 1,950.

🟩 Fair Value Range (EduPurpose Only): ₹ 1,650 – ₹ 1,950

Disclaimer: For educational analysis only; not investment advice.

6. What’s Cooking – News, Triggers, Drama

Oberoi’s FY26 script has more plot twists than a Bollywood sequel:

Thane Mega Launch (Oct 2024): 75 acres, JW Marriott + International School + Private Club. Phase 1 sold ₹ 1,348 Cr in 3 days — proof that Mumbaikars will buy anything with valet parking.
Alibaug Luxury JDA (Dec 2024): 81 acres =

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