Oberoi Realty profit doubles but launch slips erode guidance trust
Earnings beat on Gurugram bookings, but two projects missed prior timelines, hurting credibility
The numbers
- Net profit doubled to ₹843.51 cr from ₹421.25 cr YoY in June quarter.
- Revenue rose to ₹1,300.89 cr from ₹987.55 cr; Q1 revenue recognition lagged prior quarters.
- Board declared ₹2 dividend, yielding under 0.1% on ₹63,601 cr market cap.
- Company infused ₹459.50 cr as unsecured loan into JV Hotel Horizon (49.999% stake).
- Residential margin dipped to 51–52% from ~55% due to project mix.
Management's story
- Vikas Oberoi claims Oberoi has cracked the code for balancing volume and quality.
- 360 North generated ₹8,000+ cr gross bookings, exceeding total construction costs.
- Adarsh Nagar launch likely Q3 FY27, pending IOD and as-built approvals.
- Margin dip attributed to mix, not cost pressure; Sky City Mall ramping to full occupancy.
- New Mulund project possible by Q4 FY27 if approvals arrive in 3–4 months.
“We believe we have cracked the code for balancing volume and quality. As a company, we feel we can build more and build better than we did previously.”
— Vikas Oberoi, Chairman and Managing Director
Where they diverge
Strong earnings and record bookings mask a pattern of missed launch schedules. 360 North slipped from Q4 FY26 to Q1 FY27; Adarsh Nagar from Q4 FY26 to Q3 FY27 — neither explained. Management’s confidence in execution does not match the repeated timeline shifts.
The full read
Oberoi Realty delivered a strong June quarter: net profit doubled to ₹843.51 cr on revenue of ₹1,300.89 cr, powered by the Gurugram 360 North bookings. But the earnings beat was priced in. The real story is management's deteriorating launch credibility. Two projects missed prior guidance without explanation — 360 North slipped from Q4 FY26 to Q1 FY27, Adarsh Nagar from Q4 FY26 to Q3 FY27. Vikas Oberoi said the company has 'cracked the code for balancing volume and quality.' That claim rings hollow when every major launch in the past year has been delayed. Until Oberoi Realty delivers on pipeline timelines, its guidance on Adarsh Nagar, Mulund, and 360 North Phase 2 carries a visible discount.
What we're watching
- Adarsh Nagar launch: Q3 FY27 if IOD and as-built approvals come through.
- 360 North Phase 2: volume and pricing decisions due next year.
- Mulund project: possible Q4 FY27 start, depending on 3–4 month approval window.
- Margin trajectory: whether mix normalises or cost pressures emerge.