Oberoi Realty Share Price Target at Rs 2,080: ICICI Securities
Oberoi Realty is entering FY27 with one of the strongest launch pipelines seen in Mumbai’s premium real estate segment in recent years, according to ICICI Securities. The brokerage has retained its “BUY” recommendation on the stock while revising its target price upward to Rs 2,080 from the current market price of Rs 1,633, implying an upside potential of nearly 27% over the next 12 months. The research house believes the company is positioned to recover lost launch momentum through a series of large-scale residential, commercial, and hospitality developments across Mumbai Metropolitan Region and Gurugram. Rising occupancy across annuity assets, improving rental income, and premium project launches remain the key pillars supporting the bullish outlook.
Massive FY27 Launch Pipeline Places Oberoi Realty Back Into Growth Mode
ICICI Securities highlighted that Oberoi Realty has assembled an expansive project pipeline for FY27 that could materially accelerate bookings and cash flow generation. The company plans launches spanning luxury residential towers, redevelopment projects, hospitality ventures, and commercial assets.
Key upcoming projects include:
360 North, Gurugram
Oceanic, Carter Road
Fairview, Malabar Hill
Forrestville Tower D
Jardine Tower A
Ralliwolf Mulund
Enigma commercial strata sales
Pedder Road redevelopment
Adarsh Nagar, Worli
Alibaug project
Bandra RLDA development
Borivali SRA project
The report noted that Oberoi Realty has acquired nearly 4 million square feet of development potential across Mumbai Metropolitan Region, significantly strengthening its long-term project inventory. Among the notable acquisitions are the RLDA land parcel in Bandra East and redevelopment opportunities at Versova, Pedder Road, and Malabar Hill.
Q4FY26 Presales Surge Nearly 96% Year-On-Year
The March quarter delivered a sharp improvement in operational performance. Oberoi Realty reported presales of Rs 1,673 crore during Q4FY26, representing a robust 96% year-on-year growth and 100% sequential growth.
The biggest contribution came from:
Elysian, Goregaon: Rs 843 crore booking value
Sky City, Borivali: Rs 319 crore booking value
Together, these two projects accounted for nearly 69% of quarterly presales. Additional support came from projects such as Jardin, Forrestville, and Enigma.
The company’s total area booked during the quarter stood at 357,552 square feet, sharply higher than previous quarters.
Commercial Assets Continue Delivering Stable Rental Growth
One of the strongest themes emerging from the report is the steady performance of Oberoi Realty’s annuity portfolio. Rental income continued to rise as occupancies improved across major commercial assets.
Lease rental income increased:
18% YoY during Q4FY26 to Rs 321 crore
36% YoY during FY26 to Rs 1,191 crore
Occupancy levels also strengthened considerably:
| Commercial Asset | Occupancy Trend |
|---|---|
| Sky City Mall | 72% vs 50% in Q1FY26 |
| Commerz II | 100% vs 96% in Q4FY25 |
| Commerz III | 98% vs 81% in Q4FY25 |
The brokerage expects Sky City Mall to potentially achieve full occupancy by the end of FY27, which could become a meaningful driver of recurring income.
Commercial realisations also remained resilient. Commerz II achieved rental realisations of Rs 282 per sq ft per month in Q4FY26, while Oberoi Mall maintained occupancy near 98%.
Hospitality Vertical Adds Long-Term Strategic Optionality
Apart from residential and commercial real estate, the company is steadily expanding its hospitality footprint.
The hospitality business posted:
Q4FY26 revenue: Rs 55 crore
FY26 revenue: Rs 198 crore
Oberoi Realty plans to operationalise:
Marriott Hotel, Sky City during H1FY28
Ritz Carlton, Worli during FY27
Additionally, the company has secured possession of Horizon Hotel following NCLT approval of its acquisition resolution plan.
The company is also pursuing mixed-use development on the I-Ven land parcel, including an 80-room ultra-luxury hotel under the Aman brand. This could potentially elevate Oberoi Realty’s positioning within India’s premium hospitality and luxury residential ecosystem.
Margins Remain Healthy Despite Rising Input Cost Pressures
Despite ongoing geopolitical uncertainty and inflationary pressures linked to Middle East tensions, the company maintained strong profitability metrics.
For Q4FY26:
| Metric | Q4FY26 | YoY Growth |
|---|---|---|
| Revenue | Rs 1,750 crore | 52% |
| EBITDA | Rs 960 crore | 55% |
| Net Profit | Rs 703 crore | 62% |
| EBITDA Margin | 54.9% | +114 bps |
Management acknowledged a 2–3% increase in project costs due to higher prices of aluminium, glass, labour, and energy. However, the company stated that existing project contingencies should absorb most of the pressure without materially affecting margins.
Financial Outlook Signals Strong Earnings Visibility
ICICI Securities expects Oberoi Realty’s revenue and profitability trajectory to remain healthy over FY27 and FY28.
Projected numbers include:
| Financial Metric | FY26 | FY27E | FY28E |
|---|---|---|---|
| Revenue | Rs 6,009 crore | Rs 6,472 crore | Rs 8,641 crore |
| EBITDA | Rs 3,358 crore | Rs 3,591 crore | Rs 4,820 crore |
| Net Profit | Rs 2,530 crore | Rs 2,623 crore | Rs 3,552 crore |
| EPS | Rs 69.6 | Rs 72.1 | Rs 97.7 |
The brokerage also noted improving balance sheet strength, with debt-equity projected near 0.1x by FY28E and cash reserves expected to exceed Rs 2,250 crore.
Valuation Suggests Further Upside Potential
ICICI Securities values the company using a Sum-of-the-Parts methodology. The valuation framework assigns:
Rs 1,161 per share to residential assets
Rs 381 per share to commercial assets
Rs 96 per share to hospitality business
After adjusting for net debt and applying a premium to the residential portfolio, the brokerage arrived at a revised target price of Rs 2,080.
At the current valuation, the stock trades at approximately 22.7x FY27 estimated earnings and 16.8x FY28 estimated earnings, which ICICI Securities believes remains attractive given the visibility of launches and annuity growth.
Key Risks Investors Should Monitor
While the outlook remains constructive, the brokerage flagged several monitorable risks:
Slowdown in Mumbai Metropolitan Region pre-sales
Delay in project approvals or launches
Escalation in construction costs
Weakness in luxury housing demand
Rising interest rates affecting home affordability
Execution timelines across the large FY27 pipeline will remain crucial for sustaining investor confidence.
Investment View
Oberoi Realty appears to be entering a fresh expansion cycle supported by premium launches, redevelopment opportunities, stronger annuity income, and hospitality diversification. With a substantial project pipeline across Mumbai and Gurugram, improving occupancy trends, and healthy balance sheet metrics, the company is positioning itself as one of the more structurally resilient players within India’s luxury real estate segment.
ICICI Securities believes FY27 could mark the beginning of a renewed growth phase for the developer, especially if management successfully adheres to its launch schedule and capitalises on rising premium housing demand across key urban markets.
