Prabhudas Lilladher upgrades Oberoi Realty to Buy, retains ₹2,100 target

Prabhudas Lilladher upgraded Oberoi Realty to Buy from Accumulate and retained its ₹2,100 target price in a note dated 21 October 2026, following the developer’s Q2 FY27 results. The Mumbai-based company reported sales bookings of ₹9,149.69 crore for the quarter ended 30 September, compared with ₹1,299.06 crore in the year-earlier period. Its consolidated revenue from operations fell 6.1% year on year to ₹1,670.95 crore.

The broker said the recent correction in Oberoi Realty’s share price supported the rating change. Its target is based on a discounted cash flow-based net asset value sum-of-the-parts approach, which values the company’s residential, commercial, retail and hospitality businesses separately before arriving at an overall estimate. The note puts net asset value at ₹763,027 million, or ₹2,100 per share, after accounting for cash and debt and applying a premium to net asset value.

Gurugram launch drives bookings

The newly launched 360 North project in Sector 58, Gurugram, was a major contributor to the quarter’s bookings. Located on Golf Course Extension Road, the development is Oberoi Realty’s first residential project outside the Mumbai Metropolitan Region. Prabhudas Lilladher cited sales of ₹7,891.14 crore from 614 units during the launch period in late June. The company launched the project’s first phase on 29 June and said the apartments released in that phase had sold.

The project’s performance helped Oberoi Realty reach about 70% of its FY27 pre-sales target of ₹13,000 crore by the second quarter, according to the research notes. Management plans to launch the next phase of 360 North in FY28, with its timing and pricing to be set in light of approvals and market conditions. The Gurugram project is also subject to litigation, although the notes say construction is not restricted.

Forecasts and execution risks

Prabhudas Lilladher expects Oberoi Realty’s pre-sales to grow at about 25% annually over FY26-28E, supported by launches including the final phase of 360 North. It also expects annuity income—the rent earned from leased offices and malls—to reach ₹13-14 billion by FY28. That rental stream provides recurring income alongside property sales, which can vary with market conditions.

The company’s Q2 results were approved by its board on 16 October 2026. Consolidated sales bookings rose substantially, while revenue from operations declined year on year. The figures point to a quarter in which launch-related bookings were strong, but do not by themselves establish that the same sales pace will continue across later quarters.

Execution remains a key factor for the broker’s forecast. Prabhudas Lilladher flagged the need to deliver large projects without significant cost overruns. Approvals and launch timing are also relevant: research notes say the broader H2 FY27 launch pipeline has slipped as approvals remain pending. For investors, the next results will show whether bookings extend beyond the 360 North launch and whether planned projects move forward on schedule. For buyers, the rating change does not alter project prices, terms or possession dates; the next phase’s launch timing and pricing remain the practical points to watch.