Nifty Realty Slides 3% Amidst Firm Market; Lodha, Brigade, and Oberoi Face Declines
On Wednesday, shares of real estate companies came under pressure in an otherwise positive market, with the Nifty Realty index dropping 3%. Notable declines were seen in Lodha Developers, Oberoi Realty, and Brigade Enterprises.
Real EstateNifty RealtyStock MarketLodha DevelopersOberoi RealtyReal Estate NewsJul 23, 2025
Lodha Developers experienced a 7% drop, with its shares closing at ₹1,346.50. Oberoi Realty saw a 4% decline, trading at ₹1,755. Brigade Enterprises also slipped by 4% on the National Stock Exchange (NSE) in Wednesday’s intra-day trade.
Other notable real estate stocks, including Godrej Properties, Prestige Estates Projects, Sobha, Anant Raj, and DLF, experienced declines ranging from 2% to 3%.
At 12:03 PM, the Nifty Realty index, which was the top loser among sectoral indices, was down 3%, in contrast to the 0.35% rise in the Nifty 50. As of the calendar year 2025, the realty index has underperformed the market, falling 8%, compared to a 5% rally in the benchmark index.
There was significant trading activity in Oberoi Realty and Godrej Properties. A combined 14.83 million equity shares, representing 4% of the total equity of Oberoi Realty, changed hands on the BSE (11.82 million shares) and NSE (3.01 million shares). According to media reports, existing investors of Oberoi Realty were likely to sell a 3% stake in the company through block deals.
Meanwhile, 17.07 million shares, representing 1.7% of the total equity of Lodha Developers, were traded on the NSE (15.42 million shares) and BSE (1.65 million shares). The identities of the buyers and sellers were not immediately ascertained.
For the April to June 2025 quarter (Q1FY26), Oberoi Realty’s revenue declined by 30% year-on-year (YoY) and 14% quarter-on-quarter (QoQ) to ₹990 crore, below analysts' estimates. The company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₹52 crore, down 36% YoY and 16% QoQ, with its margin contracting 5.3% YoY to 53%. Profit after tax (PAT) declined 28% YoY and 3% QoQ to ₹421 crore, also falling short of estimates.
While Oberoi's current valuation does not suggest significant near-term gains, analysts at Motilal Oswal Financial Services foresee a strong 48% compounded annual growth rate (CAGR) in its presales over FY25-27. The key to a future re-rating lies in the company's ability to reinvest the substantial cash flow derived from its completed and near-completion projects, the brokerage firm said in the result update with a ‘Neutral’ rating on the stock.
Analysts at YES Securities expect overall demand to remain steady for this fiscal year, believing that Oberoi will achieve a healthy response to their new launches. However, the ramp-up in the Thane market and the trajectory of sustenance sales, which have been growing at a soft pace, will be key monitorables.
The brokerage firm believes that the stock is factoring in the major developments. Hence, on its SOTP valuation, YES Securities arrived at a target price of ₹1,658. The brokerage firm remains slightly cautious due to deferred launches and softer sustenance sales.
Structural demand drivers and industry dynamics will continue to generate significant housing demand in the foreseeable future. Housing remains a necessity, and coupled with the availability of quality supply at affordable price points, Lodha Developers anticipate that this demand will translate into robust pre-sales in the years ahead.
Rising wages, positive consumer sentiment, and the inherent security associated with homeownership are expected to sustain strong housing demand. Additionally, anticipated interest rate reductions and government-led tax rebates will provide further impetus to the affordable and mid-income housing segments, as stated in Lodha Developers' FY25 annual report.
Frequently Asked Questions
Why did the Nifty Realty index fall 3% on Wednesday?
The Nifty Realty index fell 3% on Wednesday due to high trading volumes on the counters of Lodha Developers and Oberoi Realty, coupled with disappointing June quarter earnings of Oberoi Realty, which dampened investor sentiment.
How much did Lodha Developers and Oberoi Realty shares decline?
Lodha Developers shares declined by 7%, closing at ₹1,346.50, while Oberoi Realty shares fell by 4%, trading at ₹1,755.
What was the performance of other real estate stocks?
Other notable real estate stocks, including Godrej Properties, Prestige Estates Projects, Sobha, Anant Raj, and DLF, experienced declines ranging from 2% to 3%.
What were the key highlights of Oberoi Realty's Q1FY26 financial results?
For the April to June 2025 quarter (Q1FY26), Oberoi Realty’s revenue declined by 30% YoY and 14% QoQ to ₹990 crore, below analysts' estimates. EBITDA was ₹52 crore, down 36% YoY and 16% QoQ, with a margin of 53%. PAT declined 28% YoY and 3% QoQ to ₹421 crore, also below estimates.
What is the outlook for the real estate sector in the coming years?
The outlook for the real estate sector remains positive, driven by structural demand drivers and industry dynamics. Rising wages, positive consumer sentiment, and the inherent security associated with homeownership are expected to sustain strong housing demand. Additionally, anticipated interest rate reductions and government-led tax rebates will provide further impetus to the affordable and mid-income housing segments.
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