Oberoi Realty Reports Strongest FY26 with 52% Q4 Revenue Growth

Oberoi Realty Limited, a leading premium residential and commercial developer in Mumbai, has reported its strongest financial year in company history. The company's board approved FY26 audited results at a meeting on May 8, 2026, highlighting a significant surge in the fourth quarter that drove the full-year performance.

The March quarter stood out with a 52% increase in consolidated revenue to Rs. 1,749.83 crore, up from Rs. 1,150.14 crore in Q4 FY25. This strong performance pulled the full year to its highest reported level, with consolidated revenue from operations growing 13.7% to Rs. 6,009.06 crore in FY26, compared to Rs. 5,286.27 crore in FY25. The net profit for FY26 was Rs. 2,507.43 crore, a 12.7% increase from Rs. 2,225.51 crore in FY25.

The company's market capitalisation stands at Rs. 60,596.13 crore, with shares last quoted at Rs. 1,667.7 per share, down 2.12% from its previous close of Rs. 1,703.85. The stock trades at a P/E of 16.43, reflecting investor confidence in the company's growth trajectory.

FY26 Results

Consolidated revenue from operations grew 13.7% to Rs. 6,009.06 crore in FY26, from Rs. 5,286.27 crore in FY25. The net profit came in at Rs. 2,507.43 crore, the highest in the company’s listed history, representing a 12.7% increase from Rs. 2,225.51 crore. The annual EPS was Rs. 68.96 (Rs. 69.44 excluding the exceptional item). The full-year net profit margin was 39.77%, compared to 40.65% in FY25, indicating a modest compression in margins but not a structural shift.

Finance costs fell to Rs. 240.63 crore from Rs. 265.23 crore, as Non-Convertible Debenture (NCD) balances were progressively reduced. Total borrowings declined to approximately Rs. 2,816 crore as of March 31, 2026, from Rs. 3,300 crore a year earlier. The debt-equity ratio improved to 0.16 from 0.21, and interest service coverage moved up to 11.96 times from 11.56 times, indicating a stronger balance sheet.

Q4 FY26 Performance

The March quarter was particularly strong, with Q4 revenue hitting Rs. 1,749.83 crore, up 52% year-on-year. Q4 net profit was Rs. 703.28 crore, a 62.3% increase from Rs. 433.17 crore in Q4 FY25. Q4 EPS was Rs. 19.34, compared to Rs. 11.91 a year ago. The company notes that real estate revenue recognition is not strictly comparable quarter-to-quarter due to the percentage-of-completion or transfer-of-control accounting method, which can create lumpiness in revenue recognition. Despite this, the Q4 performance confirms that project completions accelerated through the back half of FY26.

Margins and Construction Costs

While the full-year operating margin came in at 55.50%, down from 58.70% in FY25, this compression is primarily due to higher construction costs. Land, development rights, construction, and other costs rose 46.7% to Rs. 3,001.71 crore, faster than the 13.7% revenue growth. The higher construction costs are a result of the company's focus on large-scale and premium projects, where fit-out and delivery costs are proportionally heavier in later phases. At 55.50%, the operating margin remains among the highest in listed Indian real estate, and the compression is not a long-term concern.

Bandra Land Bid and Strategic Pipeline

Two significant announcements made after the balance sheet date are as consequential as the results themselves. In February 2026, Oberoi Realty emerged as the highest bidder for an RLDA land parcel in Bandra East, securing a 99-year lease on approximately 11 acres with 19.5 lakh sq ft of Floor Space Index (FSI) at Rs. 5,400 crore. This is the company’s largest single capital commitment in recent years and holds significant revenue potential. Funding will likely involve internal accruals supplemented by project-level borrowings, with execution clarity and pre-sales trajectory being key variables to watch.

Separately, I-Ven Realty, an associate of Oberoi Realty, signed a hotel management and residences branding agreement with the Aman Group for a Worli project. The project includes approximately 80 hotel rooms and 150,000-200,000 sq ft of residences, with operations targeted by August 2032. This partnership deepens Oberoi’s premium brand association in the south Mumbai hospitality and residential market.

Business Overview

Incorporated in 1998, Oberoi Realty Limited develops premium residential, commercial, retail, hospitality, and social infrastructure assets in Mumbai. The company operates two reportable segments: real estate, which contributed Rs. 5,811.08 crore to FY26 consolidated revenue, and hospitality (The Westin Mumbai Garden City and Oberoi Mall), which contributed Rs. 197.98 crore. Promoter Vikas Oberoi holds 67.71% of the company, unchanged since FY20. Foreign Institutional Investors (FIIs) held 16.58% and Domestic Institutional Investors (DIIs) held 13.46% as of December 2025.

Oberoi Realty's strong financial performance and strategic land acquisitions position the company well for continued growth in the premium real estate market. With a robust balance sheet and a focus on high-margin projects, the company is well-equipped to navigate the competitive landscape and deliver value to its stakeholders.