Real Estate Shares Plunge for 5th Consecutive Day, Down by 4%
Real estate shares saw a significant decline for the fifth consecutive day, with the Nifty Realty index dropping over 4%. Weak Q1 results from Lodha and TCS layoffs are weighing heavily on the sector.
Real EstateNifty RealtyQ1 ResultsTcs LayoffsStock MarketReal Estate NewsJul 28, 2025
The sharp fall in the share prices pushed the Nifty Realty index down more than 4 percent, to emerge as the top sector loser on the market today. The realty index closed at 911.90, extending losses for the fifth consecutive session.
Macrotech Developers (Lodha) shares were the top loser on the index, dropping more than 6 percent to close at Rs 1,198.70 apiece. The company reported a net profit of Rs 674.7 crore for the first quarter of the financial year 2026, marking a 42 percent on-year rise from the Rs 475.3 crore net profit reported in the corresponding quarter of the previous financial year. On a sequential basis, net profit, however, declined 27 percent from Rs 921.7 crore reported in the January-March quarter.
The firm’s revenue from operations gained nearly 23 percent on-year to Rs 3,419.7 crore in Q1 FY26, but fell more than 17 percent sequentially from Rs 4,224.3 crore in Q4 FY25. Earlier during the day, Macrotech Developers shares dropped nearly 7 percent to hit an intraday low of Rs 1,190.60 apiece. The stock has recovered some losses now.
TCS is letting go 2 percent of its staff, or roughly 12,000 employees, in a bid to become more agile and future-ready, Moneycontrol exclusively reported. The IT giant's move comes amid rapid disruptions in technology. However, the firm's CEO K Krithivasan told Moneycontrol that the move was not a fallout of the adoption of artificial intelligence, but to address skills for the future. A downturn in the IT sector will likely have a ripple-down effect on the real estate sector.
Heavyweights DLF and Godrej Properties dropped more than 4 percent and 5 percent, respectively. Brigade Enterprises and Oberoi Realty shares dropped more than 4 percent each. Oberoi Realty reported a net profit of Rs 421 crore for the first quarter of the financial year 2026, marking a nearly 28 percent decline from the Rs 584 crore net profit reported in the corresponding quarter of the previous financial year.
Its revenue from operations declined around 30 percent on-year to Rs 987.55 crore, while net profit margin reduced to 39.22 percent during the quarter under review. EBITDA meanwhile stood at Rs 607 crore. Along with the Q1 results, the company also announced an interim dividend of Rs 2 per equity share for its eligible shareholders. The record date to determine the eligibility of the shareholders set to receive the payment has been set on July 25 (today), and if approved, the dividend will be paid on or before August 7.
Prestige Estates and Raymond shares were down around 3 percent each, while Anant Raj, Phoenix Mills, and Sobha shares were down over 2 percent each. Sobha had released its results on July 25. The firm's net profit more than doubled on a year-on-year basis to Rs 13.6 crore in Q1 FY26. However, the net profit dropped sharply from the Rs 40.86 crore reported in the previous quarter (Q4 FY25).
Frequently Asked Questions
Why are real estate shares falling?
Real estate shares are falling due to weak Q1 results from key players like Lodha and TCS layoffs, which are dampening investor sentiment.
How much did the Nifty Realty index drop?
The Nifty Realty index dropped more than 4 percent, making it the top sector loser on the market.
What was the impact of TCS layoffs on the real estate sector?
TCS layoffs are likely to have a ripple-down effect on the real estate sector, as the IT sector's downturn can affect demand for commercial and residential properties.
How did Macrotech Developers (Lodha) perform in Q1 FY26?
Macrotech Developers (Lodha) reported a net profit of Rs 674.7 crore for Q1 FY26, a 42 percent on-year rise, but a 27 percent sequential decline from Q4 FY25.
What was the performance of Oberoi Realty in Q1 FY26?
Oberoi Realty reported a net profit of Rs 421 crore for Q1 FY26, a 28 percent decline from the corresponding quarter of the previous year.
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