Real Estate Stocks Decline Following Oberoi Realty's Disappointing Q1 Results
The shares of real estate companies took a hit on July 22 after Oberoi Realty reported a significant drop in its Q1 net profit, leading to a decline in investor confidence.
Real EstateStock MarketOberoi RealtyNifty RealtyFinancial ResultsReal EstateJul 22, 2025
Oberoi Realty on July 21 reported a net profit of Rs 421 crore for the first quarter of the financial year 2026. This marks 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, and if approved, the dividend will be paid on or before August 7.
Speaking about the company’s performance during the quarter, Chairman and Managing Director Vikas Oberoi said, “Demand for luxury homes remains strong, fuelled by rising aspirations and a growing desire for an enhanced lifestyle. We are pleased to report another healthy quarter, driven by successful tower launch at Elysian, Oberoi Garden City Goregaon. At Oberoi Realty, we remain focused on creating developments that foster vibrant communities — through thoughtfully designed homes, premium retail, world-class hotels, and sustainable living experiences.”
Oberoi Realty has started its preparations towards new project launches for the rest of the year, and it is pursuing attractive land acquisitions, he added. Vikas Oberoi further noted that the Indian economy continues to display remarkable resilience and sustainable growth despite a challenging global economic and geopolitical landscape. “With strong macroeconomic fundamentals, a growing aspirational population, robust domestic demand, and a stable external position, India is placed favourably for growth amongst the major global economies,” he said.
Oberoi Realty shares were down nearly 1 percent to hover around Rs 1,821 apiece. Earlier during the day, the stock has dropped nearly 3 percent to hit an intraday low of Rs 1,781 apiece. The stock has dropped nearly 6 percent in the past one month, but rose 3 percent in the past six months.
Raymond shares were the top loser on the realty index, dropping 2 percent to trade at Rs 723 apiece. Phoenix Mills and Anant Raj shares were down nearly 2 percent each. Godrej Properties, Brigade Enterprises, and Macrotech Developers (Lodha) shares were down around 1 percent each. DLF, Sobha, and Prestige Estates shares were hovering in the red with marginal losses.
Frequently Asked Questions
Why did real estate stocks decline on July 22?
Real estate stocks declined on July 22 due to weak results reported by Oberoi Realty, which saw a 28 percent drop in net profit compared to the previous year.
What was Oberoi Realty's net profit for Q1 2026?
Oberoi Realty's net profit for the first quarter of the financial year 2026 was Rs 421 crore, a 28 percent decline from the previous year's Rs 584 crore.
How did the Nifty Realty index perform on July 22?
The Nifty Realty index was down over 1 percent, hovering around 996, reflecting the decline in real estate stocks.
What measures did Oberoi Realty announce alongside its Q1 results?
Oberoi Realty announced an interim dividend of Rs 2 per equity share for eligible shareholders, with the record date set for July 25 and payment expected by August 7.
What is Oberoi Realty's outlook for the Indian real estate market?
Oberoi Realty remains optimistic about the demand for luxury homes, driven by rising aspirations and a growing desire for an enhanced lifestyle. The company is preparing for new project launches and pursuing land acquisitions.
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