Oberoi Realty Share Price Falls 4% After Q1 FY26 Earnings Miss Expectations

Market Performance

Oberoi Realty’s share price witnessed a sharp decline on Wednesday, dropping 4% to touch an intraday low of ₹1,751 after the company released its Q1 FY26 earnings.

• The stock is currently trading 25% below its 52-week high of ₹2,349.80 recorded in December 2024.
• It had earlier touched a 52-week low of ₹1,440 in April 2025.

So far in 2025, the stock has fallen 19%, despite a modest 5% gain over the last 12 months.

Main News

The Q1 FY26 results revealed a significant downturn in Oberoi Realty’s financial performance, leading to negative market sentiment and a subsequent drop in its share price.

• Net profit declined by 28% YoY to ₹421.2 crore, compared to ₹585 crore in Q1 FY25.
• Total revenue also fell sharply by 29.7%, standing at ₹987.5 crore, down from ₹1,405 crore in the year-ago period.

Despite a drop in total expenses, rising development costs impacted overall profitability.

Company Financials

Revenue

• Revenue from operations for Q1 FY26: ₹987.5 crore
• Previous year same quarter: ₹1,405 crore
• YoY Decline: 29.7%

EBITDA

• EBITDA for the quarter: ₹520.4 crore
• Previous year: ₹815 crore
• YoY Drop: 36%

EBITDA Margins

• Q1 FY26 EBITDA Margin: 52.7%
• Q1 FY25 EBITDA Margin: 58%
• Margin contraction: 530 basis points

Net Profits

• Net Profit in Q1 FY26: ₹421.2 crore
• Net Profit in Q1 FY25: ₹585 crore
• YoY Decline: 28%

Expenses

• Total Expenses in Q1 FY26: ₹574 crore
• YoY Decline: 14%

A notable concern is the 86% surge in land, development rights, and construction costs, which rose from ₹335 crore to ₹626 crore. This significantly impacted the bottom line, even though other expenses were under control.

Interim Dividend Update

Oberoi Realty also announced an interim dividend of ₹2 per share, representing 20% of the face value of ₹10.

• Record date: July 25, 2025
• Payout date: On or before August 7, 2025

This dividend payout comes despite the subdued financial performance, indicating a stable capital distribution policy.

Company Overview

Headquartered in Mumbai, Oberoi Realty is a leading name in the real estate sector. The firm is known for luxury residential projects, high-end commercial spaces, and integrated townships. The company continues to focus on creating premium developments with a blend of modern living, retail, and hospitality.

Stock Performance Over 2025

Oberoi Realty’s share price has experienced high volatility throughout 2025:

• January: Down 21.5%
• February: Down 18%
• March: Gained 10.3%
• April: Up 0.3%
• May: Up 6.4%
• June: Rose 9%
• July (so far): Dropped 7.5%

The recent fall in July ends a streak of four consecutive months of gains.

Summary of the Article

The Oberoi Realty share price fell sharply by 4% after the release of disappointing Q1 FY26 results. The company recorded a 28% decline in net profit and a 29.7% decrease in revenue, driven largely by a sharp increase in construction-related expenses. Despite this, the firm has declared a ₹2 per share interim dividend.

As the real estate major navigates rising costs and market pressure, its stock remains underperforming in 2025. However, the company’s focus on premium housing and community-centric developments continues to be a cornerstone of its long-term strategy.