Oberoi Realty Delivers Strongest FY26 in Company History With a 52% Q4 Revenue Jump

Synopsis: Oberoi Realty Limited posted consolidated net profit of Rs. 2,507.43 crore for FY 2025-26, its highest ever annual earnings  up 12.7 percent from Rs. 2,225.51 crore in FY25, as a surging fourth quarter drove full-year revenues to Rs. 6,009.06 crore, with the subsequent Rs. 5,400 crore Bandra land bid and the I-Ven Realty Aman deal adding strategic weight that will define the FY27 pipeline.

Mumbai’s premium residential and commercial developer came into focus after its board approved FY26 audited results at a meeting on May 8, 2026. The March quarter stood out: Q4 consolidated revenue of Rs. 1,749.83 crore was up 52 percent from Rs. 1,150.14 crore in Q4 FY25, pulling the full year to its highest reported level.

With a market capitalisation of Rs. 60,596.13 crore, the shares of Oberoi Realty Limited were last quoted at Rs. 1,667.7 per share, down 2.12 percent from its previous close of Rs.1,703.85. The stock trades at a P/E of 16.43

FY26 Results

Consolidated revenue from operations grew 13.7 percent to Rs. 6,009.06 crore in FY26, from Rs. 5,286.27 crore in FY25. Net profit came in at Rs. 2,507.43 crore, the highest in the company’s listed history, up 12.7 percent from Rs. 2,225.51 crore. Annual EPS stood at Rs. 68.96 (Rs. 69.44 excluding the exceptional item). Revenue and profit growth are broadly in step, which reflects intact margin discipline: the full-year net profit margin was 39.77 percent, compared to 40.65 percent in FY25, a modest compression, not a structural shift.

Finance costs fell to Rs. 240.63 crore from Rs. 265.23 crore, as 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. Across both metrics, the balance sheet is in better shape than it was entering FY26.

Q4 FY26 Performance

The March quarter drove the year. Q4 revenue hit Rs. 1,749.83 crore, up 52 percent year-on-year. Q4 net profit was Rs. 703.28 crore, up 62.3 percent from Rs. 433.17 crore in Q4 FY25. Q4 EPS was Rs. 19.34 versus Rs. 11.91 a year ago. The company notes that real estate revenue recognition is not strictly comparable quarter-to-quarter. It follows percentage-of-completion or transfer-of-control accounting, so deliveries and project milestones create lumpiness. Even accounting for that, the Q4 trajectory confirms that project completions accelerated through the back half of FY26.

Margins and Construction Costs

The one compression point is operating margin. The filing’s reported full-year operating margin came in at 55.50 percent, against 58.70 percent in FY25. The driver is construction cost growth: land, development rights, construction and other costs rose 46.7 percent to Rs. 3,001.71 crore, faster than the 13.7 percent revenue growth. This reflects a project mix with higher absolute construction costs at this stage.

Oberoi’s ongoing developments are large-scale and premium, where fit-out and delivery costs are proportionally heavier in later phases. At 55.50 percent, operating margin remains among the highest in listed Indian real estate; the compression is not a run-rate concern.

Bandra Land Bid and Strategic Pipeline

Two 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 (a 99-year lease on approximately 11 acres with 19.5 lakh sq ft of Floor Space Index) at Rs. 5,400 crore.

At Oberoi’s realisation rates in premium Mumbai residential, the revenue potential from this project is large, but the Rs. 5,400 crore land cost is also the company’s single largest capital commitment in recent years. Funding will likely involve internal accruals supplemented by project-level borrowings. Execution clarity and pre-sales trajectory will be the variables to watch.

Separately, I-Ven Realty, an associate, signed a hotel management and residences branding agreement with the Aman Group for a Worli project comprising approximately 80 hotel rooms and 150,000-200,000 sq ft of residences, with operations targeted by August 2032. Aman positioning in Worli 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 group 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 percent, unchanged since FY20. FIIs held 16.58 percent and DIIs 13.46 percent as of December 2025.

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