The Oberoi Realty Ltd stock has taken a beating, declining 24% so far in 2025 versus the Nifty Realty index’s 9% fall. To reverse this trend, the Mumbai-focussed realty firm must deliver on a slew of parameters.
New launches need acceleration. In the June quarter (Q1FY26), it unveiled only one new tower—Elysian Tower D in Goregaon. There were no new launches in Q2FY26; consequently, pre-sales at ₹1,299 crore, fell year-on-year and sequentially.
In H2FY26, one tower in the Borivali project is scheduled for launch. Adarsh Nagar (Worli), Peddar Road project, Carter Road project and possibly some redevelopment projects are also likely in H2.
Until then, sustaining sales momentum in existing projects is important for cash flow trajectory. Reinvesting cash flow from completed and near-completion projects is seen as a re-rating trigger for the stock.
Here, the uber-luxury Three Sixty West project in Worli remains a focal point. Oberoi sold four units in this project in Q2FY26 versus six in Q2FY25 and one unit in Q1FY26. It aims to sell out its inventory of 32-units within the next three years.
In Q2FY26, collections rose 12% year-on-year, largely led by Elysian and Three Sixty West projects. Enigma (Mulund) and Skycity projects were the other contributors. On the flipside, Pokharan Road, Thane project was a dampener with softer sales and will be a key monitorable in H2FY26.
“Oberoi has entered key micro markets of Adarsh Nagar and Thane, where the absorption capacity and other regional complexities could hamper the company’s sales momentum,” says Axis Securities.
Further, Oberoi is expanding its footprint out of the core Mumbai market into Gurugram in Delhi-NCR, where it is planning a high-end luxury project similar to Three Sixty West; a launch is expected in FY26.
On the commercial, hospitality and retail fronts, occupancies at Commerz-I and -II were stable at 96% in Q2FY26, while Commerz-III’s occupancy increased to 87% from 83% sequentially.
Leasing momentum in these office assets is robust, said the management. The Ritz-Carlton hotel is nearing completion and will feature over 200 keys along with extensive food & beverages and banqueting facilities. It is slated for a launch at the end of FY26.
The Sky City mall in Borivali (launched in Q4FY25) could achieve 100% occupancy by FY26-end from 53% now. In short, while Oberoi has the recipe, the pace of execution is vital.
