Axis Keeps Oberoi Realty at Buy with Rs 2,200 Target After Flat Q2 Profit

What happened

Oberoi Realty's board met on 16 October 2026 and approved unaudited consolidated and standalone results for the quarter and half year ended 30 September 2026 (Q2 FY27). Consolidated net profit was Rs 761.65 crore, almost unchanged from Rs 760.26 crore in the same quarter last year.

Axis Securities published its result update on 21 October 2026. It kept the Buy rating and the Rs 2,200 per share target, which is based on a discounted cash flow (DCF) method. The same target was set in its 21 July 2026 update for Q1 FY27, when it was raised from Rs 1,845. Axis said its FY27 and FY28 estimates for revenue, adjusted EBITDA and profit after tax were unchanged after Q2.

Axis's own adjusted profit figure for the quarter is Rs 757 crore. Readers comparing reports should note that Rs 761.65 crore is the reported consolidated net profit, while Rs 757 crore is the adjusted figure used in the broker note.

The Q2 numbers

• Net profit: Rs 761.65 crore, up about 0.2% year on year. Compared with the previous quarter (Q1 FY27, Rs 543.51 crore), profit rose about 40%.
• Revenue from operations: Rs 1,670.95 crore, down 6.1% year on year. Revenue rose about 28.5% from the previous quarter, according to one business news report.
• Booking value: Rs 9,149.69 crore in Q2, and Rs 10,199.57 crore for the first half, against Rs 2,937.73 crore in the first half of FY26.
• Units booked in Q2: 808 units covering about 15.83 lakh sq ft, per brokerage data.
• Pre-sales target: One news report said pre-sales had reached 70% of the company's annual target of Rs 13,000 crore by the end of the second quarter.
• Rental income: About Rs 338 crore, up about 17% year on year, per Nomura's note. Commerz I, II and III are near full occupancy, and Sky City Mall is close to 100%.

Nomura put Q2 pre-sales at about Rs 9,150 crore, up about 604% year on year and above its own estimate of about Rs 8,700 crore.

The Gurugram launch: 360 North

360 North is a residential project in Sector 58, Golf Course Extension Road, Gurugram. It is Oberoi Realty's first project in the National Capital Region and its first residential development outside the Mumbai Metropolitan Region. The first phase was launched in late June 2026.

• Land: About 14.8 acres, with seven towers, according to brokerage data.
• Pricing: The first phase was launched at a basic selling price of Rs 35,000 per sq ft. Starting prices were reported at around Rs 18 crore per home.
• Unit types: Units are described as 4 BHK and 5 BHK, with duplex and penthouse options, in listing material.
• Collections: About Rs 835 crore was collected from the project in Q2. Axis said this covers the construction cost of about Rs 1,000 crore.
• Construction contract: L&T's Buildings and Factories vertical won the engineering, procurement and construction contract, which it disclosed to the stock exchange on 23 April 2026. The contract value was not disclosed.

In its earnings call, the company said the NCR launch response exceeded expectations. Its CFO, Saumil Daru, said the Gurugram launch was the main driver of the rise in current assets and liabilities. He also said land consideration for the project was partly in cash and partly in area.

What other brokers said

Nomura kept its Buy rating with a Rs 2,090 target in a note dated 18 October 2026. Motilal Oswal initiated coverage with Buy and a Rs 2,145 target. ICICI Direct kept Buy with a Rs 2,200 target on a sum-of-the-parts basis. The Rs 2,090 to Rs 2,200 range is the current spread of published targets.

What it means for buyers, investors and the market

For home buyers: 360 North is a high-ticket project. Reported starting prices of around Rs 18 crore apply to the larger units in the first phase.

For investors: Q2 profit was flat and revenue fell, so the quarter's strength came from bookings and collections rather than reported earnings. Axis's view rests on the NCR launch and the pipeline of future launches. Its estimates for FY27 and FY28 did not change after the quarter.

For the wider market: The company said it is open to land purchases and joint development agreements in Delhi, Noida and Gurugram, according to Chairman and Managing Director Vikas Oberoi. Any new land deal would add to the NCR pipeline.

What comes next

• Phase 2 of 360 North: Brokerage estimates put its gross development value at about Rs 7,500 crore, with launch planned for FY28. The launch depends on approvals and on a Punjab and Haryana High Court order that restrains fresh allotments. Management said timing and pricing would aim to maximise value.
• Elysian, Goregaon: A new tower launch is planned, according to ICICI Direct.
• NCR land: The company is open to new land purchases and joint development agreements in the region.
• Trading window: The window reopened on 19 October 2026.