CLSA and Jefferies Keep Oberoi Realty at Hold; Jefferies Trims Target to Rs 1,890

What happened

On 21 October 2026, CLSA and Jefferies both published notes keeping Oberoi Realty at Hold. CLSA's target is Rs 1,830, about 9.2% above the Monday close of Rs 1,676.40 on 19 October 2026. Jefferies cut its target to Rs 1,890 from Rs 1,970.

The notes followed Oberoi Realty's second-quarter results for FY27 (July to September 2026). With two Holds and two Buys among the four brokerages cited, the spread between the highest and lowest targets is Rs 480.

A daily brokerage roundup said both Hold calls turn on launch timing rather than on demand.

The quarter in numbers

Oberoi Realty reported Q2 FY27 booking value of Rs 9,149.69 crore. Motilal Oswal said pre-sales rose sixfold year on year to Rs 9,150 crore, in line with its estimate, with about Rs 7,900 crore coming from Three Sixty North in Gurugram, the company's first project in the National Capital Region.

Revenue from operations fell to Rs 1,670.95 crore from Rs 1,779.04 crore a year earlier, a decline of about 6.1%. Net profit was broadly flat. Sources differ slightly on the exact figure: Univest and TradingView put it at Rs 761.65 crore, Kotak News and Scanx at Rs 759.01 crore, and Whalesbook at Rs 757 crore.

Against analyst expectations, diluted earnings per share were Rs 20.94 against Rs 22.37 expected, and revenue was Rs 16.71 billion against Rs 17.81 billion forecast, according to Investing.com. Scanx reported that net profit rose 39% quarter on quarter.

Chairman and managing director Vikas Oberoi said the residential, commercial, retail and hospitality businesses continued to deliver steady performance.

Why CLSA and Jefferies stayed at Hold

CLSA called presales of Rs 9,100 crore strong and in line with its estimate. It said the company reiterated a strong launch pipeline for the rest of FY27, along with upcoming annuity assets that will drive rental income.

CLSA said the Adarsh Nagar project has been deferred because of a delay in approvals, and it expects some additional spillover beyond that project. This is the main reason for its Hold rating. A single delayed launch would be a timing issue; spillover into other projects would point to a slower year.

Jefferies described the Gurugram launch as strong and Mumbai sustenance sales as good. It said the two together drove record presales and operating cash flow. It also noted that the balance sheet is net cash and that the business remains high margin at about 60%.

Business Upturn's commentary argued that a deferred launch moves presales from one year into the next rather than cancelling them, which is why it changes a rating without changing the investment case.

The Adarsh Nagar project

Oberoi Realty plans to redevelop a 12,790 sq m leased plot in Adarsh Nagar, Worli, Mumbai, with upscale residences. The scope covers modernising seven buildings that currently hold 504 flats, on land likely leased from the Maharashtra Housing and Area Development Authority (MHADA). The project is expected to add about 624,000 sq ft of free-sale space.

A July 2026 brokerage note had targeted a launch in Q3 FY27, with approvals in their final stages. The October CLSA note says the launch is now deferred. The reports do not give a revised date.

Motilal Oswal lists Adarsh Nagar as contingent on approvals in its second-half FY27 pipeline.

Policy and the wider Adarsh Nagar redevelopment

Adarsh Nagar is part of a wider MHADA redevelopment. The Maharashtra government approved the redevelopment under Development Control Regulation 33(5), which is designed for MHADA buildings, and has allocated a Floor Space Index of 4. Developers need consent from 51% of existing residents to proceed.

The Bombay High Court dismissed petitions challenging the state's cluster redevelopment policy for two large MHADA layouts, Bandra Reclamation and Adarsh Nagar in Worli. The combined area is nearly 132 acres, of which about 34.33 acres are in Adarsh Nagar. Residents of sea-facing buildings in Adarsh Nagar have raised concerns about rehabilitation and the possibility of relocation to less desirable locations.

What it means for buyers and investors

For investors, the ratings hinge on whether launches arrive on schedule. Jefferies expects FY27 presales to nearly double to about Rs 13,000 crore, supported by the response to the Gurugram project. CLSA has raised its Hold target from Rs 1,500 in around May 2026 to Rs 1,830 now.

For prospective buyers, the Adarsh Nagar timeline is now uncertain. Its deferral affects when units would reach the market, not the project itself, according to the brokerage commentary. Phase 2 of Three Sixty North in Gurugram is due to launch in FY28, with timing and pricing to be optimised.

What comes next

The company has said it has a strong launch pipeline for the rest of FY27. The key test is whether approvals clear for Adarsh Nagar and whether any further launches slip. Whalesbook noted that management faces a bunched pipeline over the next three quarters, and that regulatory or approval delays could disrupt pre-sales and cash collections.

As of 26 October 2026, the Adarsh Nagar launch has been deferred and no new launch window has been announced.