Brokerage Coverage
Motilal Oswal Initiates Oberoi Realty at Buy with Rs 2,145 Target
Motilal Oswal has started coverage of Oberoi Realty with a Buy rating and a target price of Rs 2,145, a note dated 21 October 2026. The brokerage links most of the company's sharp rise in Q2 FY27 pre-sales to its first NCR project, Three Sixty North in Gurugram.
| Brokerage and rating | Motilal Oswal, Buy |
|---|---|
| Target price | Rs 2,145 (sum-of-the-parts, residential valuation rolled forward to FY28) |
| Note date | 21 October 2026 |
| Q2 FY27 results announced | 16 October 2026 |
| Q2 FY27 pre-sales | About Rs 91.5 billion, described by Motilal Oswal as in line with its expectations |
| Q2 FY27 booking value (company release) | Rs 9,149.69 crore |
| Share of pre-sales from Gurugram | About 86%, or about Rs 79 billion |
| Q2 FY27 consolidated revenue (company release) | Rs 1,736.37 crore |
| Q2 FY27 consolidated PAT (company release) | Rs 759.01 crore |
What happened
On 21 October 2026, Motilal Oswal began coverage of Oberoi Realty with a Buy rating and a target price of Rs 2,145. The note followed the company's Q2 FY27 results, which were announced on 16 October 2026.
The brokerage said its sum-of-the-parts target rose to Rs 2,145 after it rolled the residential valuation forward to FY28. It also raised the weighted average cost of capital slightly, to 10.6%, and the cap rate on its RLDA assets to 8.0%.
Q2 FY27 numbers
Pre-sales for the quarter were about Rs 91.5 billion. Motilal Oswal described this as in line with its expectations. The company's own press release gives a booking value of Rs 9,149.69 crore for the quarter.
Sources differ on how large the year-on-year jump was. Motilal Oswal and Whalesbook put the increase at roughly six-fold, while ICICI Direct puts it at 7x year on year and 8x quarter on quarter. Sources also differ on the Gurugram booking value: ICICI Direct gives Rs 7,891 crore for the project, while the Motilal Oswal note puts Gurugram bookings at about Rs 79 billion.
- Rental revenue rose 17% year on year to Rs 3.4 billion in Q2 FY27.
- Commerz occupancy was reported at 96% to 100%.
- Collections are reported as about Rs 19 billion, up 40% year on year, by Motilal Oswal. ICICI Direct reports Rs 2,277 crore, up 68%.
- Pre-sales in Q2 FY27 were about 70% of the company's Rs 13,000 crore FY27 pre-sales target, reached by the end of the second quarter.
On reported results, the company's consolidated figures are revenue of Rs 1,736.37 crore, PAT of Rs 759.01 crore and EBITDA of Rs 1,084.59 crore. Some reports give revenue of Rs 1,670.95 crore and PAT of Rs 761.65 crore for the same period. The figures above are the company's own press release numbers.
Investing.com reports that the company missed analyst estimates on revenue and earnings per share by about 6% on both. It gives the results date as 19 October 2026, whereas the company release gives 16 October 2026.
The Three Sixty North launch
Motilal Oswal attributes most of the sales jump to the Three Sixty North launch in Gurugram. The project is on about 14.8 acres in Sector 58, Golf Course Extension Road. It was announced as an ultra-luxury residential project on 29 June 2026.
Three Sixty North is the company's first NCR project. Oberoi Realty bought about 15 acres in Gurugram for Rs 597 crore in November 2023.
- Scale: seven residential towers, landscape gardens, a clubhouse and amenities.
- Phase 1 configurations: 3 BHK plus Studio, 4 BHK plus Studio, Duplex and Penthouse.
- Phase 1 saleable sizes: about 5,500 sq ft to over 13,000 sq ft.
- Pricing: starting around Rs 18 crore plus applicable taxes.
- A third-party report gives an estimated investment of Rs 6,000 crore across two phases, 432 residences in Phase 1 and a base selling price of Rs 35,000 per sq ft.
- RERA: each tower is registered separately with Haryana RERA. The company's project page lists registration numbers for towers C, E, F and G, each dated 26 June 2026.
Chairman and Managing Director Vikas Oberoi said demand is being driven by quality, brand credibility and execution.
What it means for buyers and investors
For buyers, the project's pricing and layout are set out in the company's launch material and its RERA registrations. Buyers should check the tower-wise registration for the specific unit they are considering, along with the configuration, size and taxes in the sale documents.
For investors, the note shows that the brokerage expects the company's residential business to keep benefiting from NCR demand. Motilal Oswal says investors are watching how the company manages growth beyond Mumbai. The brokerage also flags "bunched" pipeline risk over the next three quarters, meaning sales could cluster in some quarters rather than spread evenly.
The company's annuity income is also part of the picture. Its Commerz towers are almost fully leased, and Q2 FY27 cash collections from Three Sixty North are cited at about Rs 830 to Rs 835 crore, with a cash margin of roughly 80%.
Bandra East lease
On 4 February 2026, Oberoi Realty disclosed that it was the highest bidder for an 11-acre railway parcel in Bandra East, at Rs 5,400 crore. The lease is for 99 years. The reserve price was Rs 5,365 crore, with an upfront payment of Rs 495 crore and a long-term revenue share extending to 2038. The parcel has approximately 19.50 lakh sq ft of FSI and adjoins the Western Express Highway.
As of the February 2026 reports, the formal award and the RLDA's communication were still awaited.
What comes next
- Company launch pipeline: ICICI Direct lists a new tower launch at Elysian, Goregaon, along with projects lined up for FY27 at Oceanic (Carter Road), Fairview (Malabar Hill), Jardin Tower A, Ralliwolf (Mulund), Adarsh Nagar (Worli), Peddar Road, Alibaug and a free-sale area in Borivali.
- Board decisions: the board has approved the incorporation of a real estate subsidiary and a second interim dividend of Rs 2 per share for FY27.
- Next quarter: the Q3 FY27 pre-sales and collections will show whether Three Sixty North sustains the pace seen in Q2 FY27.
Frequently asked questions
What rating and target did Motilal Oswal give Oberoi Realty?
Motilal Oswal began coverage with a Buy rating and a target price of Rs 2,145, in a note dated 21 October 2026. The target is on a sum-of-the-parts basis, with the residential valuation rolled forward to FY28.
What drove the Q2 FY27 pre-sales jump?
Motilal Oswal ties most of the increase to the Three Sixty North launch in Gurugram. The project accounted for about 86% of quarterly pre-sales, or about Rs 79 billion, according to the note.
How large is Three Sixty North?
The project covers about 14.8 acres in Sector 58, Golf Course Extension Road, Gurugram. It has seven residential towers, landscape gardens, a clubhouse and amenities. Phase 1 saleable sizes range from about 5,500 sq ft to over 13,000 sq ft.
How much do homes at Three Sixty North cost?
Pricing starts around Rs 18 crore plus applicable taxes, according to launch reports. A third-party report gives a base selling price of Rs 35,000 per sq ft.
Do the reported Q2 FY27 figures agree across sources?
No. Revenue, profit, the results date and the year-on-year growth multiple differ between reports. The company's press release gives revenue of Rs 1,736.37 crore and PAT of Rs 759.01 crore, and this article uses those figures.
What is the status of the Bandra East lease?
Oberoi Realty was the highest bidder at Rs 5,400 crore for an 11-acre railway parcel in Bandra East, disclosed on 4 February 2026. As of the February 2026 reports, the formal award and RLDA communication were still awaited.