Oberoi Realty flags Gurugram litigation and H2 launch delays on Q2 FY27 call

What happened

Oberoi Realty Limited reported its results for the quarter and half year ended 30 September 2026 on 16 October 2026, and held its earnings call on 19 October 2026. On the call, Chairman and Managing Director Vikas Oberoi said the matter concerning the Gurugram project is sub judice and he would not comment on it in detail. He confirmed that there is no restriction on construction at the site.

The Three Sixty North project sits on about 14.8 acres on Golf Course Extension Road in Sector 58, Gurugram. The company said the first phase has been sold out.

Court order and licence ruling

In July 2026, the Punjab and Haryana High Court restrained further allotment of flats to homebuyers in the project until the Director, Town and Country Planning (DTCP), Haryana, decided a complaint seeking cancellation of the project licence. The bench of Justices Jasgurpreet Singh Puri and Sanjiv Berry directed the DTCP to decide the complaint moved by Advance India Projects Limited within two weeks.

The complaint alleges violations of foreign direct investment norms and of the Haryana Development and Regulation of Urban Areas Act, 1975.

On 13 August 2026, the DTCP issued an order confirming the validity of Licence No. 69 of 2025 and the approval for the change of developer in favour of Oberoi Realty dated 17 June 2025. The DTCP described the complainant's claims as without any merit. The company told the exchanges that the order was conveyed to it on 17 August 2026.

Reports from August said the High Court's restriction on new allotments and third-party rights ceased to operate after the DTCP order. On the 19 October call, however, management still described the matter as sub judice. The position as of 22 October 2026 is therefore that the licence ruling is in the company's favour, but the company itself has not described the dispute as fully closed.

Q2 FY27 results

For the quarter ended 30 September 2026, revenue from operations was Rs 1,670.95 crore, down 6.1% from Rs 1,779.04 crore in the same quarter of FY26. Net profit was Rs 761.65 crore, broadly flat with a 0.2% rise year on year.

Market data reports said the results missed consensus estimates for both profit and revenue by about 6%. The stock fell 1.81% on the results day.

Some third-party summaries give different consolidated figures, including revenue of Rs 1,844.84 crore. The figures above follow the company's results announcement.

Sales, collections and the 90-day window

Three Sixty North recorded 614 units sold in Q2, covering 13,16,047 square feet at an average rate of Rs 59,961 per square foot, according to call data. Company-wide quarterly pre-sales were Rs 9,150 crore. The company said it had reached 70% of its annual pre-sales target of Rs 13,000 crore by the end of the second quarter.

Under the booking terms, 20% of net sales value is due within 90 days of booking. On Three Sixty North, the CFO said about 10% to 11% of net sales value had been collected. He explained that the launch took place in the first week of July, so the 90-day window closed in the first week of October. The roughly 10% collected in Q2 was the booking-stage payment, and the balance is expected in the next quarter.

Collections of about Rs 835 crore from the project did not carry revenue recognition in the quarter. The CFO guided to a total construction outflow of about Rs 1,000 crore for the full year and cautioned that this should not be treated as a steady-state level.

The project

Phase 1 comprises 432 residences across six towers. The overall master plan includes seven towers, with the seventh to be launched in phase 2. The company said the total saleable area is about 4.5 million square feet, the total project cost is expected to be around Rs 6,000 crore, and the development has revenue potential of about Rs 16,000 crore across both phases.

The company's official project page lists 3BHK and Studio, 4BHK and Studio, Duplex and Penthouse residences. Some third-party listings describe 4 and 5 BHK units, so the developer's page should be used as the reference for configurations.

The land was acquired under an agreement for sale with Ireo Residences Company and others. The consideration includes event or time-linked monetary consideration of up to Rs 597 crore. The company said this is its first project outside the Mumbai Metropolitan Region and its entry into the National Capital Region.

Phase 2 and the launch pipeline

Management said it is waiting for additional approvals on the second phase and will start once they are in place. The chairman said the company does not want to rush and wants its experience centre ready first, adding that seeing the project in person could support pricing.

Earlier guidance, reported in July 2026, pointed to a possible phase 2 launch in the first quarter of the next financial year. The latest comments place phase 2 in a later window, with FY28 described as the more meaningful period once approvals are in place.

More broadly, management said some H2 FY27 launches may slip by a quarter because of pending approvals, reflecting a preference to wait for the right timing and project readiness. Aram Nagar is still awaiting approvals and is not expected to launch in the current fiscal year. Approvals under the RLDA process are taking longer than expected, delaying construction start to next year. Sales velocity in the 360 West luxury project has slowed after sharp price increases.

What this means for buyers and investors

For buyers already in the first phase, the company has said construction is not restricted and that the DTCP order confirmed the licence and the change of developer approval. For prospective buyers, the High Court restraint on fresh allotments is reported to have ceased to operate after the DTCP order, but the company still treats the wider litigation as sub judice, so this is not a final resolution.

For investors, the key points are the slower Q2 revenue, the collection timing against the 90-day terms, the delayed launch pipeline and the unresolved phase 2 approvals. Analysts pressed management on the legal risk, and management said the company is prepared to deal with the legal issues. The company has also said it is open to land purchases and joint development deals in Delhi, Noida and Gurgaon.

What comes next

• Phase 2 launch depends on pending approvals and the readiness of the experience centre. The company has not fixed a date.
• The balance of 360 North collections is expected to flow through in the next quarter.
• H2 FY27 launches may slip by a quarter, according to management.
• The status of the litigation will need to be followed in court filings and any further DTCP or High Court action.