Prabhudas Lilladher Upgrades Oberoi Realty to Buy with Rs 2,100 Target

What happened

On 21 October 2026, Prabhudas Lilladher moved Oberoi Realty to Buy from Accumulate after a recent fall in the share price. The brokerage kept its target at Rs 2,100 per share.

The rating follows Oberoi Realty's results for the quarter and half year ended 30 September 2026. The company's board approved the unaudited consolidated and standalone results on 16 October 2026. PL's note describes a strong quarter, led by the newly launched 360 North project in Gurugram.

The share price cited in the note summary was about Rs 1,676 as of 20 October 2026, down 1.56% on that day. Measured from that level, the Rs 2,100 target implies about 25% upside.

This is a broker's rating action. It is not a company announcement of a new project, and the price and target come from broker-sourced summaries.

How the Rs 2,100 target is set

PL values the company using a DCF-based net asset value (NAV) sum-of-the-parts method. Its gross NAV is Rs 585,744 million, made up of:

• Residential: Rs 315,817 million
• Commercial lease: Rs 170,593 million
• Retail lease: Rs 76,782 million
• Hospitality: Rs 22,552 million

After adding cash, deducting debt and applying a 30% premium to NAV, PL arrives at a net NAV of Rs 763,027 million, or Rs 2,100 per share.

Earlier in 2026, PL rated the stock Accumulate with a target of Rs 1,820, which it said implied 11% upside. A later Accumulate note carried a target of Rs 1,920.

Q2 FY27 results in brief

Consolidated revenue from operations fell 6.1% year on year to Rs 1,670.95 crore. Sales bookings rose to Rs 9,149.69 crore for the quarter, compared with Rs 1,299.06 crore in the same quarter last year.

Consolidated net profit was Rs 761.65 crore, flat against the year-ago quarter, according to Business Standard. Other reports put the figure at Rs 757 crore and Rs 759.01 crore.

The company said its cash margin rose to about 80% in the quarter, helped by collections from 360 North. Chief Financial Officer Saumil Daru said the Gurugram launch raised both current assets and current liabilities on the balance sheet, because part of the original land consideration was paid in area and that obligation is fair-valued in the launch quarter.

Investing.com reported that the quarter showed robust operations but missed analyst estimates on both revenue and earnings.

Other brokerages after Q2

• Nomura rates Oberoi Realty Buy with a target of Rs 2,090, citing a presales beat.
• HSBC rates the stock Buy with a target of Rs 2,310. It is watching SkyCity occupancy, which is below 90%.
• ICICI Direct retained Buy with an unchanged sum-of-the-parts target of Rs 2,200.
• Motilal Oswal reiterated Buy with a sum-of-the-parts target of Rs 2,145.

The Gurugram project: Three Sixty North

Three Sixty North (360 North) is an ultra-luxury development on 14.8 acres on Golf Course Extension Road in Sector 58, Gurugram. It is Oberoi Realty's first residential project in the National Capital Region (NCR). The company launched Phase 1 on 29 June 2026 and has sold all the apartments it released.

Key Phase 1 figures reported at launch and afterwards:

• Gross bookings of about Rs 8,109 crore, covering about 13.52 lakh sq ft of RERA carpet area.
• PL-cited Q2 sales of Rs 7,891.14 crore from 614 units sold in the late-June launch period. ICICI Direct puts 360 North's Q2 booking value at about Rs 7,891 crore, roughly 86% of Q2 pre-sales.
• Units are offered as 3 and 4 BHK, plus studio, duplex and penthouse configurations. One separate listing describes 4 BHK homes of 5,600 sq ft and 5 BHK homes of 8,500 sq ft, with one home per floor.
• The first phase was launched at a basic selling price of Rs 35,000 per sq ft. ICICI Direct says prices start at Rs 18 crore.
• ICICI Direct estimates total sales from the whole project at Rs 16,000 crore across two phases.
• The project appears on the HRERA website with the status 'Approved and certificate uploaded'.

Sources differ on the unit count for Phase 1. ICICI Direct states six towers with 832 units. Another pre-launch source describes a 7-tower, 640-unit development.

On 23 April 2026, L&T disclosed to the BSE that it had won an EPC contract to build the seven towers. The deal size was not disclosed.

The land was bought under an agreement signed in November 2023 with Ireo Residences Company and others, covering about 14.8 acres at Sector 58. The consideration was up to Rs 597 crore, plus some area in the project for existing homeowners and others.

What it means for buyers and investors

The rating does not change any project terms, prices or possession dates. The practical effect is on the timing and pricing of the next phase, which the company plans to launch in FY28.

For buyers, the main points in the reports are:

• Phase 2 faces a sub judice litigation, which creates uncertainty about the phase, although construction is not restricted.
• Regulatory approvals (RLDA) are taking longer than expected, which pushes the start of construction into next year.
• The H2 FY27 launch pipeline has slipped because approvals are pending.
• One pre-launch source lists expected possession of 360 North in 2031.

On demand, the strongest independent evidence is the sell-out at launch. Vikas Oberoi, Chairman and Managing Director, said the company received interest from nearly four buyers for every apartment launched and called the first Gurugram launch 'truly exceptional'.

Location context: Golf Course Extension Road connects to Golf Course Road at the Sector 55-56 junction and to Sohna Road at its southern end. The nearest operational metro is the Sector 55-56 Rapid Metro station, about 1.8 km from the centre of Sector 58. A proposed 36 km metro corridor from Sector 56 to Pachgaon is not yet built. Golf Course Extension Road is planned to widen to eight lanes, with no timeline confirmed.

Risks named by the broker and peers

• Approval or launch delays for upcoming projects.
• Weaker sales absorption in Adarsh Nagar and Thane.
• Execution of several large launches concentrated over the next two to three quarters.
• Delivering large projects without significant cost overruns.

PL presents the rental cash flow from leased malls and offices as a buffer when new sales move with market cycles. Annuity income is expected to reach Rs 13 to 14 billion by FY28. One earnings-call summary said sales velocity at 360 West had slowed after sharp price increases.

Company context

Oberoi Realty, a Mumbai-based luxury developer, reported revenue of Rs 4,496 crore for FY24. It had completed over 35 projects by FY25 and held a portfolio of about 30 million sq ft of ongoing and upcoming developments. Its net debt-to-equity ratio was -0.02, and total assets rose 19.7% in H1 FY27.

Management kept its FY27 pre-sales target at about Rs 13,000 crore, and 70% had been achieved by the end of Q2. PL expects pre-sales to grow at about 25% a year over FY26 to FY28. Sky City Mall occupancy improved to 83% from 72% in Q4 FY26, while Commerz I, II and III stood at 96% to 100%, and Oberoi Mall at 99%.

What comes next

• Phase 2 of 360 North: management plans to launch in FY28, with timing and pricing set to maximise value. Earlier coverage had suggested the launch could come in the next financial year, possibly in the first quarter. The FY28 timing is the more recent position.
• Other launches: the company plans new projects in NCR, Thane, Mulund and Alibag, and a new tower at Elysian, Goregaon.