Oberoi Realty Limited

Real Estate — Real Estate - Development · NSE

₹1,703.00−₹5.00 (−0.29%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Oberoi Realty Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Oberoi Realty Limited, together with its subsidiaries, engages in real estate development business in India. The company operates through the Real Estate and the Hospitality segment.

IndustryReal Estate - Development

SectorReal Estate

Employees1,536

Annual revenue₹6,009 Cr

How does it make money?

Turns over ₹6,009 Cr a year. Of every ₹100 of sales, about ₹42 reaches shareholders as profit, with ₹59 left at the operating level before interest, tax and depreciation. Each of its 1,536 employees supports ₹3.91 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.91 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.3%

What is the outlook?

25 analysts covering the stock expect revenue to grow about 24.0% and earnings to grow about 41.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.0%

Est. earnings growth+41.2%

Analysts25

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +44% while net margin moved -9% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+44%

Margin effect-9%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 12.9% is steady
• Profit CAGR of 9.6%
✗ Latest-year revenue growth of -6.1% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

71/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

23.5x

3Y Median

28.0x

40 monthly readings · mean 29.2x · range 21.4x–43.6x

Sector Median

33.4x

median of 2 sector peers

🟢Current valuation is approximately 16% below its 3y median of 28.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 29% below the peer median of 33.4x.

vs. its own history

Fair

28.0x median over 40 months · -16%

vs. sector peers

Cheap

33.4x median of 2 peers · -29%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.1x

PEG

2.45

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 57.5% to 59.2% over 3 years.
Debt is being paid down
Total debt is down 28% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 57.5% to 59.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 28% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 29% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹743 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 12.9% CAGR
Latest reported year was -6.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 57%✓ 59.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹743 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹61,921 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

23.5x

Fair

Fairly valued against the generic band

P/B Ratio

3.24x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹72.34

Profitable

Profitable on a per-share basis

ROE

14.7%

Moderate

Moderate capital efficiency

ROCE

16.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

-6.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

0.2%

Modest

Slow profit growth

Dividend Yield

0.47%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹245 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

16.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

8.2%

Good

Assets are working hard

Operating Margin

58.9%

Good

Healthy core-business profitability

Net Margin

42.3%

Good

Strong bottom-line conversion

Current Ratio

3.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1762.4 / 1804.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

22.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,174 Cr	₹4,479 Cr	₹5,286 Cr	₹6,009 Cr	+12.9%
EBITDA	₹2,398 Cr	₹2,506 Cr	₹3,214 Cr	₹3,560 Cr	+14.1%
EBITDA Margin	57.5%	55.9%	60.8%	59.2%	—
PAT (Net Profit)	₹1,905 Cr	₹1,927 Cr	₹2,226 Cr	₹2,507 Cr	+9.6%
EPS	₹52.38	₹52.99	₹61.21	₹68.96	+9.6%
ROE	15.6%	13.9%	14.2%	14.0%	—
ROCE	15.6%	16.4%	16.7%	16.7%	—
Total Debt	₹3,944 Cr	₹2,495 Cr	₹3,300 Cr	₹2,825 Cr	-10.5%
Free Cash Flow	-₹2,985 Cr	₹2,139 Cr	₹1,470 Cr	₹743 Cr	—

🟢 Revenue has grown at 12.9% a year over 3 years.

🟢 EBITDA has grown at 14.1% a year over 3 years.

🟢 EBITDA Margin has risen from 57.5% to 59.2% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 9.6% a year over 3 years.

🟢 EPS has grown at 9.6% a year over 3 years.

🔴 ROE has fallen from 15.6% to 14.0% over 3 years (-1.6 pts).

🟢 ROCE has risen from 15.6% to 16.7% over 3 years (+1.1 pts).

🟢 Total Debt has shrunk at 10.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2,985 Cr to ₹743 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹25,328 Cr

Total Liabilities

₹7,407 Cr

Cash & Equivalents

₹176 Cr

Operating Cash Flow

₹1,380 Cr

Capex

-₹637 Cr

Shareholding (proxy)

Institutional Holding

24.3%

Insider Holding

67.7%

Corporate Actions

Next Earnings

16 Oct 2026

Dividend Rate

₹8

Ex-Dividend Date

23 Jul 2026

Analyst Consensus

Recommendations

18 Buy · 6 Hold · 2 Sell

Target Price (Mean)

₹2,083.08

+22.3% vs CMP

Target Range

₹1,240 – ₹2,490

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%

Recent News

1 positive1 negative4 general

Oberoi Realty Q2 results, dividend 2026: Check amount, record date, yield, history, stock returns

Livemint, 16 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

OBEROIRLTY Outlook for the Week

Equitypandit, 09 Oct

Oberoi Realty profit remains flat at ₹761 crore, revenue declines 6%

Business Standard, 16 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Is Oberoi Realty the Best Stock in Its Sector? A Look at the Numbers

Univest, 12 Oct

Oberoi Realty (NSEI:OBEROIRLTY) Stock Price

Simply Wall Street, 11 Oct

Oberoi Realty board approves incorporation of real estate subsidiary

scanx.trade, 16 Oct

Watch Items

Revenue growth is negative (-6.1%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑