Why Did Oberoi Realty’s Q1 Profit Plummet by 28%?
Click to start listening
Synopsis
Oberoi Realty’s recent financial report highlights a concerning 28% drop in profits amidst a challenging market. Yet, the company reports a surge in booking activity, suggesting resilience in demand. What does this mean for the future of Oberoi Realty? Read on for an in-depth analysis.
Key Takeaways
- 28% decrease in consolidated net profit for Q1 FY26.
- Revenue dropped nearly 30% to Rs 988 crore.
- EBITDA fell 36.2% to Rs 520 crore.
- Booking units increased by 30.2%.
- Interim dividend of Rs 2 per share declared.
Mumbai, July 21 (NationPress) On Monday, Oberoi Realty disclosed a 28% decline in its consolidated net profit, amounting to Rs 421 crore for the quarter ending in June (Q1 FY26). This marks a decrease from Rs 585 crore during the same timeframe last fiscal (Q1 FY25).
The profit drop was primarily attributed to a significant 30% fall in revenue, which decreased to Rs 988 crore from Rs 1,405 crore in the corresponding quarter of the previous year, as stated in its stock exchange filing.
Additionally, the operating performance saw a downturn. EBITDA experienced a 36.2% drop, falling to Rs 520 crore from Rs 815 crore, with margins contracting to 52.7%, down from 58% in the same quarter last year.
Despite the year-on-year (YoY) financial setbacks, Oberoi Realty noticed a robust increase in business activity.
The company reported a 30.2% rise in units booked, climbing to 181 units from 139 a year prior.
The carpet area booked surged by 67.3% to 3.53 lakh square feet, while the gross booking value soared by 53.6% to Rs 1,639 crore from Rs 1,067 crore.
Furthermore, Oberoi Realty declared an interim dividend of Rs 2 per share, establishing July 25 as the record date for eligible shareholders. The dividend is set to be disbursed on or before August 7.
On the Bombay Stock Exchange (BSE), Oberoi Realty’s shares closed unchanged at Rs 1,835.5 on Monday, right before the results were disclosed, while the benchmark Sensex saw a 0.54% increase for the day.
The company informed the BSE, stating, “The Board of Directors convened on July 21 and announced an interim dividend for FY25-26 at the rate of Rs 2 per equity share, which is 20% of the face value of equity shares of Rs 10 each.”
Point of View
It's crucial to approach Oberoi Realty's recent financial performance with a balanced perspective. While the company's significant profit decline raises concerns, the uptick in booking activity indicates potential recovery signs in the real estate market. It’s essential for stakeholders to remain informed and adaptive in this fluctuating environment.
NationPress
21/07/2025
Frequently Asked Questions
What caused the profit decline for Oberoi Realty?
The profit decline was primarily due to a significant drop in revenue, which fell nearly 30% compared to the same quarter last year.
How did the company's booking activity perform?
Oberoi Realty experienced a 30.2% increase in units booked, with significant growth in carpet area and gross booking value.
What is the interim dividend declared by Oberoi Realty?
The company declared an interim dividend of Rs 2 per share, with the record date set for July 25.
How have Oberoi Realty's shares performed recently?
Oberoi Realty shares closed flat at Rs 1,835.5 on the BSE just before the earnings announcement.
What does the future hold for Oberoi Realty?
Despite the current financial setbacks, the increase in booking activity could suggest a potential recovery in the real estate sector.
