Oberoi Realty lifts margin year on year, but profit growth trails pre-tax gains
Operating margin rose 3.74 percentage points year on year, while a higher tax rate limited net-profit growth to 29.02%.
Filed 17 Jul 2026, 15:41 IST · after market close · Oberoi Realty Ltd (OBEROIRLTY)
Key takeaways
- Consolidated operating profit grew +41.09% YoY, ahead of revenue growth of +31.73%, as expenses rose +21.31%.
- Operating margin widened 3.74 percentage points YoY to 56.43%, recovering 1.55 percentage points sequentially after Q4FY26.
- Net profit rose +29.02% YoY but fell -22.72% QoQ, with the tax rate at 23.63% and interest expense up +93.47% sequentially.
Price around the results
YoY profit growth outpaced revenue
Consolidated revenue grew +31.73% YoY, while operating profit increased +41.09% as expenses rose only +21.31%. Net profit growth was slower at +29.02% because the tax rate rose 6.72 percentage points to 23.63%. Interest expense fell -30.05% YoY, partly offsetting the tax drag.
Margin recovered from the Q4FY26 dip
Sequential revenue fell -25.66%, but expenses declined faster at -28.22%, lifting operating margin by 1.55 percentage points to 56.43%. Interest expense nevertheless rose +93.47% QoQ, while the tax rate fell 3.34 percentage points. Margin remains below the 57.35% and 57.43% recorded in Q2FY26 and Q3FY26, after the Q4FY26 decline.
Margin remains far above the reported peer median
Oberoi Realty's 56.43% operating margin was 43.5 percentage points above the 12.93% median for 145 Consumer Discretionary peers that had reported the quarter. Other income contributed 9.12% of pre-tax profit, making it a material but not dominant part of earnings quality.
Initial stock reaction was milder than its usual move
The stock fell -0.64% on the initial reaction day and was down -3.28% after five sessions. That compares with a 4.35% median absolute move after its last eight results, during which it rose three times and fell five times. The observed reaction overlaps with a corporate action.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,301 cr | ₹1,750 cr | -25.66% | +31.73% |
| Other income | ₹65 cr | ₹63 cr | +3.26% | -30.34% |
| Expenses | ₹567 cr | ₹790 cr | -28.22% | +21.31% |
| Operating profit | ₹734 cr | ₹960 cr | -23.55% | +41.09% |
| Operating margin (%) | 56.43% | 54.88% | — | — |
| Interest | ₹52 cr | ₹27 cr | +93.47% | -30.05% |
| Depreciation | ₹35 cr | ₹33 cr | +5.74% | +10.66% |
| Profit before tax | ₹712 cr | ₹963 cr | -26.10% | +40.37% |
| Tax | ₹168 cr | ₹260 cr | -35.25% | +96.16% |
| Net profit | ₹544 cr | ₹703 cr | -22.72% | +29.02% |
| EPS (₹) | ₹14.95 | ₹19.34 | -22.70% | +28.99% |
Operating margin of 56.43% compares with a Consumer Discretionary sector median of 12.93% across 145 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.64% | -0.24% |
| Next session | -0.53% | — |
| 5 sessions | -3.28% | -1.89% |
| 15 sessions | -5.37% | — |
Volume on the results session was 0.40× its 20-day average.
What to watch
- Whether operating margin holds above 56.43% after the Q4FY26 recovery.
- Interest expense after its +93.47% QoQ increase.
- Whether the tax rate remains near 23.63% rather than the 16.91% recorded in Q1FY26.