Oberoi Realty profit rose 62.36%, but sequential margin fell
Revenue growth outpaced expenses year on year, but costs grew faster sequentially, narrowing operating margin by 2.55 percentage points.
Filed 08 May 2026, 18:17 IST · after market close · Oberoi Realty Ltd (OBEROIRLTY)
Key takeaways
- Consolidated net profit rose 62.36% year on year as revenue grew 52.14% and interest expense fell 66.18%.
- Operating margin fell 2.55 percentage points sequentially because expenses grew 24.27%, faster than revenue at 17.23%.
- The stock fell 4.01% on the first trading day after results, broadly in line with its 5.11% median absolute move after the past eight results.
Price around the results
Revenue growth and lower interest lifted consolidated profit
Oberoi Realty’s consolidated net profit rose 62.36% year on year, supported by 52.14% revenue growth and a 66.18% fall in interest expense. Profit before tax grew faster at 66.86%, while other income declined 0.76% and contributed 6.53% of pre-tax profit. The result therefore came mainly from operating growth and lower interest, rather than from other income.
Sequential margin pressure followed faster expense growth
Operating margin narrowed 2.55 percentage points sequentially because expenses grew 24.27%, ahead of the 17.23% increase in revenue. This reversed the year-on-year picture: expenses rose 48.40% against 52.14% revenue growth, expanding margin by 1.14 percentage points. The tax rate also rose 3.60 percentage points sequentially and 2.03 percentage points year on year, limiting the conversion of pre-tax growth into net profit.
Margin remains well above the reported consumer discretionary peer median
The 54.88% operating margin was 40.07 percentage points above the 14.81% median for 93 Consumer Discretionary peers that had reported the quarter. In the quarterly trend, margin rose from 52.69% in Q1FY26 to 57.35% in Q2FY26 and 57.43% in Q3FY26 before the Q4FY26 decline. The sequential fall is therefore a break from the prior two-quarter expansion, while the year-on-year margin remains higher by 1.14 percentage points.
The initial market reaction was ordinary, then weakened by day five
The stock fell 4.01% on the first trading day after the results and was down 6.01% after five sessions, underperforming the market by 2.52% and 3.83% respectively. Across the past eight result reactions, moves were evenly split between four rises and four falls, with a median absolute move of 5.11%. The first-day decline was within that usual range, while the five-session fall was larger.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,750 cr | ₹1,493 cr | +17.23% | +52.14% |
| Other income | ₹63 cr | ₹55 cr | +13.46% | -0.76% |
| Expenses | ₹790 cr | ₹635 cr | +24.27% | +48.40% |
| Operating profit | ₹960 cr | ₹857 cr | +12.02% | +55.36% |
| Operating margin (%) | 54.88% | 57.43% | — | — |
| Interest | ₹27 cr | ₹67 cr | -59.80% | -66.18% |
| Depreciation | ₹33 cr | ₹33 cr | +1.22% | +36.74% |
| Profit before tax | ₹963 cr | ₹813 cr | +18.51% | +66.86% |
| Tax | ₹260 cr | ₹190 cr | +36.71% | +80.41% |
| Net profit | ₹703 cr | ₹623 cr | +12.95% | +62.36% |
| EPS (₹) | ₹19.34 | ₹17.12 | +12.97% | +62.38% |
Operating margin of 54.88% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.01% | -2.52% |
| Next session | -4.48% | — |
| 5 sessions | -6.01% | -3.83% |
| 15 sessions | -1.66% | — |
| 30 sessions | +0.08% | — |
Volume on the results session was 1.24× its 20-day average.
What to watch
- Whether operating margin holds above 54.88% after the 2.55 percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after rising 24.27% sequentially versus 17.23% revenue growth.
- Whether the tax rate moves below 26.97% after rising 3.60 percentage points sequentially.