Oberoi Realty Q2 FY27 Results Analysis: Margin Expands 364 bps, PAT Jumps 40% QoQ (OBEROIRLTY)

Oberoi Realty Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,670.95 Cr (-6.08% YoY) and PAT growth of +0.18% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2FY27 revenue declined 6.08% YoY to Rs.1,670.95 Cr as the Three Sixty North fresh-allotment restriction capped NCR bookings, while operating margin expanded 364 bps YoY to a series-high 60.99% and PAT rose 40.14% QoQ to Rs.761.65 Cr. H1 free cash flow of Rs.808.23 Cr (up 22.3% YoY), Debt/Equity of 0.14x, and a 15.95x interest service coverage ratio reflect deleveraging and cash generation. The Alibaug launch guided for Q3 FY27 and a potential Three Sixty North unlock are the H2 catalysts; hospitality margin compressed 319 bps YoY to 33.81%.

Key Investment Insights

Key Positives

• Operating margin expanded 364 bps YoY to 60.99%, the highest in the series (Q1FY27: 56.43%, Q2FY26: 57.35%)
• Real estate segment margin improved 307 bps YoY to 61.44% from 58.37%
• Revenue rebounded 28.45% QoQ to Rs.1,670.95 Cr; PAT up 40.14% QoQ to Rs.761.65 Cr
• H1FY27 CFO of Rs.1,035.03 Cr, up 15.4% YoY; free cash flow of Rs.808.23 Cr, up 22.3% YoY
• Debt/Equity improved to 0.14x from 0.18x YoY; Rs.13,500 Lakhs of Series 2 NCDs redeemed during the quarter
• Standalone PAT grew 19.07% YoY to Rs.735.88 Cr with standalone operating margin of 61.27% vs 53.98%
• Net worth grew 14.04% YoY to Rs.19,089.92 Cr; interest service coverage ratio at 15.95x, highest in the series
• H1FY27 revenue up 7.42% YoY to Rs.2,971.84 Cr and PAT up 10.47% to Rs.1,305.16 Cr

Risk Factors

• Revenue declined 6.08% YoY to Rs.1,670.95 Cr, with the Three Sixty North fresh-allotment restriction limiting new NCR bookings
• Punjab & Haryana High Court interim order (September 16) continued the restriction on fresh allotments at Three Sixty North; the source flags the restriction persisting into H2 as the key risk
• Hospitality segment margin compressed 319 bps YoY to 33.81%, with segment result down 6.59% YoY to Rs.15.42 Cr
• Other expenses rose 51.64% YoY to Rs.77.81 Cr