Earnings Miss: Oberoi Realty Limited Missed EPS By 25% And Analysts Are Revising Their Forecasts

Oberoi Realty Limited (NSE:OBEROIRLTY) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Unfortunately, Oberoi Realty delivered a serious earnings miss. Revenues of ₹11b were 15% below expectations, and statutory earnings per share of ₹9.91 missed estimates by 25%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Oberoi Realty

Taking into account the latest results, the current consensus from Oberoi Realty's 21 analysts is for revenues of ₹60.3b in 2025. This would reflect a substantial 46% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 39% to ₹61.86. In the lead-up to this report, the analysts had been modelling revenues of ₹62.6b and earnings per share (EPS) of ₹64.86 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of ₹1,288, suggesting the downgrades are not expected to have a long-term impact on Oberoi Realty's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Oberoi Realty at ₹1,796 per share, while the most bearish prices it at ₹750. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Oberoi Realty's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 17% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Oberoi Realty is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Oberoi Realty's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,288, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Oberoi Realty going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Oberoi Realty you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.