Oberoi Realty Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Oberoi Realty Limited (NSE:OBEROIRLTY) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. Statutory earnings performance was extremely strong, with revenue of ₹18b beating expectations by 27% and earnings per share (EPS) of ₹20.91, an impressive 34%ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Oberoi Realty after the latest results.

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Taking into account the latest results, the most recent consensus for Oberoi Realty from 20 analysts is for revenues of ₹63.2b in 2026. If met, it would imply a solid 19% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 18% to ₹72.20. In the lead-up to this report, the analysts had been modelling revenues of ₹66.3b and earnings per share (EPS) of ₹78.77 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

See our latest analysis for Oberoi Realty

The analysts made no major changes to their price target of ₹1,892, suggesting the downgrades are not expected to have a long-term impact on Oberoi Realty's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Oberoi Realty at ₹2,695 per share, while the most bearish prices it at ₹1,175. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Oberoi Realty's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 21% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Oberoi Realty. They also downgraded Oberoi Realty's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Oberoi Realty going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Oberoi Realty that you should be aware of.

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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.