Oberoi Realty shares fall as net profit drops 45 pc in Q4

IANS April 29, 2025 248 views

Oberoi Realty experienced a significant financial setback in Q4 with a 45% drop in net profit. The company's performance was impacted by steep land acquisition costs and reduced operational revenue. Despite the challenges, Oberoi Realty maintained a strong market presence and declared an interim dividend of Rs 2 per equity share. The company's financial results reflect the current complexities in the Indian real estate market.

"Land acquisition costs jumped 207% in the March quarter" - Oberoi Realty Financial Report
New Delhi, April 29: Mumbai-based real estate firm Oberoi Realty saw its share price decline by Rs 46.80 or 2.82 per cent to Rs 1,610 on the National Stock Exchange (NSE) on Tuesday.

Key Points

1

Oberoi Realty net profit falls to Rs 433.17 crore

2

Land acquisition costs surge to Rs 587 crore

3

Revenue drops 12.5% in Q4

4

EBITDA declines 21.7% year-on-year

The fall came after the company reported a 45 per cent drop in its consolidated net profit for the fourth quarter (Q4) of FY25.

According to its filing with the Bombay Stock Exchange (BSE), Oberoi Realty’s net profit for the January-March quarter stood at Rs 433.17 crore, compared to Rs 788.03 crore in the same period last fiscal.

The sharp fall in profit was mainly due to a steep rise in land acquisition costs and a drop in operational revenue.

Oberoi Realty’s land acquisition costs jumped by 207 per cent, reaching Rs 587 crore in the March quarter of FY25, compared to Rs 191 crore a year ago.

This significant rise in costs affected the company’s bottom line despite a strong market presence.

The company’s revenue from its core operations fell 12.5 per cent to Rs 1,150.14 crore in Q4, down from Rs 1,314.77 crore in the same quarter of the previous fiscal.

At the operating level, Oberoi Realty’s EBITDA (earnings before interest, tax, depreciation, and amortisation) declined by 21.7 per cent year-on-year (YoY) to Rs 617.8 crore in the fourth quarter of FY25, down from Rs 788.9 crore in the same period last fiscal.

The company’s EBITDA margin also slipped to 53.7 per cent during the reporting quarter, compared to 60 per cent in the corresponding quarter of the previous fiscal.

Alongside its quarterly results, the company also declared its fourth interim dividend for the financial year 2024-25.

Oberoi Realty announced a dividend of Rs 2 per equity share for all eligible shareholders. The company has fixed May 5, as the record date for this dividend payout.

Reader Comments

R
Rahul K.
Ouch, that's a massive drop in profits! The land acquisition costs skyrocketing by 207% is really concerning. Hope they have a solid strategy to bounce back next quarter. 🏗️
P
Priya M.
Still declaring a dividend despite the profit drop shows they're trying to maintain investor confidence. Smart move, but I wonder if they're being too optimistic?
A
Amit S.
The real estate market has been tough lately. Maybe they're making long-term investments with all that land acquisition? Could pay off in a few years.
N
Neha P.
I think Oberoi needs to be more transparent about why operational revenue dropped while they were spending so much on land. The numbers don't add up to me. Respectfully, their investor relations could improve.
S
Sanjay D.
Their EBITDA margin slipping from 60% to 53.7% is still better than many competitors! This might be a temporary blip - Oberoi has strong fundamentals.
T
Tanya R.
The dividend announcement is nice, but I'd rather see them reinvest that money to stabilize their finances first. Short-term gains vs long-term stability? 🤔

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Oberoi Realty Mumbai Real Estate Stock Market Q4 Financials Indian Property Sector