The real estate sector posted a robust first quarter of FY26, driven by strong pre-sales performance and solid business development (BD) trends. All developers — except Oberoi Realty, which does not provide guidance — maintained their FY26E pre-sales guidance, according to analysts.
Nomura believes the overall market remains resilient despite the seasonal slowdown over the past one to one-and-a-half months in the second quarter of FY26. Here is what the brokerage thinks of the top realty companies — Lodha Developers, Godrej Properties, DLF, Oberoi Realty, and Prestige Estates — and their Q1 performance.
Nomura says market shows resilience amid macro uncertainty
Despite an uncertain environment around tariffs and job losses in the IT sector, developers (all, except Oberoi Realty, which does not provide guidance) maintained their FY26E pre-sales guidance, which Nomura think highlights the underlying resilience of the real estate market. According to Lodha Developers, these branded developers continue to be supply-constrained and not demand-constrained.
Lodha nears yearly BD target; Prestige hits 77 per cent sales goal
Lodha Developers, Godrej Properties and Prestige Estates posted strong business development numbers in the quarter. Lodha achieved over 90 per cent of its full-year BD guidance in just three months, while Prestige’s acquisitions are already 77 per cent of its annual sales target. Oberoi Realty made a notable move by acquiring Juhu Hotel for Rs 9 billion, including a prime land parcel.
Commercial rentals drive growth for developers
Commercial rental income remained a bright spot. DLF’s joint venture DCCDL saw a 15 per cent year-on-year jump in annuity income, while Oberoi Realty’s rentals surged 62 per cent, driven by its Commerz III office space and Sky City Mall. Prestige is aiming for Rs 33 billion in annual rentals by FY28, while Lodha targets Rs 15 billion by FY31.
Godrej, Prestige, Lodha maintain healthy balance sheets
Developers continue to maintain low debt levels. DLF reported a net cash position, while Oberoi Realty’s net debt-to-equity ratio stood at just 0.01. Godrej Properties, Prestige Estates and Lodha also maintained manageable leverage, with construction expenses largely funded by collections.
Brokerage bullish on Lodha Developers and Oberoi Realty
Nomura said recent corrections in real estate stocks have created opportunities for long-term investors. Lodha Developers remains the brokerage’s top pick, with expectations that its strong pipeline will help meet FY26 targets. Nomura is also favouring Oberoi Realty, estimating a 30 per cent CAGR in pre-sales over the next two years.