Real estate shares continue to fall for 5th day, decline up to 6%; weak Q1 results of Lodha, TCS layoffs weigh

Real Estate stocks decline

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The shares of real estate companies recorded significant losses on July 28, as weak earnings by some of the players dampened investors' sentiment. Layoffs at TCS further fuelled the downturn in the sector.

The sharp fall in the share prices pushed the Nifty Realty index down more than 4 percent, to emerge as the top sector loser on the market today. The realty index closed at 911.90, extending losses for the fifth consecutive session.

Macrotech Developers (Lodha) shares were the top loser on the index, dropping more than 6 percent to close at Rs 1,198.70 apiece. The company on July 26 (Saturday) reported a net profit of Rs 674.7 crore for the first quarter of the financial year 2026. This marks a 42 percent on-year rise from the Rs 475.3 crore net profit reported in the corresponding quarter of the previous financial year. On a sequential basis, net profit however declined 27 percent from Rs 921.7 crore reported in the January-March quarter.

The firm’s revenue from operations meanwhile gained nearly 23 percent on-year to Rs 3,419.7 crore in Q1 FY26, but fell more than 17 percent sequentially from Rs 4,224.3 crore in Q4 FY25. Earlier during the day, Macrotech Developers shares dropped nearly 7 percent to hit an intraday low of Rs 1,190.60 apiece. The stock has recovered some losses now.

TCS is letting go 2 percent of its staff, or roughly 12,000 employees in a bid to become more agile and future-ready, Moneycontrol exclusively reported. The IT giant's move comes amid rapid disruptions in technology. However, the firm's CEO K Krithivasan told Moneycontrol that the move was not a fallout of the adoption of artificial intelligence, but to address skills for the future. A downturn in the IT sector will likely have a ripple down effect on the real estate sector.

Heavyweights DLF and Godrej Properties dropped more than 4 percent and 5 percent respectively.

Brigade Enterprises and Oberoi Realty shares dropped more than 4 percent each.

Oberoi Realty on July 21 reported a net profit of Rs 421 crore for the first quarter of the financial year 2026. This marks a nearly 28 percent decline from the Rs 584 crore net profit reported in the corresponding quarter of the previous financial year.

Its revenue from operations declined around 30 percent on-year to Rs 987.55 crore, while net profit margin reduced to 39.22 percent during the quarter under review. EBITDA meanwhile stood at Rs 607 crore.

Along with the Q1 results, the company also announced an interim dividend of Rs 2 per equity share for its eligible shareholders. The record date to determine the eligibility of the shareholders set to receive the payment has been set on July 25 (today), and if approved, the dividend will be paid on or before August 7.

Prestige Estates and Raymond shares were down around 3 percent each, while Anant Raj, Phoenix Mills and Sobha shares were down over 2 percent each.

Sobha had released its results on July 25. The firm's net profit more than doubled on an year-on-year basis to Rs 13.6 crore in Q1 FY26. However, the net profit dropped sharply from the Rs 40.86 crore reported in the previous quarter (Q4 FY25).

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.