REA Group Ltd (REA.AX): REA India sale results in 4% upgrade to FY27e NPAT

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REA Group Ltd (REA.AX): REA India sale results in 4% upgrade to FY27e NPAT

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16 Jul 2026 12:37:56 ET │ 17 pages

REA Group Ltd (REA.AX)

REA India sale results in 4% upgrade to FY27e NPAT

CITI'S TAKE

Buy We upgrade our FY27e/FY28e core NPAT forecasts by 4% to reflect the

divestment of the loss-making REA India business. The removal of EBITDA Price (16 Jul 26 16:00) A$158.71

loss does remove the risk of negative consensus revisions to FY27e, with Target price A$183.30↑

our NPAT forecast now in-line with VA consensus, but we do see from A$182.75

downside risk to consensus Australia forecasts, with our Australia revenue Expected share price return 15.5%

-4% below in FY27e. Maintain Buy, with a new target price of $183.30, Expected dividend yield 1.9%

with the stock trading on 28x FY27e PE which is ~30% discount to LT

Expected total return 17.4% average.

Market Cap A$20,769M

US$14,565MLower FY26e India losses likely reflects cost control — REA India's EBITDA loss of

-$37 million is lower than REA's guidance of -$40 million to -$45 million, with the

outperformance likely due to lower opex, which is consistent with our hiring activity

analysis which highlighted that REA India's headcount is down -6% yoy. Siraj AhmedAC

+61-3-8643-9781

We forecast 5% opex growth for Australia in FY27e as hiring activity slows — siraj.ahmed@citi.com

REA’s headcount (incl. Cyber City in India but excl. REA India) is up +4% yoy and has

been slowing, with the data suggesting that REA AU has removed some roles Howard Suen

recently (headcount down by ~20). Further, REA's job listings were down -27% yoy in howard.suen@citi.com

2H26, decelerating from +7% yoy in 1H26. We forecast 5% yoy opex growth for

Australian business in FY27e , slowing compared to ~9% yoy growth in FY26e.