Oberoi Realty

Oberoi Realty received the full Occupation Certificate for its Eternia project during Q3 FY26. The company also entered into a development agreement for the redevelopment of land in Nepean Sea Road, signaling future project pipeline additions. Three Sixty West continues to attract strong inquiries, indicating sustained demand for premium properties. These updates highlight ongoing project execution and strategic land bank expansion.

Several project launches, including new towers in Goregaon and Borivali, and the Gurugram project in NCR, were originally planned for Q3 FY26 but have slipped into Q4 FY26 or Q1 FY27. Management attributed these delays to a deliberate focus on perfecting product design rather than regulatory issues, acknowledging it as a 'missed quarter and a missed opportunity'. Despite the delays, these projects, particularly Goregaon and Borivali, are expected to generate over Rs. 3,000 crores in revenue each from 6-8 lakh square feet towers.

Management reported strong market demand, particularly in Goregaon and Borivali, where prices have been increased. Some apartments in Borivali are now selling beyond Rs. 50,000 per square foot on carpet, with some Goregaon units reaching Rs. 60,000 per square foot, representing a 30-35% premium over market rates. This indicates robust pricing power and strong customer acceptance for Oberoi Realty's products, with no resistance observed despite price hikes.

The company's commercial portfolio demonstrated strong performance, with Commerz II achieving 100% occupancy and Commerz III reaching 90%. Retail assets also performed well, with Sky City Mall scaling up significantly and experiencing footfalls double that of Oberoi Mall within its first 6-9 months of operation. Oberoi Mall maintained a high occupancy of 99%, underscoring the stability and attractiveness of the company's annuity income streams.

Oberoi Realty is actively pursuing attractive land opportunities and is optimistic about the year ahead, supported by a strong development pipeline. Management disclosed that three large deals in Mumbai are currently being worked on, with potential announcements in Q4 FY26 or Q1 FY27. The company was also a top bidder for an 11-acre land parcel in Bandra, indicating aggressive expansion of its land bank.

Approximately Rs. 300 crores were deployed in Q3 FY26 for payments related to FSI and acquisition rights, impacting operating cash flow. Additionally, a one-off^📎 employee expense of Rs. 23 crores was booked, which was clarified as a true-up for gratuity covering the entire period from employees' joining dates, rather than a recurring operational cost.