Oberoi Realty Limited — Q3 FY26 earnings call

Call held 20 Jan 2026

Management summary

Oberoi Realty reported a quarter focused on project progress and strategic land development, with Eternia receiving its OC and a new development agreement for Nepean Sea Road. While commercial and retail assets showed strong occupancy and footfalls, project launches for Q3 FY26 were delayed to Q4 FY26/Q1 FY27 due to an emphasis on product perfection, impacting pre-sales for the quarter. Management remains optimistic for FY27, anticipating a significant year driven by these spillover launches and strong market demand.

Highlights

  • Full Occupation Certificate received for Eternia, indicating project completion and readiness for handover.

  • Entered into a development agreement for redevelopment of land in Nepean Sea Road, adding to the future pipeline.

  • Commercial portfolio performing strongly with Commerz II at 100% occupancy and Commerz III at 90%.

  • Retail assets, Sky City Mall and Oberoi Mall, show robust performance with Sky City Mall footfalls double Oberoi Mall's, and Oberoi Mall maintaining 99% occupancy.

  • Management noted increased pricing in Goregaon and Borivali with strong market traction, indicating pricing power.

Concerns

  • Project launches for Q3 FY26, including Goregaon, Borivali, and NCR, slipped into Q4 FY26 or Q1 FY27 due to focus on perfecting product design and approval timelines, leading to a 'missed quarter and a missed opportunity'.

  • An analyst noted that pre-sales numbers for Q3 FY26 were the lowest in 9 quarters, which management attributed to the launch delays.

What they filed

Q1 FY27: revenue up 33.9%, net profit up 64.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,010 1,277 912 775 1,545 +53%1,180 −8%1,415 +55%1,038 +34%
EBITDA649 749 452 407 834 +29%654 −13%754 +67%588 +44%
Net profit464 537 309 309 618 +33%472 −12%570 +84%508 +64%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Pipeline

other

Upcoming launches include Goregaon (one more tower, additional higher floors), Borivali (one tower), Thane (Forestville, Pokhran Road), Peddar Road, and NCR (Gurugram). Goregaon and Borivali towers are 6-8 lakh sq ft with revenue potential of over Rs. 3,000 crores each.

Cancellations & deferrals

  • deferred: Project launches expected in Q3 FY26, including Goregaon, Borivali, and NCR, slipped into Q4 FY26 or Q1 FY27.
Management acknowledged that Q3 FY26 was a 'missed quarter and a missed opportunity' for launches due to prioritizing product perfection, which impacted pre-sales.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex ₹300 Cr
    • Payments for FSI and related acquisition rights ₹300 Cr
    Yes, in your question about operating cash flows. So basically, we had about close to Rs. 300 crores going into payments for FSI and what we can say, related acquisition rights.
  • M&A Land in Nepean Sea Road Joint venture · Signed · Consideration ₹[object Object] (undisclosed)

    Redevelopment of land, adding to development pipeline.

    We have also entered into a development agreement for redevelopment of land in Nepean Sea Road.

Guidance & targets

Launches

  • Goregaon and Borivali project launches Launches · Q4 FY26 / Q1 FY27 · High confidence Q4 FY26 or Q1 FY27

    Previously Q3 FY26 → Q4 FY26 or Q1 FY27

    We are desperately trying to get -- see, Goregaon and Borivali are very much in our control. We will do Borivali and Goregaon both. And we are desperately trying to get NCR within this quarter. In a worst-case scenario, it will be probably first quarter next year.

    — Vikas Oberoi

  • NCR (Gurugram) project launch Launches · Q4 FY26 / Q1 FY27 · High confidence Q4 FY26 or Q1 FY27

    Previously Q3 FY26 → Q4 FY26 or Q1 FY27

    — Vikas Oberoi

  • Worli (Adarsh Nagar) project RERA approval/launch Launches · Q1 FY27 · High confidence Q1 FY27
    Okay. So expecting IOD any given day and then the regular time that it takes for RERA approval, this and that. Again, this also -- if everything goes right, this gets pushed into the first quarter next year next financial year.

    — Vikas Oberoi

Occupancy

  • Sky City Mall 100% occupancy Occupancy · within 6 months · Medium confidence within two quarters

    Previously 90% by end of this year (previous target) → within two quarters

    I think max another two quarters, very large deals have been -- we've done LOIs. We're just waiting for the agreement to be done. Once agreements are done, then we will cross that threshold also. And hopefully, February, Apple also opens its store there. So even that kind of will -- again, I must say the footfalls in Sky City are literally double of Oberoi Mall even within the first 6 to 9 months of its operation. So I mean, we are pleasantly surprised. It's doing exceptionally well.

    — Vikas Oberoi

Project Development

  • Nepean Sea Road project visibility Project Development · after DA · Medium confidence at least 9 months
    The new one? Again, I mean, this is just a DA. It should take at least 9 months before we can actually see anything. I mean, given my past experience, I know that once the DA is signed, it takes a lot of time to make sure you hit ground.

    — Vikas Oberoi

Business Development

  • Announcement of 3 large deals Business Development · Q4 FY26 / Q1 FY27 · Medium confidence this quarter or Q1 FY27
    So let me tell you 3 large deals -- large deals we are working on. And hopefully, either we will announce this quarter or the first quarter next financial year.

    — Vikas Oberoi

Outlook

  • FY27 performance Outlook · FY27 · High confidence very promising year
    Absolutely. it looks like a very promising year for ORL because now all the hard work that was required to be done has been done. A few of these should have actually been in FY26, but they're getting spilled into FY27. But like whatever is lost in FY26 will get covered in FY27, and it will look like a much bigger year for us.

    — Vikas Oberoi

What to watch in Q4 FY26

Launch of Goregaon and Borivali projects

Q4 FY26 / Q1 FY27
Current Delayed from Q3 FY26
Target Successful launch in Q4 FY26 or Q1 FY27

Why it matters

These are significant projects with high revenue potential (Rs. 3,000 crores each) and their launch is crucial for future pre-sales and revenue recognition.

We are desperately trying to get -- see, Goregaon and Borivali are very much in our control. We will do Borivali and Goregaon both.

Risks & concerns

  • Project launch delays impacting pre-sales

    medium

    Launches slipped from Q3 FY26 to Q4 FY26/Q1 FY27 due to focus on product perfection, leading to a 'missed quarter' for pre-sales.

    Management acknowledged

  • Lower pre-sales in Q3 FY26 compared to previous quarters

    medium

    Analyst noted Q3 FY26 pre-sales were lowest in 9 quarters, which management attributed to the delayed launches rather than weak demand.

    Analyst acknowledged

Q&A highlights

8 direct
Project launch plan and phasing for Q4 FY26 and FY27 Direct
We are desperately trying to get -- see, Goregaon and Borivali are very much in our control. We will do Borivali and Goregaon both. And we are desperately trying to get NCR within this quarter. In a worst-case scenario, it will be probably first quarter next year.

Clarifies the specific projects planned for launch and the revised timelines, indicating a spillover from Q3 FY26.

Asked by Puneet Gulati

Market demand and pricing environment Direct
So again, we have increased pricing when it comes to Goregaon and Borivali both. We have kept pricing in Thane stable for now, but these two markets have seen an upward price increase. And I mean, there is no shortage of traction.

Highlights the company's ability to increase prices in key markets (Goregaon, Borivali) without impacting demand, showcasing strong market conditions and product acceptance.

Asked by Puneet Gulati

Timeline for 100% occupancy at Sky City Mall Direct
I think max another two quarters, very large deals have been -- we've done LOIs. We're just waiting for the agreement to be done. Once agreements are done, then we will cross that threshold also. And hopefully, February, Apple also opens its store there.

Provides a specific timeline for achieving full occupancy and mentions a significant tenant (Apple) opening soon, which could boost footfalls and leasing.

Asked by Puneet Gulati

Reasons for project launch slippages and regulatory issues Direct
Not at all. In fact it's more to do with the way we want the design to be. We have really worked multiples times even on NCR... It's just that we kept bettering our product which we do all the time... But like I said we kept perfecting the product which will of course pay us and help us in the long run and all of that, but it's a missed quarter and a missed opportunity.

Management clarifies that launch delays were self-imposed due to a focus on product perfection, rather than regulatory hurdles, acknowledging it as a 'missed opportunity' for the quarter.

Asked by Kunal Lakhan

Apparent decline in prices for some projects (Three Sixty, Elysian, Jardin) Direct
So prices are a factor of rate into the floor. So if the apartment is on a lower floor, then you will get lower realization, if the apartments on the higher floor then you get higher realization. In fact, if at all, we've only increased prices. And like I said in the earlier statement, we've neither reduced nor increased prices in Thane. So that's how it is.

Management clarifies that perceived price declines are due to floor-based realization differences, not a genuine market downturn, and reiterates overall price increases.

Asked by Gaurav Khandelwal

Impact of recent municipal changes on FSI and approvals Direct
Frankly, there is no change. I don't know what change you are referring to. There is absolutely no change as far as corporation goes, barring these elections that have taken place, but they have zero bearing on any of these issues. So it's the state government and the urban development department that decides the policy of approvals. And there is really no change after the DCR came into play.

Reassures that municipal changes or elections have not impacted regulatory approvals or FSI norms, maintaining a 'business as usual' environment.

Asked by Gaurav Khandelwal

Details on the one-off employee expenses of Rs. 23 crores Direct
So basically -- yeah, Gaurav, Saumil here. So basically, when we calculate this, this is the reason it comes as an exceptional item is it's basically a true-up for the period till date. So essentially, the calculation takes into account the life of the employee, so from the joining date to today. So that's about it. This is a onetime cost which is taken.

Clarifies that the Rs. 23 crore expense is a one-time true-up for gratuity, not indicative of ongoing cost increases or operational issues.

Asked by Gaurav Khandelwal

Business development guidance and update on large land deals Direct
So let me tell you 3 large deals -- large deals we are working on. And hopefully, either we will announce this quarter or the first quarter next financial year. You will see like the bump up in terms of BD and railway land, I mean, I can only say we bid. Let's see the outcome. We are very excited if we get it, it will be great. But too early to say anything until and unless we get that in our hand.

Indicates significant land acquisition activity with three large deals in Mumbai nearing completion, which could substantially boost future launch pipeline.

Asked by Karan Khanna

2 min read 6 chapters

Detailed narrative

Q3 FY26 Business Update & Project Status

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.

Launch Pipeline & Delays

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.

Market Demand & Pricing Trends

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.

Commercial & Retail Portfolio Performance

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.

Business Development & Land Bank

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.

Capital Allocation & One-off Expenses

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.

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