Ladies and gentlemen, good day and welcome to Oberoi Realty Q3 FY 2026 earnings conference call. We have Mr. Oberoi, the Chairman and Managing Director of the company, and Mr. Saumil Daru, Director of Finance of the company, with us for the call. Please note that this call will be for 30 minutes, and for the duration of this conference call, all participant lines will be in the listen-only mode, and this conference call is being recorded, and the transcript for the same may be put up on the website of the company. After the management discussion, there will be an opportunity for you to ask questions. Should anyone need assistance during the conference call, you may signal the operator by pressing star then zero on your touch-tone phone.
Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or facts and may be forward-looking statements, including those relating to general business statements, plans, strategy of the company, the future financial condition, and growth prospect. The forward-looking statements are based on expectations and projections and may involve a number of risks and uncertainties and other factors that could cause actual results, opportunities, and growth potential to differ materially from those suggested by such statements. I now hand the conference over to Mr. Oberoi, the Chairman and Managing Director of the company. Thank you, and over to you, Mr. Oberoi.
Thank you. Good morning, good afternoon, good evening to all of you as per the time zones from which you have logged in, and welcome to the conference call Q3 FY 2026 Results and Business Update. Thank you all for taking the time to attend this call. Before I begin, I'd like to share with you a few quick business updates. We have received full occupation certificate for Eternia. We have also entered into a development agreement for redevelopment of land in Nepean Sea Road. 360 West continues to attract strong inquiries. Our office portfolio front, Commerz II occupancy is about 100%. Commerz III is also at 90%. Sky City Mall continues to scale up well on strong leasing demands and for retail tenants, while Oberoi Mall continues with an occupancy of 99%.
We continue to actively pursue attractive land opportunities, and we remain optimistic about the year ahead, supported by a strong development pipeline. With this, I will now open the floor for question and answer, and both Saumil and I will be happy to take your questions. Thank you.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Puneet Gulati with HSBC. Please go ahead.
Thank you so much. And my first question is, if you can talk a bit about the launch plan for this quarter and for next year, how should we think about the phasing of launches and potential sizes?
Hi, Puneet. So Puneet, firstly, we have our own Goregaon one more tower launch. We have additional higher floors that need to be launched. We have Borivali, which also has one tower. And when I talk about one tower, these are like six to eight lakh sq ft towers with a revenue potential of more than INR 3,000 crores. We have both towers in Thane, Forestville, as well as the Pokhran Road. We have Pedder Road coming up. We have NCR, we have Gurugram coming up. So a lot of project launches. In fact, we were expecting at least one of the few to be done in the Q3 , which ended up slipping into now the Q4 and Q1 next year. So a lot of launches planned, a lot of business development activities happened in this quarter and happening in the next quarter.
So which one should we pencil in for this quarter?
We are desperately trying to get 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 Q1 next year.
Okay. And how do you view the market demand environment in the current context?
So market.
In terms of volume and pricing both?
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. In fact, this quarter, we've opened higher floors, and we've seen great response even for the higher floors at a higher price. So I don't see that there will be any issue going forward in terms of demand and pricing. Pricing continues to either stay put, and if, let's say, the product exceeds people's expectation, like what they did in Borivali, we ourselves never expected. Today, some of our apartments are going beyond INR 50,000 a sq ft on carpet. So this clearly shows that the product or the project is an outlier, and people have just loved the way it's come about.
Goregaon, I mean, I don't really need to say or sell anything about that. That's anyway a super established location. Again, there we are doing ready apartments are selling upward of INR 50,000. Some of them are selling at INR 60,000 on carpet, like probably 30-35% premium over market. And there is no resistance when we increase price. And so this is how the market is.
Okay, and lastly, when should we expect 100% occupancy for the Sky City Mall?
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. And once agreements are done, then we will cross that threshold also. And hopefully, February, April 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 six to nine months of its operation. So I mean, we are pleasantly surprised it's doing exceptionally well.
Okay. That's very helpful. Thank you so much and all the best.
Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Kunal Lakhan, CLSA. Please go ahead.
Yeah. Hi.
Hi, Kunal.
Hi. Hi, Vikas. Just quickly on the timelines for Borivali?
The new project?
Yeah. Additional.
Okay, so expecting IOD any given day, and then the regular time that it takes for their approval, this and the other. Again, this also, if everything goes right, then this gets pushed into the Q1 next year, next financial year.
Okay. Q1 FY 2027.
Correct.
Oh, okay. Okay. And secondly, just a question for Saumil. Our operating cash flow this quarter kind of tapered off, right, compared to last quarter and even the previous year's quarter. What was driving this? Hello? Hello?
Saumil, you there?
Yes, please go ahead.
Yeah. I'm here.
Hello?
Sorry. The question was for Saumil or for me?
It was for Saumil, Vikas. Yeah.
Okay. I don't know whether Saumil is having trouble in his audio.
We cannot hear the speakers.
Sure. Sure. Okay. Vikas, just one last question. Just stepping back a couple of quarters, right, at the beginning of the year, we had highlighted quite a few launches, greenfield launches for this year. Case in point, like the Gurugao project, the Worli project, and also a couple of launches, a couple of towers in Thane and Borivali and Goregaon. We did launch Goregaon Tower D, but barring that, I think there are some slippages there in terms of launches. Are you facing any issues in terms of approvals or on the regulatory side?
Not at all. In fact, it's more to do with the way we want the design to be. We've really worked multiple times even on NCR. We've taken feedback from people with regards to what should be the depth of the deck. We started with eight feet, and then we said, "No, eight feet probably would be too little." We pushed it to 10 and then 12 and so on and so forth. So literally, when you're trying to perfect a product and not really looking at what the market is expecting you to do, it kind of brings you in a situation like where we are today. But let me tell you, it's a dream to work in Gurugram. Approvals are a breeze. Very, very, I think, like a state which is really helpful in terms of approval.
It's just that we kept bettering our product, which we do all the time, and that goes for even our Pedder Road project. We created a plan. We first thought we will make podiums with ramp, and then we realized that ramps would take a long time to go up, and then we replaced them with elevators, so we had to change our plans, and these days, it's not like you can simply launch. There is so much of process. Until you get commencement certificate, you can't even apply for RERA. If you can't apply for RERA, RERA takes 30 to 45 days, and it just kind of stacked up. We just got it wrong, to be very honest. We just got it wrong. We could have easily got these in maybe at least in the Q3 .
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 yeah, I mean, it's a missed quarter and a missed opportunity.
Sure. And lastly, if you can give some color on the timeline for Nepean Sea Road?
The new one? Again, I mean, this is just the DA. It should take at least nine 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.
Okay. And just a follow-up. You look at FY 2027 now with the kind of spillovers that we'll see of the projects. So it looks like a big year in terms of newer launches, right?
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. Few of these should have actually been in 2026, but they're getting spilled into 2027. But whatever is lost in 2026 will get covered in 2027, and it will look like a much bigger year for us.
In terms of management bandwidth, are we ready for handling this many number of launches for next year?
Absolutely. I mean, this is one thing I can say that as a company, we have now really cracked the code as far as scale goes and as far as quality goes. We're really able to do that. I mean, in fact, I must say that today I saw a presentation by our contractors for our Gurugram project. And really, I must say that it's something that people will be proud of, and we will be proud of having done that. So again, execution, no issue. Launches, absolutely no issue. We have a great team. We have the bandwidth to build scale and scale with quality. We have that confidence. It's just that, I mean, we lost track of time perfecting our product. And sometimes it's all right to be less perfect, but to be on time than trying to completely perfect a product and bring it into the market.
We realized that in the last one month that we pushed ourselves too much in that direction.
Sure. Sure, Vikas. If Saumil is available, then maybe I can.
Yeah. Kunal, you can hear me now?
I can hear you, Saumil.
Yeah. Sorry about that. There were some technical issues, so I think we have got it sorted out. Yeah. In your question about operating cash flows, so basically, we had about close to INR 300 crores going into payments for FSI and what we can say, related acquisition rights. So that's where and obviously, that just goes out as pure operating cash flow. Correspondingly, those projects are not yet producing the revenues. So while they do not have any impact on the P&L per se, as far as cash flows are concerned, you will see the operating cash flows net of that amount.
Understood. Thanks, Vikas. Thank you.
Thanks, Kunal.
Thank you.
Thank you. Next question comes from the line of Gaurav Khandelwal with J.P. Morgan. Please go ahead.
Hi, Gaurav.
Hi, Vikas. Hi, Saumil. Thanks for taking my questions. I have two questions. I'll take those one by one. My first question, when I was looking at your presentation, so prices quarter on quarter for some of the projects seem to have come down at 360, at LSC, and at Jardin. Can I understand if this is something to do with the configuration of the flats or is there a genuine decline in prices? What's happening there?
Prices are a factor of the rate in the floor. If the apartments are on a lower floor, then you will get lower realization. If the apartments are on the higher floor, then you get higher realization. In fact, if at all, we've only increased prices. Like I said in the earlier statement, we've neither reduced nor increased prices in Thane. That's how it is.
Got it. Thanks. That's very clear, and my second question is a broader question, right? With the recent municipal changes, have there been any early industry-wide discussions that, for the areas where the municipality has jurisdiction, are they talking to developers that they are going to make any changes in terms of allowing FSI, timeline on approvals, or anything of the sort, any early color?
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. There is really no new rule or regulation that kind of either enhances or decreases FSI.
Got it. So it should be business as usual for all.
It is business as usual. Absolutely.
Got it. And if I can just ask one more rather housekeeping question. So the one-off employee expenses that have been booked, how many months of arrears are accounted for in that INR 23 crores figure? So basically, yeah
Gaurav, Saumil here. So basically, when we calculate this, this is, and 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 their joining date to today. So that's about it. This is a one-time cost which is taken. After here, it will be business as usual, and whatever is the amount that will regularly go will go, and because this is a true-up for a relatively large period of time, that's why it appears as an exceptional item.
And moreover, Saumil also, I also want to add that this is just a ballpark number and to its maximum. Once the regulation with regards to this is out, then the amount can vary and it can lower a bit, so.
Got it. But in terms of normalized expenses, does it have any meaningful retro on the cost of construction that we do?
No, no, not at all. This is a one-time provision made for gratuity for the entire period, an entire period from the time anybody has joined ORL till today. That's it.
That's very helpful. Thank you so much.
Thank you. Next question comes from the line of Pritesh Sheth with Axis Capital. Please go ahead.
Hi, Pritesh.
Yeah, hi, Vikas. Hi, Saumil. Thanks for the question. Just a couple of them. So first, on Gurugram launch, by when should we be applying for RERA to be able to launch this project in time, this quarter? What would be the timeline?
We are awaiting our plan approvals, and I am told that we will get that in the next 30, 35 days, or 40 days. Once we have that in our hand, we will immediately apply for RERA, and once we have our RERA approval, we'll immediately launch, so that's what I can actually say, so really, it's like a touch-and-go for us. We are desperately trying to speed up and get things going.
Sure. Got it. And in terms of commencement of the Worli commercial project, when should we hit the ground there?
So we had already done some excavation in the past. We've started securing the site again. We are on a design mode. But as we speak, again, I mean, your work is happening at brisk speed there also.
Got it. Got it. Just a follow-up on, sorry, Gurugram. As for the feedback that you are getting from the authorities or market there, how much time generally takes to get the RERA? So if we are able to apply for RERA, let's say, in the beginning of March, would we be comfortable launching the project in this quarter itself?
So again, like I said, it's going to be a touch-and-go. We are trying to get it done, but it will be a touch-and-go, so between today and applying for RERA and getting RERA permission, we have our plans to get approved, which we have applied for, and then immediately, we will go in for RERA approval, but like I said, it's a touch-and-go. Hopefully, we will be able to get through.
Sure. Sure. Okay. That's really helpful. Thank you. All the best.
Thanks.
Thank you. Next question comes from the line of Karan Khanna with Ambit Capital. Please go ahead.
Yeah. Hi. Thanks for the opportunity. Hi, Vikas. Hi, Saumil. Just a couple of questions from my side. First, if you look at the business development so far, you've only done Nepean Sea Road this quarter. So how should one think about business development guidance, let's say, for over the next 12 to 15 months and any update on Versova? And you recently emerged as a top bidder for an 11-acre land parcel in Bandra as well. So how should one think of business development going into FY 2027? So let me tell you three large deals, large deals we are working on. And hopefully, either we will announce this quarter or the Q1 next financial year. And you will see 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 unless we get that in our hand.
Sure. And just to follow up, are these three large transactions in Mumbai MMR, or are you also looking at opportunities outside Mumbai?
No, these are three in Mumbai. We are looking at other land parcels also, but these are near finishing line and all.
Sure. Secondly, on Sky City, where your current leasing stands at 56%, and I think a couple of quarters back, you mentioned 90% by end of this year. So can you just provide an update as to how one should think about leasing here? Is it slowing, or are you cautious trying to maximize the rentals here and hence going slow in terms of leasing of the mall?
No. So both are almost correct. We actually have signed three large leases. Once that gets affected or other agreements are signed, we will be in a position to tell that this is leased. And we see great traction. I told you earlier that the footfall in Borivali is phenomenal. The social media also has taken it to another level. And it's an outlier of a mall. Very excited about it. And yeah. So we are also in a position to maximize it.
Sure. And then lastly, on Jardin Thane, given the pace of sustained sales that you're seeing here, when do you expect to exhaust the current inventory, and when are you looking to launch subsequent phases here?
In all high-rise buildings, the lower and the middle apartments get sold first for two reasons. One, of course, they are cheaper because you don't have to pay floor rise. And we sometimes don't even launch the higher floors. In this case also, we still have inventory which is on the higher floor. We are going to launch one tower, which will actually help us in the sustenance because we have inventory of lower floors, which is something that people like to buy because of its cost advantage. And so that's going to be the only reason why we will launch a new tower for sales. But otherwise, we've kind of mapped Thane and its speed. The next thing in Thane will be the mall. We are doing a hotel, and we are doing a school building. These three things we launch.
This will also stir the market because we are trying to position it as Oberoi Garden City Thane. That will also give them a clear signal what the market in Thane what we are trying to build in Thane in terms of a market. JW Marriott Hotel, the mall, and probably one of the best international schools being designed by a design firm based out of Boston. Again, really a unique sculptural building being done there. It really changed the way people perceive our location. We are trying to build another Gurugram out of that.
Sure. Thank you, Vikas, and all the best.
Thanks.
Thank you. Next question comes from the line of Akash Gupta with Nomura. Please go ahead.
Hi, Vikas. So thank you for taking my question. Sure. My question is on the real estate demand. Listening to you, I don't see a lot of pessimism. But then again, if I look at the Q3 PCA number, it is still the lowest over the last nine quarters, and also the equity market.
No, thanks for asking this question. Frankly, like I said, I said it in as many words. Sorry. Are you able to hear me? Hello?
Yes, I can hear you, sir.
Okay. I said it in as many words that we missed this opportunity to launch a project, and that's kind of hurt us in our Q3 . Otherwise, you would see the numbers to be very different. We have projects which are actually at a stage where we simply sell, and we can recognize revenue out of that. So it's just like one of those quarters where we were not able to time it properly. That's about it.
Yeah. But then just on the thoughts on the real estate demand and with the equity market going down, are you seeing any slowdown, not considering the launches, just on the sustenance?
Not really. Not really. Not really. Because like I said, we've increased prices in Gurgaon. We've increased prices in Borivali, and we don't see any slowdown there at all. So it's developer-specific, it's location-specific, and it's product-specific, all three, and we tick all the boxes, I think.
Got it, sir. That's the only question I had. Thank you.
Thank you. Thank you.
Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of the question and answer session. I would now like to hand the conference over to Mr. Oberoi for closing comments.
Thank you all for taking time out of this call. We look forward to hearing from you on a regular basis. Please feel free to reach out to our investor relationship team. When you have any questions, thank you once again. Thank you for attending this call.
Thank you, everybody.
Thank you. On behalf of Oberoi Realty Limited, that concludes this conference. Thank you for joining us. You may now disconnect from.