Ladies and gentlemen, good day and welcome to the Oberoi Realty Q4 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. For the duration of this conference call, all participant lines will be in the listen-only mode and that the conference call is being recorded. The transcript for the same may be put up on the company website. After the management discussion, there will be an opportunity for you to ask questions. Should anyone need assistance during the conference, you may signal an operator by pressing Star then zero on your touch-tone telephone.
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, sir.
Thank you. Good morning, good afternoon, good evening to you all, as per the time zones from which you have logged in. Welcome to the conference call of Q4 FY 2026 results and business updates. Thank you all for taking time for this call. I will now start with some business updates, specifically business development. FY 2026 has witnessed a strong momentum in all parameters. We've announced business development activities close to 4 million sq ft of development potential, areas across diverse locations in MMR. 11 acres in Bandra East. Aram Nagar, Versova, about 2 million sq ft. We also have entered into agreements with societies in South Bombay for redevelopment, Pedder Road, Malabar Hill and Nepean Sea Road. We've also received approval from NCLT for our resolution plan submitted for a company in consortium to acquire Hotel Horizon Private Limited.
In fact, as we speak, we have received possession of the property on May 7, 2026. On the operation front, the release of higher floor inventory at Elysian Goregaon has received a robust booking momentum. Sky City Mall has achieved occupancy of over 72% within first year of operations. Commerz III continues to scale up strongly, attracting marquee tenants and has driven robust leasing demand with an occupancy reaching 98%. With this, now I open the floor for question and answer, and both Saumil and I will be very happy to take your questions. Thank you.
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Puneet Gulati from HSBC. Please go ahead.
Yeah, thank you so much, and congrats on good performance. My first question is on your strategy for Three Sixty North in Gurgaon. Do you intend to launch and sell everything up front like most of the other Gurgaon developers? Do you want to follow a more calibrated strategy of selling over a longer period of time?
You know, we haven't really dwelled that deep into our strategy. We want to see how the, you know, how we are received in Gurgaon. It's a new market for us. We've set a certain internal target, which, you know, given the way, you know, there is buzz in the market because everybody knows we are coming. I feel, you know, we are in for some exciting time there.
Okay. Secondly, if you can also talk a bit about, where are you in terms of approvals for Adarsh Nagar?
Um-
Adarsh Nagar.
Adarsh Nagar, we are awaiting IOD. I mean, within, like a week or 10 days or let's say two weeks, we should get our IOD.
Okay. Then what's, what are the steps from there on?
You know, business as usual. We should be applying for CC. A lot of work has already been done on that account also. Three more months for CC and then we can break ground.
Okay. Once you break ground.
Once we get the CC, we will apply for RERA, then we are good to go. Yeah, good to even market.
Any timeline for evacuation of existing residents?
As soon as we get all the approvals, that's been our strategy everywhere. Once we get 100% approvals, we only then ask the existing residents to move out. You know, that gives them good mental comfort and security also.
Okay. Lastly, any update on the progress for the I-Ven land parcel?
I-Ven, we in fact have applied for a renewed CC, and you will physically be seeing work in the next 30 days.
From the line of Parikshit Kandpal with HDFC Securities. Please go ahead.
Hi, Vikas. Congratulations on a great quarter.
Hi, Parikshit.
Yeah, congratulations on a great quarter, sir. My first question is, if I see your premium projects, Sky City saw a decline, Three Sixty West saw a decline in this year as a whole on the presales. Even, I think the new tower at Borivali did not see a great response, unlike Elysian, which did relatively much better. Are we seeing impact of registration prices on our presales? Will it have any impact on our launch pipeline for this year if the impact gets prolonged to, through the quarter and the first half? If you can help us understand this on the demand side.
Firstly, let me begin by Borivali. Very good observation. Firstly, we have just delivered seven I mean, literally five towers we've given possession. We have three more towers, which, you know, F and G, you know, were launched last year and then a year before that. There's enough inventory in within the project itself, which is kind of ready or under construction. Obviously this eighth tower was received, but I would say it was received well. We only opened limited inventory there, and it received well. We priced it high because we ourselves didn't want to rush into too much of sales. We had created a target for that, and we've been able to achieve that.
As far as Elysian goes, you can see that, you know, this project has been on for the last 15 years. People are staying. The base of this clientele is much wider and bigger, so obviously, like, you know, whatever we launch gets lapped up very quickly and, yeah, so that's about it. Sky City, also, I mean, there have been enough launches within Borivali. And moreover, you know, whatever was the residual inventory of our partner, even that's now sold. Within Sky City we are, reasonably, I can say, monopoly now, and we will now start getting traction.
What will be the launch pipeline for this financial year? I mean, high visibility projects. Last year was more of a sustenance, I would say, where you were just releasing additional towers, and that helped you clock INR 5,400 crore of sales, but we didn't see much growth. I think this year in the reckoning, I mean, what are the major launches? If you can give some color on the GDV.
Okay, good idea. I'll actually tell you all. We are planning to launch Three Sixty North. We are planning to launch a small development on Carter Road, Oceanic. We've topped up this again, another small project at Malabar Hill, Fairview. We will be launching Tower D of Forestville. These are all four launches in this first quarter itself. We have Jardin Tower A, which will be launched in Q2. We'll launch Valley Wolves Mulund in Q2 as well. Adarsh Nagar could be Q2 or Q3, you know, so safely Q3. Enigma, we have a commercial building. We might look at doing a strata sale. That also will be launched in Q3. Orion on Pedder Road could be Q2 or Q3 or something like that. Yeah.
Again, it will go well, ideally within this year itself. Borivali, we've got land parcel next to us, which is a high land yard SI development. The resale component of that also is in the next week or the fourth quarter, probably. A lot on the pipeline. Again, I've not named a few redevelopment projects because, you know, the tail to launch a project got a little longer, given one needs to take all approvals in place. We are very mindful of that. That's about it. Otherwise, all these projects are up and running and ready to go.
All right, Vikas. Thanks a lot. I'll join for more questions. Thank you.
Thank you.
Thank you. Our next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Hi, Pritesh.
Yeah. Hi, Vikas. Hi. Hi, team. Congrats on the good year. Just one question. You know, if I see the pending launch pipeline, a lot of them are INR 80,000 per square feet to INR 1 lakh and above, you know, pricing kind of product. Just one question on how would we differentiate such that we don't cannibalize our, you know, product and demand in each of these projects? Pedder Road, Tardeo, Adarsh Nagar, you know, although they are in different locations, but still in a close by vicinity. How are we going to manage the offerings here?
Very good question. In fact, very mindful of that. We do have Forestville Tower D. We do have Jardin Tower A. We also have Valley Wolves. These are three projects which are much lower in value. Like, we are talking about INR 3 crores and INR 5 crores. Within, you know, INR 2.5 crores, INR 3 crores and then INR 5 crores apartment. Like, so we do have enough on that account as well. Yeah, I mean, you know and we have this luxury, you know, big to go. Again, here, what we will be doing is even within this area, let's say when we will launch Tardeo. We have a beautiful land parcel in Tardeo. There we are really looking at a ticket size of INR 12.5 crores to INR 15 crores.
Then, you know, when you go into the Adarsh Nagar and all that probably is like the INR 50 crore, INR 60 crore mark. You know, these are not INR 100 crore or whatever. So, we are mindful of that. We see now the markets mature to these numbers.
Sure, sure. Just on the RLDA, you know, have we decided on the mix of how much would be for leasing and how much would be for sale, considering we will be, you know, launching it for, say, in Q4? Just one question on that. Yeah.
You know, what we realize is that there are very few Grade A developers willing to sell commercial. We feel that if we strategize and do strata sale, we will end up doing really well, and it'll be great for the cash flows also. We will focus, you know, on RLDA being a sale model, rather than a lease model. Again, the percentage is not decided. It could be 50/50, it could be 60% sale or 40% held back or whatever. By and large, we want to do a sale model. We see, in fact, big houses approaching us and wanting to do a standalone building for us. There is a big market for people like that also. Again, you know, very excited with that project.
Got it. Thank you. That's it from my side and all the best.
Thank you.
Thank you. Our next question is on the line of Murtuza Arsiwalla with Kotak Securities. Please go ahead.
Hi, Murtuza.
Hi, Vikas. Just on Gurgaon, obviously it's a big launch and it's your debut in the north market. Any sense on pricing, ticket size, GDV sales value that you can give? Are we all set for a 1Q launch or it could move to the festive? You know, just some color on the Gurgaon project per se. The second one's more on, you know, the balance sheet for Saumil . When I look at your balance sheet and other current liability, the advance from customers seems a smaller number, and then there is other current liabilities. Just some color on that's moved much between March 2025 and 2026.
Okay. To start with, Three Sixty North, let pricing be a little bit of a suspense. We are still not ready to diverge. We have a very good idea of what we want, but we don't want to diverge the price, we'll hold that. Everybody now knows that we are doing very similar to a product that we've done, which is Three Sixty West. The sizes are big. These are 5,000 + and 8,000 + sq ft apartments. They're like, they're really up on luxury. You must have read in the papers, we've also appointed L&T as our contractor, we are good to go on that. Demolition happening at a good pace as we speak. The show apartment getting ready there on site.
Physically also, work has started in a way. Yeah. As far as prices go, like I said, that, let that be a bit of a, you know, suspense.
Sure
Because we still have some more time to go. I'll leave Saumil to answer the more complex question you raised.
Yeah.
Hi, Murtuza. Somil.
Hi, Saumil.
As the advance from customers is purely the advance that you receive from customer, this is, you know, at times customers end up giving you a couple of installments in advance and all of that. If you look at that, INR 82 crores versus, you know, INR 97 crores. I think that's the smaller number that you are referring to. Not a material movement in that one. The critical one, as you have pointed out, is in the other current liabilities, which is from INR 1,855 crores to about INR 2,700-INR 2,800 odd crores.
Yes.
A large component of that or the largest component of that would basically be the unrecognized revenue. This will flush through P&L under the percentage completion method. This is purely, you know, billing in excess of revenue. Where we have billed much more than what we are, you know, recognizing. If you look at all the projects in the initial stages, if you look at, for example, both the Thane projects, you know, in terms of billing they will be upwards of, you know, 45%, 50%, whereas in terms of revenue recognition, they'll be barely there at about 11%, 12% or something like that, you know. This is basically the entire component of unrecognized revenue. Over a period of time, this will flush through P&L.
Sure. Thank you so much.
Thank you. Thank you, Murtuza.
Thank you.
Thank you. Our next question is from the line of Gaurav Khandelwal with J.P. Morgan. Please go ahead.
Hi, Gaurav.
Hi. Hi, Vikas. Hi, Saumil. I've got three questions.
Hi, Gaurav.
I'll take those one by one. My first question is, with the entire pipeline, the launch pipeline that we're talking about, is it fair to assume that FY 2027, 2028 we should be able to deliver a double-digit growth in sales?
You know, frankly, it could have been possible this year also had we been able to launch Three Sixty North. Obviously the numbers would have been much better. Again, like, as a company, since we don't give, you know, we don't give any forward-looking statement or pass any of those, I would refrain from saying anything. Yeah, I mean, everybody can do their math and figure out what we will actually be at if these things play out.
Got it. Okay. No, thanks for that. The next question I have is with all the deals that we've done, how much are we looking for in terms of CapEx cash outlay, which is yet to be completed in FY 2027?
Okay. See, most of our land parcels do not require us to pay cash upfront. you know, either it's, like even RLDA, we have until 2038 to pay. There's a small component that goes upfront and everything else is linked to revenue generated and then passed on to them or a finite date, which is much later. We genuinely don't have any, like, major cash going out for land acquisition.
Sorry. Okay.
At least not with the current ones that we spoke about.
Mm-hmm. Okay. The other thing I wanted to check with you is, are you seeing any impact from the West Asia conflict at all, whether in terms of customer interest, especially for the higher ticket size apartments or on your construction front, are these impacting your raw material, raw material construction expenses or anything at all across any part of the business?
You know, thank you for asking. Yes, costs are going up, and luckily we literally, you know, we really make sure we have a lot of contingency built in when we do our budgeting. Yes, costs have gone up. You know, energy cost has gone up, aluminum has gone up, glass has gone up, labor's become expensive. Then again, I mean, you know, availability of materials become a bit of a challenge. So, these are stressing us out. Like I said, you know, it's a problem for the entire industry, and we all are grappling with it. Yes, you know, now it's, like, slowly starting to, you know, hurt you in a way. Yeah, that's true.
In that case, would it be possible for you to quantify in terms of margins, EPS, any number that you can share on how bad this is?
You know, frankly, like I said, that we build this contingency in advance to make sure that, you know, our margins are not affected. You know, yeah, I mean, like, the contingencies are getting consumed or eroded, you know, as we speak. Yeah.
Got it. Okay. No, thank you. Thanks for that, Vikas.
We are really lucky. We are really lucky. Another very important aspect is that the reason also we've repriced many things, you know. Somebody asked us at Tower G. We actually made sure that we now know for a fact that there will be a cost increase, and we are factoring that within the projects that we are doing.
Amazing. Okay. Thanks for that, Vikas . If I can just squeeze in one more. I am sorry if I am being a bit naive here. When I look at the residential prices between
I just wanna tell you on the cost front, you know, on a overall cost front, about 2% - 3% is what, we are looking at as a cost increase. Like I said, you know, it's within the contingencies built, so really, it won't affect the bottom line right now.
Okay. 2%-3% increase in cost base. Okay. Cool. Thanks for that. Just a final one. Just wanted to get your thoughts here. A bigger picture question. When I look at your residential price between Goregaon and Borivali, the price delta is not really that much. If I were to compare the mall rentals, there's almost 20%-35% delta. At some point over the next 12-24 months, do you expect this mall rental delta to narrow, or is it how the market structure is?
You know, Borivali's just started. Goregaon has been here for more than 15 years now. The rental difference is also because the renewals are, already they have already kicked in. Some of them, terms are over, we are literally able to reset the numbers. In Borivali, we'll first have a renewal, which will probably be a 15% over whatever they signed us at. Five years later, some 10 years later, some seven years later, there's a reset of rent. That part of it will probably play out only after five years. I'd say you'll see a exponential change in numbers. I'll also wanna tell you that we've been able to lease Borivali at a very good number. They were very close to what we were leasing Borivali at. Sorry, at Goregaon at.
Yeah, these two, I would say, work, well.
Got it. Thank you very much, and all the best.
Thanks.
Thank you.
Thank you.
Thank you. Our next question comes from the line of Karan Khanna from Ambit Capital. Please go ahead.
Hi, Karan.
Yeah. Hi, Vikas. Hi, Saumil. Thanks for the opportunity.
Hi, Karan.
Just a couple of questions from my side. Following up on Parikshit's question, if you can just comment on the launches, you know, the overall GDV of launches that are planned for FY 2027. If I recollect, you didn't mention Alibaug in that. Has Alibaug gotten postponed into FY 2028?
No. Sorry. You know, it still continues to be there. Yeah, okay. No, it's a slip on our end. We should have actually said. Alibaug could be probably third quarter this year itself.
Sure. The overall GDV of the launches that are planned for FY 2027?
Do you wanna take that up separately with Somil?
Sure. Sure.
He'll give you detailed numbers.
Secondly, on Sky City West, you know, FY 2026, where you sold 10 units versus 17 in FY 2025. Clearly there is some slowdown in the Worli luxury market. In that context, how should one think of, you know, monetization of the balance 2.7 lakh sq ft of inventory. Earlier you were confident of exhausting this by FY 2028. Should we now build in a longer period here?
You know, again, like I said, that, now we are the only ones holding that inventory, and hopefully, at least within Three Sixty we don't have any competition. This should now pick momentum. I'm hoping that it'll pick momentum now.
Sure.
Our building is successful. Everybody loves it and, you know, there's enough demand. We've seen, you know, whether it's me or my partner, ex-partner, they've been able to sell that.
Sure. Lastly, on Jardin, which seems to have seen a strong uptick this quarter. What's driven the strong growth in sales volume in fourth quarter? Is there a change in strategy here or payment flexibility or the overall marketing? Just, you know, comment on future launches here in Thane.
No. You know, frankly, now the building is showing up from, you know, it's like, some of them are at ninth level, and so on and so forth. The way we build Forestville, we were able to do almost, you know, about 38 and 40 slabs a year. That kind of speed, and now people are expecting us to do that here as well, and they feel that these projects will get ready faster than what they thought they would. Hence, you know, you see this entire drive.
Great. Thank you, Vikas, and all the best.
Thank you.
Thank you. Our next question comes from the line of Kunal Lakhan from CLSA. Please go ahead.
Hi, Kunal.
Hi. Hi, Vikas. Hi, good evening. On the RLDA project, right, I understand like a large part of the payment is backended. Once the asset becomes operational, you'll contribute from the revenue share. I'm just trying to understand, like, you know, because I think the discount rate that we are using for the NPV is roughly about 10.5%, 11%. Would we at some point in time, once the asset is ready, look at financing this via debt, where the cost of debt is much lower compared to the discount rate that we have negotiated?
It's 10.5% exactly. We are absolutely mindful of that. That's why just, you know, 20 minutes ago, I said that we probably will even look at strata sale. Of course, once we get strata sale, we will ensure that we try and repay them faster. Of course, I mean, you know, there is a clear delta between our cost of money versus what they are charging us. We would love to, you know, make sure that we don't end up keeping this for too long. The only advantage is that this is not a debt, whereas, you know, you'll have to borrow and bring it. That's how it is.
Nevertheless, we are mindful, and we will, at some point, make sure we pay it faster than 2028 for sure, 2038 for sure.
Sure. Sure. I just wanna pick your mind on that. Like, on the strata sale bit, right? When you, when we look at, like, because large part of the outlay is backended, right? When we look at the IRR of this project, right, it looks quite interesting and quite lucrative, right? What's the merit in doing the strata sale versus holding the asset, and, you know, converting the land payment into debt once the asset is operational? I'm just trying to understand the merit of doing strata sale versus holding the asset.
You know, just, we want to capture both ends of the market. This is 2 million sq ft and, there is, you know, we also doing, we are also doing Worli, where there's commercial again. We have enough and, given the way we are looking at demand, like if there's a nice big house which wants 300,000 sq ft office, we would love to do a strata sale and go ahead with it. We have enough opportunities, so we are not really worried, you know, that we need to hold this only as such. There's a lot available and we know how to, you know, build these land banks. It's really not an issue for us.
Understood. My second question was on the launches, right? The launches that you have highlighted for Q1 and maybe even Q2. Assuming that these launches have to come through, we should be, you know, in a fairly advanced stage of approvals, right? Hopefully, most of them we should have applied for the plan approvals or maybe even RERA.
Absolutely correct.
Sure. You know, just an update and, yeah, I wanted on Tardeo.
Oceanic, we already have approval. Fairview, you don't need approval, and so on and so forth. You know, again, Three Sixty North we are applying as we speak and all of that.
Sure. Lastly, just quick update on Tardeo. I think the rehab tower there, we had applied for OC. Any update there?
Correct.
When can we expect the free sale portion?
Correct. Again, 101% within this financial year. It could be Q3 or Q4, but within this financial year for sure.
Okay. Lastly, launch timeline for Aram Nagar and Bandra. This will be FY 2028 or 2029?
Aram Nagar, you know, we have to do the rehab component first. We may have some free sale component within the rehab buildings because these are 1,000 and 2,000 sq ft apartments. We may have something going on, but the large part of that development will happen once these guys move out. We have to build the rehab component. We will have a parallel strategy. We might offer them something and say that once we start their work, if they feel like moving out and allow us to launch, otherwise we'll wait. You know what? It sweetly times with the sea link getting ready. The government's also proposing like late 2028 sea link connectivity.
We feel that, you know, literally driving on the sea link and landing onto the site is much, like, it's very different from just imagining how it will be. For Aram Nagar, we are looking more like that, those dates. Yeah, Bandra will be a lot earlier.
Bandra slum rehab would be this, in FY 2028?
The, this one? No. In fact, this year itself. RLDA.
No, the slum rehab.
Which slum rehab?
Yeah, I know. Got it. Got it. Sorry. I got a little confused there. Sorry. Lastly to Saumil , this quarter, the OCF was kind of flattish compared to our, you know, growth in collections. Any reason for the operating cash flow being flat?
Yeah. You know, typically, if you look at it, we made a payment of about INR 250 crores to RLDA. The OCF is, you know, for us, any payments that we make, you know, typically for that, for any land, any advance towards a TDR or towards any FSI or towards any land, all of those go towards, you know, your working capital changes. Correspondingly, that has an impact on OCF.
Got it. Got it, Saumil. Thank you, Saumil. Thank you, Vikas and Saumil. Thank you.
Thank you.
Thank you.
Thank you. Our next question is from the line of Abhinav Sinha from Jefferies. Please go ahead.
Hi, Abhinav.
Hi. Just a quick update. Firstly, on hotel openings and mall occupancy, what are our expectations by the end of this year?
Early end of this year for sure. Borivali, probably, you know, early first quarter, second quarter next year, that's Marriott. The Ritz-Carlton, this financial year itself. These are two mall, again, which mall are you talking about? The Sky City Mall already launched.
The Borivali Mall. Yeah.
Sorry?
What should be the occupancy there by the end of this year?
I think it'll be 100%.
Okay.
100%.
We have now tied up for the stores which will open.
Sorry?
We have now tied up.
We have, you know, as we mentioned in the results, we are already at about 72%. If your question was that where we will be by 31st of March 2027, then that's what we are saying, that by that date we'll be at 100%.
Okay, great. Second question on I-Ven. What is the final plan now?
I-Ven, the final plan is, we do mall, we do office, and we do a small hotel. You know, we signed Aman, and it's public news.
Right.
I can share this.
What's the mix? Because you also want to do some branded residences which you will sell, right?
No, we are tempted to do that, but still working on it. Once we finalize, we'll come back to you.
The total saleable area will be here, you know, how much roughly between these three?
Leasable area, about 14
1.4 million sq.
1.4 million odd square.
Okay. Okay, great. Thank you.
Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to Mr. Oberoi for closing comments. Over to you, sir.
Thank you. Thank you all for taking time out for this call. We look forward to hearing from you on an ongoing basis. Please feel free to reach out to us, or our investor relations team as and when you have any questions. Thank you again. Have a good day ahead, guys. Bye-bye.
Thank you.
Thank you. I'm sorry. On behalf of Oberoi Realty, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.