Oberoi Realty Limited (NSE: OBEROIRLTY) Q1 2026 Earnings Call dated Jul. 22, 2025
Corporate Participants:
Unidentified Speaker
Vikas Oberoi — Chairman and Managing Director
Saumil Daru — Executive Director, Chief Financial Officer
Analysts:
Unidentified Participant
Puneet Gulati — Analyst
Praveen Choudhary — Analyst
Karan Khanna — Analyst
Parvez Qazi — Analyst
Abhinav Sinha — Analyst
Parikshit Kandpal — Analyst
Vishal Dudhwala — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Oberoi Realty Q1FY26 earnings conference call. We have Mr. Oberoi, the chairman and Managing Director of the company and Mrs. Somil 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 a 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 Touchstone 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 call over to Mr. Oberoi, the chairman and Managing Director of the company. Thank you. And over to you sir.
Vikas Oberoi — Chairman and Managing Director
Thank you. Good morning, good afternoon, good evening to all of you as per the time zones you have logged in and welcome to the conference call Q1 FY 2026 results and business updates. Thank you all for taking time out for this call. Before I begin, I would like to share a few quick business updates. One of our launches, which is Elysian Tower D at Oberoi Garden City Goregaon received tremendous response. We completed the private equity transaction in Ivan Realty and as a consequence of that received 1250 crores and the same is received in the joint venture entity.
Our annuity assets continue to operate exceedingly well with occupancy scaling up, driven by strong leasing demands from office to retail tenants. We are gearing up for the upcoming project launches during the rest of the year and continue to pursue business development actively. With this now I open the floor for questions and answers and both Somil and I will be happy to take questions. Thank you.
Questions and Answers:
operator
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 the Touchstone 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 questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Puneet from hsbc. Please go ahead.
Puneet Gulati
Yeah, thank you so much and congratulations on good start to the year. My first question is on your upcoming projects, Adarsh Nagar and Gurgaon. If you can talk a bit about what stages are you in and what is the likely timeline now for launching those.
Vikas Oberoi
Hi Puneet. Good afternoon. With regards to the Gurgaon project, you will be happy to know that we have actually started the demolition work at site. So technically we have started work on site. We’ve also started our office in Gurgaon, so we are formally and physically present there. Design work is complete, contract has been negotiated, ready to be issued, almost like issued. So all ready to roll down. And yeah, the entire approval process also complete today. We have the license on our name, the land is on our name. So you know, the titles for the entire property is clear.
With regards to Adarsh Nagar, again, work in progress. As far as approvals go, you all know that we were approved. We are now. As soon as they are done, we will immediately go and apply for ERA and then be ready to roll.
Puneet Gulati
Okay, that’s great. Second, Soman for you. 360 Degree west did not record any revenue there. I think last time also 80% of it was recorded. How should one think about this?
Saumil Daru
No, it’s basically got to do with the. As in terms of, you know, for finished inventory, how do you, you know, when do you record the revenue? So typically it’s just not on booking. There are a few more conditions like, you know, receiving the entire, doing the agreement, registration, getting the entire consideration, all of those. So it will all be subject to the payment terms under those documents. So I think if you will just wait for September quarter, I think more than a fair amount of everything that you see today as having been booked but not recognized, you’re likely to see that flow through.
Puneet Gulati
Okay, that’s good. And lastly, how should one think about occupancy growth for Borivilli and Commerce 3? When should we see 100% occupancy there?
Vikas Oberoi
100% within this year itself. Both of the projects have taken off really well. In fact, Commerce 3 is already at 85 plus and the mall also, you know, it’s like every day, literally, you know, new shops are opening as we speak. So both really, really exceeding expectation, I would say. In fact, our entire comm1 and entire comm2 are for the first time fully leased and we are left with only com3, which is in great demand.
Puneet Gulati
Okay, that’s great. Thank you so much and all the best.
Vikas Oberoi
Thanks.
operator
Thank you. The next question is from Praveen Chowdhury from Morgan Stanley. Please go ahead.
Vikas Oberoi
Hi Praveen.
Praveen Choudhary
Hi, Vikas. Hi, Samil. Thank you so much for taking my question and good set of. Good set of results. I have two questions, if I may. One, I just wanted to get a sense on operating cash flow number. Last two quarters have been a bit weak, if I may say, compared to, let’s say last six quarters. So just tell us a little bit more. About 2.5 billion a quarter. And the second question is a little bit longer term. I wanted to understand the return profile. So if I look at FY25, returns have been 15% RO and ROC that you provide this quarter a little bit lower at 10%.
But if I look ahead in future, one of the things that investors are asking, historically you benefited from property price going up in your own area. For example, Goregaon, A margin has improved with that. But now you have to buy new land. Whether you can sustain that kind of high margin, whether it’s 50% EBITDA margin. And second is what if the price doesn’t grow at the same rate as historically we have seen. In the absence of these two things, how do we think about the return just philosophically and otherwise, mathematically. Thank you so much.
Saumil Daru
Okay, so Praveen, as far as the cash flow is concerned, one thing you’ll always have to keep in mind that for us, you know, any amounts that we spend on either on land or, you know, acquiring any of the development rights or, you know, the premiums that we pay to the bmc, all of. Those. Figure as a part of my operating cash flow. So some people may want to consider those as an investment because especially if that project is not contributing to your top line or bottom line in the current quarter, even in that case. So for example, if I would have paid any premiums in Sky City, you know, in the last quarter, then that will figure in as a part of my ocf. But it may not figure in either on my top line or the bottom line if it’s, you know, in connection. With the last hour. So that is how you know, if you look at the ocf, the only thing from our perspective and which we have maintained all these years is at an operating cash flow level. The business is always, always positive. So that’s where it is. And that’s where you may see a little bit of a dichotomy between, you know, whatever is the profit as per the financials and where the operating cash flow comes in. So that is the first bit on the margin bit. I think Vikas just wants to take that up.
Vikas Oberoi
So Praveen, let me begin by saying that all our land acquisition are very, very prudently done. We make sure that we have the kind of margins that we are used to. And unless and until we have that, we don’t go in for buying these lands. We have the knack of picking large land parcels, see them through a long tenure and end up gaining not only from the price rise. And price rise just does not happen because the markets have risen. They also happen because of the kind of development we end up doing. Even today you can easily get apartments which are 30 or 40% cheaper than what we sell at Goregaon.
And the reason people give us a premium is because we create an environment within and around our projects. And that’s the key. And frankly, I must tell you that if we don’t have these sort of margins with the kind of time all projects take, then one shouldn’t be in this business. In fact, I frankly feel that some of our peers who work at low margins are not making profit because of this very reason. And there’s no point in having market share and not having any profit because that you lose any given day, the day you will try to gain profit.
We are a profit making company and we want to continue to be that way. And the key, like I said, I just repeat that is all about buying land prudently and creating a right project and ensuring that your profits remain intact. So be rest assured, we will continue to be as profitable as we are.
Praveen Choudhary
Thank you so much. Vikas. I think so far all the land that you have acquired, absolutely, you have been spot on in terms of getting that kind of margin. So congratulations on that. Hopefully in future you do the same thing. Sonal, on operating cash flow, thanks for clarifying, that’s really helpful. Is it possible somehow to find the number before you spend money on land or premium, et cetera? Is there a number that you can provide either historically or later? And then we can do it offline? Just wanted to get that.
Vikas Oberoi
Sure. Offline. Most welcome. I mean I’m sure Somil will be able to help you with that. Okay, thank you so much. That’s also me.
Saumil Daru
Even for example, any land advances that we make or any of those, those also all figure in a part of this. So, you know, not again, everything that we discuss, I mean that we do is you know, known to the markets before the transaction is finally consummated. So you know some sensitivities around sharing huge details. But yeah, to whatever extent we can share, we’ll be very happy to share. Praveen.
Praveen Choudhary
Okay, thank you Sonam, thank you so much.
Vikas Oberoi
Thank you Praveen.
operator
Thank you. Next question is from Karan Khanna from Ambit Capital. Please go ahead.
Karan Khanna
Yeah. Hi Vikas, thanks for the opportunity. Just a couple of questions from my side. In the previous earnings call you’ve spoken about flight to quality and preference for grade A developers at a time when real estate market gets jittery. But if you look at the world wide trends in terms of sustainance sales, the number of units that were sold in base quarter, let’s say one QFY25 for Forestville Attorney and Sky City combined were more than 90 units. But this time around we’ve seen about 45 units being sold this quarter. Similarly at Jardine the sales momentum also fell to about 20 units per quarter post the launch.
So this seems quite low. Could you share some thoughts on possible reason behind this slowdown and some of the major pushbacks that you’re seeing from customers when they look at these products?
Vikas Oberoi
Karan, frankly, let me tell you, if you really look at the entire life cycle of the project, you’ll always see that you have very high demand initially and then it kind of plateaus because people who are waiting end up taking those apartments. It plateaus a little and then when it comes closer to completion it picks up again. So I’m absolutely not perturbed with anything. In fact, Thane has begun way better. I mean, and I know what you know, let’s say today we are at whatever 14, 1500 crores of sale in probably a year or more.
If this would have been, you know, 500 per annum and it would have continued for three years and still be 1500 in three years, we all would be equally excited or very excited or if it was 400, 500 and 600 you would feel great. What has happened is this entire sale got pre poured and the reason being that we were entering Thane for the first time. So between the two projects put together we are close to 1800 odd crores of sale or probably somewhere around that. And that’s a very large number when it comes to a market like Dhane number two.
As far as Borivilli goes, again these are all what you call sustainance sales. So there’s very little until we launched the next tower and you saw what happened when we launched andheri sorry. When we launched Goregaon and in a day we did thousand plus crores of sales. So the people are there to buy. It’s just that when you launch there is a big spike in sale and then it plateaus and then it again picks up when it’s complete. So you don’t read much into that. You know, I always say this to people that you know, please don’t, you know, look at our business as a quarter on quarter.
It’s not, I mean, you know, like there is, projects take longer. These are high ticket items. People, you know, take their time to decide and buy. You know, we have data from customers coming to buy and they’ve been regularly coming for the last five months and literally at the end of fifth month they come and conclude the transaction. And I also want to tell you that our sales are where people pay 40, 50% upfront versus competition would take 5, 10, 2, whatever and do the deal. They’re basically selling options and you could lose a customer just in case there’s a little blip in the market.
But when he’s invested with us so much, he’s a serious buyer. So there’s a huge difference.
Karan Khanna
Sure. This is a follow up to this. How are you thinking about future launches in terms of Thane, the future phases? Are there any changes to the timelines or will you stick to the previous timelines as far as future phase launches are concerned?
Vikas Oberoi
See frankly Thane is a great market. Again, when we are talking about, you know, Pokhran Road, we are building a international school, we are starting a mall or hotel. So we want to now the next phase we will want to at least start physical work on those, you know, start building the school, start building the hotel, start building the mall and then follow it up with a residential development. So everybody will know that this is literally the second Goregaon in the making. And hence it will be, you know, it will carry a premium of 20, 30% over competition just because of its quality adjacencies towards these social infrastructure and so on and so forth.
I mean I don’t know how many of you have gone to Burivli and seen our mall. It’s world class, it’s connected to a metro people living up there. It’s life changing for these people and you know, really feel excited about that. Today if you see some numbers, borivali is clocking 45 and 50,000 rupees a square foot on carpets. It’s unheard of. And this is all because of the product that’s been built the design, the idea and the lifestyle that we end up providing the end customer.
Karan Khanna
So my second question to you Vikash, regarding the recent acquisition of hotel or asen Private limited. Could you share some thoughts in terms of you know, your plans for capitalizing this land and the planned IRRs that you expect given that this will probably be a hotel come retail asset where outflow will typically be more front ended and the consortium has already agreed to pay almost 500 crores per acre of land and any color on timeline on when do you expect the proceedings to complete and construction to begin.
Vikas Oberoi
These all bids and all literally spur of the moment decisions. We have gone in obviously love the land parcel. It’s. It’s a great location, great size. It has all optionalities. It has residential potential, it has hotel potential. It has hotel and residential potential. It’s got the works. One can do anything and everything with that. Give us some time, we’ll come back to you excited about it and give us some time, we’ll get back to you. And I must say it’s a marquee project.
Karan Khanna
Sure. And lastly there seems to be a lot of chatter around market saturation in Gurgaon with existing and new players already having successfully launched a lot of inventory on top of a large pipeline. Could you share your thoughts on this and whether it looks like maybe do you think you’re a bit late in terms of taking full advantage of the opportunity or you still think that the demand for a Mini360 was sort of a product in Gurgaon?
Vikas Oberoi
I’ll say this in Hindi. Tension ki baat. Nah, don’t worry, it’s a. Well, you know, again we bought the land prudently. There is enough and more for us. And you know, if the story of Gurgaon is completely over then I can’t say anything. I mean if you say so but otherwise, I mean I’m just saying that, you know, it’s like any other day. We are in our comfort zone. We’ll build quality and I’m sure we’ll do it.
Karan Khanna
Great, thank you. I’ll come back in the queue for anything else. Thanks and all the best.
operator
The next question is from Parvez Ghazi from Nuvama Group. Please go ahead.
Parvez Qazi
Hi, good afternoon and thanks for taking my question. So just one question from my side. Fair to assume that one tower in Burivli and our Goregaon project both should get launched either in Q3 or Q4 of FY26.
Vikas Oberoi
Yes, Goregaon is already launched.
Parvez Qazi
Sorry.
Vikas Oberoi
You know Gurgaon 100%. This, you know, I should say 100%. But yes, Gurgaon also. All permissions in place. Like I said that we’ve already started demolition. Somebody can physically go and see that that’s happening as we speak. And all permissions in place. So yeah, yeah, just getting ready for the launch. Right? Getting ready for the launch.
Parvez Qazi
Sure. Thanks. And all the best.
Vikas Oberoi
Thank you.
operator
Thank you. Next question is from Abhinav Sinha from Jeffries. Please go ahead.
Abhinav Sinha
Hi Vikas, just wanted to hear your thoughts on pricing. We have seen good movement in three of the projects on pricing this quarter. Goregaon, Sky City and Enigma. So just wanted to hear how you are seeing pricing and as well as even some trends on demand. Thank you.
Vikas Oberoi
So Abhinav, we are not really tinkering with the price for now. We continue to be in the sell mode and we are liking, we are very happy with the way it’s priced today. You know, it’s covering more than what we want. Don’t want to disturb that. But let’s see how this plays out. One should never say never. But we have a certain target to sell and after that probably we’ll push the price up.
Abhinav Sinha
Okay. So the jump in realization. Qoq, there would be mostly mix maybe say higher floors or something.
Vikas Oberoi
Correct, Correct. The jump that you see within our is all factoring higher floors. You’re absolutely right.
Abhinav Sinha
Okay, got it.
Vikas Oberoi
The best part is. Good question. Sorry I first didn’t get your question. But the good part is that you know once the product is ready people are going on higher floors, realizing that the views are better and obviously willing to buy at a higher price which is giving them higher floors or whatever.
Abhinav Sinha
Right. So secondly on the project acquisition side, so I mean what are your thoughts there and which are the sort of areas you’re looking at from a location perspective.
Vikas Oberoi
So Abhinavino, we are constantly buying and constantly selling. Like you know, that’s really what our business is all about. We are evaluating more than 1,000 land proposals every year. And then obviously we have stringent what you call conditions through which we take each and every proposal. It has to meet all criteria. Once they do that then we are most happy to go ahead and close the deal. And we are currently, as far as cities go, we are only focusing on Mumbai and NCR and we want to, like I said that we are in no hurry.
We want to establish our sales in Gurgaon and then look at something new. And Mumbai, we continue to look at all good suburbs where you don’t have to push A product, there is a pull factor with location, with the quality of the product we make and then buyers come in. We don’t want to go in and go into weak locations.
Abhinav Sinha
Right. And sir, lastly in the South Bombay Society’s Tardeo redevelopment etc that we have two in Tardeo, one in Pedder Road. Are we looking at a launch this year or you think it’s more like early 26?
Vikas Oberoi
No, no. This year itself.
Abhinav Sinha
Okay, great. And all the best. Thank you.
Vikas Oberoi
Thank you.
operator
Thank you. Next question is from Parikshit Kanpal from HDFC Securities. Please go ahead.
Parikshit Kandpal
So because my question is what are the launches in Q2, Q3 and Q4. So I’m still not getting clarity when the launches will happen.
Vikas Oberoi
So you know, Q2 probably none. Q3 we will do boribly and Q4 we will do NCR, we will do, you know, Pedrode, Q4 we will do others maybe, maybe not. But these two for sure.
Parikshit Kandpal
Okay, but so one more tower in Elysian will not come. I mean this, not this quarter.
Vikas Oberoi
See, these are all, you know, like literally in our back pocket. Whenever I want to, you know, fill a quarter, I can sell that tower. Really?
Parikshit Kandpal
Second question on 360 West. Again, there’s some slowdown. I know it’s a quarterly kind of a thing, but how’s the pipeline there building out? And so do you think, I mean in coming quarters, significant momentum coming up on that?
Vikas Oberoi
Very well, I must say. And these are again, like I said, you know, they happen in, you know, sports and it will happen again. These are people who are traveling and you know, for holidays and things like that. Once they come back, they’ll again get back into action.
Parikshit Kandpal
Okay. And just lastly on the business development. So I mean some, I think one case is in the court right now. So any update on that and any other large layouts you are evaluating right now? Because I mean you have cash with you. So in this year, do you think any significant landings which could get finalized for the rest of the year?
Vikas Oberoi
Nothing obviously, like I said that we are evaluating a lot of land parcels but nothing that I can disclose today that you know. But a lot of activity around bd. Sometimes I feel I’m giving too much time to BD now.
Parikshit Kandpal
Okay, thank you. Those were my questions.
Vikas Oberoi
Thank you.
operator
Thank you. The next question is from Vishal Udwala for Trinetra Asset Managers. Please go ahead.
Vikas Oberoi
Hi Vishal.
Vishal Dudhwala
Hi, sir. Am I audible?
Vikas Oberoi
Very audible, yeah.
Vishal Dudhwala
So I just only have one question. So it’s on a macro side like overall realty has Consistently leveraged the Mumbai’s premium residential dynamics. But given the new DCPR norms, changing FSI regions and upcoming infra like Mumbai Metro and Coastal road. How are you calibrating launch timing and pricing strategy across micro markets?
Vikas Oberoi
Well, you know whatever you are saying is for the positive, right? So I mean the same product at the same price, better product I would say with better accessibility should actually the least is increase velocity of sale if not increase prices. So I think government’s done a great job today. From Bandra to naramanpoint you take 4, 14, 15 minutes. And the entire coastal road, the metro once it starts from Colaba to Bandra you will be in 30 minutes, 25 minutes and the quality of ride is beautiful. So I’d say that the city, it’s like a boost to cities revival I would say.
And like I said that the least is that the velocity of sales will go up even if the prices don’t go up. So the new areas that will come into play will get absorbed very quickly.
Vishal Dudhwala
Just a follow up question. Could be the product mix shifting towards mid income or down shifted assets.
Vikas Oberoi
You know we do all sorts of product. I mean we are doing you know two projects in Dhana which are aimed at middle income. Then we are doing Borrigli and Goregaon which is upper middle class. Then we are doing City which is for elite. So we have a mix of everything. And we are quite versatile in our approach to customers and we love that about ourselves.
Vishal Dudhwala
Okay, got your point. Like that’s it from my side. Thank you.
Vikas Oberoi
Thank you.
operator
Thank you very much. We’ll take that as the last question. I would now like to hand the conference over to Mr. Oberoy for closing comments.
Vikas Oberoi
Thank you all for taking time for this call. We really look forward to hearing from you on an ongoing basis. So please feel free to reach out to us, our investor relation team whenever you have any questions. Thank you again. Thank you guys. Have a good day ahead. Thank you.
operator
Thank you very much on behalf of Oberoi Realty. That concludes this conference. Thank you for joining us ladies and gentlemen. You may now disconnect your lines.