Oberoi Realty Limited (NSE: OBEROIRLTY) Q4 2025 Earnings Call dated Apr. 29, 2025
Corporate Participants:
Unidentified Speaker
Saumil Daru — Executive Director, Chief Financial Officer
Vikas Oberoi — Chairman & Managing Director
Analysts:
Unidentified Participant
Puneet Gulati — Analyst
Parikshit Kandpal — Analyst
Rahul Jain — Analyst
Abhinav Sinha — Analyst
Murtuza Arsiwalla — Analyst
Kunal Lakhan — Analyst
Praveen Choudhary — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Oberoi Realty Q4FY25 earnings conference call. We have Mr. Oberoi, the chairman and Managing Director of the company and Mr. Soumil 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 Stars and 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 over the conference call to Mr. Oberoi, the chairman and Managing Director of the company. Thank you. And over to you sir.
Vikas Oberoi — Chairman & Managing Director
Thank you. Good morning, good afternoon, good evening to all of you as per the time zone which you have logged in. And welcome to the conference call of Q4FY 2025 results and business updates. Thank you all for taking the time out for this call. Before I begin, I would like to share with you some of the quick business updates. I’m happy to announce that we have recorded our highest ever annual consolidated revenue of 5,286 crores and the highest ever annual booking value of over 5281 crores for Q4FY 2025. The quarter was driven by steady sustenance of residential sale.
We also especially the soft launch of Sky City Mall in Borivilli which we received an overwhelming response from both consumers and our retail partners. Our commercial portfolio including Commerce3 continues to attract marquee tenants reflecting robust office leasing demand. Ivan Realty entered into a transaction for 1250 crores of infusion by a private equity investor for 21.74% stake. Currently we are gearing up for the upcoming Elysian Tower Delaunch which happens to be tomorrow. The initial response basis the EOI that we’ve received seems to be extremely robust with This I will now open the floor for questions and answers and both Somil and I will be very happy to take your 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 their 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from the line of Puneet from hsbc. Please go ahead.
Vikas Oberoi
Hi Puneet.
Puneet Gulati
Thank you. So hi. Hi Vikas. Thank you for the opportunity and best wishes for your upcoming launch. Can you also talk about the other launches that you’re planning for the year in terms of boring release, tower X, other projects, what should one build in as expected timeline for those.
Vikas Oberoi
So obviously, you know, Borivilli is likely to be launched this year. We are looking at more of the festive season to launch that. The next quarter pretty much is a washout because, you know, it’s monsoon and we personally don’t prefer doing any launches around that quarter. So it will be in Diwali and so are other projects. Some of these are lined up in.
Puneet Gulati
The.
Vikas Oberoi
They are all lined up in the second half of this year. And you know, there are many projects. We will sequence them out. We have quite a few redevelopment projects in the city which we will line up and they’ll all, you know.
Puneet Gulati
Yeah, okay. And on the Sky City soft launch, what is the trading occupancy now and how do you expect it to ramp up in net 526?
Vikas Oberoi
So you know, firstly it’s an absolutely, a soft launch. We also wanted to get used to handling people, the traffic, the, you know, the, the transportation, you know, how the cars get in, cars get out, security, all of that too. So we’ve not done a single ad, not a single promotion. We just wanted stores to start opening. Virtually four or five stores are opening pretty much every day. You know, like that close to 3, 400 to go. And I feel we’ll have a decent critical mass by June. And that’s when we really start, you know, that’s when we really start monitoring all this.
But the social media impact has been tremendous. I mean, you know, unheard of. And the demand from retailers has like shot up. Like how, I mean now they are running after us for them to close these deals. So like really been a revelation and we ourselves are surprised at the potential that location has.
Puneet Gulati
So it’s not fully leased. I was under the assumption it would be fully leased. There is still some
Vikas Oberoi
very substantially leased and we obviously like, you know, we want our numbers, we want to get a particular rental that we were expecting and we are getting that much and more now. So our strategy was to show the product in its glory. And now once you know what people see they really are very motivated.
Puneet Gulati
So can you talk about expected rentals both in place and what are you getting now?
Vikas Oberoi
So you know, different sizes, different floors, different. I mean we have rentals up to 1000 rupees a square foot on carpet area. So I mean you know like between 400 and thousand rupees, it’s something like that. So, so it all depends on who’s coming in. We’ve got a very nice gold soup kind of a special area where we have got all jewelers there. We’ve got very high end watches in one segment. So very interesting. This is literally one of the best malls I would say in the country. The way it’s designed and the feedback that we get.
It’s really, really nice. And these are these signed thousand rupees carpet. These are deals signed.
Puneet Gulati
Okay, yeah, great. That’s all from my head. Thank you so much and all the best.
Vikas Oberoi
Thank you.
operator
Thank you. We’ll take our next question from the line of Parikshit Kanpal from HDFC Securities. Please go ahead.
Parikshit Kandpal
Hi sir. Hi. Congratulations on a decent quarter. My first question is on the luxury demand. So large part of our portfolio resides in the luxury segment. So what kind of footfalls? Have you seen any slowdown in the Q4 quarter and is it continuing in this quarter? So if you can give some sense on the color on the demand and footfall and conversion especially on 360 west and other printing projects.
Vikas Oberoi
So you know I’ll be very well positioned to answer this question tomorrow because this is luxury only. It goes out for sale and like looking at the eoi it just doesn’t look like, I mean, you know people, I am embarrassed to say that there’s a queue of people waiting to book today for the launch tomorrow. You know, I mean we had people actually starting to line up today in the morning and we had to tell them that it’s not today, it’s tomorrow. And they’re saying yeah, we know it’s tomorrow but we still want to wait.
So something like that. Having said that you would have seen our results last quarter. We’ve sold apartments for 200 plus crores in 360 West. So again luxury is agnostic to the economy. I feel people who have the money have the money and who want to live a particular lifestyle don’t care for a single quarter going up or down as such. So I don’t see any slowdown at all. I mean, at least we don’t even feel that in the luxury segment because.
Parikshit Kandpal
Last time you mentioned that you look to sell out 360 in two years. This year we did about 1800 crores and we still have the current rate, approximately 5000 crores of unsold inventory. So now what time frame you’re looking to run this down?
Vikas Oberoi
You know, I have this joke. I tell everybody that when I, when I took inventory of 360 west, we valued at an X price and we have sold 50% of that and still that remains to be X. So it’s not a bad position to be in. Right?
Parikshit Kandpal
Right.
Vikas Oberoi
Yeah. So that’s it. Yeah, it’s today. 150,000 rupees a square foot on carpet. And you know, our acquisition or whatever that cost.
Parikshit Kandpal
Got it. Because of the launches. I mean you just really touched on that, that your planning for H2 launches. So if you can also quantify which ones will come in H2 1, we know that you open the star more and easily. So beyond the second quarter nothing’s happening. So third and fourth, if you put some numbers. So which are the problem launches you’re looking at, if you can specify.
Vikas Oberoi
So you know, the easiest to predict is our the next hour. Again, these are large areas, so that’s one. And then we have three projects in the city, so we line up that as well. And then we have Gurgaon happening. So we will do that also. So a lot, I mean very well laid out and things that we know we can easily achieve.
Parikshit Kandpal
But Adeshnegar will happen this year or it’s most probably moving into next year. So only one project in Gaublom
Vikas Oberoi
happen this year.
Parikshit Kandpal
Okay. And just the last question, on this land in Khan, which is the one which is opposite to the Jardin one. So anything will open up this year in the other part of the land parcel which is a bigger parcel of 60 acres plus or is it in.
Vikas Oberoi
The bigger land parcel? We start work on the mall, we’ll start work on the hotel and we’ll start work on the school. So like what we did with Gore Gaon, we are going to build social infrastructure and there again we’ve launched, we’ve only launched two towers. We’ve got three more towers to launch and we are looking at maybe some different Configuration or different size so that itself is there for us to do. And like I said then on the other larger side we will do the mall, the hotel and the school to begin with.
Parikshit Kandpal
That is at least two years away then the larger land parcel for launch. And before you run down these three towers, I mean, you know, it all.
Vikas Oberoi
Depends on you know, demand and flow. And we could probably do next year, it may not be two years. This year we will just do these, we may, we will launch rather one more tower basis. You know, the demand and this is how things go. We launch one more tower.
Parikshit Kandpal
Thank you. Thank you.
Vikas Oberoi
Thank you,
operator
thank you. We’ll take our next question from the line of Rahul Jain from Elara Capital. Please go ahead.
Vikas Oberoi
Hi Rahul. Hi sir.
Rahul Jain
Thanks for the opportunity. So a couple of questions. First one sir, on the sales strategy, I mean you closed the year at 5300 crores with a solid growth of nearly plus 30%. But I think given your product offerings and your brand positioning you would have clearly done much more than that. So how should we look at your sales strategy going forward given substantial number of pipeline of projects coming through. So is it a conscious decision to. Stop at 25, 30%?
Vikas Oberoi
You know, see firstly let me tell you, I don’t want to comment on other people but our sales are backed by a lot of money that we ask for. I could very easily take 5%, 10% and give them literally like an option to buy and then pay me once I am at this level or once I am at that level. That kind of sales. I personally don’t even consider it as sales. And you know, a little whiff here and there, there are cancellations and all that happens. So for us we are very clear, we are not averse to volumes.
Obviously I’d love to go to 10,000 crores tomorrow but I want them to be backed by the money that we ask or demand. So those things are very important for us and profitability is very important for us. And you know, this is how we want to grow. And we know our focus is on building rent yielding assets. Our focus is on really on profitability and sustainability. We don’t want to be, you know like a fly by night company coming just try to capture the market. And then today we are in an inflatory economy. So many uncertainties.
Put all that together, I feel the way we cost our business versus the risk involved, I think they are doing a good job.
Rahul Jain
Got it sir. And second one, I think you have closed, you have built a substantial pipeline over the last Three years. In terms of bd, are you seeing that kind of opportunities lately as well in terms of business development opportunities? And if you can just give us some flavor on in terms of whether this would be more diversified. I mean you’ve built a diversified pipeline but are you seeing a new entry into new micro markets or markets for that matter?
Vikas Oberoi
So you know, frankly we are. So we treat business development as a separate vertical in our office and they are always and constantly looking at opportunities. We don’t set a target and follow. We go and chase every deal and whatever makes sense, we close it. Really. We are so well capitalized that we can actually do a lot more. But then the idea is to make sure that we do deals that are profitable in nature. We just don’t want to just go and buy for the heck of buying. And that’s why we’ve not been carried away by the market or whatever.
We are very, very focused, very conscious of what we buy. And yeah, that’s what we exactly want to continue to do. As far as micro markets, like I said that we’ve put our foot in Gurgaon. We want to see how this plays out. We want to first start development there, see how the market response is. We are in this for the next hundred years. So I know we have enough time and we want to do it the right way and we want to understand, learn the market, whatever. We are not in any big hurry. We are looking at opportunities and unless we get the right opportunity, we won’t jump in.
Rahul Jain
Got it sir. Thanks.
operator
Thank you. Before we take the next question, would like to remind participants to press star and one to ask a question. The next question is from the line of Abhinav Sinha from Jefferies, India. Please go ahead.
Vikas Oberoi
Hi Abhinal.
Abhinav Sinha
Hi sir. Hi. A couple of questions for one, the deal that we had on the Ivan Oasis project in Worldi. I just want to hear your thoughts on how we are thinking about the product timelines and also why will you seek out a PE while our own cash flows are pretty strong?
Vikas Oberoi
Okay, so basically we want to build a high end shopping mall, an office building and a hotel on top. A very small hotel on top. This is what we are going to build. Hopefully we should build this within the next three, three and a half years. And we want to build an iconic marquee building. The reason why we took private equity is, you know, we now have a third party between me and ORL because I’m also a small stakeholder in the company. I didn’t want it to, I Mean, you know, so that sets the arm length rule also for all of us.
We have three partners, everybody puts in proportionately and all of that. So that’s really what I wanted to do. And again, AlphaBave is a great partner, very happy to associate with them and yeah.
Abhinav Sinha
Will you look to exit in your own personal capacity later or not thought about that yet?
Vikas Oberoi
No, no, not at all, not at all. You know, frankly, you are so right. Neither my company nor I need that kind of money. So we are okay to continue for now.
Abhinav Sinha
Right. The second question on pricing. So we had, you know, good price jumps taken last quarter in several of our projects. How are we looking at pricing now in the next, let’s say 12 odd months? And how are you pricing LECN D Tower also?
Vikas Oberoi
So you will know that tomorrow it’s very attractively priced and it’s a good product. You know, both C and D are identical in terms of, you know, they’re like one or two floors behind each other. I don’t know how many of you know, but we are on probably the 27th level at Tower D. So this is one project where we are literally one, one and a half year from topping up and yet this thing, you know, so it’s great. I mean this is where we are. But pricing otherwise, again, you know, we are, we literally manage our portfolio like how a revenue manager sits in his hotel and tries to sell his rooms.
So we want to be optimum and we want to be sensitive to what the markets are, what the replacement costs are and so on and so forth. And that’s how we price it, our own input cost, all these things also matter.
Abhinav Sinha
Right. The last question on the Gurgaon ideobit, so are there any legal or approval challenges there that you foresee say in the next six months before we can launch the product? And what is the product you are thinking about also at this point?
Vikas Oberoi
So, you know, we are looking at high end luxury and it’s very similar to what we are doing. Maybe a smaller version of 360, it will start with 5,000 or so and it will go up to 7,500, 8,000. So literally that sort of product, it’s high end, high quality and it’s very well designed. We really like it.
Abhinav Sinha
Right. And approval wise,
Vikas Oberoi
Approval wise, we constantly keep getting approval. So there’s really no challenge. We’ve got a few approvals in the past, you know, maybe a few weeks ago and the rest of them are also in place. So we are on a good wicket there.
Abhinav Sinha
Okay, so building Plans are filed already.
Vikas Oberoi
Yeah, they are being filed as we speak. We’re taking our tod. We are doing all of that TOD in principle. Approval is in place. We got that approval now we are getting the final approval. So on and so forth.
Abhinav Sinha
Okay, thanks and all the way.
Vikas Oberoi
Thank you.
operator
Thank you. We’ll take our next question from the line of Murtazar Sivala from Kotak Securities. Please go ahead.
Murtuza Arsiwalla
Yeah. Hi sir. Just to check, would you like to put out a number in terms of a sales target that you would be looking for or ultimately you know, building blocks of the various projects, you know, how much would you expect to put to low engineering out of some of the larger projects? Adarsh Nagar, Gurgaon, etc. So any building blocks for these sage number for next year that you would have a target that you would like to share.
Vikas Oberoi
You know, Muthuzha much that I would love to. I somehow don’t feel comfortable because you know whenever a promoter says something the markets take it really seriously. And you know there are. There are many slip between the lip and the sip. So I don’t want to put a number. You guys are very good at all that and you all are very close to the numbers that end up, you know, we end up achieving. So I leave that guesswork to you. I don’t want to do that. I’ll work hard and I’ll try and do whatever I can.
Murtuza Arsiwalla
Sure. And some. Just a question for you on the rental business is something that I happen to glance. Ron, you know when you look at the operating margin. This is on slide 8 of your presentation. It’s 97% for a large part of last year versus 90% ish in this year. Anything to read on that number is just ramping up or this is on.
Vikas Oberoi
This is on the rental side, right? On the office side.
Murtuza Arsiwalla
Yeah, on the rental side. On the rental side. That’s right.
Vikas Oberoi
You know we just had the launch of Commerce 3. So basically whatever is the what you can say the cam on the unleashed area that comes through as a hit.
Murtuza Arsiwalla
You know that’s acting as a drag. So once the occupancy stabilizes we should look at 95% plus. Once again, thank you so much.
Vikas Oberoi
Thank you.
operator
Thank you. The next question is from the line of Kunal Lakhan from clsa. Please go ahead.
Vikas Oberoi
Icon on.
Kunal Lakhan
Thank you for taking the question. Sukhas. Any color on the Alibaba launch?
Vikas Oberoi
Well, designing in progress. Thank you for asking. I thought, you know, it’s a small project. People don’t remember but yeah, yeah, having fun designing it. And first cut is out, but still work in progress and yeah, waiting for the right design to happen and then we’ll quickly get after it.
Kunal Lakhan
Sure. And this is more like a FY27 launch.
Vikas Oberoi
It could be, you know, end of this year. Lot of work is happening in multiple ends, you know, and you all will be surprised. We are finally working on many ends. So yeah, we would try to do it in, you know, maybe the second half of this year also. But here we want to first do the sample villa. We want to do a restaurant. This is a Ritz Carlton hotel and villas. So we want to do a restaurant managed by Ritz and then do a show villa and then call people and all that, give them a complete feel and flavor of what they will be buying into.
Kunal Lakhan
Sure. Understood. My second question was on, you know, in terms of Thane. Right. I mean, we’ve seen the traction in Q4. How should we look at like, you know, you bringing in incremental inventory? I understand the second land parcel you’ll launch maybe a few years out once you have the school, the mall and the hotel ready, but. Or rather up and running. But in terms of timelines. Right. How should one model in terms of the inventory that you bring to the market year after year?
Vikas Oberoi
So frankly, we were very pleasantly surprised with the response we got from Jardish. And that was a huge positive. Work is happening at great speed. We now put in this social infrastructure in place. The entire, I would say the infrastructure of Thane is like really getting transformed with the way the metro and all of that is working. Roads have always been immaculate in Thane. So given all that, I feel Thane looks very promising. We are there for the long run. There’s no doubt about that. You’ve seen how we have made a location out of every project that we put, whether it’s a 25 acre or 100 acre.
So we’re really good at it. And the more time we get on any location, we can really transform the location and transform the pricing. So internally we joke that we ideally would love to take Thane the Goregaon way. So imagine the growth that Goregaon saw in terms of pricing and profit. We would love to take Thane that way. And I may not be out of place to say that we genuinely see potential with the linkage that Thane now has from burglary and Boregaon. It will really transform. You’ll be really surprised to see all of that.
The infrastructure is transformational and we are, we feel, you know, our bets are in the right place.
Kunal Lakhan
Sure, sure. And my second question was on your you had taken an approval for the equity raise of 6,000 crores. I mean I understand you take Annabelle resolution every year but going by what your peers have been doing in terms of raising equity and buying land, would you be this time around you’d be seriously considering the raise of equity or it’ll be like how it’s been in the previous years.
Vikas Oberoi
So frankly very opportunity driven. We are always open. I mean whenever we feel we need the money we’ll be right mix of debt and equity and we will use every opportunity to take advantage of the enabling resolution we’ve taken.
Kunal Lakhan
Understood. Thank you. And all the best Vikas.
Vikas Oberoi
Thank you. Thank you.
operator
Thank you. Next question is from the line of Praveen Chowdhury from Morgan Stanley. Please go ahead.
Vikas Oberoi
Hi Praveen.
Praveen Choudhary
Thank you. Hi Vikash. Hi Somil. Thank you for taking my question. Most of the questions that I actually asked before my turn came so I’m just going to add nuanced question if it’s okay with you. What was the QIP outlook where you were thinking of a lot of land acquisitions. Can you talk a little bit about your outlook towards that? I can see that you’re doing a lot of project at the same time, development, et cetera, which is extremely good and launches in the next one year is very good. But in terms of backfilling that business development strategy, that’ll be great.
And the second question if I May is on 360West every quarter we are getting 2, 3 at a very good price. So it’s extremely helpful. Is the demand enough to make it going towards 4, 5 a quarter, 6, 7 a quarter. And I know that you can’t predict it but I’m just wondering what are you seeing from a demand perspective. Thank you.
Vikas Oberoi
Okay, so I’ll take your second question first. So you know the good thing about 360 west is that today it’s become a community. It’s no more just a fancy, good, well designed, well executed project. Today you have people living in there and that’s the game changer I feel really people don’t understand that but I clearly see the power of that project, not what we built. Okay. It was the initial attraction but today people want to go where people have already gone. So it’s become a cult product by itself and that people have taken it. So I should really be thankful to all the people who live there and then most of the people who want to be there because these other people live There so very powerful tool for us.
And that gives me the confidence that the numbers will continue to increase and we will obviously be done with our sales. And then we will also benefit because we have another project in the closed vicinity of this project. Our endeavor is to take all the learnings of this project and make that a 2.0 version of 360 West. So we bring something new, we bring things that are done well, all our learnings and introduce that project. So as far as demand for luxury, there is super appetite. Suddenly people are consuming more square feet per person than what people did earlier.
It’s heartening to see very large bathrooms, wardrobe spaces, bedrooms. So per person consumption per square foot has gone up like big time. So that’s a great thing for us. And like I said, given the community that has gotten into that building, it’s a big attraction on the land acquisition. We continue to be very hungry and we are looking at opportunity where be required to put in big money. We would love to leverage our strong balance sheet. Our own promoter holding is high so one can really bring in money into the company and into the QIP and really going for large acquisitions.
And I think that opportunity could be could be this year. So we continue to be on top of this as well.
Praveen Choudhary
Very, very helpful color. If I could just follow up with one more question which is a bit more bigger picture. We saw some sentiment changing around early part of this year as macro was slightly weaker than today. But we are not out of works globally with US, China, US India or all the tariff situations. What’s your general view? It’s not a property question. It’s just a general India situation and macro situation because we are all so intertwined. Thank you. That’s it for me.
Vikas Oberoi
So again I feel that India is well placed. It’s not just me. In fact, everybody in the world says that India has got only to gain from this. And we are led by such an able prime minister who is really playing his cards well. And our positioning in the world has only continued to improve. So I feel that India will net be a beneficiary to whatever happens. And if you really see the amount of export we do, if you really see the dependency India has on other countries barring oil is very little. We are inward economy and you know, we.
I think we very smartly outplayed everybody. Yeah, we really played that well. So I don’t see any strong headwinds when it comes to India. Yes, the world is very intertwined and things happening in the US or China will matter a little. But they won’t be destabilizing India. So in the long run, I’d say in fact, even in the medium long run, I see India go very, very strong. And this is a time for us to all really the manufacturing industry needs to manufacture, the service industry needs to, to be on top of its game. And we as a real estate company are so locally driven that we will benefit out of all these other economies growing well within the country.
Praveen Choudhary
That’s again very, very good helpful answer because and all the best for tomorrow and also for the year other launches.
Vikas Oberoi
Thank you, Praveen. Thank you.
operator
Thank you ladies and gentlemen. We’ll take that as the last question for today. I would now like to hand over the conference call over to Mr. Oberoi for closing comments. Over to you sir.
Vikas Oberoi
Thank you all for taking time after this call. We look forward to hearing from you on ongoing basis. Please feel free to reach out to me or our investor relationship team or Somil for any questions that you have. Thank you again.
operator
Thank you on behalf of Oberoid Reality. That concludes this conference call. Thank you for joining us. And you may now disconnect your lines.