Oberoi Realty Limited (OBER) reported weak pre-sales in the third quarter of FY26, totaling approximately Rs 8.4 billion, down 56% year-on-year and 36% quarter-on-quarter, largely due to the absence of new launches. However, the company’s leasing portfolio and annuity cash flows provided resilience, supporting overall profitability.
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Operating Performance:
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Consolidated revenues rose 6% yoy to Rs 14.9 billion, below estimates of Rs 19.3 billion.
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EBITDA remained flat at ~Rs 8.6 billion, with margins at 57.4%.
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Reported PAT stood at Rs 6.2 billion, up 1% yoy, despite an exceptional loss of Rs 231 million.
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Other income grew 40% yoy to Rs 691 million, while JV profit contribution improved to Rs 94 million.
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Pre-Sales Trends:
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Sales were led by TSW (~Rs 2.7bn), followed by Eternia (~Rs 1.4bn), Elysian (~Rs 1.2bn), Sky City (~Rs 0.91bn), Enigma (~Rs 0.9bn), Jardin (~Rs 0.8bn), and Forestville (~Rs 0.5bn).
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The near-to-mid-term launch pipeline remains strong, with upcoming towers in Borivali, Goregaon, NCR, Peddar Road, and Thane.
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Leasing & Hospitality:
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Leasing revenues surged 33% yoy to ~Rs 3 billion, with EBITDA up 36% yoy to ~Rs 2.8 billion.
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Mature assets operated at 95%+ occupancy, Commerz III at ~90%, and Borivali Mall is expected to cross 90% soon.
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Hospitality revenues held steady at ~Rs 557 million, with RevPAR rising to Rs 13,764.
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Debt & Cash Flows:
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Gross debt declined by ~Rs 1.3 billion qoq to ~Rs 28.8 billion, translating into a leverage of 0.17x.
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Strong annuity and hospitality cash flows are expected to keep leverage under control.
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Equirus Research maintained a LONG rating on Oberoi Realty, with a revised SOTP-based target price of Rs 1,833 for Dec’26 (vs Rs 1,948 earlier), citing steady annuity income and a healthy launch pipeline as key drivers for medium-term growth.
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