Oberoi Realty Ltd Q1 FY27 Earnings Analysis

- FY27-FY28 expected to deliver double-digit growth in sales, supported by a strong launch pipeline (Page 7). - Launches planned in FY27 include Three Sixty North, Carter Road Oceanic, Forestville Tower D, Jardin Tower A, Ralliwolf Mulund, Adarsh Nagar, Enigma (commercial), Aurelius on Pedder Road, and potentially RLDA project (Page 6). - Borivali free sale component launch expected within next three to four quarters to add momentum (Page 6). - Residential projects are positioned to cater to various price segments to expand buyer base without cannibalization (Page 5). - Despite some slowdown in luxury segment (e.g., Three Sixty West), inventory holding creates monopoly and expected to regain momentum (Page 8). - RLDA project has lucrative IRR prospects, with focus on strata sale model to drive cash flow (Page 9). - Mall occupancy expected to reach 100% by end of FY27 (Page 11).

- FY27-FY28 expected to deliver double-digit growth in sales, driven by a strong launch pipeline including Three Sixty North, Carter Road Oceanic, Forestville Tower D, Jardin Tower A, Ralliwolf (Mulund), Adarsh Nagar, Enigma, Aurelius on Pedder Road, RLDA, and Borivali SRA projects. - Contingencies are built into budgets to handle cost inflation (energy, aluminum, glass, labor), aiming to protect margins and earnings. A 2%-3% cost increase is anticipated but manageable without affecting bottom line currently. - Potential for additional cash flow management through strata sales at RLDA to optimize finance costs and accelerate project payback. - Launches and sales momentum at premium projects like Three Sixty North expected to improve, with anticipation of faster sales velocity given market demand and lack of competition. - Overall, cautious optimism with a focus on execution, cost control, and diversified project sales to support earnings growth.

- Most land parcels, including RLDA, do not require upfront cash payments; payment timelines extend up to 2038. - Only a small component involves upfront payment; the rest is linked to revenue generated or deferred to a much later date. - No major immediate cash outlay anticipated for land acquisitions in the current projects. - Contingencies are built into budgets to accommodate cost increases, with an overall expected cost rise of 2%-3% planned for FY27. - Ongoing and planned projects include significant launches across multiple locations, such as Three Sixty North in Gurugram, Torre D at Forestville, Jardin Tower A, and projects in Borivali and Malabar Hill—indicating strategic investment in development pipeline. - Progress on redevelopment and acquisition (e.g., Horizon Hotel Private Limited) reflects future capital allocation priorities.

- Oberoi Realty does not foresee major upfront cash outlay for land acquisitions in FY27 as most land parcels, including RLDA, have payment schedules extending to 2038. - There is no explicit mention of upcoming equity fundraising in the transcript. - For RLDA, the company is mindful of the discount rate (~10.75%) and cost of debt and may explore options like strata sale to repay obligations faster rather than holding the asset longer or solely relying on debt. - No clear current/future plans for raising debt have been detailed, but the company indicates a preference to optimize financing cost and may consider debt once the assets are operational. - Overall, the company is cautious but open to financing strategies that balance cost and cash flows, including sales of strata and possibly debt refinancing.

- Oberoi Realty has announced business development activities totaling close to 4 million square feet of development potential across various locations in Mumbai Metropolitan Region (MMR). - Key land parcels include 11 acres in Bandra East and 2 million square feet in Aram Nagar-Versova. - Redevelopment agreements are underway with societies in South Bombay, including Pedder Road, Malabar Hill, and Nepean Sea Road. - The company has acquired possession of Horizon Hotel Private Limited property as of May 7, 2026. - Multiple launches are planned for FY27, including projects like Three Sixty North (Gurgaon), Carter Road Oceanic, Malabar Hill Fairview Tower D, Jardin Tower A, Ralliwolf Mulund, and Adarsh Nagar. - There is also a potential launch for the RLDA project within the year. - Several projects are in advanced stages awaiting approvals to commence construction and sales.