Oberoi Realty Q4 FY26: Higher project revenues and annuity scale-up

Oberoi Realty ended FY26 with higher consolidated scale across both its development and annuity businesses. Revenue from operations rose to Rs 6,009 crore in FY26 from Rs 5,286 crore in FY25. Net profit for the year came in at Rs 2,507 crore compared with Rs 2,226 crore in FY25.

The quarter also showed strong momentum. Q4 FY26 revenue from operations was Rs 1,750 crore, up from Rs 1,150 crore in Q4 FY25. Net profit in Q4 FY26 stood at Rs 703 crore.

A key feature of the year was a healthier mix between lumpy project revenue and steadier rental income. Project revenue still remained the biggest contributor, but rental revenue expanded meaningfully and the company continued to scale its newer annuity assets.

FY26 performance by revenue lines

In FY26, project revenue was Rs 4,456 crore, while rent revenue increased to Rs 1,190 crore from Rs 869 crore in FY25. Hospitality revenue was broadly stable at Rs 197 crore. Property management revenue grew to Rs 121 crore.

The consolidated operating margin remained strong. Adjusted operating margin (including indirect expenses and overheads) was 60.07% in FY26 versus 62.94% in FY25. Net profit margin for FY26 was 39.77%.

Investment properties: Commerz III scales up; Sky City Mall ramps up

The annuity portfolio continued to strengthen. In FY26, the investment properties segment (commercial and retail combined) reported operating revenue of Rs 1,129 crore with an EBITDA margin of 91% and overall occupancy of 85%. Commercial occupancy was 91% and retail occupancy was 70%.

Commerz III remained the key driver of the commercial story. In Q4 FY26, Commerz III reported occupancy of 98%, with EBITDA margin around 90%. FY26 average occupancy for Commerz III was 89%, up from 69% in FY25, reflecting the asset’s leasing ramp-up.

Retail continued to show a two-speed performance. Oberoi Mall operated at near-full occupancy (99% average for FY26). Sky City Mall, which is newer, showed a faster leasing trajectory during the year, with Q4 FY26 occupancy at 72% (FY26 average 58%). On the earnings call, management said the mall crossed 72% occupancy within its first year of operations and guided to 100% occupancy by March 31, 2027.

Hospitality performance was stable. The Westin Mumbai Garden City reported FY26 operating revenue of Rs 198 crore and EBITDA margin of 42%, with FY26 occupancy at 77% and average room rate at Rs 16,142.

Development properties: granular project dashboards and continued bookings

The presentation provided project-level disclosures across key developments including Elysian, Jardin, Forestville, Eternia, Enigma, Sky City, and Three Sixty West.

In FY26, total sales value across key projects was Rs 5,447 crore and total revenue recognised was Rs 4,437 crore. In Q4 FY26, total booking value across key projects was Rs 1,673 crore and revenue recognised was Rs 1,303 crore.

Elysian (Goregaon) remained a major contributor. In FY26, it recorded gross booking value of Rs 2,446 crore and revenue recognised of Rs 1,745 crore. Sky City continued to progress with a mix of deliveries and new releases. The company noted that occupation certificate had been received for Sky City Towers A to D and Tower E, with further towers at advanced stages.

A notable balance sheet point discussed on the call was the build-up in other current liabilities. Management clarified that this largely represents billed amounts where revenue is yet to be recognised in the P&L, which should unwind over time.

Business development and launches: MMR expansion and Gurugram entry

The strategic highlight for the year was business development momentum. Management said FY26 included business development activity of close to 4 million square feet of potential development across the Mumbai Metropolitan Region. This included Bandra East, Aram Nagar Versova, and multiple South Mumbai redevelopment agreements.

The company also highlighted that it emerged as the highest bidder for RLDA land in Bandra East with a potential of 19.50 lakh square feet. Management indicated it is inclined toward a strata sale-led strategy for the RLDA project (mix between sale and hold not yet decided), citing strong market interest from large occupiers.

On new launches, management outlined a busy pipeline. It indicated planned launches in Q1 including Three Sixty North in Gurugram, Oceanic at Carter Road, Fairview at Malabar Hill, and Forestville Tower D. Additional launches discussed included Jardin Tower A and Ralliwolf Mulund in Q2, with Adarsh Nagar expected around Q3.

Costs, leverage, and what to track next

Management acknowledged an increase in construction input costs, citing energy, aluminium, glass, and labour. It quantified overall cost inflation at about 2% to 3%, while stating that project contingencies should absorb the impact in the near term.

Balance sheet metrics remained conservative. Gross debt to equity stood at 0.16 in FY26 (0.21 in FY25) and net debt to equity was negative at -0.01.

For investors, the next set of monitorables are clear from management commentary and project disclosures. First is execution on the launch pipeline, especially approvals and timelines. Second is leasing momentum at Sky City Mall toward the 100% occupancy target by March 2027. Third is the pace of monetisation choices for the RLDA Bandra East development, given management’s stated preference for a sale model.

FY26 showed a blend of higher consolidated profits, rising rentals, and expanding development optionality. The company’s near-term narrative now hinges on converting a large pipeline into launches and cash flows while navigating moderate cost inflation.