Robust launch pipeline for FY27…
About the stock: Oberoi Realty Limited (OBEREA), is a Mumbai-based premium real estate developer focused on residential, office, retail and hospitality verticals.
• It has almost ₹ 15,000 crore inventory across seven ongoing residential projects.
• It is developing office, retail and hospitality assets at Borivali, Worli and Thane.
Investment Rationale:
• Strong launch pipeline built for FY27: The company has built a strong launch pipeline for FY27 which includes 1) 360 North, Gurugram (maiden project), 2) Oceanic, Carter road 3) Fairview, Malabar Hill 4) Tower D, Forrestville 5) Tower A, Jardine 6) Ralliwolf Mulund, 7) Enigma commercial strata sale 8) Pedder road 9) Adarsh Nagar, Worli, 10) Alibaug 11) Bandra, RLDA and 12) Borivali SRA project. The company acquired ~4 msf across MMR comprising 1) RLDA, Bandra east (19.5 lsf) 2) three redevelopment projects – 1) Aram Nagar, Versova (17.18 lsf) 2) Pedder road (1.40 lsf) 3) Malabar Hill (0.51 lsf). It also received approval from NCLT for resolution plan submitted to acquire Horizon Hotel and has received possession in Q1FY27.
• Annuity assets see steady rise in occupancies: The company saw lease rentals rising by ~18% YoY and ~36% YoY during Q4FY26 and FY26 to ₹ 321 crore and ₹ 1191 crore respectively. Occupancies saw steady improvement across its portfolio viz Sky City Mall (72% Vs 50% in Q1FY26), Commerz II (100% Vs 96% in Q4FY25) and Commerz III (98% Vs 81% in Q4FY25). It expects Sky City Mall to achieve 100% occupancy by FY27 end. Further, its hospitality business saw steady revenue growth of ~3% each during Q4FY26 and FY26 at ₹ 55 crore and ₹ 198 crore respectively. It plans to open Marriott Hotel, Sky City during H1FY28 and Ritz Carlton, Worli during FY27. It has applied for renewed CC for I-Ven land parcel where it plans to mixed-use development (80-room hotel under ‘Aman’ brand, residential and mall).
Rating and Target Price
• Oberoi realty is expected to recoup the lost opportunity in FY27 in terms of new launches. Adhering to launch timeline and signing of new business developments remain key monitorable.
• We retain Buy on the stock with a revised SOTP based price target of ₹ 2080 (factoring newly acquired projects).
