Revenue
Margin
Demand
Guidance
Tone
Metrics cut 2
- Adarsh Nagar launch timing cut to Q3 FY27 (from earlier Q2–Q3 FY27 guidance)
- Three Sixty North project GDV cut to ₹14,000 crores (from ₹16,000)
Event Participants
Executives
2 Saumil Daru, Vikas Oberoi
Analysts
9 Abhishek Lodhia, Akash Gupta, Gaurav Khandelwal, Harsh Pathak, Karan Khanna, Praveen, Pritesh Sheth, Puneet Gulati, Rahul Jain
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Gross bookings – Three Sixty North | ₹8,000+ crores | Record response to NCR launch; 1.4 msf sold in Phase 1 with all allocations completed; project GDV guided at ₹14,000 crores |
| Residential revenue recognized | ₹880 crores (Q1 FY27) | Lower than ₹1,300–1,400 crores average of prior three quarters; driven by possession/payment timing for finished units (Three Sixty West, Mulund), not demand |
| Residential operating margin | 51–52% | Versus 55% in prior three quarters; purely a function of revenue mix, with project margins ranging from 43–44% to 65%+; no cost overruns |
| Annuity portfolio occupancy | ~100% | Commerz I, II, III and Oberoi Mall operating at near-full occupancy |
| Sky City Mall occupancy | 82% | Completed first year of operations; Q4 FY26 revenue included one-time retailer true-up; management targeting ~100% occupancy within FY27 |
| Upcoming development property payments | ₹786 crores | Includes ~₹200 crores for NCR (Three Sixty North); balance toward other ongoing development projects |
Geographic & Segment Commentary
- Residential – MMR: Launch pipeline for FY27 includes Aurelius (Pedder Road), one tower each at Pokhran Road and Kolshet (Thane), and an Alibaug project; Adarsh Nagar expected in Q3 FY27, with Nirmal Lifestyle (Mulund) possible in Q4 if approvals arrive within 3–4 months. Three Sixty West off-take slowed to 1 unit in Q1 FY27 (from 4 units in Q2 FY26), with the erstwhile landowner/partner also selling inventory; Eternia realizations in Mulund crossed Enigma during the quarter.
- Residential – NCR: Three Sixty North (Gurugram) launched as the company's first project outside MMR, generating ₹8,000+ crores of gross bookings on 1.4 msf sold. Total project size is 2.6 msf carpet area (net, excluding IREO customers), with the balance to be launched as Phase 2 in FY28; management wants Gurugram to become a bigger market than Mumbai over time and has expanded business development focus to Noida and Gurugram.
- Annuity / Commercial: Commerz I, II, III and Oberoi Mall at ~100% occupancy; Sky City Mall at 82% after year one, targeting ~100% within FY27. Management advised a few more quarters before the mall reaches steady-state revenue.
- Hospitality: Ritz-Carlton is 80–90% complete on interiors, with readiness expected by end of FY27.
Company-Specific & Strategic Commentary
- NCR Expansion: Three Sixty North marks a strategic milestone in diversifying beyond MMR; management called business development "an everyday job" and is evaluating opportunities across Noida and Gurugram, prioritizing land, location, and growing markets with sufficient parcel size.
- Execution Scale-Up: Management stated it has "cracked the code" on volume and quality, citing ~18 towers of 60–65 floors under construction simultaneously, with a solid contractor ecosystem and systems in place; the company is at a "tipping point" for its next phase of expansion.
- Pricing Strategy: Proactive, planned price hikes with built-in contingencies rather than reactive increases; resale transactions in Borivali and Goregaon are setting new benchmarks ahead of company pricing, supporting continued escalations without demand disruption.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Adarsh Nagar launch | Q3 FY27 | Awaiting IOD and as-built approvals; management typically builds in a cushion of one quarter |
| FY27 launch pipeline | Aurelius (Pedder Road), two Thane towers (Pokhran Road, Kolshet), Alibaug; potential Mulund in Q4 | All named projects targeted within FY27; Mulund contingent on approvals within 3–4 months; no FY28 launches announced |
| Three Sixty North Phase 2 | FY28 | Balance of 2.6 msf to be launched after show apartment readiness; timing, pricing, and phasing to be decided based on construction progress and market reaction |
| Ritz-Carlton completion | End FY27 | 80–90% of interior work complete; final-mile finishing underway |
| Sky City Mall occupancy | ~100% within FY27 | Currently 82%; ramp-up continuing after first year of operations |
| Annual sales potential | ₹10,000–12,000 crores (FY27–FY28) | Analyst-estimated run-rate endorsed by management, which said sales could go "maybe even beyond" that; driven by NCR Phase 1 (₹8,000+ crores already booked) plus balance NCR and Mumbai pipeline |
Risks & Constraints
| Risk | Context |
|---|---|
| Litigation – Three Sixty North | Ongoing legal matter; management declined to comment on merits citing prejudice. No customers have sought refunds — EOI depositors are actually refusing refunds and waiting for cancellations — but an adverse outcome could affect project reputation and timelines |
| Revenue recognition volatility | Q1 residential revenue of ₹880 crores vs ₹1,300–1,400 crores prior run-rate reflects timing of possession and customer payments, not demand; quarterly P&L recognition can remain lumpy when finished inventory is being sold |
| Three Sixty West off-take slowdown | Sales fell to 1 unit in Q1 FY27 from 4 units in Q2 FY26; partner sales are absorbing some inventory, but pace of residual inventory monetization remains a watch item |
| Execution at scale | Ramping to higher volumes across ~18 high-rise towers (60–65 floors) and a new geography (NCR) carries execution risk; management asserts its contractor base and systems are proven |
Q&A Highlights
Sales Sustainability and Margin Outlook
- Question: Can the company sustain ₹10,000–12,000 crores of annual sales at 50%+ margins once Phase 2 launches in FY27–FY28, and will Phase 2 be sold in one go like Phase 1? (Praveen – Morgan Stanley)
- Answer: Phase 1 was opened fully to honor all customers, and the project is already financially closed; Phase 2 will launch only next year after internal discussions on timing and pricing. Margins depend on land acquisition, product strategy, and market approach — not sales volume. "We have cracked the code" on volume and quality. (Vikas Oberoi)
Litigation Status and Adarsh Nagar Timeline
- Question: What is the progress on litigation, and are customers asking for refunds? Where do approvals stand for Adarsh Nagar? (Puneet Gulati – HSBC)
- Answer: Management cannot comment on litigation merits due to prejudice. Customers are refusing refunds of EOI deposits and waiting for cancellations. Adarsh Nagar is expected in Q3 FY27 (vs earlier Q2–Q3 guidance), pending IOD and as-built approvals. Ritz-Carlton is 80–90% complete on interiors, ready by end FY27. (Vikas Oberoi)
Cash Flow Allocation and Margin Mix
- Question: Is the ₹786 crores paid toward upcoming development properties mostly for Three Sixty North, and what drove the residential margin down to 51–52%? (Gaurav Khandelwal – JP Morgan)
- Answer: Only ~₹200 crores of the ₹786 crores relates to NCR; the balance is for other projects. Margin variation is purely a function of revenue mix — project margins range from 43–44% to 65%+ — with no incremental cost impact since budgets include contingencies. (Saumil Daru)
NCR Project Size and Business Development
- Question: Does the 2.6 msf project size remain unchanged, and is all of it RERA-approved? How should we think about NCR business development given half the project is sold? (Pritesh Sheth – Axis Capital)
- Answer: The 2.6 msf is net effective area available to Oberoi, excluding IREO customers; Phase 1 covered the RERA-approved portion, and the balance will be launched upon approval. Business development is an everyday job — "we also know how to play this volume game," with similar action expected across other projects. (Saumil Daru; Vikas Oberoi)
FY27 Launch Pipeline and Three Sixty West
- Question: Beyond Adarsh Nagar, what launches are planned, and how should we read Three Sixty West's slowing off-take? (Akash Gupta – Nomura)
- Answer: Aurelius (Pedder Road), one tower each at Pokhran Road and Kolshet (Thane), and Alibaug will all launch within FY27. Three Sixty West flats are also being sold by the erstwhile partner, so momentum should resume. Revenue recognition for finished projects (Three Sixty West, Mulund) depends on possession/payment timing, which caused the Q1 dip; the order book is intact. (Vikas Oberoi; Saumil Daru)
Allotments and Court Ruling
- Question: Are all allotments for the ₹8,000+ crores of bookings completed? (Rahul Jain – Elara Capital)
- Answer: Yes, all allocations are done — "completely distanced from the court ruling." (Saumil Daru)
NCR Ambition and Pricing Power
- Question: What BD discussions support Gurugram becoming bigger than Mumbai, and what price hikes have been taken to absorb cost inflation? (Karan Khanna – Ambit Capital)
- Answer: BD focus has expanded to Noida and Gurugram with emphasis on land, location, and growing markets with enough parcel size; NCR has "width and depth." Pricing is proactive and planned with constant, pre-announced hikes; resale markets in Borivali and Goregaon are setting new benchmarks ahead of company prices, so there is no knee-jerk reaction to inflation. (Vikas Oberoi)
Launch Phasing and NCR GDV
- Question: Which projects will launch in FY27 vs FY28, and will the entire balance NCR inventory be launched in one go? (Harsh Pathak – Motilal Oswal)
- Answer: All named projects are in FY27; Mulund could be added in Q4 FY27 if approvals arrive within 3–4 months. Project GDV is ₹14,000 crores (not ₹16,000). Phase 2 phasing will be decided after the show apartment is ready, considering construction progress and market reaction; it will certainly be offered next year. (Vikas Oberoi)
Execution Capacity and Sky City Mall Revenue
- Question: How will execution scale with the value-plus-volume strategy, and why didn't Sky City Mall revenue rise with occupancy? (Abhishek Lodhia – Antique Stock Broking)
- Answer: The company is constructing ~18 towers of 60–65 floors with a strong team and external partners — "we've hit some sort of a tipping point" for expansion. Sky City Q1 revenue was lower because Q4 FY26 included a one-time true-up for all retailers since launch; a few more quarters are needed to judge steady-state revenue. (Vikas Oberoi; Saumil Daru)
Key Takeaway
Oberoi Realty delivered a landmark Q1 FY27 with the launch of Three Sixty North in Gurugram — its first foray outside MMR — generating gross bookings of over ₹8,000 crores on 1.4 msf sold, achieving financial closure for the project and setting up Phase 2 (balance of 2.6 msf; ₹14,000 crores GDV) for FY28. Residential revenue recognized dipped to ₹880 crores from a ₹1,300–1,400 crores run-rate purely on possession/payment timing, while residential margins normalized to 51–52% (from 55%) on project mix. The annuity portfolio remains at ~100% occupancy, with Sky City Mall at 82% and targeting full occupancy in FY27. Management guided to a full FY27 launch pipeline — Adarsh Nagar (Q3), Aurelius Pedder Road, two Thane towers, Alibaug, and potentially Mulund — with the Ritz-Carlton completing by year-end. With ~18 high-rise towers under construction and NCR business development actively pursued, management believes it has "cracked the code" on scaling volume without sacrificing margins; litigation around Three Sixty North and lumpy revenue recognition remain key watch points.