Oberoi Realty’s (OBER) consolidated 4QFY25 revenues/PAT were lower than estimates, while EBITDA margins stood at 53.7%. Pre-sales were muted at ~Rs 8.5bn, and driven largely by sustenance sales from TSW (~Rs 5.3bn) and Elysian (~Rs 1.1bn), with the remainder of sales coming from other ongoing projects.
Consolidated revenues were down 13% yoy to Rs 11.5bn (EE: Rs 14.8bn). Real estate revenues slipped 13% yoy/17% qoq while rental income grew 10% yoy/15% qoq. Consolidated EBITDA fell 22% yoy to ~Rs 6.2bn (EE: Rs 8bn), whereas EBITDA margins dropped to 53.7% (EE: 54.5%) from 60% in 4QFY24 and 60.7% in 3QFY25. Residential segment EBITDA margins stood at 54%, and rental business EBITDA margins at 90%. Consolidated recurring PAT tanked 45% yoy to Rs 4.3bn (EE: ~Rs 5.5bn). The JV profit share stood at ~Rs 2mn vs. ~Rs 28mn in 4QFY24 and ~Rs 27mn in 3QFY25.
OBER clocked pre-sales of ~Rs 8.5bn, implying a 47% yoy/56% qoq decline with no new launches during the quarter. TSW was the key contributor (~Rs 5.3bn), followed by Elysian (~Rs 1.1bn), Enigma (Rs 0.6bn), Jardin (~Rs 0.55bn), and Eternia (~Rs 0.4bn). Over the last 6-8 quarters, OBER has been on an aggressive BD acquisition spree; projects in Gurugram, Adarsh Nagar, select redevelopment sites, and Alibaug are slated for launch over the next 3-4 quarters. These, along with near-term launches, including (a) a tower in Goregaon, (b) one in Borivali, and (c) additional towers under the Thane project, set the stage for solid growth over the near-to-mid-term.
As per Equirus Securities OBER has a promising residential launch pipeline, strong annuity and hospitality portfolios, and a stable balance sheet. Maintain LONG with a Mar’26 TP of Rs 1,881.
OBER has a robust launch pipeline: a tower in Elysian, a tower in Borivali (a festive launch is likely), the Gurugram project, the Adarsh Nagar project, and some redevelopment projects. The company has seen strong BD additions, and with key launches falling in place, residential segment growth is set to gather steam. Healthy annuity and hospitality cashflows will further boost overall profitability. We maintain LONG with a SOTP-based Mar’26 TP of Rs 1,881 (vs Rs 2,230 earlier).
OBER’s leasing portfolio delivered revenue/EBITDA growth of 75%/62% yoy to ~Rs 2.7bn/~Rs 2.5bn, with the addition of Commerz III and higher occupancies. Hospitality segment occupancies were steady at 79%, with RevPAR at ~Rs 13,977 (Rs 12,348 in 4QFY24, Rs 12,910 in 3QFY25). Gross debt declined ~Rs 2.3bn to ~Rs 33bn (D/E: ~0.21x). Healthy cash flows from the annuity business and residential inventory should keep leverage under control.
