Oberoi Realty vs Sobha Q4 FY26

OB

Oberoi Realty

Q4 FY26 · Infrastructure

Oberoi Realty reported strong operational momentum in Q4 FY26, driven by robust booking at Ellesian Gore and high occupancy at Sky City Mall (72%) and Commerce 3 (98%). The company announced business development of ~4 million sq ft across MMR, including a 2 million sq ft project in Bandra East and redevelopment deals in South Bombay. Management outlined an ambitious launch pipeline for FY27, including 360 North in Gurugram, Oceanic, Fair View, Forest Wheel Tower D, Jardin Tower A, and Alibag. Key risks include rising construction costs (2-3% increase) due to the West Asia crisis, which is eroding contingencies, and potential demand slowdown in ultra-luxury segments as seen in 360 West. The company expects double-digit sales growth in FY28, contingent on timely launches and approvals.

Guidance read

Launch of 360 North in Q1 FY27: Planned launch of 360 North in Gurugram with 5,000+ and 8,000+ sq ft apartments; L&T appointed as contractor. Sky City Mall 100% occupancy by FY27-end: Management expects mall occupancy to reach 100% by March 2027, up from current 72%. RLDA project strata sale model: RLDA will be primarily a sale model (50-60% sale) rather than lease, with potential for faster repayment of land dues. Tardev pre-sale launch in FY27: Pre-sale portion of Tardev redevelopment to launch in Q3 or Q4 FY27.

Risk read

Key risks include Rising construction costs — Costs increased 2-3% due to West Asia crisis, impacting energy, aluminum, glass, and labor; contingencies being eroded.; Slowdown in ultra-luxury demand — 360 West sold only 10 units in FY26 vs 17 in FY25, indicating potential demand weakness at high price points.; Execution risk in new market (Gurugram) — 360 North is Oberoi's first project in Gurugram; management was vague on pricing and strategy, raising uncertainty..

Promise ledger

Scorecard data is being built as historical quarters are processed.

SO

Sobha

Q4 FY26 · Diversified

Sobha reported record full-year pre-sales of ₹8,136 crore, up ~30% YoY, driven by strong performance in Bangalore (₹4,500 crore) and NCR (₹2,450 crore). Q4 revenue recognition improved to ₹2,300 crore aided by delayed occupancy certificates, with EBITDA of ₹194 crore and PAT of ₹92 crore. The company ended the year net cash positive with gross debt of ₹2,200 crore and cash of ₹1,800 crore. Management guided for similar ~30% pre-sales growth in FY27, targeting launches of ~10 million sq ft (GDV ~₹15,000 crore), including the large Hoskote project (5.3 msf, GDV ₹7,000 crore). EBITDA margins are expected to improve to 24-26% in H2 FY27 as higher-margin projects complete. Key risk: input cost inflation from geopolitical tensions could pressure margins if not offset by price increases.

Guidance read

Pre-sales growth of ~30% in FY27: Management expects similar growth rate as FY26, with 45-50% from sustenance and 50-55% from new launches. Launch ~10 million sq ft in FY27: Planned launches include Hoskote phase 1 (5.3 msf), Gurgaon Crescent, and projects in Kerala, Bangalore, Pune, Chennai. EBITDA margin improvement to 24-26% in H2 FY27: Higher-margin projects nearing completion will drive margin expansion in Q3/Q4 FY27. Net operating cash flow target of ₹2,000 Cr in FY27: Aiming to generate ₹2,000 crore from operations, up from ₹1,637 crore in FY26.

Risk read

Key risks include Input cost inflation from geopolitical tensions — Commodity price increases may impact margins; management is in wait-and-watch mode and may not fully pass on costs.; Demand slowdown due to AI/IT sector concerns — Analyst raised concern about IT client mix in Bangalore; management noted steady demand but acknowledged uncertainty.; Delays in project approvals and launches — FY26 launches were delayed; FY27 target of 10 msf depends on timely approvals, especially for Hoskote.; Geopolitical uncertainty impacting NCR demand — Rivana launch in March faced uncertain environment; sustained sales momentum needs monitoring..

Promise ledger

Scorecard data is being built as historical quarters are processed.