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Subdued operations amid strong profitability

Operational performance – 2QFY26

* In 2QFY26, OBER achieved pre-sales of INR13b, down 10% YoY and 21% QoQ (7% below our estimate), wherein ~62% was contributed by Elysian and 360 West. In 1HFY26, bookings stood at INR29.4b, up 18% YoY.

* Volumes were down 9% YoY / 29% QoQ to 0.25msf (16% below estimates). In 1HFY26, volumes stood at 0.6msf, up 24% YoY.

* Total units booked in the quarter stood at 158, which was flat YoY and down 13% QoQ. In 1HFY26, a total of 339 units were booked, up 14% YoY. ? An interim dividend was declared for 2Q at INR2/sh, i.e., 20% of face value.

* OBER was ranked No. 1 globally among listed residential developers in the high-rise multifamily category, earning a 5-Star rating and a perfect score of 100 in its second year of participation in the GRESB Real Estate Assessment.

* Overall, the annuity portfolio delivered a 47% YoY revenue growth to INR2.8b with an EBITDA margin of 92%.

* Office: Occupancies at Commerz-I and -II were stable at 96%. Commerz3 occupancy increased to 87% from 83% QoQ, resulting in a revenue growth of 38% YoY to INR1.3b. This brought the total office revenue to INR1.8b (+29% YoY), leading to an EBITDA margin of 91%.

* Retail: Oberoi Mall delivered a 7% YoY increase in revenue to INR522m at an EBITDA margin of 99%, while Sky City Mall delivered revenue of INR452m with an EBITDA margin of 92%. Oberoi Mall was 99% occupied, while Sky City was 53% occupied.

* Hospitality: In 2QFY26, The Westin hotel witnessed a 2% YoY growth in revenue to INR446m, although there was a 9% YoY increase in ARR of INR13,735. Occupancy was at 80% in the quarter, from 82% YoY and 72% QoQ. EBITDA came in at INR177m with a margin of 40%.

Cash flow performance

* Collections stood at INR13.5b, up 12% YoY and 36% QoQ (25% below our estimates).

* The company turned net cash during the quarter.

P&L highlights

* In 2QFY26, revenue was up 35%/80% YoY/QoQ to INR17.8b (25% above estimates). In 1HFY26, OBER’s revenue stood at INR27.7b, up 2% YoY.

* The company reported an EBITDA of INR10.2b for the quarter, up 25%/96% YoY/QoQ (12% above estimates), while the margin contracted 4% YoY to 57%. In 1HFY26, OBER reported an EBITDA of INR15.4b, down 5% YoY.

* PAT in the quarter was up 29%/80% YoY/QoQ to INR7.6b, which was 19% above our estimates. In 1HFY26, PAT stood at INR11.8b, flat YoY.

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