EMBDLNSEMay 29, 2026

Embassy Developments Limited

8,314words
99turns
10analyst exchanges
3executives
Management on call
Aditya Virwani
PROMOTER AND MANAGING
Sachin Shah
CHIEF EXECUTIVE OFFICER AND
Rajesh Kaimal
CHIEF FINANCIAL OFFICER
Key numbers — 40 extracted
INR2,632 crore
to report that Q4 FY '26 was the strongest quarter in our company's history. Q4 presales stood at INR2,632 crores, up 89% quarter-on-quarter. FY '26 presales increased to INR4,631 crores, up 128% year-on-year.
89%
'26 was the strongest quarter in our company's history. Q4 presales stood at INR2,632 crores, up 89% quarter-on-quarter. FY '26 presales increased to INR4,631 crores, up 128% year-on-year. Q4 FY '26
INR4,631 crore
. Q4 presales stood at INR2,632 crores, up 89% quarter-on-quarter. FY '26 presales increased to INR4,631 crores, up 128% year-on-year. Q4 FY '26 collections stood at INR577 crores, reflecting a 39% quarter-on
128%
d at INR2,632 crores, up 89% quarter-on-quarter. FY '26 presales increased to INR4,631 crores, up 128% year-on-year. Q4 FY '26 collections stood at INR577 crores, reflecting a 39% quarter-on-quarter g
INR577 crore
Y '26 presales increased to INR4,631 crores, up 128% year-on-year. Q4 FY '26 collections stood at INR577 crores, reflecting a 39% quarter-on-quarter growth and FY '26 collections from operations were INR1,6
39%
INR4,631 crores, up 128% year-on-year. Q4 FY '26 collections stood at INR577 crores, reflecting a 39% quarter-on-quarter growth and FY '26 collections from operations were INR1,673 crores. During F
INR1,673 crore
crores, reflecting a 39% quarter-on-quarter growth and FY '26 collections from operations were INR1,673 crores. During FY '26, we launched projects with a cumulative GDV of approximately INR16,300 crores a
INR16,300 crore
ere INR1,673 crores. During FY '26, we launched projects with a cumulative GDV of approximately INR16,300 crores across 6 different launches. We achieved approximately 93% of our FY '26 presales guidance of IN
93%
tive GDV of approximately INR16,300 crores across 6 different launches. We achieved approximately 93% of our FY '26 presales guidance of INR5,000 crores. The marginal shortfall was attributable to ap
INR5,000 crore
res across 6 different launches. We achieved approximately 93% of our FY '26 presales guidance of INR5,000 crores. The marginal shortfall was attributable to approval delays of one planned project in Bangalore
1 million
aunch called Embassy Eden from Q3. Embassy Citadel, our entry into South Mumbai luxury segment, a 1 million square foot development with an estimated GDV of over INR8,800 crores. The prelaunch achieved i
INR8,800 crore
to South Mumbai luxury segment, a 1 million square foot development with an estimated GDV of over INR8,800 crores. The prelaunch achieved in Q4 was INR797 crores at roughly 8% of inventory absorbed, validatin
Guidance — 20 items
Aditya Virwani
opening
“We achieved approximately 93% of our FY '26 presales guidance of INR5,000 crores.”
Aditya Virwani
opening
“The marginal shortfall was attributable to approval delays of one planned project in Bangalore that has now shifted to Q1 of FY '27.”
Aditya Virwani
opening
“And just to note, we only brought this product out in mid of February, giving us only 45 days to clock almost INR800 crores in this project.”
Aditya Virwani
opening
“This is largely a function of real estate revenue recognition accounting policy, under which income is recognized only on project completion and handover and reflect past project performance.”
Aditya Virwani
opening
“Given that most of our projects will have target OCs from FY '28 onwards, revenue recognition from these projects will flow primarily through '28 onwards as constructed progressively meaningfully.”
Aditya Virwani
opening
“We expect this profile to progressively normalize as projects move towards completion and revenue recognition accelerates.”
Aditya Virwani
opening
“On the FY '27 outlook, based on our launch pipeline, ongoing inventory sales and market momentum, we are providing the following FY '27 guidance.”
Sachin Shah
opening
“As construction milestones progress on these projects, we expect a meaningful contribution in operating cash flow generation in FY '27 and '28.”
Sachin Shah
opening
“Embassy Paradiso at Embassy Springs, it's 100% sold, 80% complete with target OC in FY '27.”
Sachin Shah
opening
“Embassy East Avenue in Whitefield Bangalore, 94% sold, 73% complete with target OC in FY '28.”
Risks & concerns — 1 flagged
I think we actually benefit the most from this because our pressure will sustain the most.
— Aditya Virwani
Q&A — 10 exchanges
Q
Yes, good morning everyone and thanks for the opportunity. My first question is on the launch pipeline. And if you could give some colour around the launch time lines. So let's say, the larger projects like Embassy One, Knowledge Park, the Whitefield and the Embassy Springs project. Yes, that's my first question.
Aditya Virwani
Hi Mohit, good morning, [inaudible 0:21:59] the projects that you refer to? Yes. No, I'm saying the larger ones like the Knowledge Park Villas and Apartments, Embassy Springs, the Whitefield project and Embassy One North Tower, these are the larger projects. What is the like if you could put it into quarters, which quarter do you expect them to get launched? Sure. So I'll just give you a flavour. The pipeline that we have of roughly 11 projects, INR19,000- plus crores in GDV is pretty scattered across the entire year. Embassy One North Tower, we've actually already got our building plan. So we
Q
Hi, good morning. Could you just help me understand this revenue recognition across we've got now 3 different business models in Embassy. You have the legacy Indiabulls project, that seems to be on the completion and handover basis. And then you have the development management that appears to be more on percentage of completion method, right? So I want to understand, did you just mention that the newer Bangalore and Mumbai projects how would that revenue be recognized? And I'm just trying to understand when will that start reflecting in the P&L?
Rajesh Kaimal
Yes. So the legacy projects, this is Rajesh here. The legacy projects of the erstwhile Indiabulls Real Estate is coming up for completion and as we get OC, we recognize the revenues. That is not only true for legacy projects, the legacy projects of Embassy, as well as Indiabulls Real Estate. The current launches where we just started construction, most of the purchase costs launched in Q3 and Q4 of last financial year is something that will get recognized from '28 onwards as we attain OC, give position to our customers and do substantial collection. That's when we recognize the revenue and the
Q
Hello. Good morning. Thank you so much for the opportunity. So my questions are regarding the Embassy Citadel project. So for the Citadel project, as I can see in the presentation, the completion date has been moved from 2032 to 2035. So, what's the reason for such a 3-year push?
Aditya Virwani
So that is just for our RERA filings. Our target date is '31 or '32, but we like to keep a little bit of a buffer also given that this is a large tower, our first large asset in Mumbai. And actually, it's also in line with the market norms. If you look at most 300-meter towers, they give a generous buffer on the RERA dates. Okay. Okay. But it is nothing as such there is lack of interest, right? The interest is reliable, right, in this project? It is really good. And honestly, if I have to tell you about Worli and all the supply there, we are positioned as a value proposition there, also given
Q
Good morning gentlemen. Thanks for the opportunity. Sir, my main question was to really understand our company that what are the top 3 milestone investors should track over the next 12 to 18 months, whether Embassy transformation is succeeding or not?
Aditya Virwani
Yes. So I think the top milestones that investors should focus on, is the presales. It's also backed by collections and the eventual reduction of cost of capital will eventually come down. So when we borrow this money to launch all these projects, and I hope everyone appreciates that we launched INR16,000 crores last year, we're launching close to INR20,000 crores this year. Now all that pipeline is on comparable terms of the largest listed developers in the country. And to do that, we needed a decent amount of equity to do it. So the raising of financing at slightly higher rates were what I t
Q
Hello. Thank you sir for taking the question. Sir, I just have two questions. So right now, what is the cost of debt currently for the company? And second one, at this price level, are the promoters thinking of upping their stake or buying from the open market? Thank you.
Rajesh Kaimal
The current cost of debt is around 14.8%. And Aditya mentioned, our endeavour in the next 12 to 18 months to bring this cost of capital down as all our project starts kicking in and cash flow starts picking up. Sorry, the second question, I didn't get correctly. Yes. So my question was that at this price level, are the promoters thinking of upping their stake in the company or buying from the open market? The price of shares today are still low. And we have a shareholder debt today along with Blackstone, we have a shareholder debt of INR1,100 crores, which we will convert to equity over a peri
Q
Yes. My question is regarding the land bank in Sohna. So whether that is located within master plan area or it's outside master plan? And what is the plan for this land?
Sachin Shah
So as I was mentioning before, the land is in the Aravalli, closer to Sohna, closer to the Aravalli Hills. Part of the land is forest land. Part of the land can be cultivated and be developed. We believe approximately 75 acres can be developed of this land. So we're working towards that, and we're putting a plan together on how we do that. But right now, with respect to kind of in our investor deck, we've just shown it as land because we're focusing on other high-priority projects right now. So I just asked because Sohna market is doing very well right now. So we can say peak the rates and eve
Q
Yes, hi. I have a question regarding your court case with KIADB, which says that the lease cum sale agreement ends in June 6, 2029. A year back, Embassy sold 25 acres parcel land to Lam Research from the same entity. What happens to this deal if the lease is not extended? Do we end up losing that revenue?
Aditya Virwani
So firstly, we didn't sell land to Lam Research. We subleased a portion of the land 25 acres to them, so just to clarify that. And mutually, we will go and get seek an extension, which is very normal in KIADB. In fact, we have seek extensions before the same land. So Lam Research is well aware that the current term ends in '29. If that project is not done by them and they are investing over $1 billion into a very high-end R&D fab. So if it's not executed by that time line, we will mutually seek an extension from KIADB, which is common practice. Okay. And I have a second question for you, I'd l
Q
Yes, hi sir. Congrats on a good launch and presales. Sir, my question is on the EBITDA margin steady state. I understand that we will recognize the revenue when the OC is received. So the question is, sir, given the pipeline surplus is looking like more than 50% of the GDV on a steady state, say, from FY '28 onwards, sir, how do we look at EBITDA margin, if possible, some range because right now, it's negative and last year was 21%. A good real estate company does give an EBITDA margin in the range of anywhere between 35% to 45%. So if you can give us some range on a steady-state EBITDA margin
Sachin Shah
Yes. So look, I'd like to again, EBITDA is a P&L item. And it again depends on what your revenue for that quarter or the year might be, which is again based on revenue recognition and as projects get built. I'd like to change our focus a little bit to the net surplus margin that we'll produce from our projects that we've launched and as we go into the future over the next 2 years. And we expect that to be close to 50% over the course of the next several years as these projects get delivered. And so we're really focusing on that kind of cash coming into our system that will eventually help us t
Q
Hello. Am I audible?
Sachin Shah
Yes. Congratulations on a good set of results and positive legal outcomes. My question is regarding the Nasik SEZ land for which the case is going on. And if there's a positive outcome of the land, then how we are going to monetize the property? Yes. So the first thing would obviously to have a positive outcome with MIDC and the government on this. The second thing that we are in the process of doing is basically doing a debonding exercise. So converting the land from SEZ to not having an SEZ status out here. We are already underway in that process. This will take several months to complete, b
Q
In closing, FY '26 has been a transition year, marked by the integration of the merged entity, an accelerated launch program and the resolution of legal overhangs. The reported P&L reflects the mismatch of revenue recognition timing and merger accounting, but the underlying operating fundamentals point to a platform with strong forward visibility on cash flow generation. We enter FY '27 with confidence in the strength of our launch pipeline and the strong balance sheet position to support our INR6,000 crores presales guidance and our INR3,000 crores collection target. With that, I'd like to cl
Rajesh Kaimal
Thank you. Thank you.
Speaking time
Aditya Virwani
18
Rajesh Kaimal
14
Moderator
12
Sachin Shah
12
Mohit Agrawal
7
Kapil Aggarwal
7
Reuben
5
Amish Kanani
5
Kevin Gandhi
4
Raghav
4
Opening remarks
Aditya Virwani
Good morning, everyone, and welcome to Embassy Developments Limited Q4 and FY '26 Earnings Conference Call. I'm joined today by Sachin Shah, our CEO and Executive Director; and Rajesh Kaimal, our CFO and Executive Director. Our investor presentation has been uploaded to the stock exchanges and is available on our company website. FY '26 has been a landmark year for Embassy Developments Limited, operationally, strategically and institutionally. It marked the first full year of the merged platform following the integration of NAM Estates and the erstwhile Indiabulls Real Estate Limited under the unified Embassy Developments brand. I'm pleased to report that Q4 FY '26 was the strongest quarter in our company's history. Q4 presales stood at INR2,632 crores, up 89% quarter-on-quarter. FY '26 presales increased to INR4,631 crores, up 128% year-on-year. Q4 FY '26 collections stood at INR577 crores, reflecting a 39% quarter-on-quarter growth and FY '26 collections from operations were INR1,673
Sachin Shah
Thank you, Aditya. FY '26 was a year of clear sequential ramp-up in operating performance as we accelerated launches and increased presales and collections over the quarters. To provide perspective on this trajectory, quarterly presales increased from INR198 crores to INR409 crores to INR1,392 crores over the first 3 quarters of the fiscal year before we finally closed at an impressive INR2,632 crores in Q4. Quarterly collections increased steadily from INR322 crores in Q1 to INR577 crores in Q4. The area sold increased from 206,000 square feet in Q1 to 1.78 million square feet in Q4. As construction milestones progress on these projects, we expect a meaningful contribution in operating cash flow generation in FY '27 and '28. Construction spend during FY '26 stood at INR1,182 crores, representing approximately 71% of collections, reflecting a capital deployment that's disciplined. During Q4, we made progress on delivering our projects as well. We submitted the OC application for 109 Ph
Rajesh Kaimal
Thank you, Sachin, and good morning, everyone. I will take you through the financial performance for the quarter and the full year ended March 31, 2026. The reported P&L for FY '26 reflects a timing mismatch inherent to the development business model and additionally carries the accounting consequences of the reverse merger treatment from the NAM-EDL combination. Reported numbers for FY '26. Revenue from operations stood at INR1,732 crores versus INR2,180 crores in FY '25. Total income of INR1,905 crores versus INR2,547 crores in FY '25. EBITDA, a negative INR300 crores versus INR531 crores positive in FY '25. PAT at a negative INR872 crores versus a positive INR194 crores in FY '25. As Aditya mentioned earlier, the reported numbers must be read in context of the following two points. First, the real estate revenue for RERA registered projects under Ind AS 115 is recognized on completed contract basis. The revenue from sale of residential units is recognized only on receipt of OC and o
← All transcriptsEMBDL stock page →