Embassy Developments Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Embassy Developments Ltd filed with BSE on 16 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Embassy Developments reported Q1 FY27 presales of Rs 868 crore, up 338% year-on-year, and collections of Rs 496 crore, up 54% year-on-year, while revenue from operations fell to Rs 217 crore from Rs 681 crore a year earlier due to project completion accounting. The company posted a net loss of Rs 234 crore for the quarter compared with a net loss of Rs 166 crore in Q1 FY26, and management said no new projects were launched in the quarter as a deliberate choice. The Board approved a preferential allotment of convertible warrants to promoter Embassy Group to repay outstanding shareholder debt, and management reiterated FY27 guidance of Rs 6,000 crore in presales from owned developments, Rs 2,000 crore from development management projects, and approximately Rs 3,000 crore of collections.
Numbers mentioned
Presales: INR868 crores (Q1 FY27)
p. 3
“Presales for Q1 stood at INR868 crores, which is up 338% year-on-year, while collections more importantly, increased 54% to INR496 crores.”
Aditya Virwani, page 3 of the filed PDF · View the filing
Collections: INR496 crores (Q1 FY27)
p. 3
“Presales for Q1 stood at INR868 crores, which is up 338% year-on-year, while collections more importantly, increased 54% to INR496 crores.”
Aditya Virwani, page 3 of the filed PDF · View the filing
Revenue from operations: INR217 crores (Q1 FY27)
p. 7
“During Q1 FY27, revenue from operations stood at INR217 crores compared to INR681 crores in Q1 FY26.”
Rajesh Kaimal, page 7 of the filed PDF · View the filing
Total income: INR241 crores (Q1 FY27)
p. 7
“Total income was INR241 crores versus INR694 crores in the corresponding quarter last year.”
Rajesh Kaimal, page 7 of the filed PDF · View the filing
EBITDA: negative INR106 crores (Q1 FY27)
p. 7
“EBITDA for the quarter was negative INR106 crores compared with positive INR2 crores in Q1 FY26.”
Rajesh Kaimal, page 7 of the filed PDF · View the filing
Net loss: INR234 crores (Q1 FY27)
p. 7
“Consequently, the company reported a net loss of INR234 crores compared with a net loss of INR166 crores in the corresponding quarter last year.”
Rajesh Kaimal, page 7 of the filed PDF · View the filing
Gross institutional debt: approximately INR4,500 crores (as of June 30, 2026)
p. 7
“As of June 30, 2026, our gross institutional debt stood at approximately INR4,500 crores, while cash and cash equivalents were approximately INR1,200 crores, resulting in net institutional debt of approximately INR3,300 crores and a net debt to equity of 0.35x.”
Rajesh Kaimal, page 7 of the filed PDF · View the filing
Construction spend: INR276 crores (Q1 FY27)
p. 5
“Construction spend during the quarter was INR276 crores, representing approximately 56% of collections.”
Sachin Shah, page 5 of the filed PDF · View the filing
Cumulative unsold inventory: INR13,630 crores
p. 6
“we now have INR13,630 crores of cumulative unsold inventory across residential and commercial launches, providing a strong basis for future collections, cash flows and revenue recognition.”
Sachin Shah, page 6 of the filed PDF · View the filing
Outstanding shareholder debt: INR1,063 crores (as on date)
p. 7
“As on date, the outstanding shareholder debt stands at INR1,063 crores, INR700 crores from Blackstone and INR363 crores from Embassy Group.”
Rajesh Kaimal, page 7 of the filed PDF · View the filing
Average cost of debt: around 14%
p. 12
“So, our average cost of debt is around 14% and we are looking to reduce the cost of debt as all the projects progress and collection kicks in.”
Rajesh Kaimal, page 12 of the filed PDF · View the filing
Blackstone debt interest rate: 18%
p. 12
“We are paying Blackstone at a rate of 18%.”
Rajesh Kaimal, page 12 of the filed PDF · View the filing
Operating cash flow: negative INR285 crores (Q1 FY27)
p. 10
“we had -- in the first quarter, since we didn't launch any projects, we had a negative operating cash flow of INR285 crores.”
Rajesh Kaimal, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Presales from owned developments — INR6,000 crores · FY27
stated firmly by Aditya Virwani
p. 4
“We remain comfortable with our FY27 guidance of INR6,000 crores in presales from the owned developments, INR2,000 crores from the developed managed projects and approximately INR3,000 crores of collections.”
Aditya Virwani, page 4 of the filed PDF · View the filing
Presales from development management projects — INR2,000 crores · FY27
stated firmly by Aditya Virwani
p. 4
“We remain comfortable with our FY27 guidance of INR6,000 crores in presales from the owned developments, INR2,000 crores from the developed managed projects and approximately INR3,000 crores of collections.”
Aditya Virwani, page 4 of the filed PDF · View the filing
Collections — approximately INR3,000 crores · FY27
stated firmly by Rajesh Kaimal
p. 7
“We remain on track to deliver our FY27 collections guidance of approximately INR3,000 crores.”
Rajesh Kaimal, page 7 of the filed PDF · View the filing
New project launches — 4 of 11 projects · Q2 FY27
stated firmly by Aditya Virwani
p. 4
“We expect to launch 4 of these 11 projects in the current quarter, which is Q2.”
Aditya Virwani, page 4 of the filed PDF · View the filing
Net debt to equity — 0.3x to 0.35x
stated as an aspiration by Rajesh Kaimal
p. 13
“We think our debt-to-equity ratio based on the future launches as well will be in the region of 0.3x to 0.35x net debt to equity is what we are targeting.”
Rajesh Kaimal, page 13 of the filed PDF · View the filing
Embassy Knowledge Park commercial product clarity — clear timelines, GDV and surplus · by end of fiscal year
stated as an aspiration by Aditya Virwani
p. 11
“we feel by end of the fiscal, we will come out with clear timelines, clear GDV, clear surplus of what that project will entail.”
Aditya Virwani, page 11 of the filed PDF · View the filing
Nashik land debonding process — completion of debonding exercise · 6 to 9 months
stated conditionally by Sachin Shah
p. 12
“My sense is the debonding process will from today still take probably another 6 to 9 months to get completed.”
Sachin Shah, page 12 of the filed PDF · View the filing
Cost of debt reduction — March, April next year
stated conditionally by Aditya Virwani
p. 13
“we did INR4,600 crores of presales last year. I feel very confident we'll hit our INR6,000 crores of our own projects guidance this year. And when you look at that and look at the amount of receivables the company will have, we will, at some point, March, April next year, go and refi the whole portfolio.”
Aditya Virwani, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the delay was not due to regulatory issues but a deliberate rebranding decision after terminating the Four Seasons tie-up, and confirmed Embassy One North tower and Embassy Knowledge Park are targeted for Q2.
Answered by Aditya Virwani
Asked by Kartik Subramaniam: Are Bangalore project launches shifting from Q1 to Q2 due to RERA and building plan delays, similar to peers?
p. 9
“We just intentionally didn't want to do it. And you might have seen the news that this was earlier branded as a Four Seasons part of the hotel, which is owned by Embassy REIT.”
Aditya Virwani, page 9 of the filed PDF · View the filing
CFO said Q1 had negative operating cash flow due to no new launches, but collections should improve from Q2 as projects launched in H2 FY26 progress.
Answered by Rajesh Kaimal
Asked by Rusmik Oza: What were the operating cash flows for Q1 versus the EBITDA loss, and what is the outlook for the year?
p. 10
“we had -- in the first quarter, since we didn't launch any projects, we had a negative operating cash flow of INR285 crores.”
Rajesh Kaimal, page 10 of the filed PDF · View the filing
Management said four projects (North tower, Juhu, and two Knowledge Park launches) fall in H1, with the rest targeted for H2, mainly Q3 with possible spillover to Q4.
Answered by Aditya Virwani
Asked by Rusmik Oza: How will the INR19,400 crore FY27 launch GDV split between H1 and H2?
p. 11
“those 4 projects I named will be in the first half and everything else will be in the second half.”
Aditya Virwani, page 11 of the filed PDF · View the filing
Management said average cost of debt is around 14%, Blackstone debt carries 18% accrued interest, and the plan is to first refinance to lower cost before reducing overall debt as collections increase.
Answered by Rajesh Kaimal
Asked by Kevin Gandhi: What is the current cost of debt, including the Blackstone rate, and what is the roadmap to reduce total debt of INR4,500 crore?
p. 13
“So, it's basically the projects which will pay for this debt. And our first priority is refinance the debt to a low cost and then try and repay the debt over a period of time.”
Rajesh Kaimal, page 13 of the filed PDF · View the filing
Management said most of the INR3,000 crore collection guidance will come from already-launched ongoing projects, with new launches contributing a smaller share.
Answered by Aditya Virwani
Asked by Amish Kanani: Is the FY27 collections guidance dependent on new launches, or driven mainly by ongoing project execution?
p. 15
“I would say most of our INR3,000 crores collections will actually come from the ongoing projects that are already launched because they start hitting a period where milestones bring home far more cash.”
Aditya Virwani, page 15 of the filed PDF · View the filing
CFO said the transaction does not add liquidity but signals promoter confidence and stops the accumulating shareholder debt from growing further.
Answered by Rajesh Kaimal
Asked by Amish Kanani: Why was the promoter preferential warrant allotment needed if the debt was not a cash outflow?
p. 16
“this is basically a promoter conversion – this is -- and this is just to give confidence. So, this debt was growing at upwards of 15% because the interest was getting accrued.”
Rajesh Kaimal, page 16 of the filed PDF · View the filing
CFO said the company is actively considering the suggestion and will review it over coming quarters.
Answered by Rajesh Kaimal
Asked by Amish Kanani: Can the company consider percentage-of-completion accounting instead of completion accounting to better reflect profits?
p. 17
“We are actually actively exploring this suggestion. And we will review it over the next couple of quarters and make the required changes if needed.”
Rajesh Kaimal, page 17 of the filed PDF · View the filing
CFO said accounting standards do not permit provisioning for anticipated future costs without specific reason.
Answered by Rajesh Kaimal
Asked by Vinayak: Can the company take a one-time provision for expected future losses instead of reporting losses across multiple quarters?
p. 17
“accounting standards don't permit us to make a provision without a reason in anticipation of costs.”
Rajesh Kaimal, page 17 of the filed PDF · View the filing
Risks flagged
Delay in Bangalore planning authority approvals following change in state government leadership
p. 8
“Bangalore has been a little problematic because when the new government or the change in Chief Minister happened, unfortunately, the GBA, which is a planning authority has not been able to sit for meeting”
Aditya Virwani, page 8 of the filed PDF · View the filing
Timing mismatch between operating performance and reported financial results due to completion accounting
p. 4
“Given the nature of our completion accounting, there can be a significant timing difference between our operating performance and our reported financial results.”
Aditya Virwani, page 4 of the filed PDF · View the filing
Nashik land bank monetization delayed by multi-agency debonding process and legal intervention
p. 12
“The debonding exercise requires us to go through 5 different agencies, government agencies.”
Sachin Shah, page 12 of the filed PDF · View the filing
Fragmented, scattered land parcels outside Nashik requiring significant capital and time to aggregate
p. 11
“They need a lot of capital to make whole, cheese holes that need to be bought, access that needs to be purchased.”
Aditya Virwani, page 11 of the filed PDF · View the filing
Lingering market perception issues in NCR linked to the erstwhile Indiabulls brand and merger terminology
p. 15
“Here and there, some people are a little bit asking that question. It will just take a little bit of time because I think this whole -- the terminology of merger has confused people.”
Aditya Virwani, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.