Embassy Developments Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Embassy Developments Ltd filed with BSE on 29 May 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 Q4 FY'26 presales of INR2,632 crores, up 89% quarter-on-quarter, and FY'26 presales of INR4,631 crores, up 128% year-on-year, while posting a reported PAT loss of INR872 crores due to revenue recognition timing under Ind AS accounting. Management guided to FY'27 presales of INR6,000 crores from own projects plus INR2,000 crores from development management projects, and collections of approximately INR3,000 crores. The company also reported favourable outcomes in two legal matters, the NCLAT setting aside the CIRP proceedings related to Canara Bank and the Karnataka High Court setting aside the KIADB resumption order on land at Kadugodi.
Numbers mentioned
Q4 FY'26 Presales: INR2,632 crores (Q4 FY'26)
p. 3
“Q4 presales stood at INR2,632 crores, up 89% quarter-on-quarter.”
Aditya Virwani, page 3 of the filed PDF · View the filing
FY'26 Presales: INR4,631 crores (FY'26)
p. 3
“FY '26 presales increased to INR4,631 crores, up 128% year-on-year.”
Aditya Virwani, page 3 of the filed PDF · View the filing
Q4 FY'26 Collections: INR577 crores (Q4 FY'26)
p. 3
“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.”
Aditya Virwani, page 3 of the filed PDF · View the filing
Revenue from operations: INR1,732 crores (FY'26)
p. 6
“Revenue from operations stood at INR1,732 crores versus INR2,180 crores in FY '25.”
Rajesh Kaimal, page 6 of the filed PDF · View the filing
EBITDA: negative INR300 crores (FY'26)
p. 6
“EBITDA, a negative INR300 crores versus INR531 crores positive in FY '25.”
Rajesh Kaimal, page 6 of the filed PDF · View the filing
PAT: negative INR872 crores (FY'26)
p. 6
“PAT at a negative INR872 crores versus a positive INR194 crores in FY '25.”
Rajesh Kaimal, page 6 of the filed PDF · View the filing
Gross institutional debt: approximately INR4,100 crores (as of March FY'26)
p. 7
“As of March FY '26, our gross institutional debt stood at approximately INR4,100 crores with cash and cash equivalents of around INR1,100 crores, resulting in net institutional debt of approximately INR3,000 crores.”
Rajesh Kaimal, page 7 of the filed PDF · View the filing
Net debt to equity ratio: 0.3x (as of March FY'26)
p. 7
“Our net debt to equity ratio stood at 0.3x while gross debt equity was at 0.4x.”
Rajesh Kaimal, page 7 of the filed PDF · View the filing
Cost of debt: around 14.8% (current)
p. 13
“The current cost of debt is around 14.8%.”
Rajesh Kaimal, page 13 of the filed PDF · View the filing
FY'26 Launch GDV: approximately INR16,300 crores (FY'26)
p. 3
“During FY '26, we launched projects with a cumulative GDV of approximately INR16,300 crores across 6 different launches.”
Aditya Virwani, page 3 of the filed PDF · View the filing
Embassy Citadel prelaunch sales: INR797 crores (Q4 FY'26)
p. 3
“The prelaunch achieved in Q4 was INR797 crores at roughly 8% of inventory absorbed, validating that both the product positioning and the pricing strategy is one of India's most competitive luxury markets.”
Aditya Virwani, page 3 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.
FY'27 Presales — INR6,000 crores from own projects plus INR2,000 crores from DM projects, totalling INR8,000 crores · FY'27
stated firmly by Aditya Virwani
p. 4
“A presales of INR6,000 crores from our own projects, representing a 30% year-on-year growth, along with an additional INR2,000 crores from the DM projects totalling INR8,000crores.”
Aditya Virwani, page 4 of the filed PDF · View the filing
FY'27 Collections — approximately INR3,000 crores · FY'27
stated firmly by Aditya Virwani
p. 4
“Collections of approximately INR3,000 crores, reflecting around 75% year-on-year growth driven by the milestone-linked inflows from existing launches and ongoing projects.”
Aditya Virwani, page 4 of the filed PDF · View the filing
New Launch GDV — approximately INR19,400 crores across 11 owned projects and 2 DM projects · FY'27
stated firmly by Aditya Virwani
p. 4
“New launch GDV of approximately INR19,400 crores across 11 owned projects and along 2 DM projects, Juhu and Sky Terraces in Bangalore, with the combined GDV of DM projects is approximately INR6,100 crores.”
Aditya Virwani, page 4 of the filed PDF · View the filing
Net debt to equity ratio — 0.5x or less
stated as an aspiration by Rajesh Kaimal
p. 9
“So, we want to keep our net debt levels to 0.5x or less.”
Rajesh Kaimal, page 9 of the filed PDF · View the filing
Cost of debt — 10% · next 12 to 18 months
stated as an aspiration by Rajesh Kaimal
p. 13
“Our expectation is to bring it to 10% over a period of time, but this will be a gradual decrease over the next 12 to 18 months.”
Rajesh Kaimal, page 13 of the filed PDF · View the filing
Net surplus margin — close to 50% · next several years
stated as an aspiration by Sachin Shah
p. 16
“And we expect that to be close to 50% over the course of the next several years as these projects get delivered.”
Sachin Shah, page 16 of the filed PDF · View the filing
Promoter pledge — next 2 to 3 years
stated as an aspiration by Rajesh Kaimal
p. 17
“And then what we understand from the promoters is, they plan to pay off this debt over a period of time.”
Rajesh Kaimal, page 17 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 Embassy One North Tower will launch this quarter, Knowledge Park towards end of quarter or Q2, Juhu in Q2, Sky Terraces end of Q1 or Q2, and Embassy Springs Front Parcel in Q2 or Q3.
Answered by Aditya Virwani
Asked by Mohit Agrawal: What is the launch timeline for the larger FY'27 projects?
p. 8
“Embassy One North Tower, we've actually already got our building plan. So we are going to launch this project this quarter.”
Aditya Virwani, page 8 of the filed PDF · View the filing
Management said Citadel should contribute around INR1,000 crores of the INR2,000 crores expected from existing stock sales.
Answered by Aditya Virwani
Asked by Mohit Agrawal: What is the expected contribution from the Worli/Citadel project to the FY'27 presales guidance?
p. 8
“We believe that Citadel should contribute to INR1,000 crores of the INR2,000 crores from the existing stock.”
Aditya Virwani, page 8 of the filed PDF · View the filing
Management said most collections will be used for construction spend this year, so debt reduction will be more visible from the following year.
Answered by Sachin Shah
Asked by Mohit Agrawal: Will net debt reduce meaningfully in FY'27 given higher collections?
p. 9
“So, we want to really use our collections to keep pushing construction, get those milestone-linked payments to keep coming in. And so you might not see a huge reduction in debt for this year.”
Sachin Shah, page 9 of the filed PDF · View the filing
Management declined to give revenue guidance, saying they will stick to presales and collections guidance.
Answered by Rajesh Kaimal
Asked by Reuben: Will the company provide revenue guidance for FY'27/28?
p. 10
“We would refrain from giving a revenue guidance. We have already given a presale guidance and collection.”
Rajesh Kaimal, page 10 of the filed PDF · View the filing
Management said it was a buffer for RERA filings in line with market norms for large towers, not a sign of weak demand.
Answered by Aditya Virwani
Asked by Nikhil Kothari: Why was the Embassy Citadel completion date pushed from 2032 to 2035?
p. 11
“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.”
Aditya Virwani, page 11 of the filed PDF · View the filing
Management indicated the shareholder debt conversion to equity with Blackstone will wait for the market and share price to improve before converting.
Answered by Rajesh Kaimal
Asked by Kevin Gandhi: Are promoters considering increasing their stake at current share price levels?
p. 13
“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 period in time, but we're waiting for the market to correct, both the market to correct as well as our share price to correct, which will take a little more a few more months maybe.”
Rajesh Kaimal, page 13 of the filed PDF · View the filing
Management explained that the expensed interest relates to OC-received projects where capitalization is not permitted, while capitalizable costs have already been capitalized.
Answered by Rajesh Kaimal
Asked by Kapil Aggarwal: Why was interest cost of INR550 crores expensed rather than capitalized to projects?
p. 14
“So whatever we could capitalize to the projects we have capitalized. This is the cost that we have taken to P&L because these are OC received projects which we have deployed on OC received projects.”
Rajesh Kaimal, page 14 of the filed PDF · View the filing
Management clarified the land was subleased, not sold, and said they would mutually seek an extension from KIADB as is common practice.
Answered by Aditya Virwani
Asked by Rohit Chaudhary: What happens to the Lam Research land deal if the KIADB lease is not extended?
p. 15
“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.”
Aditya Virwani, page 15 of the filed PDF · View the filing
Management shifted focus to net surplus margin rather than EBITDA margin, citing expectations of margins around 50% over the coming years.
Answered by Sachin Shah
Asked by Amish Kanani: What is the expected steady-state EBITDA margin from FY'28 onwards?
p. 15
“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.”
Sachin Shah, page 15 of the filed PDF · View the filing
Management explained DM project revenue and costs are recognized quarterly during construction rather than waiting for OC, unlike owned projects.
Answered by Rajesh Kaimal
Asked by Amish Kanani: How will DM project revenue and profit recognition differ from owned projects?
p. 16
“So, as far as DM projects are concerned, as and when the project sells and we progress in construction, this billing will be raised on a quarterly basis and the revenue and the cost will be recognized in that particular year.”
Rajesh Kaimal, page 16 of the filed PDF · View the filing
Management said the pledge had risen from 47% to 68% due to a falling share price without additional debt, and expects it to revert as the share price recovers and be paid off over 2-3 years.
Answered by Rajesh Kaimal
Asked by Amish Kanani: What is the plan to reduce promoter share pledge levels?
p. 17
“It was only because the share price fell that additional shares were pledged. And now that the share price is moving up, this will come back to the old levels to 48%.”
Rajesh Kaimal, page 17 of the filed PDF · View the filing
Management said they are not aware of any other issues that could affect the company.
Answered by Sachin Shah
Asked by Raghav: Are there any other legacy legal agreements from the Indiabulls group that could pose risk?
p. 17
“Look, we don't know of anything else that's out there today that can harm the company and the stock.”
Sachin Shah, page 17 of the filed PDF · View the filing
Risks flagged
Approval delays affecting presales guidance
p. 3
“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, page 3 of the filed PDF · View the filing
Rising construction costs
p. 12
“Costs have gone up a little bit. We do feel they will come down.”
Aditya Virwani, page 12 of the filed PDF · View the filing
Legal overhang from ongoing Nashik SEZ dispute with MIDC
p. 10
“So the Nashik SEZ, as you know, we had a legal issue going on with MIDC on which we've received a stay.”
Sachin Shah, page 10 of the filed PDF · View the filing
KIADB lease expiry risk on Lam Research sublease land
p. 15
“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.”
Aditya Virwani, page 15 of the filed PDF · View the filing
Cyclicality and slowdown in the real estate market
p. 12
“There's a lot of noise about real estate slowing down, and we appreciate this is a cyclical industry.”
Aditya Virwani, page 12 of the filed PDF · View the filing
Prior legal overhangs affecting share price and company performance
p. 15
“So, we feel what's happened in the last few months has been a factor of two legal overhangs that the company has had.”
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.