Embassy Developments LimitedReal EstateEMBDL
Q1 FY27 concall · earnings callEmbassy Developments Limited
Embassy started FY27 with strong momentum in presales and collections, supported by a robust launch pipeline and a focus on disciplined execution to strengthen its balance sheet.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Presales (Q1 FY27) | ₹868 Cr | 338% YoY | |
| Collections (Q1 FY27) | ₹496 Cr | 54% YoY | |
| Ongoing Inventory for Sale | ₹10,500 Cr | — | |
| Completed OC Inventory | ₹400 Cr | — | |
| FY27 Launch Pipeline GDV | ₹19,400 Cr | — | |
| Bangalore Launch Inventory Sold (within 6 months) | 72% | — | |
| Construction Spend (Q1) | ₹276 Cr | — | |
| Net Institutional Debt | ₹3,300 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹278.50 Cr+177% YoY+13.2% QoQ | ₹22.39 CrTurned profitable YoY-7.7% QoQ | ₹0.35Turned positive YoY-7.9% QoQ |
| Q2 FY25 | ₹245.97 Cr+155.3% YoY-36.5% QoQ | ₹24.27 CrTurned profitable YoYTurned profitable QoQ | ₹0.38Turned positive YoYTurned positive QoQ |
| Q1 FY25 | ₹387.24 Cr+97.7% YoY+1742.2% QoQ | ₹-28.24 CrLoss narrowed YoYLoss narrowed QoQ | ₹-0.49Loss/share narrowed YoYLoss/share narrowed QoQ |
| Q4 FY24 | ₹21.02 Cr-80.6% YoY-79.1% QoQ | ₹-302.28 CrLoss narrowed YoYLoss widened QoQ | ₹-5.58Loss/share narrowed YoYLoss/share widened QoQ |
| Q3 FY24 | ₹100.55 Cr-24.4% YoY+4.3% QoQ | ₹-38.50 CrLoss narrowed YoYLoss widened QoQ | ₹-0.71Loss/share narrowed YoYLoss/share widened QoQ |
TL;DR
- Q1 presales grew 338% YoY to INR868 crores, while collections grew 54% to INR496 crores.
- Entered the year with INR10,500 crores of ongoing inventory and a launch pipeline of INR19,400 crores GDV.
- No new launches in Q1 was a deliberate, disciplined decision; four launches planned for Q2.
- Board approved preferential allotment to repay promoter group shareholder debt.
- Management reaffirmed FY27 guidance of INR6,000 crores owned presales, INR2,000 crores development management presales, and ~INR3,000 crores collections.
- Construction spend was INR276 crores, representing ~56% of collections.
Said on the call
“Investors should, therefore, expect some quarterly variability in launches. This is a function of discipline and not demand.”
From the Q&A
| Topic | What management said |
|---|---|
| Launch Delays & Timeline | Management clarified the lack of Q1 launches was a deliberate, disciplined decision, not due to RERA delays. Four projects are planned for Q2, with the rest targeted for H2. Embassy One North tower launch was pushed to Q2 for strategic branding reasons. |
| Cash Flow Outlook | Q1 had negative operating cash flow of INR285 crores as projects launched last year are early in the construction cycle. Management expects collections to accelerate significantly from Q2 onwards as projects progress, with an 'inflection point' expected around mid-next calendar year when slab cycles begin. |
| Debt and Cost of Capital | The average cost of institutional debt is ~14%, with Blackstone shareholder debt accruing at 18%. The preferential allotment aims to repay promoter group debt, signaling confidence. The plan is to first refinance high-cost debt to lower rates (targeting March-April next year), then gradually reduce overall debt as projects generate surplus cash. |
| Land Bank & Nashik | The 1,400+ acre Nashik land is undergoing a debonding process (expected to take 6-9 more months) while seeking an amicable solution with MIDC. Other land parcels are not an immediate priority; focus is on launching 'launchable' projects first. |
| Brand Perception and Legacy Projects | Management acknowledged the work required to build the Embassy brand in Mumbai and rectify legacy Indiabulls projects, viewing it as a journey to build trust. They stated they have no association with the current Indiabulls company. |
| Accounting and Profit Recognition | Management is actively exploring the possibility of adopting the percentage completion method for revenue recognition in future quarters, instead of the current completion method which causes reported losses. |
Guidance
- FY27 Presales (Owned Developments): INR6,000 crores
- FY27 Presales (Development Management): INR2,000 crores
- FY27 Collections: Approximately INR3,000 crores
Source
Summary written from the transcript filed by Embassy Developments Limited for the call held on 11 Aug 2026; published 18 Aug 2026, 19:53 IST.
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