Embassy Developments Limited (EDL) hosted its first earnings call post-merger, focusing on the successful consolidation of Indiabulls Real Estate and Embassy Group. Management highlighted the completion of 6 legacy residential projects, handing over 3,300 homes. EDL achieved ₹1,392 crores in Q3 FY’26 pre-sales, maintaining confidence in the full-year target of ₹5,000 crores. The company is strategically focusing on execution and high-margin launches, particularly the marquee Embassy Citadel in Mumbai.
Post-Merger Context and Operational Highlights
The call marked Embassy Developments Limited’s (EDL) first as a merged entity following the NCLAT-approved merger in January 2025. Promoter and Managing Director, Mr. Aditya Virwani, emphasized the consolidation created a stronger, institutional-scale platform across North and West India, alongside Embassy’s home market in Bengaluru.
A significant operational focus was the integration and completion of the legacy Indiabulls portfolio. Over the preceding quarters leading up to and including FY ’26, the company achieved handover stages for 6 previously delayed residential projects across MMR, NCR, and Visakhapatnam, providing possession to over 3,300 families.
Currently, EDL operates 40+ projects with approximately 38 million square feet of development, supported by a land bank exceeding 3,100 acres.
Near-Term Strategy and Launches
The near-term strategy is sequenced around execution, organic growth via new launches, and selective portfolio expansion.
- Execution: Top priority remains completing ongoing projects with discipline.
- Organic Growth: Plans target launching approximately ₹41,000 crores of Gross Development Value (GDV) over the next three years, utilizing fully paid-up land already owned.
- New Launches: EDL is highly selective for future land acquisition, focusing only on high-margin opportunities. By Q3 FY ’26, approvals were secured for 6 residential projects (GDV: ₹13,500 crores) and one commercial project in Whitefield (GDV: ₹3,100 crores).
The company recorded close to ₹2,000 crores of pre-sales in the first nine months of the year and remains confident in achieving the ₹5,000 crore FY ’26 pre-sales target.
Key Residential Achievements (FY ’26)
CEO Mr. Sachin Shah detailed key launches:
- Embassy Paradiso: Fully sold out, realizing ₹200 crores against an estimated GDV of ₹175 crores.
- Embassy Greenshore: Launched in November 2025, recording pre-sales of ₹804 crores within five days.
- Embassy Eden: Launched in December 2025, realizing ₹286 crores in sales shortly after launch.
EDL is also tracking 4 new launches in Q4, including the landmark Embassy Citadel luxury tower in Worli (1 million sq ft).
Commercial Portfolio Outlook
The focus is shifting toward increasing the contribution of commercial assets. Construction has begun on Embassy East Business Park (Phase 1: 2.7 million sq ft) in Whitefield, which is planned as a REITable asset. Management noted that the current portfolio split is roughly 80% residential to 20% commercial, which they expect to maintain as 70%-30% over the foreseeable future, focusing only on ‘trophy-like’ selective commercial assets.
Financial Performance (9M FY ’26)
CFO Mr. Rajesh Kaimal provided financial context:
- Total Income (9M FY ’26): ₹1,495 crores (Q3: ₹264 crores).
- Gross Profit (9M FY ’26): ₹254 crores.
- EBITDA (9M FY ’26): Negative ₹107 crores. This loss is attributed to higher cost recognition from settling two legacy Indiabulls projects (Vizag and Thane Phase 1).
- Collections (9M FY ’26): ₹1,096 crores (Q3: ₹414 crores, a 15% quarter-on-quarter growth).
The net institutional debt stood at approximately ₹3,000 crores, translating to a low 0.29X net debt-to-equity ratio. The average cost of debt is currently around 14%, with new construction finance being raised at sub 9%.
Management Commentary on Profitability and Debt
Management stressed that the P&L loss reflects historical accounting for completed legacy projects (OC stage) and is not indicative of current operational performance, which shows strong cash margins of 45% to 60%.
Regarding the P&L profitability, management expects the balance sheet to show profit only after four to six quarters, as the revenue recognition from newer, higher-margin projects accelerates and the legacy costs taper off by calendar year 2026.
On the insolvency proceedings related to Sinnar Thermal Power Limited, management expressed confidence, noting they obtained a stay from NCLAT and possess adequate financial capacity to address the matter without impact on business continuity.
Source: BSE
