Embassy Developments (EMBDL) Q1 25/26 earnings summary

Executive summary

• Q1FY2026 marks the first full quarter post-merger, with a robust launch pipeline of ₹22,000+ crore and four new projects added, targeting ₹5,000 crore pre-sales for FY2026.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, and announced new development management (DM) arrangements for two major residential projects in Mumbai and Bengaluru, targeting premium segments.

• Advanced stages of fresh financing and increased construction momentum, especially at Panvel (~5 msf), with labor ramped up to 800+.

• Consolidation of major family-owned assets under one umbrella, with a focus on capital discipline and execution.

• The quarter reflects the impact of a reverse merger with Nam Estates Private Limited and Embassy One Commercial Property Developments Private Limited, making historical comparisons not meaningful.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹6,809.19 million, with a total income of ₹6,940.51 million.

• Consolidated net loss for the quarter was ₹1,658.49 million, compared to a net profit of ₹1,295.33 million in the previous quarter.

• Pre-sales rose 18% year-over-year to ₹198 crore; new bookings up 16% to 206k sf.

• Collections declined to ₹322 crore from ₹459 crore year-over-year.

• Basic and diluted EPS (consolidated) for the quarter were both negative at ₹(1.29).

Outlook and guidance

• Management targets ~₹5,000 crore pre-sales for FY2026, with three launches in Q2 and marquee Mumbai projects in Q4.

• The company is focusing on fee-based DM projects in high-demand markets to drive growth, enhance value creation, and provide upfront visibility on cash flows and profitability while limiting capital investment and risk.

• Next three years: ~₹41,000 crore GDV in new launches, ~₹21,500 crore net surplus, and ~₹21,000 crore pre-sales expected.

• Working capital requirement of ₹750 crore for FY2026 new launches.