Embassy Developments (EMBDL) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked the first full year post-merger, with record operational and strategic achievements, including the integration of NAM Estates and Indiabulls Real Estate under a unified brand and a reverse acquisition resulting in a change of promoter group.

• Q4 FY 2026 was the strongest quarter in company history, with pre-sales of INR 2,632 crores, up 89% quarter-on-quarter, and FY 2026 pre-sales of INR 4,631 crores, up 128% year-on-year, reflecting strong demand in urban markets.

• Major launches included Embassy Citadel and Embassy Verde Phase 2, driving over half of Q4 pre-sales.

• Audited consolidated and standalone financial results for FY26 were approved and published, with the audit report carrying an unmodified opinion.

• Legal and regulatory resolutions enabled exit from the ASM framework, resumption of normal trading, and favorable outcomes in insolvency and land resumption cases.

Financial highlights

• FY 2026 revenue from operations was INR 1,736 crore (consolidated: ₹17,318.32 million), up from INR 8,888.89 million in FY25, but with a consolidated net loss after tax of INR 872 crore, compared to a profit in FY25, due to revenue recognition timing and merger accounting.

• EBITDA was negative INR 300 crore versus positive INR 331 crore in FY 2025.

• FY 2026 collections were INR 1,653 crore, slightly lower than FY 2025's INR 1,854 crore, despite a 128% increase in pre-sales.

• Construction spend in FY 2026 was INR 1,182 crores, about 71% of collections.

• Cash and cash equivalents at year-end stood at INR 1,100 crore (consolidated: ₹7,790.43 million).

Outlook and guidance

• FY 2027 pre-sales guidance is INR 6,000 crores from own projects, plus INR 2,000 crores from DM projects, totaling INR 8,000 crores, with collections expected to reach INR 3,000 crores, a 75% year-on-year increase.

• New launch GDV for FY 2027 is projected at INR 19,400 crores across 11 own projects and 2 DM projects.

• Focus areas include delivering the launch pipeline, accelerating construction, and reducing financing costs.

• The company operates in a single business segment: real estate development and related services, primarily in India.

• The figures for FY25 and FY26 are not comparable due to the reverse merger and change in accounting treatment.