Embassy Office Parks REIT (EMBASSY) Q1 26/27 earnings summary

Executive summary

• Achieved 17% year-over-year growth in Q1 FY27 revenue (₹12,408.12 million/₹1,241 crore) and NOI (₹10,204.84 million/₹1,020 crore), with DPU up 9% to ₹6.31 per unit.

• Leased 1.3 million sq ft across 17 deals, with 81% demand from GCCs and 21% from AI-related sectors; portfolio occupancy at 90%, with Mumbai at 100%.

• Launched a 211-key Hilton Garden Inn hotel, achieving ADRs over INR 19,000 in its first month; Four Seasons management at Embassy ONE to end in Feb 2027.

• Included in new domestic REIT and realty indices, enhancing market visibility and investor participation.

• Key asset transactions included acquisition of land adjacent to Embassy Manyata and completion of ERHIPL acquisition.

Financial highlights

• Q1 FY27 revenue reached ₹12,408.12 million (₹1,241 crore) and NOI ₹10,204.84 million (₹1,020 crore), both up 17% YoY; EBITDA at ₹978 crore.

• Distributions declared at ₹5,981.21 million (₹6.31/unit), up 9% YoY; NDCF at ₹5,999.06 million.

• Hotel segment NOI grew 6% YoY, occupancy up 100 bps to 61%, ADR up 5%.

• Solar plant generated 44 million units and stabilized NOI of ₹23 crore.

• Net debt at ₹21,879 crore, leverage ratio 31%, average interest rate 7.3%.

Outlook and guidance

• On track for FY27 guidance: NOI ₹4,150–4,350 crore, DPU ₹27–28.6/unit, implying 13% NOI and 10% DPU growth at midpoint.

• Expect occupancy to stabilize at pre-COVID levels (mid-90s) in coming years; 60% of 6.2 msf pipeline pre-leased.

• Minimum 90% distribution of NDCF to be maintained; cash tax as a percentage of revenue to remain around 6% for two years.

• Guidance excludes impact of any fresh issue of units and is subject to macroeconomic risks.

• No significant adverse impact expected from ongoing regulatory or legal proceedings.