Embassy Office Parks REIT (EMBASSY) Q3 25/26 earnings summary

Executive summary

• Achieved record leasing and financial performance in Q3 FY26, with 17% YoY revenue growth and 19% YoY NOI growth, supported by organic and inorganic growth initiatives, including new acquisitions and redevelopment projects.

• Delivered a fully leased 0.4 million sq ft office park in Chennai and maintained high occupancy across key cities, with portfolio occupancy at 94% by value.

• Outperformed market benchmarks with a 25% total return for the year, surpassing Nifty and Nifty Realty indices.

• Strategic acquisitions and divestments announced, including Pinehurst and Embassy Zenith, and completed divestment of two sponsor-owned blocks.

• Consolidated unaudited financial results for the quarter and nine months ended 31 December 2025 were reviewed and approved, with no material misstatements identified by auditors.

Financial highlights

• Revenue for Q3 FY26 was INR 1,193 crore (+17% YoY); NOI reached INR 985 crore (+19% YoY), both at record highs; EBITDA at INR 934 crore (+19% YoY).

• Net profit after tax for the quarter was INR 3,812.21 million, compared to INR 1,581.98 million in the prior year quarter.

• Distributions declared at INR 613 crore (INR 6.47 per unit), up 10% YoY; cumulative NDCF for nine months at INR 17,823.61 million.

• Hotel segment NOI increased 13% YoY, with occupancy up to 60% and ADR up 11%.

• Net debt stood at INR 20,631 crore with a 32% leverage ratio and 7.29% average interest rate.

Outlook and guidance

• FY26 NOI guidance: INR 3,589–3,811 crore; DPU guidance: INR 24.5–26 per unit, targeting 13% NOI and 10% DPU growth at midpoint.

• FY26 occupancy expected in the 90–91% range, with 75% of guidance already achieved in 9M.

• Management continues to monitor regulatory and tax changes, including the Finance Bill 2026 and new labour codes, with no material impact expected at this stage.