Embassy Develop

Calendar year 2025 marked the successful merger of erstwhile Indiabulls Real Estate Limited and Embassy Group's NAM Estates Private Limited, rebranding as Embassy Developments Limited (EDL). This merger aimed to create a stronger, more resilient, and institutionally scaled real estate platform with deeper operating capabilities. EDL now boasts a presence across 8 cities, a portfolio of 40+ projects, and approximately 38 million square feet of residential and commercial development, supported by a land bank of over 3,100 acres. The company's strategy focuses on execution, organic growth through new launches, and selective high-margin land acquisitions.

Embassy Developments Limited reported cumulative pre-sales of approximately ₹2,000 crores for the first nine months of FY26. In Q3 FY26 alone, pre-sales reached ₹1,392 crores, demonstrating a significant quarter-on-quarter growth of 240%. Collections for 9M FY26 stood at ₹1,096 crores, with Q3 collections at ₹414 crores, reflecting a 15% QoQ increase. Construction spends for 9M FY26 totaled ₹868 crores, indicating strong execution cadence with a healthy spend-to-collection ratio of 79%.

The company successfully launched three residential projects: Embassy Paradiso (fully sold out with ₹200 crores in realizations), Embassy Greenshore (₹804 crores pre-sales within five days), and Embassy Eden (₹286 crores sold shortly after launch). By Q3 FY26, RERA approvals were secured for 6 residential projects (GDV ~₹13,500 crores) and a commercial project (GDV ~₹3,100 crores). Upcoming Q4 FY26 launches include 4 new projects, notably Embassy Citadel in Worli (1 MSF luxury tower), contributing to a total FY26 GDV of launch projects exceeding ₹19,000 crores. The future pipeline beyond FY26 has a GDV of ₹24,200 crores.

As of Q3 FY26, Embassy Developments Limited held ₹670 crores in cash and bank balance. Net institutional debt stood at approximately ₹3,000 crores, resulting in a net debt-to-equity ratio of 0.29X. Including shareholder debt of ₹1,058 crores, the gross total debt is around ₹4,700-4,800 crores. The company raised ₹880 crores in net institutional funds through debt in 9M FY26. The average cost of debt is currently around 14%, with new construction finance secured at sub-9%. Management aims to reduce the overall cost of debt to the 10% range over the next year or so.

The company spent approximately ₹200 crores in 9M FY26 to revive erstwhile Indiabulls projects, bringing 6 previously delayed residential projects to handover stages. While 9M FY26 EBITDA was negative ₹107 crores due to historical costs from these legacy projects (Vizag and Thane Phase 1), management clarified that this does not reflect current operational performance. They expect P&L profitability to remain negative for the next four to six quarters but anticipate strong cash margins (45-60%) from new generation projects to drive future value creation.

Embassy Developments Limited announced its entry into the Mumbai metropolitan region with three initial residential projects in Worli, Juhu, and Alibaug, representing a combined GDV of over ₹12,000 crores and a planned investment of approximately ₹4,500 crores. The company has broken ground on Embassy East Business Park in Whitefield, a 2.7 MSF commercial project, with a decision on holding or exiting the asset post-completion in 3-4 years. The current residential-commercial split of 80%-20% is expected to shift towards 70%-30%, with a focus on selective, trophy-like commercial assets in high-conviction markets.

The company is actively working on monetizing its extensive land bank. For the 1,500-acre Nasik land bank, with a cost of approximately ₹70 crores, plans involve resolving issues with MIDC, debonding the SEZ status, and developing it for industrial plots, expecting a significant net surplus. In Panvel, non-contiguous and non-core land parcels will be sold, while aggregable land will be retained for future development. Management emphasized that unlocking the existing land bank is a priority once sufficient surplus is generated and market conditions are optimal.