Embassy Developments delivered its strongest quarterly performance in company history during Q4 FY26, with presales rising 89% quarter-on-quarter to INR2,632 crores. This surge drove full-year presales to INR4,631 crores, marking a 128% year-on-year increase. The performance was led by luxury launches in South Mumbai and Bengaluru, including Embassy Citadel and Embassy Verde Phase 2, which collectively contributed over half of the quarter's sales. Despite the operational strength, the company reported a net loss of INR872 crores for the fiscal year, attributed to accounting policies that defer revenue recognition until project completion and the impact of reverse merger accounting.

Operational Performance and Legal Milestones

The company achieved approximately 93% of its FY26 presales guidance of INR5,000 crores, with the shortfall linked to approval delays for a Bengaluru project shifted to Q1 FY27. During the fiscal year, Embassy Developments launched projects with a cumulative Gross Development Value (GDV) of approximately INR16,300 crores across six launches. Q4 collections stood at INR577 crores, reflecting 39% quarter-on-quarter growth, while full-year collections from operations reached INR1,673 crores.

On the regulatory front, the National Company Law Appellate Tribunal (NCLAT) set aside an earlier admission order in the insolvency proceedings filed by Canara Bank, allowing the company to exit the Additional Surveillance Mechanism (ASM) framework and resume normal trading on the BSE and NSE effective May 6, 2026. Additionally, the Karnataka High Court set aside a land resumption order relating to 78 acres at Kadugodi, Bengaluru, held by Embassy East Business Park.

Financial Results and Accounting Context

The reported loss for FY26 stems from a structural mismatch between costs and revenue recognition. Under Ind AS 115, revenue for RERA-registered projects is recognized only upon receipt of the Occupancy Certificate (OC) and possession. Since over 80% of FY26 presales occurred in the second half, primarily from projects with target OC dates ranging from FY28 to FY32, the associated revenue will be recognized in future years. Consequently, the profit and loss statement reflects a cost structure incurred ahead of the revenue curve.

FY27 Guidance and Outlook

Looking ahead to FY27, Embassy Developments provided guidance for presales of INR6,000 crores from its own projects and an additional INR2,000 crores from development management projects, totaling INR8,000 crores. The company anticipates collections of approximately INR3,000 crores, reflecting around 75% year-on-year growth. The launch pipeline for the year includes new projects with a GDV of approximately INR19,400 crores across 11 owned projects and two development management projects, including the ultra-luxury Juhu project and Sky Terraces in Bengaluru.

As of March 31, 2026, the company's gross institutional debt stood at approximately INR4,100 crores, with cash and cash equivalents of around INR1,100 crores, resulting in net institutional debt of approximately INR3,000 crores. The net debt to equity ratio was 0.3x. Management expects the cost of debt, currently around 14.8%, to gradually decrease to 10% over the next 12 to 18 months as project cash flows accelerate.

Embassy Developments Limited has opened a special window from February 5, 2026, to February 4, 2027, to facilitate the transfer and dematerialisation of physical securities purchased before April 1, 2019. This initiative follows SEBI Circular No. HO/38/13/11(2)2026-MIRSD-POD/I/3750/2026 dated January 30, 2026, and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The facility allows investors to resolve pending requests or submit fresh applications that were previously rejected, returned, or unattended due to documentation or process deficiencies.

Eligibility Criteria for Lodgement

The special window is applicable only for physical share certificates where the execution date of the transfer deed is before April 1, 2019. Shareholders must possess the original security certificate to be eligible for this facility. The company has outlined a specific matrix to determine eligibility based on the lodgement history and certificate availability.

Lock-in Conditions and Submission Process

Securities transferred under this special window will be mandatorily credited to the transferee in demat mode. These shares will be subject to a lock-in period of one year from the date of registration of transfer, during which they cannot be transferred, lien-marked, or pledged. Requests must be accompanied by original certificates, transfer deeds, and relevant supporting documents.

Eligible shareholders must submit their transfer requests and requisite documents to the company's Registrar and Share Transfer Agent, KFIN Technologies Limited. The contact details for submission and queries are provided below.