Embassy Developments Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing significant losses across both standalone and consolidated operations. The Board of Directors approved these results at their meeting held on February 09, 2026, pursuant to Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements Regulations.

Standalone Financial Performance

The company's standalone operations showed a marked deterioration in Q3FY26 performance compared to the previous year:

The company reported a standalone loss of Rs 739.63 millions for Q3FY26, a significant decline from the profit of Rs 28.97 millions recorded in the corresponding quarter of the previous year. Revenue from operations dropped dramatically by 86.3% to Rs 405.22 millions from Rs 2,948.33 millions in Q3FY25.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the standalone results showed:

Consolidated Financial Results

The consolidated financial performance for Q3FY26 demonstrated the broader impact across the group:

Management Addresses Challenges in Earnings Call

Following the financial results announcement, Embassy Developments Limited held its first earnings conference call on February 10, 2026, where management provided detailed explanations for the performance challenges. The call was led by Aditya Virwani, Promoter and Managing Director, along with Sachin Shah, CEO and Executive Director, and Rajesh Kaimal, CFO and Executive Director.

Operational Performance Highlights

During the earnings call, management disclosed key operational metrics:

The company achieved pre-sales of Rs 1,392.00 crores in Q3 FY26, representing a quarter-on-quarter growth of around 240%. Collections during Q3 FY26 were approximately Rs 415.00 crores, reflecting a 15% quarter-on-quarter increase.

Legacy Project Impact on Profitability

Management explained that the current EBITDA losses primarily stem from legacy Indiabulls Real Estate projects that were completed during the period. CFO Rajesh Kaimal clarified that the negative EBITDA of Rs 107.00 crores for nine months was due to higher cost of goods sold on legacy projects including Vizag and Thane Phase 1, along with advance Common Area Management payments currently absorbed by the company.

Project Pipeline and Future Strategy

The company outlined its robust project pipeline with an estimated total GDV of Rs 52,000.00 crores across its portfolio. Key upcoming launches include:

Management remains confident of achieving the FY26 pre-sales target of Rs 5,000.00 crores, supported by upcoming launches totaling over Rs 19,000.00 crores in GDV.

Corporate Restructuring Impact

The financial results reflect the impact of a major corporate restructuring. The National Company Law Appellate Tribunal approved the scheme of amalgamation of Nam Estates Private Limited and Embassy One Commercial Property Developments Private Limited with Embassy Developments Limited on January 7, 2025, with the scheme becoming effective on January 24, 2025.

Legal Proceedings Update

The company faces ongoing legal proceedings related to a Corporate Insolvency Resolution Process initiated by the National Company Law Tribunal on December 9, 2025. However, the NCLAT stayed this process on December 11, 2025, pending appeal adjudication. The matter is scheduled for hearing on February 19, 2026. Management expects no material impact on the company's operations based on legal advice.

Debt and Liquidity Position

As disclosed in the earnings call, the company's financial position includes:

Management indicated that new construction finance is being raised at sub-9% rates, with plans to reduce the overall cost of capital to around 10% over the next year.

Embassy developments has successfully completed the allotment of non-convertible debentures worth ₹250 crores on January 30, 2026. The company's duly constituted board committee approved this significant fundraising initiative under the first tranche of a larger ₹400 crore issue through private placement.

Debenture Allotment Details

The allotment comprises 25,000 non-convertible debentures, each carrying a face value of ₹1,00,000. These Tranche A NCDs represent the first phase of the company's total planned issue size of ₹400 crores, executed in compliance with the Companies Act, 2013 and applicable regulatory frameworks.

Security Features and Terms

The debentures are structured as senior, secured, redeemable, unrated, and unlisted instruments. They carry an attractive coupon rate of 11% per annum, with quarterly interest payments scheduled after an initial moratorium period of 6 months. The securities are backed by a charge on identified assets of the company as per the Debenture Trust Deed.

Repayment Structure

The NCDs have a tenure of 42 months commencing from the end of the allotment month. The repayment schedule includes a principal moratorium of 4 quarters, followed by 10 equal installments. Embassy Developments retains flexibility for partial or full prepayment before maturity using surplus funds.

Regulatory Compliance

The allotment was conducted pursuant to Regulation 30 of the SEBI LODR Regulations and follows the disclosure requirements under SEBI circulars dated November 11, 2024 and December 31, 2024. The debentures will not be listed on any stock exchange, maintaining their private placement status.

This fundraising initiative represents Embassy Developments' strategic approach to capital management and provides the company with substantial resources for its operational and growth requirements.