Embassy developments Limited has received approval from the Maharashtra Real Estate Regulatory Authority (MahaRERA) for Phase I of Embassy Serenity, its first residential project in Alibaug within the Mumbai Metropolitan Region (MMR). This approval marks the company's strategic entry into the lifestyle and second-home segment, targeting the growing demand for premium retreat destinations.

Project Overview and Specifications

Embassy Serenity is positioned as a resort-style retreat located in Thal Village, Alibaug, often referred to as the 'Hamptons of Mumbai'. The project has been designed to combine tranquility with excellent connectivity to Mumbai via upgraded road and ferry infrastructure.

The development is designed as a nature-first project where architecture is shaped by the landscape rather than imposed upon it. The project brings together globally acclaimed partners including Broadway Malyan (UK) for architecture and Coopers Hill (Singapore) for landscape design.

Design and Amenities

Nestled on a lush hillside, Embassy Serenity features architecture articulated through soft curvilinear forms, open terraces, and vertical elements that create a dialogue between contemporary architecture and the tropical setting. While not beach-facing, the project's immersive forest environment becomes its defining luxury feature.

The project includes a curated suite of amenities designed to support both social engagement and relaxation:

• Clubhouse facility
• Resort-style pool with poolside bar and café
• Tennis, padel and pickleball courts
• Multiple spaces for intimate and larger gatherings
• Traffic-free podium design

Management Commentary

Sachin Shah, CEO & Executive Director of Embassy Developments Limited, commented on the development: "What we are seeing in Alibaug is not a trend, but a structural shift in how India's most discerning homebuyers want to live. For many HNIs and UHNIs, the second home is more than a weekend escape – it is an extension of their primary lifestyle, where privacy, space, service, and setting matter as much as the location."

Professional Management and Services

The residences at Embassy Serenity will be professionally managed by Embassy Services Private Limited (ESPL). Homeowners will have access to WAYS (World At Your Service), which provides personalised lifestyle and housekeeping packages exclusive to Embassy residential communities.

Recent Performance Context

The RERA approval comes amid strong operating performance for Embassy Developments Limited. The company reported robust Q3 FY26 performance with pre-sales of ₹1,392 crore representing approximately 240% quarter-on-quarter growth, collections of ₹414 crore, and multiple RERA approvals across projects with an aggregate GDV exceeding ₹12,800 crore.

This performance has reinforced the company's growth visibility for FY26 and demonstrates its expanding presence across key urban markets including Bengaluru, the Mumbai Metropolitan Region, and the National Capital Region.

Source:

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.