Disclosure of transcript of earnings conference call held on May 21, 2026.
EMBDL · price
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Embassy Developments reported its strongest quarter ever with Q4 FY '26 presales of INR2,632 crores (up 89% QoQ) and full year presales of INR4,631 crores (up 128% YoY), achieving 93% of INR5,000 crores guidance. The company provided FY '27 guidance of INR6,000 crores presales from owned projects (30% YoY growth) plus INR2,000 crores from DM projects, with collections expected at INR3,000 crores (75% YoY growth). Launch pipeline for FY '27 stands at INR19,400 crores across 11 owned projects and 2 DM projects. Q4 was driven by Embassy Citadel (South Mumbai luxury, INR8,800 crores GDV) and Embassy Verde Phase 2. The company reported FY '26 PAT loss of INR872 crores due to completed-contract revenue recognition timing and reverse merger accounting effects, with revenue expected to flow from FY '28 onwards as projects receive OC. Gross institutional debt is INR4,100 crores with net debt/equity at 0.3x. The company won two major legal cases (NCLAT cleared CIRP proceedings; Karnataka High Court upheld land rights).
The stock may see positive reaction given record quarterly performance, strong FY '27 guidance, and resolution of legal overhangs. However, near-term losses and high debt cost (14.8%) may continue weighing on sentiment until revenue recognition accelerates from FY '28.