Embassy Developments posts record Q2 pre-sales of ₹3,225 crore, with losses and debt in focus

Embassy Developments Limited reported its highest-ever quarterly pre-sales, about ₹3,225 crore, for the quarter ended 30 September 2026. The company announced the results on 3 November 2026 after its board approved the unaudited numbers. Pre-sales rose 272% from the previous quarter and 689% from a year earlier.

The company said its FY27 pre-sales guidance is ₹8,000 crore, made up of ₹6,000 crore from owned developments and ₹2,000 crore from development management projects. Pre-sales for the first half were about ₹4,093 crore, or about 51% of that target.

Sales and collections

Three projects launched in the quarter had a combined gross development value (GDV) of about ₹8,397 crore, above the pre-launch estimate of ₹7,500 crore. Two of them are in North Bengaluru. Embassy Origins, an 85-acre township, recorded combined sales of about ₹1,813 crore within two weeks of launch, split between Embassy Riverine and Embassy South Reserve.

The largest single item was the sale of an entire residential tower at Embassy Terazza in Juhu, Mumbai. The company said in a stock exchange filing that the deal, about ₹711 crore, is India's largest single-home residential transaction. The filing describes it as a memorandum of understanding (MoU) with Dinesh Thakkar, founder and chairman of stockbroker Angel One. The tower is a G+7 building with 63,000 sq ft of RERA carpet area, which works out to about ₹1.13 lakh per sq ft by calculation. The deal is about 22% of the quarter's total pre-sales, so the quarter's figure leans heavily on one transaction.

Collections were about ₹546 crore in the quarter, up 10% from the previous quarter and 52% from ₹359 crore a year earlier. Collections are the better measure of cash coming in, because pre-sales are bookings and not yet cash. Management said most recent launches are at an early stage, with collections linked to construction milestones.

Profit figures differ

Reports based on different data sources give conflicting results for the quarter. The range is wide:

• One set of figures shows a consolidated net loss of about ₹271 crore, against ₹152.6 crore a year earlier, on total income of about ₹311 crore.
• Another set shows a loss after tax of about ₹23.27 crore and consolidated revenue of about ₹190 crore.
• A loss before tax of about ₹281 crore is also reported for the quarter.

Until the company's filed results are read in full, the loss figure should be treated as unsettled. The balance sheet also differs by source. One set puts net institutional debt at about ₹3,982 crore, with a net debt-to-equity ratio of 0.42x. Another puts net debt at ₹3,732 crore. Operating cash outflow for the first half is also reported differently, at about ₹536 crore in one set and about ₹94 crore in another.

On the capital side, the company received ₹3,626.18 million, about ₹362.6 crore, from warrants issued to Embassy Property Developments Private Limited, a promoter-group entity. The warrants were allotted on 12 October 2026 and fully converted into equity shares.

Leadership is also changing. Aditya Virwani, Managing Director of the company, will become Managing Director and CEO from 1 January 2027, succeeding Sachin Shah, who will continue as Senior Advisor. In the release, Aditya Virwani said the numbers reflect "strong response to our residential portfolio and the acceptance of the Embassy brand across markets and segments."

What investors will watch

The earnings call is on 4 November 2026 at 11:00 AM IST. Investors will want the company to settle the loss and debt figures, explain how much of the quarter's pre-sales is expected to convert into collections, and set out the timing of the Terazza completion. The company has not announced a completion or registration date for the MoU. Its FY27 launch pipeline of ₹19,400 crore GDV will also be a test of whether sales momentum holds without a single large deal.