Embassy Developments Limited has reported a landmark achievement in its financial performance for the fourth quarter of the fiscal year 2026, with pre-sales reaching an unprecedented ₹2,632 crore. This figure marks an 89% quarter-on-quarter increase, underscoring the company’s robust growth trajectory. For the entire fiscal year, the company recorded pre-sales of ₹4,631 crore, reflecting a significant 128% year-on-year surge.
The company’s success in Q4 FY26 was largely driven by the launches of Embassy Citadel in Mumbai and Embassy Verde 2 in Bengaluru, which collectively garnered ₹1,385 crore in pre-sales. The Bengaluru market, particularly in the premium segment of properties priced over ₹10 crore, saw Embassy Developments capturing over 65% of the sales, predominantly through the strong performance of Embassy Eden, a luxury villa development in North Bengaluru.
Despite the impressive sales figures, Embassy Developments reported an accounting loss of ₹872 crore in profit after tax (PAT) for FY26. This loss is attributed to the revenue recognition policy in real estate, where income is recorded only upon project completion and handover. The company anticipates that this trend will continue until its recent launches reach delivery, at which point solid profit margins are expected to be realised.
On the legal front, Embassy Developments secured favourable outcomes in two significant legal matters. The National Company Law Appellate Tribunal (NCLAT) overturned a previous order by the NCLT, Delhi, which had initiated insolvency proceedings against the company. Additionally, the High Court of Karnataka set aside a resumption order by the Karnataka Industrial Areas Development Board concerning a land lease agreement.
Looking ahead, Embassy Developments has set ambitious targets for FY27, aiming for pre-sales of approximately ₹6,000 crore and collections of around ₹3,000 crore. The company plans to launch 11 projects with a cumulative estimated gross development value (GDV) of ₹19.4k crore.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).