Embassy Developments posts record Rs 3,225 crore pre-sales

Embassy Developments Limited, referred to as Embassy Developments, reported record Q2 FY '27 pre-sales of approximately Rs 3,225 crore, exceeding its previous quarterly record of Rs 2,632 crore in Q4 FY '26. Three new projects delivered Rs 2,571 crore of disclosed sales within weeks, lifting H1 FY '27 pre-sales to Rs 4,093 crore.

Why did Embassy Developments set a quarterly pre-sales record?

Embassy Developments set the record through three Q2 FY '27 launches with combined gross development value (GDV) of Rs 8,397 crore, above its pre-launch estimate of Rs 7,500 crore. Riverine at Embassy Origins in Bengaluru had GDV of Rs 3,155 crore, South Reserve at Embassy Origins had GDV of Rs 1,957 crore, and Embassy Terazza Juhu in Mumbai had GDV of approximately Rs 3,285 crore.

The three projects generated Rs 933 crore of sales at Riverine, Rs 880 crore at South Reserve and Rs 758 crore at Terazza within a couple of weeks of launch, according to management. Those disclosed sales totalled Rs 2,571 crore, or about four-fifths of the Rs 3,225 crore Q2 pre-sales figure. The Q2 outcome exceeded the Rs 2,632 crore record set in Q4 FY '26 by about Rs 593 crore.

Which Embassy Developments projects had the fastest early sales?

Embassy Developments' Riverine and South Reserve projects produced combined sales exceeding Rs 1,800 crore within two weeks of their Bengaluru launches. Management said the projects achieved a 93% conversion rate from expressions of interest to completed bookings over that period, using an online process through which buyers could choose an apartment, complete know-your-customer requirements and transact in less than seven minutes.

Embassy Terazza in Juhu added Rs 758 crore of pre-sales within weeks and included a Rs 711 crore transaction for one residence. Management described the Rs 711 crore transaction as India's largest single residential transaction to date. The transaction accounted for most of the disclosed initial sales at Terazza, making the Mumbai launch result partly dependent on a single large booking.

Embassy Developments also cited more than Rs 1,350 crore of sales at Embassy Citadel in Worli within nine months of entering that location. Management said Citadel achieved those sales without a sample flat or an on-site sales office. It plans to open a customer experience centre at One World Center in Lower Parel to support conversion and pricing velocity.

How close is Embassy Developments to its FY '27 sales target?

Embassy Developments reached approximately 51% of its Rs 8,000 crore FY '27 pre-sales guidance in the first half, reporting Rs 4,093 crore for H1 FY '27. The half-year total was up 574% year on year and nearly 90% of the Rs 4,631 crore reported for all of FY '26, indicating that sales activity accelerated from the prior fiscal year.

Management's FY '27 pre-sales target comprises Rs 6,000 crore from owned projects and Rs 2,000 crore from development-managed projects. Management also targets launches worth approximately Rs 19,400 crore of GDV during FY '27. The three projects launched in the first half accounted for Rs 8,397 crore of that target, leaving further planned launches for the second half across Bengaluru, the Mumbai Metropolitan Region and the National Capital Region.

Embassy Developments said its ongoing owned portfolio contained 13 projects with total GDV exceeding Rs 27,422 crore, with 55% of area sold. Separately, eight recently launched residential projects, including Riverine, South Reserve, Terazza and Citadel, were cumulatively more than 52% sold by area within six months of launch. The 13-project owned-portfolio measure excludes development-management projects.

Will Embassy Developments' pre-sales convert into collections and revenue?

Embassy Developments reported Q2 FY '27 collections of approximately Rs 546 crore, up 10% sequentially from Rs 496 crore in Q1 FY '27, while H1 collections reached approximately Rs 1,041 crore. The H1 figure was 53% above H1 FY '26 but represented about 35% of management's Rs 3,000 crore collection guidance for the full year, leaving conversion of sales into milestone-linked cash receipts as a key second-half measure.

Embassy Developments said pre-sales and collections precede reported revenue because it uses the project-completion method, under which revenue and profit are recognised when projects are completed and handed over. Q2 FY '27 revenue from operations was Rs 292 crore, down from Rs 494 crore in Q2 FY '26, while total income declined to Rs 311 crore from Rs 537 crore. The quarter recorded negative earnings before interest, taxes, depreciation and amortisation of Rs 131 crore and a loss after tax of Rs 271 crore.

Management identified Rs 8,290 crore of sold receivables and Rs 17,246 crore of unsold inventory across occupancy-certificate received and ongoing projects, totalling Rs 25,536 crore. It said construction milestones should convert the expanding pre-sales base into collections. As of September 30, 2026, net institutional debt was approximately Rs 3,982 crore after cash and cash equivalents of approximately Rs 1,258 crore, with net debt to equity of 0.42 times.

What could affect Embassy Developments in the second half?

Embassy Developments plans to launch nine owned projects worth Rs 13,300 crore of GDV and two development-management projects worth Rs 6,100 crore during FY '27. Management said the second-half pipeline spans luxury apartments, villas and commercial projects across Bengaluru, the Mumbai Metropolitan Region and the National Capital Region. Beyond FY '27, the company disclosed a development pipeline of 20.3 million square feet with estimated GDV of approximately Rs 23,470 crore.

The company said Embassy Citadel had secured approvals for all 81 floors, while Embassy Paradiso was fully sold, nearing completion and expected to receive its occupancy certificate in FY '27. Embassy Edge and Embassy East Avenue were progressing towards completion in FY '28 and were about 90% sold, according to management. The company also said its occupancy-certificate received portfolio was more than 95% sold by area in Q2 FY '27.

A management transition is also scheduled during the execution period. Sachin Shah will step down as chief executive officer and executive director at the close of business on December 31, 2026, under a planned succession process. From January 1, 2027, Aditya Virwani will become managing director and chief executive officer for the balance of his existing term, while Shah will remain senior adviser to the chairman and to the managing director and chief executive officer.

Conclusion

Embassy Developments' Rs 3,225 crore Q2 FY '27 pre-sales record was driven by rapid sales from three launches, led by Rs 933 crore at Riverine, Rs 880 crore at South Reserve and Rs 758 crore at Terazza. H1 pre-sales of Rs 4,093 crore brought the company close to FY '26's full-year Rs 4,631 crore level, although Q2 revenue declined to Rs 292 crore because handovers determine revenue recognition.

The next disclosures to watch are progress toward management's Rs 19,400 crore FY '27 launch target and Rs 3,000 crore collection target, including conversion of Rs 8,290 crore of sold receivables as construction advances. The planned leadership handover on January 1, 2027 and second-half demand across the Bengaluru, Mumbai Metropolitan Region and National Capital Region pipeline are also scheduled operational markers.