Embassy REIT FY26 NOI rises 15% to ₹3,760 cr

FY26 update: higher NOI, weaker profit line

Embassy Office Parks REIT (Embassy REIT) reported a 15% rise in net operating income (NOI) to ₹3,760 crore for FY26. The growth came alongside double-digit increases in income and distributions, supported by leasing momentum and new supply deliveries during the year. At the same time, the REIT reported a sharp drop in profitability on a consolidated basis. Profit after tax (PAT) fell 79.16% year-on-year to ₹338.54 crore in FY26, compared with ₹1,624.43 crore in FY25.

The FY26 performance highlights a common split in REIT reporting where operating cash metrics can improve even when accounting profit turns volatile. In Q4 FY26, the REIT reported a wider loss, even as income grew. The manager, Embassy Office Parks Management Services (EOPMSPL), also declared a quarterly distribution for the March 2026 quarter.

Full-year income growth and profitability swing

Embassy REIT’s net consolidated total income rose 11.83% in FY26 to ₹4,675.84 crore from ₹4,181.29 crore in FY25. This topline growth was accompanied by higher NOI, but consolidated profit reduced sharply.

For the March quarter, net consolidated total income increased 11.78% year-on-year to ₹1,228.95 crore from ₹1,099.39 crore. However, loss after tax widened to ₹430.02 crore in Q4 FY26 from a loss of ₹242.87 crore in the corresponding quarter of the previous fiscal.

Q4 distribution: ₹6.50 per unit with three components

For the quarter ended March 31, 2026, EOPMSPL declared distributions of ₹616.13 crore, or ₹6.50 per unit. The distribution was split across interest, dividend, and repayment of SPV-level debt.

The interest component was ₹13.27 crore (₹0.14 per unit), less applicable taxes if any. The dividend component was ₹131.76 crore (₹1.39 per unit). The largest part was repayment of SPV-level debt at ₹471.10 crore (₹4.97 per unit). This mix matters for unitholders because the three components can have different tax treatments and cash flow implications.

Leasing, spreads, and new supply deliveries in FY26

The REIT leased 6.4 million sq ft across 86 deals in FY26, with leasing spreads reported at 17% higher. The company also delivered 3.3 million sq ft of new office developments in FY26 in Bengaluru and Chennai.

Amit Shetty, chief executive officer, said the REIT delivered 6.4 million sq ft of leasing and double-digit growth across revenue, NOI and distributions, driven by strong GCC-led demand. He also pointed to Chennai as a key growth driver and said the REIT delivered a record 3.3 million sq ft of new office space.

Occupancy and portfolio value: 94% occupancy and higher GAV

Portfolio occupancy increased by 300 basis points to 94% in FY26. The portfolio gross asset value (GAV) grew 15% year-on-year to ₹70,540 crore.

On per-unit valuation, the board declared a net asset value (NAV) of ₹491.62 per unit for Embassy REIT as at March 31, 2026. The REIT also reported an NAV of ₹423.22 per unit as at March 31, 2025 in the prior-year disclosure.

Balance sheet actions: fund-raising and cost of debt

Embassy REIT raised ₹11,200 crore in FY26, including ₹3,400 crore of 10-year NCDs. The REIT said this lowered its in-place cost of debt by 65 basis points to 7.25%.

The board also approved raising of debt up to an aggregate amount of ₹9,000 crore by Embassy REIT. Separately, during the quarter ended December 2025, the REIT raised ₹400 crore through commercial paper at an effective interest rate of 6.44% and said this helped reduce its in-place cost of debt by 61 basis points over the past nine months to 7.29%.

FY27 guidance: distributions and occupancy targets

The company guided for distributions in the range of ₹27 to ₹28.60 per unit for FY27. It said this implies 10% year-on-year growth in distributions at the midpoint. The REIT also guided for occupancy in the range of 95%-96% by value.

Amit Shetty said the REIT is guiding for double-digit growth in both distributions and NOI again in FY2027. The FY27 guidance follows FY26’s reported growth in NOI and the manager’s stated focus on GCC-led demand.

Context from FY25: NOI and full-year distributions

For FY25, Embassy REIT reported NOI of ₹3,283 crore, reflecting 10% growth for that year. The manager declared a distribution of ₹538.40 crore (₹5.68 per unit) for the quarter ended March 31, 2025. For the full year ended March 31, 2025, distributions totalled ₹2,181.10 crore, or ₹23.01 per unit.

The FY25 disclosure also included a FY26 guidance range of ₹24.50 to ₹26.00 per unit in distributions, and occupancy guidance of 93%-94% by value. It also cited NOI guidance of ₹3,590-₹3,810 crore, implying 13% year-on-year growth.

Key numbers at a glance

Why the operating metrics matter for investors

For listed office REITs, NOI, occupancy, leasing spreads, and distributions typically carry more weight for cash-flow assessment than consolidated profit alone. In Embassy REIT’s FY26 update, NOI and income grew, distributions were declared for the March quarter, and the REIT reiterated double-digit growth guidance for FY27.

The operational metrics were backed by 6.4 million sq ft of leasing in FY26 and delivery of 3.3 million sq ft of new development in Bengaluru and Chennai. The balance sheet actions, including ₹11,200 crore of fund-raising in FY26 and a lower in-place cost of debt at 7.25%, frame the REIT’s ability to refinance and support development and portfolio needs.

Conclusion

Embassy REIT ended FY26 with higher NOI and income, a Q4 distribution of ₹6.50 per unit, and improved portfolio occupancy at 94%. The REIT also reported a sharp drop in FY26 consolidated PAT and a wider Q4 loss. Investors will track execution against FY27 guidance for ₹27-₹28.60 per unit in distributions and occupancy of 95%-96% by value, alongside updates on the board-approved debt-raising plan of up to ₹9,000 crore.