Embassy Developments Ltd (EMBDL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Embassy Developments Ltd Q2 and H1 FY27 earnings conference call.
Moderator: The conference call will begin shortly. Please stay connected. Ladies and gentlemen, good day, and welcome to the Embassy Developments Limited Q2 and H1 FY '27 earnings conference call. The conference call will begin shortly. Please stay connected.
Moderator: Ladies and gentlemen, good day, and welcome to the Embassy Developments Limited Q2 and H1 FY '27 earnings conference call. The conference call will begin shortly. Please stay connected. Ladies and gentlemen, good day, and welcome to Embassy Developments Q2 and H1 FY '27 earnings conference call. The conference call will begin shortly. Please stay connected.
Moderator: Ladies and gentlemen, good day and welcome to the Q2 and H1 FY27 earnings conference call hosted by Embassy Developments Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aditya Virwani, Managing Director and Promoter from Embassy Developments Limited. Thank you and over to you, sir.
Aditya Virwani (Embassy Developments Limited): Good morning, everyone and thank you for joining us today. I'm Aditya Virwani, Managing Director of Embassy Developments Limited. I'm joined by Neal Virwani, Chief Business Officer; Sachin Shah, our CEO and Executive Director; Rajesh Kaimal, our CFO and Executive Director; and Kamal Mittal, Head of Investor Relations. I'm also joined by Reeza Sebastian, our Chief Revenue Officer, who will share her perspective on our sales journey, customer and channel partner feedback, and the evolution of the Embassy brand in greater detail during today's call. Our investor presentation has been uploaded to the stock exchanges and is also available on our website. Q2 FY27 was the strongest quarter in Embassy Developments history. Pre-sales reached approximately 3,225 crore, surpassing our previous record of 2,632 crore set in Q4 of FY26. This takes H1 FY27 pre-sales to a record 4,900- 4,093 crore, which is up 574% year-on-year, and around 51% of our full year guidance of 8,000 crore. Note lead to what that the first half of FY27 pre-sales of of 4,093 crores is nearly 90% of the entire fiscal FY26, which was 4,631 crore. Collections for Q2 FY27 stood at approximately 546 crore, up 10% sequentially, taking H1 FY27 collections to approximately 1,041 crore, an increase of approximately 53% year-on-year. That is around 35% of our full-year collection guidance of 3,000 crores. Our focus now is on ensuring that the expanding pre-sales base translates into milestone-link collections as construction progresses. The work of the past few years is now translating into stronger sales momentum and market presence. Our recent launches show the trust customers place in the Embassy brand across geographies. During Q2 FY27, we launched three projects: Riverine at Embassy Origins, Bengaluru with a GDV of 3,155 crore; South Reserve at Embassy Origins, Bengaluru with a GDV of 1,957 crore; and Embassy Terrazza, Juhu, Mumbai with a GDV of approximately 3,285 crore. Together, that is 8,397 crore of GDV, up from our pre-launch estimate of 7,500. The upward revision reflects the premium the Embassy brand commands and the quality of our products. The market response was equally strong.
Aditya Virwani (Embassy Developments Limited): for a single residence, the largest single residential transaction in India to date. A buyer committing at that scale in Mumbai's most discerning market of Juhu and within about 18 months of our entry into the city speaks massive strength of the Embassy brand more clearly than anything that we could say ourselves. These milestones matter not not only for a pre not not only for the pre-sales they deliver, but also because they give us greater visibility into into near term into medium term cash flows. That visibility supports the funding of construction, more efficient execution across our projects, and a stronger cycle of sales, collections, and reinvestment into growth while continuing to take a disciplined approach to capital allocation and balance sheet management as we scale. Reeza will discuss the customer response on and our brand. Sachin will cover operations, and Rajesh will take us through the financials. Before I hand over to Reeza, I would like to share an important leadership update that the board announced on October 9th. Sachin Shah has informed the board that he will step down as CEO and Executive Director with effect from the close of business on December 31st, 2026. This is part of a succession plan that Sachin, our Chairman, Mr. Jitendra Virwani, and I have discussed and planned together so that transition happens in a responsible and orderly manner. Sachin will continue to lead as CEO until that date. From Jan 1st, 2027, he will remain associated with the company and the Embassy Group as a Senior Advisor to the Chairman and to the Managing Director and CEO. On the same date, and on the recommendation of the Nomination and Remuneration Committee, the board has approved my redesignation as Managing Director and CEO for the remaining of my existing term. I want to place on record my deep respect and gratitude to Sachin. He took charge of the erstwhile Indiabulls Real Estate in February 2023, and worked through the challenges of those years to bring it to a much stronger position today. Since then, he has been a trusted partner to our Chairman and to me through the integration and in the building of Embassy Developments into platform it is today. His steadiness and commitment to the team have left a lasting mark on the organization and to me personally. We are grateful for his counsel and will remain available to us. Sachin, on behalf of the board, the management team, and all our stakeholders, I'd like to thank you. We are confident in our ability to deliver our FY '27 guidance across all operating parameters, launching approximately 19,400 crores of GDV during that year, achieving pre-sales of 8,000 crore, which comprises of 6,000 crores from our own projects and 2,000 crores from our development manage projects, and delivering collections of approximately 3,000 crores, which is the most important thing. With strong H1 momentum and a substantial launch pipeline ahead, we are well positioned to execute against these objectives while keeping a disciplined focus on execution and cash flow conversion. Our ambition is to build a business that consistently converts demand into cash flow, strengthens its balance sheet, and creates substantial shareholder value. With that, let me hand over to Reeza to discuss our customers, sales experience, and and the Embassy brand. Thank you.
Reeza Sebastian (Embassy Developments Limited): Thank you, Aditya. Good morning, everyone. I am Reeza Sebastian, Chief Revenue Officer. I want to focus on the engine behind our sales performance, the Embassy brand, and the trust it has earned among customers and channel partners. Let's start with our home market of Bangalore. Bangalore is where our brand recall and consumer trust run deepest. The moment we place the Embassy name on a project, the market responds instantly. What satisfies us most is that this demand is overwhelmingly driven by genuine end users, families buying homes to live in them. They choose us because they know the brand stands for credibility,
Reeza Sebastian (Embassy Developments Limited): brand pull looks like on the ground. On the morning of the launch at our North Bangalore sales office, people queued up before the doors even opened. Anticipating an increased interest in our offerings and high footfall, our teams transformed the booking experience. Bookings were fully transitioned online, where an a customer could choose an apartment online based on preferences, submit his KYCs, transact and complete it in less than 7 minutes. To compliment this digital speed, we completely elevated the on-site physical environment. We didn't just build waiting lounges, but based on the theme of natural intelligence of the project, we designed an ecosystem featuring children's recreation spaces, refreshment zones, interactive games and a beautiful walk-through botanical nursery where families could choose a plant to take home. We turned what is traditionally a stressful financial transaction into a celebratory, deeply supportive milestone. The 93% conversion ratio from expressions of interest to completed bookings over those two weeks reflects two parameters. Firstly, the strength of the buyer's intent, and secondly, the strength of the brand. But the Embassy growth story is no longer confined to Bangalore. In Mumbai, we have expanded across Worli, Juhu, Thane, Panvel, Chhabroli and Alibaug, building a presence across locations and asset classes. Our performance in Worli is a perfect case study in brand equity. In less than 9 months of entering Worli, we clocked more than 1,350 crores in sales at Embassy Citadel. What makes this extraordinary is that we achieved it with no sample flat and no lavish sales office on-site. The inventory is sold purely on the strength of the Embassy brand and our national reputation. To further accelerate this momentum, we're now opening a state-of-the-art Customer Experience Centre at One World Center, Lower Parel, which will optimize our conversion and pricing velocity even further. At Embassy Terraces, Juhu, the response was equally compelling, including the landmark residence transaction of 711 crores, making it the largest single-home deal in India till date. This momentum is heavily backed by the trust of our channel partners. Whether in Bangalore, Mumbai, or NCR, the channel partner community has embraced the Embassy brand as a gold standard. They know that an Embassy project means guaranteed consumer interest, transparent dealing, and premium execution, making us their partner of choice. Our objective is to replicate the trust we have built in Bangalore across our national platform. The response to recent launches gives us confidence as we enter the second half of the financial year. With that, I will hand over to Sachin for the operations update. Thank you.
Sachin Shah (Embassy Developments Limited): Thank you, Reeza, and good morning, everyone. I will cover our project portfolio, execution progress, and launch pipeline. But before I begin, let me thank Aditya for his kind words. I've been lucky and privileged to lead such a wonderful, loyal, and hardworking team to the IBREL years and its integration with Embassy. My transition from the role of CEO and Executive Director is part of a planned succession process. I have complete confidence in Aditya, Neil, and the team, and I'll continue to support Jitu and Aditya as Senior Advisor and remain committed to EDL's long-term success. Our half-year pre-sales are already close to 90% of FY '26 full-year results. That progress reflects the strong market acceptance of the brand and differentiated product launches. Our key asset, Embassy Citadel, is showing signs is showing early signs of robust bookings for October and November as well.
Sachin Shah (Embassy Developments Limited): in hand and thoughts through construction planning, sales readiness and market activation. The approach supports healthy absorption and pricing discipline and as a company, we are not focused on the number of launches in any particular quarter. Our own our ongoing owned project portfolio consists of 13 projects having a total GDV in excess of 27,422 crores of which 55% of the area is sold. This excludes the DM projects. We have nearly nearly 25,536 crores of cumulative sold receivables and unsold inventory across our OC received and ongoing owned project portfolios providing a strong basis for future collections, cash flows and revenue recognitions. We also continue to see strong sales tractions across all our eight recently launched residential projects. These include: Embassy Riverine, Embassy South Reserve, Embassy Del Razzo, Embassy Verde Phase 2, Embassy Greenshore, Embassy Eden, Embassy Paradiso and Embassy Citadel which are cumulative cumulatively over 52% area sold within six months of launch. Alongside new launches, we continue to advance construction across our ongoing portfolio in line with the planned schedules. We received the OC for the remaining towers of Golf City at Sahaspur during Q2 FY '27 and our OC received portfolio remains over 95% sold in terms of area. Embassy Paradiso and Embassy Springs is completely sold, nearing completion and slated for OC in FY '27. Similarly, Embassy Edge and Embassy East Avenue are progressing well towards completion in FY '28 with both projects already substantially sold at about 90%. Embassy Citadel has secured approvals for all 81 floors, an important differentiator in Worli's luxury market. This mix of nearing this mix of projects nearing delivery and new projects under construction provides visibility into future revenue recognition, cash collection and overall improvement in collection to pre-sales ratio. We are very confident of achieving our target of 19,400 crores of launch GDV, which comprises of nine owned projects with the GDV of 13,300 crores and two development management projects contributing an additional INR 6,100 crores of GDV. The first half of this year, we have already launched three projects with an aggregate GDV of 8,397 crores, up from the pre-launch estimated GDV of 7,500 crores. This reflects the strong demand for the Embassy product offerings and a premium pricing the brand commands. The balance launch pipeline in the second half remains well diversified across our three core markets of Bangalore, MMR and NCR and spread across luxury apartments, villas and commercial. Beyond fiscal year '27, we have a development pipeline of 20.3 million square feet with an estimated GDV of approximately 23,470 crores. There's also a fully paid 3,251 acre land bank, including 1,400 acres in Nashik where we are making good progress in amicably resolving past issues with MIDC. We believe this land could ideally be suited for data center development as well. We've strengthened our senior leadership in NCR with the hire of Ketan Nanda as Business Head for North, who's already augmenting that team. Also, we have brought on board Alok Shery as our Head of Business Development in Mumbai. This allows us to actively look for new projects in the NCR, MMR and MMR region. The quarter is a good barometer of the strength of our launch preparedness and product design. I'm pleased this pleased to hand this over with these strong headwinds. It's been a privilege running this company and I thank Jitu, Aditya and the entire Embassy team for their trust and collaboration. With that, I shall hand it over to Rajesh to provide EDL's financial update.
Rajesh Kaimal (Embassy Developments Limited): Thanks, Sachin, and good morning, everyone. Before I start, I'd like to say that Sachin has not only been a great colleague, but also a very dear friend. It has been a pleasure working closely with him, and I will miss his present presence in the operational role that he has performed so effectively over the years. Before I get into the numbers, it is worth briefly revisiting how financial performance is reflected in a real estate development business. As many of you know, this is a long-cycle industry.
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