Operational and Financial Performance Highlights

Q4 FY26 Performance:

  • Q4 FY26 was the strongest quarter in the company's history.
  • Q4 Presales: INR 2,632 crores, representing an 89% quarter-on-quarter (QoQ) growth.
  • Q4 Collections: INR 577 crores, reflecting a 39% QoQ growth.
  • Area Sold in Q4: 1.78 million square feet.

Full Year FY26 Performance:

  • FY26 Presales: INR 4,631 crores, up 128% year-on-year (YoY).
  • FY26 Collections from Operations: INR 1,673 crores.
  • The company achieved approximately 93% of its FY26 presales guidance of INR 5,000 crores. The marginal shortfall was attributed to approval delays for one planned project in Bangalore, now shifted to Q1 FY27.
  • Construction Spend in FY26: INR 1,182 crores, representing ~71% of collections.
  • Launches: Projects with a cumulative Gross Development Value (GDV) of ~INR 16,300 crores were launched across 6 different projects.

Key Project Launches in Q4:

  • Embassy Citadel (South Mumbai): A 1 million square foot luxury development with an estimated GDV of over INR 8,800 crores. The pre-launch in Q4 achieved INR 797 crores with ~8% inventory absorption.
  • Embassy Verde Phase 2 (Embassy Springs): Achieved 87% absorption within the quarter, generating Q4 presales of INR 588 crores.
  • Together, these two projects contributed INR 1,385 crores, or approximately 53%, of the total Q4 presales.

Portfolio and Construction Update:

The management provided completion status and targets for key ongoing projects:

  • Embassy Paradiso: 100% sold, 80% complete, target Occupancy Certificate (OC) in FY27.
  • Embassy East Avenue: 94% sold, 73% complete, target OC in FY28.
  • Embassy Verde: 90% sold, 17% complete, target OC in FY29.
  • Embassy Edge: 74% sold, 66% complete, target OC in FY28.
  • Embassy Park: 74% sold, 41% complete, target OCs between FY28-FY30.
  • Embassy Greenshore: 63% sold, 8% complete, target OC in FY31.
  • Embassy Eden: 49% sold, target OC in FY31.
  • The OC-received portfolio is 98% sold, with FY26 presales of INR 573 crores and collections of INR 645 crores from this portfolio.

Legal and Regulatory Resolutions

The company secured favourable outcomes in two significant matters:

1. NCLAT Order (May 4, 2026): The National Company Law Appellate Tribunal (NCLAT) set aside an earlier NCLT admission order in a Section 7 application filed by Canara Bank, squashing the Corporate Insolvency Resolution Process (CIRP) in entirety. The NCLAT held that no deed of guarantee existed and the application was barred under Section 10A of the IBC. Consequently, the company exited the Additional Surveillance Measure (ASM) framework and resumed normal trading on BSE and NSE effective May 6, 2026.

2. Karnataka High Court Order: The court set aside a KIADB (Karnataka Industrial Areas Development Board) resumption order relating to 78 acres at Kadugodi, Bangalore. The ruling was based on the company's undertaking to comply with lease terms and obtain KIADB's NOC prior to creating any third-party interest.

Financial Results and Accounting Context

Reported FY26 Figures:

  • Revenue from Operations: INR 1,732 crores (vs. INR 2,180 crores in FY25)
  • Total Income: INR 1,905 crores (vs. INR 2,547 crores in FY25)
  • EBITDA: Negative INR 300 crores (vs. Positive INR 531 crores in FY25)
  • PAT: Negative INR 872 crores (vs. Positive INR 194 crores in FY25)

Explanation of Reported Loss:

The management attributed the reported loss to two primary accounting factors rather than operational performance:

1. Revenue Recognition Policy (Ind AS 115): Revenue from RERA-registered projects is recognized on a completed contract basis, only upon receipt of OC and offer of possession. Over 80% of FY26 presales were from projects (e.g., Citadel, Greenshore, Eden, Verde Phase 2) with target OC dates ranging from FY28 to FY32. Consequently, the FY26 P&L reflects the cost structure incurred ahead of the revenue curve.

2. Reverse Merger Accounting (Ind AS 103): The merger with NAM Estates was treated as a reverse merger. The fair value step-up on inventory reduces the accounting profit margin as this inventory is sold over time, though it does not impact underlying cash flows.

Balance Sheet and Debt Position

  • As of March 31, 2026:
  • Gross Institutional Debt: ~INR 4,100 crores
  • Cash & Cash Equivalents: ~INR 1,100 crores
  • Net Institutional Debt: ~INR 3,000 crores
  • Shareholder Debt: INR 1,121 crores
  • Leverage Ratios: Net Debt to Equity at 0.3x; Gross Debt to Equity at 0.4x.
  • Cost of Debt: The current cost of debt is approximately 14.8%. The management's endeavor is to gradually reduce this to around 10% over the next 12-18 months.

FY27 Guidance and Outlook

The company provided the following guidance for FY27:

  • Presales: INR 8,000 crores total, comprising INR 6,000 crores from owned projects (30% YoY growth) and INR 2,000 crores from Development Management (DM) projects.
  • Collections: Approximately INR 3,000 crores, reflecting ~75% YoY growth.
  • New Launches: GDV of approximately INR 19,400 crores across 11 owned projects and 2 DM projects (Juhu and Sky Terraces in Bangalore). The combined GDV of the DM projects is approximately INR 6,100 crores.

Land Bank and Future Pipeline

  • The company holds a 3,250-acre fully paid land bank.
  • The planned project pipeline beyond FY27 carries a further 20.4 million square feet with an estimated GDV of approximately INR 23,500 crores.
  • Updates on specific land parcels:
  • Sohna Road (NCR): ~500 acres, of which approximately 75 acres are potentially developable (likely for resort/farmhouse use). The company is evaluating monetization options and the land conversion process is underway.
  • Nashik SEZ: The company is engaged in legal proceedings with MIDC, with the next hearing on June 12, 2026. The intention is to debond the land from SEZ status for potential industrial plotted development.

Capital Structure and Shareholder Debt

The company and its shareholder (Blackstone) hold shareholder debt of INR 1,121 crores. The intention is to convert this debt to equity over time, but the conversion is pending an improvement in the company's share price to avoid excessive dilution at current levels.