Embassy REIT Q1 FY2027 Results
Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) reported financial and operational results for the quarter ended 30 June 2026, the first quarter of FY2027. Revenue from operations increased 17 percent year‑on‑year to Rs 1,241 crore and net operating income (NOI) rose the same percentage to Rs 1,020 crore. The board declared a distribution of Rs 598 crore, equivalent to Rs 6.31 per unit, representing a 9 percent increase over the comparable quarter last year. The record date for the distribution is 4 August 2026 and payment will be made on or before 11 August 2026.
Leasing activity totaled 1.3 million square feet across 17 transactions. New leases accounted for 0.7 million square feet at an average re‑leasing spread of 11 percent, while renewals comprised 0.6 million square feet at spreads 9 percent higher than existing contracts. Global Capability Centers (GCCs) generated 81 percent of the quarterly leasing demand and new entrants were responsible for 86 percent of new leasing, with AI‑related companies contributing 21 percent of the new space. The average lease premium over market rents was 8 percent.
Portfolio occupancy by value stood at 93 percent, with city‑wise occupancy of 100 percent in Mumbai, 95 percent in Bengaluru, 93 percent in Noida and 92 percent in Chennai. Hotel NOI grew 6 percent year‑on‑year, driven by a 100‑basis‑point increase in occupancy to 61 percent and a 5 percent rise in average daily rate (ADR).
The REIT raised Rs 3,045 crore of debt through a mix of commercial papers, non‑convertible debentures and bank loans at a blended interest rate of 7.46 percent per annum. The development pipeline comprises 6.2 million square feet of projects with a capital outlay of Rs 3,500 crore, of which approximately 60 percent of deliveries slated for the next two years are already pre‑leased.
Hospitality developments included the launch of a 211‑key Hilton Garden Inn, the first phase of a 529‑key dual‑branded Hilton project at Embassy TechVillage in Bengaluru, and a 318‑key five‑star Hilton with a 37,000 sq ft convention centre scheduled to open later in the year. Four Seasons will cease managing the hotel at Embassy ONE, Bengaluru effective 28 February 2027, and the REIT is evaluating new hospitality operators.
The on‑site solar plant generated 44 million units of electricity in the quarter, delivering a stabilised quarterly NOI of Rs 23 crore.
All financial and operating data, along with an earnings presentation and supplemental operating book, are available in the Investors section of the REIT’s website. A conference call to discuss the results will be held on 30 July 2026 at 18:00 IST, with a replay posted thereafter.