EMBDL - EMBASSY DEVELOPMENTS LIMITED Share Price

The management of Embassy Developments Limited provided a positive outlook during the earnings conference call held on February 10, 2026. They emphasized their strategic priorities and growth expectations. Key highlights from the management's outlook include:

1. Execution Focus: The management reiterated that completing ongoing projects with discipline and consistency is their top priority. They have successfully handed over six previously delayed residential projects, enabling over 3,300 families to take possession of their homes.

2. Growth Targets: The company is committed to organic growth through new project launches, targeting an additional gross development value (GDV) of approximately Rs. 41,000 crores over the next three years, funded entirely by fully paid-up land already within the platform.

3. Pre-Sales Guidance: They expressed confidence in achieving a pre-sales target of Rs. 5,000 crores for FY "˜26, bolstered by recent project launches and secured approvals for six residential projects with a GDV of Rs. 13,500 crores.

4. Commercial Development: The Embassy East Business Park in Whitefield has a GDV of Rs. 3,100 crores, with construction already underway. This marks their intention to expand commercial assets significantly.

5. Financial Position: The management reported a collection of Rs. 1,096 crores for the first nine months of FY '26, with a total income of Rs. 1,495 crores. They emphasized maintaining a healthy spend-to-collection ratio of 79%.

6. Long-term Vision: The management projected strong cash flow visibility, with an estimated operational cash surplus of approximately Rs. 28,000 crores. This provides confidence to fund construction, service debt, and pursue growth initiatives.

In summary, the management conveyed a strong commitment to execution, strategic growth in both residential and commercial segments, and confidence in achieving financial targets amidst challenges.

Here are the major questions from the Q&A section of the earnings conference call along with detailed answers:

Question 1: "What is the inventory of unsold projects and OC-received projects?"

Answer: "Our unsold inventory is roughly Rs. 4,500 crores, while our sold receivables amount to Rs. 4,000 crores. Our first priority remains to execute, unlock our receivables, and sell existing inventory."

Question 2: "What is the GDV as of today?"

Answer: "The total GDV currently stands at Rs. 52,000 crores, which includes all future projects beyond FY "˜26."

Question 3: "What is the total debt at the consolidated level?"

Answer: "Our institutional debt is approximately Rs. 3,700 crores, with shareholder debt around Rs. 1,100 crores, leading to a total gross debt of about Rs. 4,700 to Rs. 4,800 crores."

Question 4: "What is the plan to reduce the debt and the timeline for repayment?"

Answer: "Most of our debts are project-specific, and collections will help pay these down over the next few years. We're also discussing options with shareholders regarding the shareholder debt."

Question 5: "How much investment was done to revive the erstwhile Indiabulls projects and when can we expect positive EBITDA from them?"

Answer: "We spent roughly Rs. 200 crores to revive legacy projects, which were about 85% to 90% complete. We expect these to generate positive EBITDA as they are now completed and handed over."

Question 6: "When will the balance sheet show profitability and why was revenue hit by 50% this quarter?"

Answer: "We expect to be PAT negative for the next four to six quarters due to legacy project impacts. The reduced revenue reflects the completion of OC-received projects, which takes time to reflect in the P&L."

Question 7: "What is the current status regarding cash balances and how will the FY "˜26 guidance of Rs. 5,000 crores be achieved from current pre-sales?"

Answer: "Our cash balance is robust, primarily tied up in project execution. To reach our Rs. 5,000 crore target, we anticipate strong pre-sales as many launches have occurred in Q3 and Q4."

Question 8: "What is the cost of capital, and how do we manage debt with regards to the ongoing legal issues?"

Answer: "The current cost of capital is about 14%, with newer financing options available under 9%. We have engaged with bankers, who understand our strong legal case and continue to support our financing needs."

Question 9: "Can you elaborate on our plans for the commercial project in Whitefield Business Park?"

Answer: "We broke ground on Embassy East Business Park in Q3, and our current focus is on building it out. We will evaluate whether to hold the asset or sell it once completed, which takes about three to four years."

Question 10: "What is the strategy beyond 2030 regarding asset management?"

Answer: "In the immediate term, we will maintain a selective, asset-light approach to business development while focusing on maximizing our existing land bank. Long-term, we plan to transition to more asset-heavy strategies as we build surplus cash flow."

Each answer captures the essence of the management's responses while including critical data and forward guidance.