Embassy Developments Ltd

- Embassy Developments Limited has been actively engaging with bankers and is looking to raise construction finance for upcoming projects such as Embassy East Business Park, with lenders like Bank of Baroda and SBI showing interest at sub-9% rates. - The company raised debt from Kotak to secure approval funding for FY '26 launches, providing working capital for RERA and initial sales periods. - For FY '27, some construction finance will be raised for new project launches, but overall approval funding needs are low due to prior approvals and master plan clearances. - The management is considering options for shareholder loans held by Blackstone and Embassy Property Developments, including potential conversion to equity. - The focus is on raising capital aligned with execution needs, preserving balance sheet flexibility, and maintaining financial discipline. - Net institutional debt raised in the first nine months of FY '26 stands at Rs. 880 crores, supporting construction and upcoming launches.

- For FY ’26 launches, all approval funding has been secured through debt raised from Kotak, including working capital for RERA and initial sales phases. - FY ’27 projects mainly in Embassy Springs and Embassy Knowledge Park have required minimal additional approval capital as approvals and master plans are mostly in place. - Construction finance will be raised for some projects launching in the next financial year, but overall, limited incremental approval capital is expected. - The company prefers selective, asset-light strategic investments like the residential joint development (JD) deal in Whitefield, involving a Rs. 50 crore deposit and Rs. 20 crore working capital for a high IRR deal yielding Rs. 450+ crore surplus. - Plans include cautious land acquisition post-2030 for large-scale city-style developments, focusing on high conviction, trophy commercial assets selectively. - Cash deployed in projects has led to temporarily reduced cash balances but supports execution and future launches.

- FY ‘26 pre-sales target of Rs. 5,000 crore expected to be met by March 2026, up from Rs. 2,000 crore in first nine months. - Strong sales traction in marquee projects like Embassy Citadel (Mumbai) and Embassy Sky Terraces (Bangalore). - FY ‘27 guidance to be announced around March-April 2026, with expectations of strong growth. - Future pipeline projects beyond FY ‘26 represent a GDV of Rs. 24,200 crore with overall company GDV totaling Rs. 52,000 crore. - Focus on unlocking receivables and selling unsold inventory to sustain cash flows and fund new launches. - Prioritize quick-launch projects over large land parcel developments (e.g., Panvel region deferred to priority three). - Continued robust demand seen in key markets like Mumbai and Bangalore with net cash margins of 45-60%. - Operational momentum expected to strengthen profitability and cash surpluses over next 3-4 years.

- Embassy Developments expects profitability to strengthen meaningfully as the mix shifts towards new generation projects with strong net surplus margins (page 8). - New launches secured with approvals and strong presales (Rs. 2,000 crores in 9 months FY’26), targeting Rs. 5,000 crores pre-sales for FY’26 (pages 5, 16). - Current projects show robust sales, especially in Mumbai and Bangalore, with cash margins between 45% to 60% (page 19). - EBITDA currently impacted by legacy projects but new projects expected to generate positive EBITDA and cash surpluses within 2-3 years (pages 20, 29). - ROE of 11%-12% expected once new projects complete and OC (occupancy certificate) is received, likely over next 2-3 years (page 29). - Focus on cash flow and collections expected to support growth while maintaining financial prudence (pages 8, 29).

- Embassy Developments Limited has a total Gross Development Value (GDV) of approximately Rs. 52,000 crores across all projects (Page 9). - The future pipeline beyond FY ‘26 has a GDV value of Rs. 24,200 crores (Page 9). - The company has launched projects worth Rs. 19,000+ crores GDV in FY ‘26 with ongoing strong pre-sales and upcoming launches (Page 16, 23). - The unsold inventory stands at roughly Rs. 4,500 crores with sold receivables of about Rs. 4,000 crores (Page 9). - Key projects include the Embassy Citadel in Worli, Embassy Springs township launches, Embassy Knowledge Park, and Embassy Sky Terraces in Bangalore (Pages 23-28). - Embassy Citadel launch started with strong traction post-RERA approval and show suite readiness expected by April-May 2026 (Page 26-28).