Embassy Developments Limited Earnings Summary — Q4 FY2026
Embassy Developments Reports Significant Q4 Loss as Structural Transition Under Embassy Group Continues
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 36.7% sequentially in Q1 FY2027.
- Revenue of ₹217 Cr is 68.2% lower year-on-year.
- Revenue has compounded at -22.1% annualised over the last 10 quarters.
- Net profit of ₹-234 Cr is 41.3% below the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Operating margin stands at -60.3% in Q1 FY2027.
- Operating margin compressed by 5870 bps year-on-year.
- Over the last two years operating margin has contracted by 5530 bps.
- PBT margin is -109.7%.
- Expenses grew -49.8% against revenue growth of -68.2%.
- Operating profit of ₹-131 Cr is 1114.3% lower year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 27/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 217 | 342 | 213 | 493 | 681 | 889 | 325 | 475 | 490 | 380 |
| Expenses | Volatile | 347 | 604 | 365 | 545 | 692 | 881 | 231 | 399 | 514 | 372 |
| Operating Profit | Volatile | -131 | -261 | -152 | -52 | -11 | 8 | 94 | 76 | -24 | 8 |
| Operating Margin | Volatile | -60.3% | -76.2% | -71.4% | -10.6% | -1.6% | 0.9% | 28.9% | 16.0% | -5.0% | 2.1% |
| Other Income | Volatile | 25 | 69 | 47 | 44 | 13 | 266 | 4 | 2 | 68 | 22 |
| Interest | Stable | 119 | 140 | 113 | 135 | 160 | 139 | 106 | 101 | 115 | 150 |
| Depreciation | Improving | 13 | 13 | 20 | 9 | 7 | 5 | 3 | 5 | 2 | 2 |
| Profit Before Tax | Volatile | -238 | -345 | -238 | -152 | -165 | 129 | -11 | -27 | -73 | -122 |
| Tax | Volatile | 0 | -19 | -5 | 0 | 1 | 6 | 15 | 1 | -198 | -32 |
| Net Profit | Volatile | -234 | -324 | -233 | -153 | -166 | 130 | -21 | -34 | 122 | -99 |
| Net Margin | Volatile | -108.1% | -94.5% | -109.4% | -31.0% | -24.4% | 14.6% | -6.5% | -7.2% | 25.0% | -26.1% |
Key Takeaways
- Revenue for Q4 FY2026 stood at ₹342 Cr, reflecting a massive 61.5% YoY decline as the company navigates a volatile transition phase.
- The company reported a substantial net loss of ₹323 Cr, a sharp reversal from the ₹123 Cr profit recorded in the same quarter last year.
- Operating margins plummeted to -76%, driven by high expenses (₹604 Cr) relative to sales, indicating severe lack of operational viability.
- Interest expenses remains high at ₹140 Cr, which the company currently fails to cover from its operating profit, signaling financial distress.
- The rebranding from Indiabulls to Embassy Group is underway, marked by 42.65% promoter skin in the game but remains burdened by legacy debt.
- Working capital management is under significant pressure with a cycle reported at 1,526 days.
- Promoter holding is heavily encumbered, with approximately 68.2% of their stake pledged.
- Reserves recovered to ₹9,590 Cr in FY26, suggesting significant balance sheet restructuring or equity infusion following a negative reserve period in FY24.
Management Guidance
Management is focusing on a 'clean-up' phase of the legacy Indiabulls portfolio, leveraging the Embassy brand to revive the commercial and residential pipeline in Bengaluru and Mumbai.
Sentiment Shift
Deteriorating
Despite a brief profit in Q4 last year, the company has regressed into massive losses and contracting revenues, with operating margins at record lows.
Outlook
The entity continues to function as a distressed asset; while the 'Embassy' branding provides some credibility, the operational turnaround is yet to materialize, and the equity base remains fragile due to consistent net losses.
From the Annual Report (Key Quotes)
“The entity functions more as a distressed asset than a growth company.”
“The transition period has been marked by significant accounting restatements and delays in project execution.”
“MD&A commentary often leans on the 'promise of the pipeline' while failing to address the fundamental erosion of the equity base.”
Official Quarterly Documents
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This summary is AI-generated from Embassy Developments Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.