As of , Embassy Developments Ltd (Miscellaneous) has a deep value score of 11/100 (rated Very Weak).
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: GDV: ₹19,000 Cr
“marquee 1 million square feet 300 plus meter luxury tower in Worli called Embassy Citadel... result in total FY ‘26 GDV of launch projects exceeding Rs. 19,000 crores.”
What: Cost of Debt: Sub-9%
Impact: 400-500 bps saving
“Today, the average cost of debt is around 14%. And some of the new construction finance that we are raising today is sub 9%.”
What: Merger Completion: Jan 2025
“Following approval by the Honorable NCLAT in January 2025, the merged platform was rebranded as Embassy Developments Limited or EDL.”
What: Q3 Pre-sales of ₹1,392 Cr
“During the quarter ended December 31, 2025, the company recorded pre-sales of Rs. 1,392 crores representing a quarter-on-quarter growth of around 240%.”
Earnings deceleration risks from management commentary
Trigger: Alleged liability for repayment of loans under an erstwhile corporate guarantee framework.
Impact: PAT impact: ₹372 Cr potential liability
Management view: Obtained stay from NCLAT; management believes admission was not warranted on merits.
Monitor: litigation
Trigger: Dispute over land usage and SEZ status.
Management view: Obtained stay from District Court; pursuing amicable settlement and SEZ debonding.
Monitor: regulatory
Trigger: Not explained on call
Monitor: commodity
Key quotes from recent conference calls
“We are confident these will drive a pre-sales, helping us achieve our ₹5,000 crore FY2026 guidance. [Previous FY2026 Pre-sales guidance]”
“Mumbai represents an important next phase of growth... three initial residential projects across Worli, Juhu, and Alibaug represent a combined gross development value of over Rs. 12,000 crores. [Initiative: Mumbai Entry Campaign]”
“Our endeavor is to bring down this cost of capital from the current 14% to the 10% kind of range over the next year or so. [Initiative: Debt Refinancing]”
“Canara Bank has initiated proceedings against the company alleging liability for repayment of loans of Rs. 372 crore under an erstwhile corporate guarantee framework. [Risk (litigation): HIGH]”
Headline numbers from the latest earnings call
Revenue
₹264 Cr
Why: Revenue is currently limited as most projects are in the OC-received stage with only balance sales being clocked.
Revenue saw a sharp sequential decline as the company transitions from legacy project completions to new launch cycles.
Other Highlights
• Pre-sales reached ₹1,392 Cr in Q3 FY26, a 240% sequential growth.
• Collections for Q3 FY26 stood at ₹415 Cr, up 15% quarter-on-quarter.
• Construction spend for 9M FY26 totaled ₹868 Cr with a 79% spend-to-collection ratio.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Pre-sales Value
₹1,392 Cr
Why: Driven by recent launches and strong absorption in the core Bengaluru market.
Total Collections
₹415 Cr
Why: Reflects steady progress in project execution and receivable unlocking.
Unsold Inventory Value
₹4,500 Cr
Why: Represents the current stock available for sale across launched projects.
Net Institutional Debt
₹3,000 Cr
Why: Includes ₹880 Cr raised in the last nine months to support construction and launches.
Average Cost of Debt
14%
Why: High due to historical debt structures; new finance is being raised at sub-9%.
Total Portfolio GDV
₹52,000 Cr
Why: Includes all future pipeline projects beyond FY26, excluding certain land banks.
Total Land Bank
3,125 acres
Why: Fully paid-up land bank supporting long-term organic growth.
9M Construction Spend
₹868 Cr
Why: Reflects strong execution cadence across ongoing projects.
Forward-looking targets from management for Project Lifecycle
OPM Guidance
47%
Capex Plan
₹4500 Cr
Net operational cash margin target
₹4,500 Cr
Investment in Mumbai residential projects (Worli, Juhu, Alibaug)
GDV of launch projects
Guidance Changes
FY26 Pre-sales: ₹5,000 Cr → ₹5,000 Cr
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -35% | +15% | Inflection Down |
| PAT (Net Profit) | -767% | +15% | Inflection Down |
| OPM | -72.0% | -10100 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Embassy Developments Ltd has a deep value score of 11/100 (rated Very Weak). This score is calculated from three components
Embassy Developments Ltd's quarterly profit (PAT) growth trajectory
Embassy Developments Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Embassy Developments Ltd's earnings momentum is Monitoring.
Embassy Developments Ltd's valuation metrics
Embassy Developments Ltd's revenue and margin trends
Embassy Developments Ltd's trailing twelve month (TTM) performance
Embassy Developments Ltd key facts
Embassy Developments Ltd shows limited deep value signals currently — score is 11/100 (Very Weak). Monitor for improvement.
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Embassy Developments Ltd has 4 key growth catalysts identified from recent earnings analysis
Embassy Developments Ltd has 3 key risks worth monitoring
In Q3 FY26, Embassy Developments Ltd's management highlighted
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
