Good morning, everyone, and welcome to Embassy Developments Limited Q4 and FY26 earnings conference call. I am joined today by Sachin Shah, our CEO and Executive Director, and Rajesh Kaimal, our CFO and Executive Director.

Our investor presentation has been uploaded to the stock exchanges and is available on our company website. FY26 has been a landmark year for Embassy Developments Limited operationally, strategically, and institutionally.

It marked the first full year of the merged platform following the integration of NAM Estates and the erstwhile Indiabulls Real Estate Limited into the unified Embassy Developments brand. I am pleased to report that Q4 FY26 was the strongest quarter in our company's history.

Q4 pre-sales stood at ₹2,632 crore, up 89% quarter-on-quarter. FY26 pre-sales increased to ₹4,651 crore, up 128% year-on-year.

Q4 FY26 collections stood at ₹577 crore, reflecting a 39% quarter-on-quarter growth, and FY26 collections from operations were ₹1,673 crore. During FY26, we launched projects with a cumulative GDV of approximately ₹16,300 crore across six different launches.

We achieved approximately 93% of our FY26 pre-sales guidance of ₹5,000 crore. The marginal shortfall was attributable to approval delays of one planned project in Bangalore that has now shifted to Q1 FY27.

I will now talk about the two launches that we had in Q4. The two launches, which were Embassy Citadel and Embassy Verde Phase 2, were two launches that drove the Q4 performance, and one launch from Embassy Eden from Q3.

Embassy Citadel, our entry into South Mumbai luxury segment, a 1 million square foot development with an estimated GDV of over ₹8,800 crore. The pre-launch achieved in Q4 was ₹797 crore at roughly 8% of inventory absorbed, validating both product positioning and the pricing strategy in what is one of India's most competitive luxury markets.

Just to note, we only brought this product out in mid-February, giving us only 45 days to clock almost ₹800 crore on this project. Embassy Verde Phase 2 at Embassy Springs delivered an 87% absorption within the quarter, generating Q4 pre-sales of ₹588 crore.

Together, these two projects contributed ₹1,385 crore, or approximately 53% of Q4 pre-sales. Additionally, our Bangalore luxury portfolio, led by Embassy Eden, our luxury villa development at Embassy, established a clear category leadership position.

Bangalore launches in the ₹10 crore ticket size accounted for over 65% of all FY26 sales in Bangalore in that segment, which was roughly ₹2,000 crore. This really showcases Embassy's strength in the luxury segment in Bangalore.

On the legal and regulatory front, the company secured favorable outcomes in two significant legal and regulatory matters. First, the Honorable NCLAT, by order dated 4th May 2026, set aside the earlier NCLT admission order in the Section 7 application filed by Canara Bank, thereby squashing the CIRP proceedings in entirety.

The NCLAT held, inter alia, that no deed of guarantee existed and that the application was barred under Section 10A of the IBC. Following this, the company exited the ASM framework and resumed normal trading on both BSE and NSE effective 6th May 2026.

Second, the Honorable High Court of Karnataka set aside the KIADB resumption order relating to 78 acres at Kadugodi, Bangalore held by Embassy East Business Park, based on the company's undertaking to comply with the lease-cum terms and obtain KIADB's NOC prior to any third-party interest creation. Both rulings were delivered on merits, reinforcing the company's legal position and governance framework.

Our reported P&L for FY26 reflects an accounting loss of ₹872 crore at the PAT level. I would like to provide context for these numbers, as they are structural in nature rather than operational.

This is largely a function of real estate revenue recognition accounting policy, under which income is recognized only on project completion and handover, and reflect past project performance. Given that most of our projects will have target OCs from FY28 onwards, revenue recognition from these projects will flow primarily through '28 onwards as construction progresses meaningfully.

What you are thereby seeing in FY26 is a cost structure built ahead of the revenue curve. We expect this profile to progressively normalize as projects move towards completion and revenue recognition accelerates.

On the FY27 outlook, based on our launch pipeline, ongoing inventory sales, and market momentum, we're providing the following FY27 guidance: pre-sales of ₹6,000 crore from our own projects, representing a 30% year-on-year growth, along with an additional ₹2,000 crore from the DM projects, totaling ₹8,000 crore; collections of approximately ₹3,000 crore, reflecting around 75% year-on-year growth driven by the milestone-linked inflows from existing launches and ongoing projects; new launch GDV of approximately ₹19,400 crore across 11 own projects, and along two DM projects, Juhu and Sky Terraces in Bangalore, the combined GDV of DM projects is approximately ₹6,100 crore. This launch pipeline, together with sustained demand for Embassy Citadel and our Bangalore portfolio, underpins our FY27 outlook.

To sum up, FY26 has been a transformational year. We've delivered record quarterly pre-sales and built a launch pipeline that we believe is industry-leading for our scale.

Another significant milestone undertaken was our brand evolution, shifting from a legacy-led identity to a more forward-looking brand with renewed philosophies, values, and visual identity. Our priorities for FY27 are clear: deliver on the launch pipeline, accelerate construction progress to drive collections, and reduce financing costs through refinancing.

With that, I will hand over to Sachin, who will take you through the operational performance in detail.

Thank you, Aditya. FY26 was a year of clear, sequential ramp-up in operating performance as we accelerated launches and increased pre-sales and collections over the quarters.

To provide perspective on this trajectory, quarterly pre-sales increased from ₹198 crore to ₹409 crore to ₹1,392 crore over the first three quarters of the fiscal year before we finally closed at an impressive ₹2,632 crore in Q4. Quarterly collections increased steadily from ₹322 crore in Q1 to ₹577 crore in Q4.

The area sold increased from 206,000 square feet in Q1 to 1.78 million square feet in Q4. As construction milestones progress on these projects, we expect a meaningful contribution in operating cash flow generation in FY27 and '28.

Construction spend during FY26 stood at ₹1,182 crore, representing approximately 71% of collections, reflecting a capital deployment that's disciplined. During Q4, we made progress on delivering our projects as well.

We submitted the OC application for 109 Phase 1 in Gurgaon, and we received partial OC for Golf City Sector 1 Phase 1. Our OC-received portfolio is now 98% sold, with FY26 pre-sales of ₹573 crore and collections of ₹645 crore from this portfolio, reflecting a healthy monetization of completed inventory.

Across our ongoing projects, construction and delivery timelines remain broadly on track. Embassy Pristine at Embassy Springs is 100% sold, 80% complete, with target OC in FY27.

Embassy East Avenue in Whitefield, Bangalore, 94% sold, 73% complete, with target OC in FY28. Embassy Verde at Embassy Springs in North Bengaluru, 90% sold, 70% complete with a target OC in FY29.

Embassy Edge at Embassy Springs, 73% sold, 66% complete, with a target OC in FY28. Embassy Park in Panvel, 74% sold, 41% complete, target OCs in between FY28 and FY30.

Embassy Greenshore at Embassy Springs, 62% sold, 8% complete, target OC in FY31. Lastly, Embassy Eden, 49% sold, with a target OC in FY31.

Across the launched and under-construction portfolio, FY26 pre-sales aggregated to ₹4,058 crore, 27.5% of the unsold inventory value of ₹14,728 crore, allowing for sustenance sales to continue into the fiscal year and providing substantial visibility for future monetization. Looking ahead, our FY27 launch program consists of nine projects which are owned, with a cumulative GDV of ₹13,300 crore.

This is supplemented by two DM projects, taking our total launch GDV to approximately ₹19,400 crore. The key headline launches over the coming months include: Embassy One North Tower in Bengaluru, adjacent to the Four Seasons Hotel, where we have 400,000 square feet to sell and a GDV of approximately ₹1,400 crore; Embassy Knowledge Park, villas and apartments in North Bangalore, with a combined GDV of approximately ₹4,500 crore, and strategically located adjacent to the Embassy Riding School in North Bengaluru; front parcel villas and apartments at Embassy Springs, where we have 1.7 million square feet in area to sell and a GDV of ₹1,900 crore; and our newly acquired Whitefield JDA project, where we have 1.7 million square feet and a GDV of ₹2,000 crore, where Embassy has a 68.5% share; Plot A at Embassy Hub in Hebbal, Bengaluru, where we have 1.2 million square feet to sell and a GDV of approximately ₹2,100 crore, where Embassy's share is 91%; and lastly, 109 Commercial in Gurgaon, where we have a GDV of ₹800 crore across half a million square feet.

Two DMs with a total GDV of ₹6,000 crore are in addition. This year, we plan to launch our super-exclusive and ultra-luxury Juhu project, where we expect to receive our IOD shortly, and Sky Terraces in Bangalore, where we expect to have a robust demand at launch.

This pipeline is geographically balanced across our three core markets: Bangalore, MMR, and NCR, and is weighted towards product categories where we have demonstrated strong absorption, which is luxury residences and villas, premium apartments, and lifestyle second homes. Planned project pipeline beyond FY27 carries a further 20.4 million square feet and estimated GDV of approximately ₹23,500 crore.

Combined with our 3,250-acre fully paid land bank, it gives us a multi-year revenue visibility and the flexibility to phase launches in line with market conditions. In summary, FY26 has been a year of growth, solidifying our operations, integrating and building our teams, and executing in a disciplined manner while managing cash flows effectively.

This has led to sales velocity and accelerated launches in the second half of the year. We enter Fiscal '27 with strong momentum and a healthy inventory pipeline across ongoing projects.

With that, I will hand it over to Rajesh, who will walk you through the financial performance and the balance sheet position. Thank you.

Thank you, Sachin, and good morning, everyone. I will take you through the financial performance for the quarter and the full year ended March 31st, 2026.

The reported P&L for FY26 reflects the timing mismatch inherent to the development business model and additionally carries the accounting consequences of the reverse merger treatment from the NAM-IBREL combination. Reported numbers for FY26: revenue from operations stood at ₹1,734 crore versus ₹2,134 crore in FY25; total income of ₹1,905 crore versus ₹2,547 crore in FY25; EBITDA was negative ₹300 crore versus ₹531 crore positive in FY25; PAT was negative ₹872 crore versus positive ₹194 crore in FY25.

As Aditya mentioned earlier, the reported numbers must be read in context of the following points. First, the real estate revenue for RERA-registered projects under Ind AS 115 is recognized on completed contract basis.

The revenue from sale of residential units is recognized only on receipt of OC and offer for possession to customers, and not at the point of pre-sale. Over 80% of our FY26 pre-sales were concentrated in H2, predominantly from launches such as Embassy Citadel, Embassy Greenshore, Embassy Eden, and Embassy Verde Phase 2.

These projects have target OC dates ranging from FY28 through FY32. Revenue from these projects will be recognized from FY28 onwards in respective years when the OCs for these projects are received.

Accordingly, the FY26 P&L reflects the fixed cost structure that is incurred ahead of the revenue recognition curve. As we receive OCs for the projects launched, we expect the revenue recognition profiles progressively normalize and accounting profit margins to improve over the years.

Second, as per reverse merger accounting treatment under Ind AS 103, erstwhile shareholders of NAM became the largest shareholders of the merged company, and the transaction was accounted in substance as a reverse merger, with NAM as the accounting acquirer and IBREL as the accounting acquiree. As erstwhile IBREL inventory is sold over time, the accounting profit margin reported in the consolidated P&L is reduced to the extent of differential between historical cost and the fair value step-up.

Importantly, this does not impact the underlying cash flows from these assets. Cash flow for FY26: On the cash flow side, the year was characterized by a ramp-up in operating cash flows, disciplined investing activity, and a positive financing inflow driven by warrants conversion.

With over 80% of FY26 pre-sales concentrated in H2, corresponding milestone-linked collections will largely flow through FY27 and FY28. This is the principal reason why FY26 collections of ₹1,673 crore were marginally lower than FY25 collections of ₹1,854 crore, even as pre-sales grew 128% year-on-year.

Pre-sales to collection conversion is a structural lag and not an operational issue. We expect FY27 collections to grow approximately 75% to around ₹3,000 crore as construction milestones are achieved in H2 FY26 launches.

Debt position: As of March FY26, our gross institutional debt stood at approximately ₹4,100 crore, with cash and cash equivalents of around ₹1,100 crore, resulting in net institutional debt of approximately ₹3,000 crore. Our net debt-to-equity ratio stood at 0.3x, while gross debt-to-equity stood at 0.4x.

In addition, we carry shareholder debt of approximately ₹1,151 crore. Upcoming launches and strategic projects are expected to generate meaningful cash flow surpluses, supporting a structured reduction in institutional debt while also funding future growth.

In closing, FY26 has been a transition year marked by integration of the merged entity, an accelerated launch program, and the resolution of legal overhangs. The reported P&L reflects a mismatch of revenue recognition timing and merger accounting, but underlying operating fundamentals point to a platform with strong forward visibility and cash flow generation.

We enter FY27 with confidence in the strength of our launch pipeline, a strong balance sheet position to support our ₹6,000 crore pre-sales guidance, and a ₹3,000 crore collection target. With that, we would be happy to take questions.

Good morning, everyone, and thanks for the opportunity. My first question is on the launch pipeline and if you could give some color around the launch timelines.

Let's say the larger projects like Embassy One, Knowledge Park, the Whitefield, and the Embassy Springs project. That's the first question.

Hi, Mohit. Good morning.

The projects that you referred to--

No, I'm saying the larger ones, like Knowledge Park villas and apartments, Embassy Springs, the Whitefield project, and Embassy One North Tower. These are the larger projects.

What would be if you could split into quarters, which quarter do you expect to launch?

Sure. I'll just give you a flavor.

The pipeline that we have of roughly 11 projects, 19,000-plus crore in GDV, is pretty scattered across the entire year. Embassy One North Tower, we've actually already got our building plans, we are going to launch this project this quarter.

Embassy Knowledge Park, which is quite a big project, would probably be towards the end of this quarter or might spill over to Q2. Juhu will be Q2.

Sky Terraces will be end of Q1 or Q2. I'll just name the Embassy Springs front parcel will be probably Q2 or maybe Q3.

Okay. Bulk of the launches seems to be in the first half or probably the early part of H2.

Is that understanding correct?

That's right.

Now on your guidance of around ₹6,000 crore pre-sales for next year, just wanted to understand two parts to my question. Firstly, if you could share your thoughts on what has been the response in the Worli project, Citadel project?

Because, obviously, these numbers, fourth quarter numbers, obviously is towards the end, it doesn't reflect the momentum. If you could explain how's the momentum, and also in your ₹6,000 crore of pre-sales number, what is the implied assumption, let's say, for this year of what is the kind of expectation you have for this year pre-sales for the Worli project?

Yeah. If you look at our unsold inventory, including the Worli project, we roughly have 12,000-odd crore of GDV.

If you take out the commercial asset, because that's an asset that we'd like to build out and monetize closer to OC, I would say we have close to ₹10,000 crore of unsold inventory. We are factoring in around ₹2,000 crore in the ₹10,000 that we will sell out of the ₹6,000 guidance we're giving, and ₹4,000 from the new launches.

Embassy Citadel has been received really well. Given that we only had 45 days in Q4 to launch this project and to do ₹800 crore then is quite commendable.

We feel proud about it. In Q1 as well, we already have some decent momentum on it.

We believe that Citadel should contribute ₹1,000 crore of the ₹2,000 from the existing stock.

Understood. My last question is on this entire cash flows and net debt number.

This year, FY27, you will see a marked improvement in your collections at about ₹3,000 crore. How do you see the construction cost and then the resultant impact on leverage levels?

Would we start to see the leverage levels coming down, and what would be the timeline for the leverage levels if you could give some color on that?

Hi, Mohit. It's Sachin here.

While we are expecting collections of roughly 3,000-odd crore this year, we also want to spend approximately 2,500-odd crore on construction. We want to really use our collections to keep pushing construction, get those milestone-linked payments to keep coming in.

You might not see a huge reduction in debt for this year. You'd see the company in a much stronger position by the end of this year as we kind of move forward to be able to kind of receive more inflow next year and then pay down debt.

Over the course of the next kind of 24 months.

Right. Is there a comfort level of debt, let's say, ₹3,000 crore?

Where do you see the net debt levels comfortable at? Or let's say in the next three years, you want to go net debt free?

Any target internally on that?

Mohit, this is Rajesh here. We want to keep our net debt levels to 0.5x or less.

As Aditya said, this year we want to spend all the collections or most of the collections on construction, not a great reduction in the net debt numbers. Starting from the next financial year, we expect progressive reduction in the net debt levels, and we are comfortable with net debt levels of 0.3x, because we want to spend on construction as well as spend on new projects over the next 2 to 3 years.

I would guess in the short term, 0.3x net debt is a comfortable number for us.

Great. That answers my questions.

Thanks a lot, and all the best.

Thank you, Mohit.

Thank you, Mohit.

Yeah. Hi.

Good morning. First thing, just quickly to understand this revenue recognition across looks like now three different business models within Embassy.

You have the legacy Indiabulls projects, that seems to be on the completion and handover basis. Then you have the development management, which would be more on percentage of completion method, right?

I want to understand, how would that revenue be recognized, and I'm just trying to understand when will it start reflecting in the P&L?

Yeah. This is Rajesh here.

The legacy projects of erstwhile Indiabulls Real Estate, as they come up for completion and as we get OC, we recognize the revenue. It's not only true for legacy projects, the legacy projects of Embassy as well as Indiabulls Real Estate.

The current launches, where we just started construction, most of the projects were launched in Q3 and Q4 of last financial year, say, something that we'd recognize only on as we obtain OC, offer possession to our customers, and moves for actual collection. That's when we recognize the revenue as per that and the corresponding cost also.

The DM projects is only a fee income that will be recognized over a period of construction as we progress in construction and as we collect the fees. That revenue will be recognized at that point in time.

Okay. Also, maybe is there any explicit guidance on the revenue guidance in FY27, '28 or '29, to the same?

No, we would refrain from giving a revenue guidance. We have already given a pre-sales guidance and collections.

I think we'll stick to that at this point.

Fair enough. Second is on the land.

See, we've large land parcels in the North. NCR is, we all know is very dominated by a few large players.

Have you considered maybe monetizing that land if the right valuation comes along? Just as would that help in P&L and balance sheet?

Also, what do you expect the market value of that land to be?

All right. This is Sachin.

Look, of course, every time when we get an offer for a land parcel which is not core and strategic to us, we always consider whether we should monetize it or not. As you've seen in our balance sheet and in our P&L for the last 2 years, we have been doing that.

Wherever we have land parcels which are not mutated or scattered or the aggregation was not done by the erstwhile Indiabulls, we're definitely looking at monetizing that. We do have 500-plus acres in North on Sohna Road.

A lot of this land today sits as forest land. We could probably develop 75 acres of that land.

Yes, we are looking at seeing if someone comes along looking at a different type of development out there. Of course, we would look at monetizing that.

We don't have a kind of an estimate of market value as of now, yeah.

Sure. Just a question on the SEZ, could you give us an update on what's happening there, is there any development plans for the next 12 to 18 months, and what are the projects that you are envisioning?

If you could just guide us on the SEZ.

Sure. As we had a legal issue going on with MIDC, on which we've received a stay.

The next hearing date is on June 12th. At the same time, I'd love to say that we have approached the authorities, and we are trying to find an amicable way that we can settle this between us and them, we can develop this land.

The most likely use of this land will be small- and medium-pocket kind of industrial use. It is not well suited today for SEZ use, and nor is it well suited for kind of warehousing.

A heavy industrial, plotted play, that you would expect this transaction once we've settled our issues with the government.

Got it. That's helpful.

Wish you all the best.

Hello. Good morning.

Thank you so much for the opportunity. My questions are regarding the Embassy Citadel project.

For the Citadel project, as I can see in the presentation, the completion date has been moved from 2032 to 2035. What's the reason for such a 3-year push?

That is just for RERA filings. Our target date is '31 or '32.

We like to keep a little bit of a buffer, also given that this is a large tower, our first large asset in Mumbai. Actually, it's also in line with the market norms.

If you look at most 300-meter towers, they give a generous buffer on their RERA dates.

Okay. It is nothing as such there is lack of interest, right?

The response is really good, right, at this point?

It is really good. Honestly, if I have to tell you about Worli and all the supply there, we are positioned as a value proposition there, also given that the ticket size is intentionally smaller.

From a pricing point of view, we are coming in much lower than where I think the top developers are. We're just being a little bit humble about it, that we are conscious we need to build our brand, build the same luxury moat that we have in Bangalore in Mumbai, that will take some time.

Therefore, we're not shying away from discounts. I really think that this is an outlier product in Worli.

I'm also happy to say that we have more or less closed on closing Leighton as our contractor. I think Leighton is the best contractor in the country, probably a notch even higher than L&T.

We have just engaged them, and we feel comfortable about the timelines that we have.

Okay. We have not officially launched the project yet, right?

We have launched the project. Excavation is going on, and it's well underway.

Okay. Understood.

Just one last question. What is the construction spend in such huge project, in such luxurious project?

Yeah. The total spend in Citadel, including all approvals, FSI, everything, is ₹3,000 crore.

We have a generous ₹5,000 to ₹6,000 crore-plus surplus in this project.

Okay. Understood.

That's it from my side. Thank you so much.

Yeah. Good morning, gentlemen.

Thanks for opportunity. Sir, my main question was to really understand our company, that what are the top three milestones investors should track over next 12 to 18 months, whether Embassy transformation is succeeding or not?

Yeah. I think the top milestones that investors should focus on is the pre-sales is also then backed by collections, and is the eventual reduction of cost of capital will eventually come down.

When we borrowed this money to launch all these projects, and I hope everyone appreciates that we launched ₹16,000 crore last year, we're launching close to ₹20,000 crore this year. Now all that pipeline is on comparable terms of the largest listed developers in the country.

To do that, we needed a decent amount of equity to do it. The raising of financing at slightly higher rates were what I term as a one-and-done exercise, and that will start graduating to cheaper financing and less debt as we start selling, as banks start seeing receivables.

I would say the top three are pre-sales, collections, and cost of debt, and debt in general coming down over the next 12 to 18 months.

Sir, my next question was regarding we have entered when really there is a rise in construction cost, finance cost, and the sale of real estate are getting bit slower. That is what market update we get.

How do we highlight upon that?

To be honest with you, we're not seeing that yet. There's a lot of noise about real estate slowing down, and we appreciate this is a cyclical industry.

If you just look at the Q4 launches, Verde, which sold out 80-plus percent; Embassy Eden, which in Bangalore is a ₹20 crore-plus ticket size, ₹20 crore in Bangalore is as high as you can get, we have sold 48% in 6 months. Actually, we're still seeing pretty robust traction on ground.

I think the top developers just stay on top of that funnel. While the market slows down, that consolidation only happens more.

We're actually coming back into this old residential game in a big way, where our consolidation and eating up market share, we're coming off lows. This brand is very, very strong, especially in Bangalore.

We're going to bring that same strength into Mumbai. I think that's going to help us have some tailwinds to continue eating market share.

Even if the market slows down and contracts a bit, I still feel we will be a bit of an outlier and grow market share. We feel pretty good.

Also, if you look at the FY27 pipeline, it's actually a great balance between the luxury, the ultra-luxury, where we have Juhu, Sky Terraces, and Embassy One. Beyond that, it's actually a very fast-moving mid-segment product, which we feel is the perfect hedge to have as well going into this stage of the cycle.

We feel pretty good. Costs have gone up a little bit.

We do feel they will come down. We have a great procurement strategy where we've delayed non-crucial items, but at the same time, not stopping construction.

Because we have fully paid-up land and high gross margins in all these projects, we hardly have any JDs, I think we actually benefit the most from this, because our pressure will sustain the most. Most other developers who have land costs, a JD ratio that they have to share, will find the cost increase hurting them a lot more.

I think we're actually in a very comfortable place, even if costs go up a little bit. Real estate is a hedge on inflation.

We always feel pricing power. Costs catch up to that.

Maybe it was a delayed catch-up, but essentially we'll catch up to the price increase that the consumer takes given the energy shocks.

Really helpful. Thanks for your confidence, good luck to you, sir.

Thanks very much.

Thank you.

Hello. Thank you, sir, for taking my question.

Sir, I had just a couple of questions. What is the cost of borrowing currently for the company?

Second one, at this price level, are the promoters thinking of increasing their stake or buying from the open market?

Current cost of debt is around 14.8%. As Aditya mentioned, our endeavor is in the next 12 to 18 months to bring this cost of capital down, as all our projects start selling in and cash flows start coming in.

Sorry, the second question, I didn't get it correct. Can you repeat, please?

Yeah. The question was that at this price level, are the promoters thinking of increasing their stake in the company or buying from the open market?

Price of shares today is quite low, and we have a shareholder debt today along with Blackstone. We have a shareholder debt of ₹1,100 crore, which we will convert to equity over a period of time.

We are waiting for both the market to correct, as well as our share price to correct, which will take a few more months, maybe. Then we will up our equity in the company along with Blackstone.

Sir, just my last question, of the borrowing cost, how much decrease are we expecting in borrowing levels across 24 months?

Our expectation is to bring it to 10% over a period of time. This will be a gradual decrease over the next 12 to 18 months.

Sir. Noted.

Those were my questions. Thank you.

Yeah. My question is regarding the land parcel in Sohna.

Whether that is located within master plan area or it's outside master plan? What is the plan to develop that land?

As I was mentioning before, the land is in Aravalli, close to Sohna, close to the Aravalli Hills. Part of the land is forest land.

Part of the land can be cultivated and be developed. We believe approximately 75 acres can be developed of this land.

We're working towards that, and we're putting up a plan together on how we do that. Right now, in our investor deck, we've just shown it as land, because we're focusing on other high-priority projects right now.

I just asked because Sohna market is going very well right now. We can say the rates and everything, demand, everything is good.

Why we are not we can say taking up this project?

Even on the 75 acres, we have to do actually three seasons of cultivation before we can actually develop farmhouses. There's a whole process.

It's not that it's being ignored. It's just that there's a process that will happen over time.

We've started the land conversion process. That is underway.

As Sachin said, it does take some time for this to get done. It is on the back of our mind, but to be completely honest, the pipeline that we have launched and will launch this year, and what we have actually for FY27, is very exciting.

It does take a little bit of a priority. At the same time, we are evaluating options of even disposing this land, because only 75 acres of develop portion that we can do only suits really a resort or some type of farmhouse, bungalow.

There's not a whole lot of FSI we can consume here. While the land size is high, management does not feel that there's a whole lot of value attributed to it.

We just want to reaffirm that we are not saying that there's no work happening. We are moving along the conversions and entertaining any offer that comes around.

Okay. We have having interest cost of around ₹550 crore in financial year.

Why it should not be capitalized to the project? Why we have expensed out in the P&L?

Whatever we could capitalize to the projects, we have already capitalized. This is the cost that we have taken to P&L because these are OC-received projects which we have deployed on OC-received projects.

As we said in the previous earnings call, our priority in the past 6 to 8 months was complete the legacy projects, make our customers happy. We deployed capital to complete all legacy projects, sort out all the finishing of all the legacy projects.

Because it is OC-received, we couldn't capitalize.

Actually, our total borrowing is in the range of ₹5,000 crore. At the 14% cost of that, we can say interest for the year should be ₹700 crore.

Out of that, you are saying ₹550 crore is for OC unit?

Yes, most of it has been deployed in OC projects and in corporate expenses. Whatever we could capitalize, we have already capitalized.

Okay.

Also, ₹5,000 crore debt is including the shareholder debt. The institutional debt is only ₹4,100-odd crore.

That's why I was surprised that on ₹4,000 crore, in total that is for the OC project, there is no under-construction project?

There is. That is what is capitalized.

No, our total borrowing is ₹4,000 crore. Interest at the rate of 14% if you are saying, then it should be ₹550 crore for the year.

This entire amount we have expensed out in the P&L. This is the confusion.

Let's clarify that a little bit. While we borrow sometimes against our OC projects, the money becomes kind of our GCP funds, we, for example, have used that to pay for the premium approval charges for Blu.

What happens is, that allows our Blu project to get going. It's really kind of not a how you say, apple-to-apples comparison.

We whatever we could capitalize, we've capitalized. The rest has been expensed.

Okay.

I have a question regarding your court case with KIADB, which states that the lease-cum-sale agreement ends in June 6, 2029. A year back, Embassy sold 25 acres portion land to Lam Research from the same entity.

What happens to this deal if the lease is not extended? Do we end up losing that revenue?

No. Firstly, we didn't sell land to Lam Research.

We subleased a portion of the land, 25 acres, to them, just to clarify that. Mutually, we will go and seek an extension, which is very normal in KIADB.

In fact, we've seeked extensions before on the same land. Lam Research is well aware that the current term ends in '29.

If their project is not done by then, and they are investing over a billion dollars into a very high-end R&D fab. If it's not executed by that timeline, we will mutually seek an extension from KIADB.

Which is common practice.

Okay. I have a extension to that question that you just answered, that you'll convert the debt from Blackstone at a specific time.

Does that mean you feel that the share price is overvalued? I didn't understand your comment on that.

No, we actually think it's undervalued, which is why us and Blackstone would not like to convert our shareholding now, because it will be diluted. We feel what's happened in the last few months has been a factor of two legal overhangs that the company has had.

Now that those two overhangs are gone, the company has performed really well in that time. The overall market, yes, has corrected, especially the realty market, but we feel that given a few months that the stock should come back.

Maybe we will revisit this conversation with Blackstone for the share conversion at the appropriate time.

Okay. Thank you so much.

Hi, sir. Sir, congrats on good launch activity.

Sir, my question is on EBITDA margins. We understand that we will recognize the revenue when the OC is received.

My question is, sir, given the pipeline, class is looking like more than 50% GDV. On our sales side, say from FY28 onwards, sir, how do we look at EBITDA margin, if possible, some range?

Because right now it's negative and last year it was 21%. A good real estate company has given EBITDA margin in the range of anywhere between 25% to 35%.

If you can give us some range on our steady-state EBITDA margin considering kind of premium launch activity?

Hi. Yeah.

Look, EBITDA is a P&L item. Again, it depends on what your revenue for that quarter or the year might be, which is again based on revenue recognition and as projects get built.

I'd like to change your focus a little bit to the net cash flow margin that we will produce, surplus margin that we'll produce from our projects that we've launched and as we go into the future over the next two years. We expect that to be close to 50% over the course of the next several years as these projects get delivered.

We're really focusing on that kind of cash coming into our system that will eventually help us to do more projects, do more BD, as well as kind of service our debt.

You're saying cash flow at steady state should reflect a 50% kind of a number, is what you're saying?

Yes, our net surplus margins will reflect that sort of a number.

Sure, sir. Sir, you can explain us one, you've done quite a detailed presentation and explanation by DM projects and launch date with CC and all.

Only thing, in DM projects, at least will start to kind of recognize revenue and profits upfront. I think one of the reason why the stock share price is affected is because of the losses and recurring loss thing.

The point is, if you can give us some sense of how the DM projects will get executed where probably revenue and EBITDA will be recognized upfront, it will help maybe future presentation and discussion. If you can explain us how was the receivables sold being adjusted?

How was our balance sheet gets affected with receivables sold converting into that time, at the time of published, how does that get, if you can explain that, it will be helpful. It's long, maybe I can take it offline, but if you can.

No, I'll try and explain that. As far as DM projects are concerned, as and when the project sells and we progress in construction, this billing will be raised on a quarterly basis, and the revenue and the cost will be recognized in that particular year.

You are right, it's upfront, and we don't have to wait for OC for these projects to recognize revenue in a DM project. That will show reduction in the losses and an uptick in the revenue over the next 2 to 3 years.

Both for Juhu project and the Sky Terraces project will show the construction is over the next 3 to 4 years. This revenue will come in periodically every quarter over the next 3 to 4 years.

That's the first part of the question. As far as sold receivable is concerned, while if it's an OC-received projects, which are few today, that will go into revenue and be as we hand over possession.

If it is still an OC-to-be-received project, this will continue to come as liabilities and advance received from customer. Once the OC is received is when we recognize this as revenue.

The collection which we will do over a period of time, over the next 2, 3, 4 years, as we do milestones completion and we take collection from the customer, this will be used A, first in construction, and second will be to service the debt. It doesn't have to wait for OC received or something like that to basically pay down the debt.

Sure, sir. That's helpful.

Sir, one last question was if possible, on promoters' leverage. I think it's one of the reason why probably share price is affected.

If you can give us some sense of if there is some plan on how to slowly reduce promoter's pledge. I know it's not company-related question.

It's promoter-related question, but if you can give us some clarity, it will be really, really helpful, sir.

On the promoter pledge, I'll give a broad perspective. See, about 47-odd percent of the promoter shares had pledged before this entire NCLAT matter came up.

Because the share price fell, we had increased that 47% pledge to 68% pledge. No additional debt was taken, mind you.

The promoter had not taken any additional debt. It was only because the share price fell that additional shares were pledged.

Now that the share price is moving up, this will come back to the old levels to 48%. Then what we understand from the promoters is they plan to pay off this debt over a period of time, maybe in the next 2 to 3 years.

This pledge will keep reducing and the shares will be free from pledge.

Sure, sir. That's helpful.

Thanks a lot, and all the best.

Hello. Hello.

Hello.

Am I audible?

Yeah. Go ahead.

Yeah. Congratulations on a good set of results and positive legal outcomes.

My question is regarding the Nashik SEZ land, for which the case is going on. If there's a positive outcome of the land, and how we are going to monetize that property?

Yeah. The first thing would obviously to have a positive outcome with MIDC and the government on this.

The second thing that we are in the process of doing is doing a debonding exercise, converting the land from SEZ to not having an SEZ status out here. We are already underway in that process.

This will take several months to complete, but we expect to hopefully get that done during this fiscal year. Then the idea would be to look at maybe doing industrial plotted out here for small- and medium-sized manufacturing companies.

We think there's a lot of demand out there in that Sinnar belt for companies that are looking for land to do light manufacturing, to put it to industrial use. We actually do believe there's quite a bit of demand out there, but not as SEZ status.

We do have to remove that to be able to sell the land.

Okay. Thanks for the answer.

One more question was regarding this NCLT issue. Are there any legacy regulatory agreements which are not closed yet?

In case any future similar things happen like from Indiabulls Group. Are old agreements closed?

We don't know of anything else that's out there today that can harm the company and harm the stock. That did catch us a little bit by surprise, but I think we've overcome that.

We're looking forward out here. As of now, nothing else out there.

Okay. Thanks for the answer.

In closing, FY26 has been a transition year, marked by the integration of the merged entity, an accelerated launch program, and the resolution of legal overhangs. The reported P&L reflects a mismatch of revenue recognition timing and merger accounting, but the underlying operating fundamentals point to a platform with strong forward visibility and cash flow generation.

We enter FY27 with confidence in the strength of our launch pipeline and a strong balance sheet position to support our ₹6,000 crore pre-sales guidance and our ₹3,000 crore collection target. With that, I'd like to close today's call.

Thank you.

Thank you.