Good morning everyone, and thank you for joining us today. I am joined 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 also available on our website. We have started FY 2027 with good momentum.

The first quarter reflects the progress we have made over the past year, especially as the launches from the second half of FY 2026 continue to translate into healthy sales and collections. We entered FY 2027 with substantial residential portfolio available for sale, comprising approximately of 10,500 crores of ongoing inventory, around 400 crores of completed, OC-received inventory, and a 19.4 thousand crore pipeline of fresh launches.

Our priorities remain clear, which are launch the right inventory at the right time, achieve healthy absorption, execute projects with quality and discipline, drive collections, and continue building exceptional products. Done consistently, this will steadily strengthen Embassy's position as one of India's leading real estate developers.

The operating environment also remains supportive. Demand across our core markets continue to be healthy across both the premium and the luxury residential segments.

Customers increasingly favor developers with proven track record and, more importantly, a reputation for trust. We believe India is in the midst of a multi-decade housing cycle, and the industry will continue to consolidate towards the strongest and most reliable developers.

We believe Embassy is well positioned to benefit from this trend, and the next few years represent a meaningful inflection point as we scale our residential platform and expand our market share. Against this backdrop, we have had a great first quarter.

Pre-sales for Q1 stood at 868 crores, which is up 338% year-on-year, while collections, more importantly, increased 54% to 496 crore. More importantly, demand remained healthy across our portfolio.

Nearly 60% of our inventory launched in FY 2026 has already been sold, and Bangalore continues to perform specially well with approximately of 72% of launch inventory sold within six months. Execution remains equally important.

During the quarter, Embassy 109 in Gurgaon and five towers in Golf City, Savroli received their occupancy certificates, moving us closer to customer handovers. We would also like to highlight that Embassy Citadel in Mumbai has approval for all 81 floors of development upfront.

In a market where approvals are typically granted in stages, this provides significantly greater certainty around execution and reflects the strength of our planning and regulatory engagement. In addition, we have appointed Leighton as our civil contractor for Embassy Citadel.

While we did not launch any new projects during Q1, this was a deliberate decision. Our approach is not only to have secured building plan and RERA, but to have all checks in place before we officially launch.

This includes activating the market and channel partner networks, having majority of tender drawings in place, ensuring our marketing experience is ready, and a very careful and deliberate sales strategy to ensure pricing is optimal and leaving room for early customers to create value together. Investors should therefore expect some quarterly variability in launches.

This is a function of discipline and not demand. With that said, our FY 2027 pipeline comprises of nine owned projects and two development management projects, both together representing a combined GDV of 19,400 crores.

We expect to launch four of these 11 projects in the current quarter, which is Q2. We remain comfortable with our FY 2027 guidance of 6,000 crores in pre-sales from the owned developments, 2,000 crores from the develop-managed projects, and approximately 3,000 crores of collections.

We believe collections are one of the most important operating metrics for assessing our progress over the next few years. Sustained execution and strong collections should progressively strengthen our balance sheet and create opportunities to lower our cost of capital over time.

Our balance sheet also continues to strengthen. The board has just approved a preferential allotment of convertible warrants to the promoter, Embassy Group, subject to shareholder approval.

The proceeds will be used to repay outstanding shareholder debt of Embassy Group, further strengthening our balance sheet and reducing our cost of capital over time. More importantly, the continued support of our shareholders and promoters reflect their confidence in the business we are building and the opportunity that lies ahead.

As we have said before, residential development is a long-cycle business. Given the nature of our completion accounting, there can be a significant timing difference between our operating performance and our reported financial results.

To conclude, we are pleased with the start of the year, but we believe we are still in early stages of what Embassy can achieve in the residential development space. We have a strong pipeline, healthy demand, and a clear plan for the year ahead.

Our focus now is disciplined execution and creating exceptional products, developing long-term value for all our shareholders. Thank you to our customers, shareholders, lenders, partners, and employees for your continued support.

We appreciate the confidence you have placed in Embassy. With that, let me hand over to Sachin.

Thank you.

Thank you, Aditya, and welcome, shareholders. I shall add to what Aditya spoke about with respect to the operational performance for the first quarter of FY 2027, highlighting our business updates, progress, and outlook for the year.

We've been focused on project execution this first quarter, progressing construction across our ongoing developments, advancing regulatory approvals, and preparing for the next phase of launches. While Q1 saw us maintain momentum across pre-sales and collections, we have 11 launches planned over the next few quarters, holding us in good stead to deliver our full-year guidance.

Customer demand across our existing portfolio remained healthy, supported by the strength of the Embassy brand and our differentiated product offerings. Construction spend during the quarter was 276 crores, representing approximately 56% of collections.

As projects come out of the ground, we expect construction activity, collections, and operating cash flows to strengthen meaningfully over the coming quarters. Construction progressed broadly in line with planned schedules across our portfolio, and we achieved several key milestones during the quarter, including the receipt of the OC certificate for 109 Phase 1, Gurgaon and for five additional towers at Golf City, Savroli.

Our OC-received product portfolio remains approximately 98% cumulatively sold. Our ongoing development portfolio of 11 assets is approximately 70% sold based on saleable area, and we continue to make steady progress across the multiple projects with Embassy Paradiso at Embassy Springs and balance towers of Golf City, Savroli nearing completion and slated for OC in FY 2027.

Similarly, Embassy Edge and Embassy Boulevard are progressing well towards completion in FY 2028 with both projects already substantially sold. We also continue to see strong traction across our newer launches.

Embassy Verde Phase 2, Embassy Greenshore, and Embassy Eden have recorded healthy sales while construction advanced in line with plan. In Mumbai, Embassy Citadel has secured approvals for all 81 floors, a significant differentiator in the Mumbai market.

Combined with its prime Worli location, this positions the project as one of the most compelling luxury residential developments in our portfolio with strong long-term value and surplus. Overall, our portfolio reflects a healthy mix of projects nearing delivery and new developments progressing on construction.

This phased maturity provides good visibility into future completions, revenue recognition, and cash flow generation over the coming years. Across our launched and under-construction portfolio, we now have 13,630 crores of cumulative unsold inventory across residential and commercial launches, providing a strong basis for future collections, cash flows, and revenue recognition.

FY 2027 launch pipeline: We continue to target approximately 19,400 crores of launch GDV, comprising nine owned projects with a GDV of 13,300 crores, along with two development management projects contributing an additional 6,000-plus crores of GDV. Some of the key launches planned over the coming quarters include Embassy One North Tower in Bengaluru, which has 400,000 square feet of residential space with a GDV of approximately 1,400 crores; Embassy Knowledge Park, villas and apartments in North Bengaluru on 80-plus acres with a combined GDV of approximately 4,450 crores; the Front Parcel villa and apartments at Embassy Springs where we have 1.7 million square feet of residential development with a GDV of roughly 1,900 crores; our Whitefield JDA project where we have a 68.5% JDA share on a 1.7 million square-foot development with a GDV of roughly 2,000 crores; Embassy Hub Plot A in Hebbal, Bengaluru where we have 1.2 million square feet to sell and a GDV of roughly 2,100 crores, and our share being 91%; and finally, 109 Commercial Phase 2 in Gurgaon where we have a GDV of 800 crores across half a million square feet.

In addition, we are pleased to announce that just last week we received RERA approval for Embassy Terraces Juhu development management project, which is a low-density uber-luxury residential development. This launch pipeline remains well diversified across our three core markets of Bengaluru, Mumbai Metropolitan Region, and NCR, while continuing to focus on premium apartments, luxury residences, and villa developments.

Beyond 2027, we have a development pipeline of roughly 20.3 million square feet with an estimated GDV of approximately 23,470 crores. There's also a fully paid 3,000-plus acre land bank, which includes a 1,400-plus acre Nashik land for which we're looking to seek an amicable solution with MIDC.

In addition, we have strengthened our senior leadership in NCR as well as our business development team in Mumbai, and are actively looking for new projects in the NCR and MMR region. In closing, Q1 has provided a strong foundation for the rest of the year.

We continue to see healthy demand across our three markets supported by strong interest in premium and luxury housing and an ongoing shift towards trusted and branded developers. We have a strong launch pipeline and continue to execute well on our launched projects, and therefore we remain optimistic of achieving our FY 2027 guidance for pre-sales, collections, construction milestones, and approvals.

With that, I will now hand it over to our CFO, Rajesh Kaimal, who will take you through the financial performance of the company.

Thank you, Sachin, and good morning, everyone. I will take you through the financial performance for the quarter ended June 30th, 2026.

Before discussing the reported numbers, it is important to reiterate the accounting characteristics of our business. Under the applicable accounting standards, revenue from residential projects is recognized only upon project completion and handover.

Consequently, there can be a timing difference between our operating performance reflected in pre-sales and collections and our reported financial results. Accordingly, our reported P&L should be viewed alongside the underlying operating metrics, which continue to provide strong visibility into future revenue recognition and cash flow generation.

Financial performance Q1 FY 2027: During Q1 FY 2027, revenue from operations stood at 217 crores compared to 681 crore in Q1 FY 2026. Total income was 241 crore versus 694 crore in the corresponding quarter last year.

EBITDA for the quarter was negative 106 crores compared with positive 2 crores in Q1 FY 2026. Consequently, the company reported a net loss of 234 crores compared with a net loss of 166 crore in the corresponding quarter last year.

While reported earnings continue to be influenced by the timing of project completions, the underlying operating performance remained healthy during the quarter. Collections and cash flow: Collections during the quarter increased 54% year-on-year to 496 crore, supported by steady customer inflows across our ongoing projects.

As our launch pipeline gathers pace and execution advances across ongoing projects, milestone-linked collections are expected to accelerate over the balance FY 2027. The resulting improvement in operating cash flows will enhance capital flexibility, support timely project execution, and further strengthen the balance sheet.

We remain on track to deliver our FY 2027 collections guidance of approximately 3,000 crores. Our continued focus remains on improving cash conversion through disciplined execution, timely collection, and efficient working capital management.

Balance sheet and capital structure: We continue to maintain a disciplined approach towards balance sheet management while ensuring adequate liquidity to support our growth plans. As of June 30th, 2026, our gross institutional debt stood at approximately 4,500 crore while cash and cash equivalents were approximately 1,200 crore, resulting in net institutional debt of approximately 3,300 crore and a net debt to equity of 0.35x.

As on date, the outstanding shareholder debt stands at 1,063 crores: 700 crore from Blackstone and 363 crore from Embassy Group. Consistent with our commitment to strengthening the company's capital structure, the board has approved a preferential allotment of convertible warrants to Embassy Group at 111.51 per share, in line with the previous preferential issue price.

The proceeds of this preferential allotment are earmarked for repayment of outstanding shareholder debt at Embassy Group. This will reduce Embassy Group's debt to nil.

We are seeking shareholder approval for this preferential allotment through the requisite special resolution in accordance with applicable laws. This is a strategic step to deleverage the balance sheet and reduce our cost of capital.

As against a maximum permitted tenor of 18 months for conversion of warrants, the promoters have voluntarily committed to convert all the warrants into equity shares within a shorter period of six months. The proposed subscription by the promoter group at a significantly higher price and with a shorter conversion period reflects its continued confidence in the company's short as well as long-term business fundamentals, growth strategy, and value creation potential.

We remain focused on optimizing our capital structure by refinancing existing borrowings and reducing our overall cost of debt. This is expected to improve profitability, enhance operating cash flows, and strengthen the company's financial position over time.

As our launch pipeline gathers pace, collections accelerate, and operating cash flows continue to strengthen, we expect this to naturally support a gradual reduction in institutional debt over time while preserving the financial flexibility required to execute our growth strategy. In closing, our capital allocation philosophy remains disciplined and unchanged.

We will continue to prioritize project execution, maintain adequate liquidity for ongoing construction, selectively pursue high-quality business opportunities, and preserve financial flexibility. Supported by a robust launch pipeline, improving collections, a healthy liquidity position, and a proactive liability management strategy, we believe we are well positioned to fund future growth while continuing to strengthen our balance sheet and enhance long-term shareholder value.

Overall, we remain confident in the company's financial outlook and our ability to support the operational targets outlined for FY 2027. With that, we would now be happy to take your questions.

Thank you.

Great job on the quarter. Prestige on their Q1 earnings call said that four of their projects in Bangalore slipped from Q1 to Q2 due to RERA and building plan delays.

Are we seeing the same issue?

Hi Karthik. Good morning, thanks for your question.

Bangalore has been a little problematic because when the new government or the change in Chief Minister happened, unfortunately the GBA, which is the planning authority, has not been able to sit for meetings. I would not attribute our non-launching in Q1 to that.

I think last time we mentioned that Embassy One was a project that we were targeting to launch in Q1 and Embassy Knowledge Park would be either end of Q1 or Q2. Embassy One is actually RERA-received, and quite uniquely, it's a ready building that we've already applied for OC.

We actually just had a TDR FSI issue which we solved, and we even got our building plan in Q1. We just intentionally didn't want to do it.

You might have seen the news that this was earlier branded as a Four Seasons, part of the hotel which is owned by Embassy REIT. Now, Embassy REIT has terminated Four Seasons, and therefore we had also terminated Four Seasons on the branded residences here.

We're now just going to be launching Embassy One North Tower under the Embassy banner. We believe this is more profitable for the company as well, and therefore we intentionally have pushed it to Q2.

It is a launch project of Q2, I can officially say that. On Embassy Knowledge Park, we're very, very close on getting our building plan.

This is a very exciting project where we have 85 acres of residential, a huge villa concept that's gone viral on social media, and we're seeing a lot of interest for it. I think we've really engaged the market and have a lot of pre-launch interest locked up.

We think this will be a very successful launch, and I do feel quite confident that we will get both the launches, the villa and the apartment, in Q2, hopefully in this month in fact.

Fantastic. Given that the changes that have happened with the Planning Commission and such, are we looking to get fast-track approvals for the other five owned projects in Bangalore to ensure that all the 13.3 thousand crore of GDV launches within this financial year?

Our plan is to fast-track everything, and Bangalore is our home market. We understand the system here well.

We're very comfortable with Bangalore, quite comfortable with Mumbai as well at this point, but definitely Bangalore is a place we're more comfortable. The other projects that we have lined up, the Bangalore ones especially, are all on track to launch between Q3, maybe some might spill in Q4, but we have a pretty fair amount between Q2, Q3, Q4.

Just to recap, we have four projects which will launch Q2, which are North Tower and Juhu which are already RERA-received, those are already launched projects, and Knowledge Park is two different projects. We do feel beyond that, Alibaug in Mumbai, we have RERA, we're just waiting for the monsoon to subside before we officially launch it.

The other projects between Gurgaon and Bangalore, we feel comfortable that Q3 is what we're targeting, but I know this business, Q3, Q4 is where I can see the rest of the projects landing.

Perfect. I might have more questions, but I can wait if there are other questions.

Sure, thank you.

Thanks for the opportunity. I just wanted to understand the cash flows.

If you can just help us though reported numbers, because of the accounting entry don't reflect the true potential, but if you can help us, what could be the operating cash flows maybe for Q1 as against 106 crore EBITDA loss? For this fiscal year, if you can just give some color of what could be the potential operating cash flows, that would be helpful.

Sure. Thanks for your question.

I'll just redirect that to Rajesh Kaimal, our CFO.

We started off the year with about 1,600 1,165 crores of cash balance. We had in the first quarter, since we didn't launch any projects, we had a negative operating cash flow of 285 crores.

This is a factor if you know that most of our projects got launched in Q3, Q4 of last financial year. As these projects progress, the collections will kick in six months ahead, that is in Q2, Q3, and Q4 the collections for the projects launched in Q3 and Q4 will kick in.

We are going to see a very robust collection from the next quarter onwards. We had a very good collection in Q1, that is about 500-odd crores against the 1,680-odd crores of collection last financial year.

I think we are well positioned in terms of cash flow from operations. Barring this one quarter where there was a negative operating cash flow, the next quarter will see positive trend.

If I could just add to that, I just want to point out that the big launches we did last year was Verde, Greenshore, Eden, and obviously the big one was Citadel, the Worli project. I really feel that the inflection point in this company will really happen at some point mid of next calendar year, and I say that because we collect a lot once the slab cycle starts.

We are early in our capex cycle where excavation is going on in most of these projects. When we get out of ground and you start seeing the slab cycle come up quite rapidly is when a significant amount of collections start coming into the company, and I believe that's a big inflection point for us.

I just want to state two facts is last year our collection to pre-sales ratio was around 35%. This year we're targeting 3,000 crores of collections compared to the 6,000, which is our fully owned projects, that's a 50% ratio.

Now I know industry average is 70%. We are on our way to get to that industry average, and I do feel that mid of next year is when we reach that inflection point, around let's say April, May is my prediction when all these projects—Greenshore, Verde, Citadel—will be out of ground, and also the projects that we're launching now will start bringing home significantly more cash than pre-sales.

Just something to keep in mind as you track our execution.

Thanks for the detailed reply. The second question was regarding this GDV for this year, 19,400 crores.

If you have to split in the first half and second half of the fiscal year, how do we see this launches in the first half and the second half? If you can just break it, it'll be helpful.

Sure, I'll break it, and if you do have our investor deck in front of you, I'd refer you to page 13 where North Tower, both the Embassy Knowledge Park, and Juhu which is the DM project are Q2 launches. Like I mentioned, Embassy One and Juhu are already launched.

Embassy Knowledge Park is the key focus for Q2. Then I would say the other projects are scattered between Q3 and Q4.

Our target is to actually launch all of them in Q3, but they might spill over in Q4. I guess if I could just sum it up, those four projects I named will be in the first half, and everything else will be in the second half.

Great. That's helpful, Aditya.

The third question was regarding any developments on the two commercial opportunities we have in Bangalore. Any progress, or any timelines when we will start developing those commercial projects, or

Yeah. The company has two large commercial lands, which is Embassy East Business Park and Embassy Knowledge Park, the commercial portion.

The Embassy East first phase we launched last year, excavation is going on, and we want to build out that asset, potentially hold it as an annuity asset or potentially get a right exit closer to completion. We look at the REIT as an exciting strategy that the group has.

Embassy Knowledge Park is something that we have intentionally told the market, "Please don't look at it. We've not taken it in any surplus or in the GDV in any of our decks," because we said when we have clarity on what the product is, we will come to the market on that.

I want to say that we're in very early days of finalizing that product. It's not going to be a typical office asset like Embassy Manyata or any of the REIT assets that we've built.

This will be a low-rise R&D type of a center, and we are in the planning phases of it, and we feel by end of the fiscal we will come out with clear timelines, clear GDV, clear surplus of what that project will entail. Just request to be a little bit patient on that one.

It's not the typical metro connectivity extremely prime office buildings that we have done in the past, or Embassy East is ITPL Main Road as prime as you can get. That one's a little bit different, and request by end of this fiscal for us to come back with more clarity on that.

Thanks, Aditya. The third question was regarding the entire land bank that we have.

Any update or progress on how will the monetization of these plan out in the next 1, 2, 3 years?

I always say the land bank is a priority, but it's not the most immediate priority. We've understood what the land bank is of the company, and interestingly, it's all in the Raigad region where we see a lot of land compounding and a lot of growth that's going to happen.

Other than Nashik, the other lands are a little bit scattered. They need a lot of capital to make whole, cheese holes that need to be bought, access that needs to be purchased, and we feel that that is something that we will address when the company has sufficient amount of surplus to deploy into that.

Our first priority is to just launch the launchable lands, generate surplus, collect money, look at BD opportunities as well where we can get off the ground very fast, like the Whitefield the land that we did last September. We're already launching it in Q3 this year, 12 months is quite fast for any project to move from greenfield to launch.

Yes, we are going to address the land bank at some stage, but we don't feel it's the right focus for management to address today. On the Nashik one, maybe since that's half the land bank almost, maybe I'll just give this one to Sachin to give a status update on Nashik.

Sure. Thanks, Aditya.

On Nashik, what we have is a 1,400-plus acres. We are working with MIDC.

We've met them a couple of times to try to see if we can reach an amicable solution. At the same time, we are working through the debonding exercise as well.

The debonding exercise requires us to go through five different agencies, government agencies, and so we're working through that entire process. My sense is the debonding process will from today still take probably another 6 to 9 months to get completed.

At the same time, we're working through figuring it out with MIDC. While the case is going on, it's moving slowly.

Like a company that we've subleased 80-plus-odd acres to has also now been intervened in the application. I think legally it will go slowly.

I think the solution over here will be a mix of amicably working out something with MIDC and at the same time carrying on the debonding exercise. Back to you, Aditya.

Yeah.

Thanks. Thank you so much.

I'll come back in the queue. Thank you.

Am I audible? Question, hope my voice is audible.

Sir, just wanted to know, what is our annualized run rate of interest cost currently for the company? What's the rate of interest for the gross debt of 4,500 CR?

What's the interest for the Blackstone debt of 700 CR? That's the first question.

I'll just ask Rajesh to take this one.

Our average cost of debt is around 14%, and we are looking to reduce the cost of debt as all the projects progress and collections kick in. Your second question was on Blackstone conversion.

We are in talks with Blackstone for converting their portion of the debt to equity, and we are waiting to hear from them. Sorry, I didn't catch the first part of the sentence.

Your line was not clear. Can you just repeat that, please?

Sir, I just wanted to know that what is the rate of interest which we are paying to Blackstone for the 700 CR debt right now?

We are paying Blackstone at the rate of 18%. That interest is being accrued in the books and being added to the capital or to the cross debt.

It's not a payout.

Got it. Hello.

Am I audible?

Yes, you are.

Yeah. Sir, my second question was just wanted to understand what roadmap do we envisage to reduce this debt of 4,500 CR?

Just to actually add on that, we are planning a collection of close to kind of 3,000 CR. What will be the estimated construction cost, and how much would be actually left so as to repay the debt?

How are we seeing this debt repayment go on for a period? Something, sir, I just wanted to understand.

Thank you.

The debt that we have today, our net debt is around 3,300-odd crores. This debt was taken over last year and current year predominantly to launch the 16 projects, the 16,000 crores of inventory that we launched last year and the 19,000 crores of inventory that we are trying to launch this year.

That's a total of about 35,000 crores. Against that, we have a net debt of about 3,300 crores.

If you see our debt to equity, it's about 0.35x, which is comfortable, a comfortable level of debt on our balance sheet. Our priority will be to execute well, that will bring in collections as the project progresses, and as the project starts throwing back cash, we will refinance this high-cost debt and bring down the debt to much lower levels than the current 14%.

It's basically the projects which will pay for this debt. Our first priority is refinance the debt to a lower cost and then try and repay the debt over a period of time.

We think our debt-to-equity ratio based on our future launches as well will be in the region of 0.3 to 0.35x net debt to equity is what we are targeting.

If I could just add to that, I feel our evolution will be the following, which is we did 4,600 crores of pre-sales last year. I feel very confident we'll hit our 6,000 crores of our own projects guidance this year.

When you look at that and look at the amount of receivables the company will have, we will at some point March, April next year go and re-fi the whole portfolio like Rajesh said, initially first bring our cost of debt down, and then as the projects are throwing out surplus cash beyond the construction spend, then debt as a whole will start coming down. Just to sum that up is you can expect cost of debt to first come down, and then debt overall will start coming down.

Sir, got it. Next year March to April is something which you're estimating that the total gross debt actually would start coming down.

Is my assumption correct?

That's right. The cost of debt, yeah.

Sir. Thank you.

Thank you.

Good morning. Good morning, and thanks for taking my question.

Just one question. How do you see the perception changing for Embassy as a brand with the completion of projects under the name Indiabulls, right?

Similarly, how demand is panning out for the new project, and what could be the sales percentage we would be achieving in first six months [unclear]?

I'll answer your last question first. The first six months, like I mentioned, Bangalore 72% and in Mumbai it's 60%.

I think Citadel skews that a little bit because such a large project that 8, 9 thousand crores of stock that we'll sell over the next few years. I would look at the Bangalore ratio to really give a sense of what kind of a launch and what kind of a robust demand that we're seeing on ground.

Your earlier question on how does Embassy cement our brand? Look, this is a big thing in the company, because from a Bangalore point of view, we have an amazing brand.

We are the top developer in Bangalore from a luxury residential. We always have been.

We have been focusing a lot on commercial, but now to refocus back into residential, and that's actually how the brand has started, how my father had started the company. We now want to play across segments, not just luxury, but also target that premium segment, which is what you're seeing with Embassy Springs, and you're seeing a lot of our sales actually come through that premium segment.

Now we need to replicate this in Mumbai, and the journey has started, and it's been a very honest journey with Citadel, Juhu we just launched. These are two marquee locations, irreplaceable locations, I would say.

The Juhu one is a 2.5 acre touching the sea, and this is a place where we can really create an exceptional product and really tell our story there. Yes, we have the legacy projects of Indiabulls that we have taken up that liability to fix it, and I really feel that the customers there are feeling the honesty that Embassy is putting forward, going in there, making good of the earlier management's mistakes, and rectifying things that most developers would shy away from and run away from.

Now it's not perfect, but we are doing it. Panvel was a ghost site when we took it over.

There were 40 laborers on site. Today there are 1,500 laborers.

The project's fully backed, banks are funding the customers, sales is happening. The whole project is revamped, and we're very proudly putting our name on it.

There are some projects that we intentionally said, "Let's not put our brand on it," because they were too close to completion, you're seeing that with Savroli, you're seeing that with 109 in Gurgaon for the first phase. We finished it, we've got OCs, a lot of the collections were back-ended, the earlier management had done a lot of 20:80 schemes, we started unlocking a lot of those collections.

Yes, that's a little bit of a I don't want to say headache, but it's a painful job that the company has to do and fulfill those obligations, close those books, and honor it. At the same time, we're building our brand, building the trust aspect that I mentioned.

I think that's such a key factor for development company. It's a journey, it's going to take some time.

We know that in Bangalore we get a premium to all the other developers when we launch projects. In Worli, I think it's a huge value proposition we've come out with.

The first set of inventory, we want people to make a lot of money, we want to build our reputation, showcase the product a little bit before we start taking up the pricing and competing with the top developers of Mumbai. Juhu is quite a special project, from that point of view, I feel we're already on par with our competitors in that region.

It's just going to take some time. The fact that we acknowledge it, recognize it, and just take it head-on is the key thing.

Thanks. Aditya, one more question, right?

In Gurgaon, right, Indiabulls, the erstwhile company, is also active, right, and we also active in NCR as a whole. Are we getting any challenges because of the perception and name of the erstwhile company?

Not really, to be honest. Some landlords who I meet because we're actively trying to grow in Gurgaon and looking for pipeline.

I spend a lot of my time there. We're building out a team there, we've hired someone who's heading that region for us.

Here and there, some people are a little bit asking that question. It will just take a little bit of time, because I think the terminology of merger has confused people.

In reality, it was a takeover. We took over this company, acquired it, and changed the brand, but the technical definition was a merger.

Some landlords think, "Hey, are you working together?" Absolutely not, we have nothing to do with Indiabulls.

They are doing their own thing, we are doing our own thing. It might just take a little bit more time and education as we launch projects there for people to understand, okay, it's two different companies.

We're not too worried about that. I think most people know.

Very few, I haven't got this in a long time, but yeah, there were some comments maybe 9, 10 months ago when I met some landlords there.

Yeah. Thanks, thanks for the answer.

Hi, sir. Congrats on a reasonably good operational, quarter.

Sir, collection for this year as a guidance, is it dependent on any of the launches for this year or we should presume that collection will continue, as the construction continues? Because we note that, even Q-o-Q, the dip in pre-sales is high, but, construction spend and collection dip on on Q4 over Q Q1 over Q4 is not so bad.

The question is collection guidance, how confident are we that, it's it will be collected if if the progress on construction continues and is not dependent on the new launches for this year? Also because, quite a few of Bangalore projects is planned for this year, and as you know was mentioned previously, there's a change of government.

We may slip, by a quarter here and there. That's the first question, sir.

Thanks for that question. It's a great question because I only focus on collections.

I think actually our collections guidance is far more important than even the pre-sales guidance, and this is what I request everyone to keep tracking us, that if you see collections going up, that means we are executing well, and we can't shy away or hide anything from collections. It is a big focus for us.

I would say most of our 3,000 crores collections will actually come from the ongoing projects that are already launched, because they start hitting a period where milestones bring home far more cash. The launch projects that are scheduled for Q2, Q3, we roughly say let's say 10% to 20% is what we collect.

We collect 10% on booking and another 10% in 90 days. Q2 will have 20%, Q3 will have 10% to 20%, and Q4 will really only have 10%.

The majority of the collections will come from Greenshore, from Verde, from Eden, all the projects that were launched basically second half of last year. That's where majority of the collections are.

I feel very, very strong about the 3,000. I don't want to say anything yet, but I do feel we can even better that, but maybe Q3 can give you a bit more accuracy on what we can see with that collections.

Sure, sir. That's good to hear.

Sir, coming back to the debt part, we are doing a promoter preference at 111, which is a very good signal at least to the market that we're very confident about whole transaction and the value. The question is, sir, why was it required in the first place if it's a promoter's debt?

Because anyway, it's not cash outflow if the structure of the debt was similar to what probably a Blackstone debt what you explained where it's getting accumulated. One, the need for this transaction, is it signaling or it's the need for liquidity?

Second, sir, in that context, if you can give us some sense of a construction spend as a percentage of sales is only 56%. Why do we need this liquidity is the context of the question.

Sure, I'll let Rajesh take this question.

Just to clarify, this is not bringing in additional liquidity into the system. This is basically a promoter converting [unclear] into equity.

This is just to give confidence. This debt was growing at upwards of 15% because interest was getting accrued, and we wanted to send a very clear signal that the promoters are very, very confident of the platform that they have created and the business opportunity that it provides.

The pricing of 111.51 was very deliberate. This was the price that we did the previous prep at couple of years back before the merger.

That's the reason why we did it at 111.5. Just I hope that answers your question.

The last question, sir, in that context is, we give this surplus as a valuation parameter for us to kind of give us some sense of what will be the potential value. Globally there were a few things where the NAV was also actually calculated and shared with the investor, because the accounting profits is a challenge for us.

Share price because of the regulatory risk is fluctuating in a very, very widely, and there is a pledge also on the promoters' side. If you can give us more information regarding the valuation of say either a land bank or an NAV of the whole value, that will help us to kind of give comfort to the market that we are on track.

That's just a suggestion. In that context, if you can just briefly give us a sense cash the way bridge you given is showing us an incremental cash not needed, but operating cash flow is negative.

If you can just explain for the year, how are we kind of looking at construction spend versus collection and debt repayment, that was also a kind of referred to by one of the previous participants, sir.

If you see slide number 15, we have given our GDV at 57,000 crores and cash surplus at 30,000 crores. Just to give you a nuance into the business of development, around 30% to 35% is your land cost, 30% to 35% is your construction spend, and around 30%, 35% is your profit margin, EBITDA kind of profit.

This is a rough breakup. If you see all the projects that we've launched last year and the projects that we're going to launch now and our future projects, barring I think one project, most of them are from our own land banks and the land is fully paid for.

We are seeing a cash surplus of more than 50% on all our projects. From that point of view, you can see the next few years the cash surplus really picking up, and that will then reflect in the P&L over the next, let's say, two years later.

That's how I think you should look at this business, and rather than just going on a NAV on today's basis.

Sure, sir. Sir, last clarification, sir.

Few of the companies do adopt percentage completion method on the projects rather than waiting for completion of the projects and then booking the entire income. Just if you can explore whether that's possible in our case and without any taxation liability, it will probably give us a better favor of the accounting profit as well.

That's just a suggestion. Thanks a lot, and all the best, sir.

Thanks, Anish. We are actually actively exploring this suggestion, and we will review it over the next couple of quarters and make the required changes if needed.

Sure, sir. Thanks a lot, and all the best.

Hello.

Am I audible? Hello, Aditya.

Sir, my question is, you have declared that we'll be declaring the losses for another 5, 6 quarters. We can sort of take a provision once and for all for all the quarters, rather than declaring losses continuously for another 5, 6 quarters?

This is my first question.

Sorry, Vinayak, if I understood your question correctly, you said that because of this accounting issue that the company will be declaring losses for the next few quarters?

Sir, you are correct. Once and for all we can take the total provision, whatever the losses we are expecting in the future.

Whatever losses we have to take in the five or six different quarters, we can take it once and for all. Isn't it so?

I'll just plain that.

Vinayak, accounting standards don't permit us to make a provision without a reason, anticipation of a loss. That's really not possible to do as per the accounting standards.

Okay. Hello?

Yes. Go ahead, Vinayak.

Sir, my second question is, in the layman terms, how can I understand the goodwill which is being reflected in your balance sheet? Although I know the accounting standards, but if you could explain me it in the layman terms?

The goodwill that we have on the balance sheet today was done during the reverse merger accounting, which we did in last January. This reflects the price of the share at that point in time vis-a-vis the project that was there in the company.

This was the Indiabulls Real Estate which was there at that point in time. The share price prevailing at that time vis-a-vis the value of the projects at that point of time, the difference is treated as goodwill in the books.

Let's say the share price was at 100 rupees and value of all the projects was, let's say, 90 rupees, the 10 rupees is the goodwill that is recorded in the books.

Ultimately, 2,500 crores is of not not of much use. To say, it's a it's not of it's not much of use, this particular 2,500 goodwill?

No, sir. It is not that it's not of much use, because if you see in India, the land price keep going up every year.

Every six months we test this for impairment, and as the project value increases the beauty of Indian real estate is land prices go up every year and the project value goes on increasing. It's not that it is of no value, it is just that it is priced in a little ahead of the schedule.

My other question is, out of 3,200 acres of land, 1,400 acres is of Nashik, rest 1,600, 1,800 acres is other land. Sir, out of this 1,800 acres of land, which is that particular stretch of land and the quantity of this land which can be capitalized in the very near future?

What is the actual value of this remaining 1,800 acres, actually what is the actually quantity of the land which can be used for development?

Vinayak, of the

Yes, sir.

I understood your question. Besides Nashik, we have a 500-odd on Raigad Road.

Out of that, 75 acres is developable, and we've started the process to get that ready. The balance lands are all scattered lands that we wouldn't even [unclear] on launch now, because I know how land aggregation works in this country.

It takes fixed full amount of time. For those reasons, it's not our focus, and we don't really want to come out to the market and say, "This is anywhere in the pipeline."

When we start working on it and it's ready, we will include any on the pipeline and thank you not on the scattered lands.

Hello.

Yes, Vinayak ji, we can go ahead.

Sir, that will be all, sir. Thanks a lot.

Thank you.

Thank you everyone for joining and for all the confidence you give Embassy. We're very grateful for your support.

Thank you, and have a good week.