Embassy Developments’ Q2 pre-sales surge 272 per cent as Bengaluru, Mumbai launches gain traction

Embassy Developments Limited reported a sharp acceleration in residential pre-sales during the second quarter of FY27, with bookings rising to about Rs 3,225 crore from Rs 868 crore in the preceding quarter as new projects in Bengaluru and Mumbai drew early demand.

The Q2 performance lifted first-half FY27 pre-sales to about Rs 4,093 crore, up 574 per cent from Rs 607 crore a year earlier. This represents about 51 per cent of the company’s full-year pre-sales guidance of Rs 8,000 crore, indicating that Embassy has crossed the halfway mark in its target within six months.

The momentum was driven by three project launches during the quarter with a combined gross development value, or GDV, of Rs 7,500 crore. The launches account for around 39 per cent of the company’s planned new-project GDV for FY27, underlining the importance of launch execution to its sales trajectory.

In Bengaluru, Embassy launched Embassy Origins Riverine, with a GDV of Rs 2,500 crore, and recorded about Rs 933 crore of sales within two weeks. Its other Bengaluru launch, Embassy Origins South Reserve, has a GDV of Rs 1,950 crore and generated about Rs 880 crore in sales over the same initial period.

Mumbai added a high-value contribution through Embassy Terraza in Juhu, a project with a GDV of Rs 3,050 crore. The development recorded about Rs 758 crore of sales on launch, including a single-home residential transaction of about Rs 711 crore. The company said this was India’s largest residential home transaction to date.

The quarterly pre-sales figure alone is equivalent to nearly 70 per cent of Embassy’s Rs 4,631 crore pre-sales recorded in FY26. The comparison highlights the scale of the latest launch-led sales jump, although conversion of bookings into collections and eventual reported revenue will depend on Construction progress and customer payment schedules.

Collections rose at a slower pace than bookings. Q2 FY27 collections stood at about Rs 546 crore, up 10 per cent from Rs 496 crore in Q1. First-half collections increased 53 per cent year on year to Rs 1,041 crore, which is about 35 per cent of the company’s FY27 collections guidance of Rs 3,000 crore.

The difference between the 51 per cent achievement of the pre-sales target and 35 per cent achievement of the collections target is a key operating indicator. Management had earlier indicated that collections would be driven largely by construction milestones at projects launched in the second half of FY26, rather than only by fresh bookings. This makes execution and the pace of construction important variables for cash conversion in the second half.

As of September 30, 2026, net institutional principal outstanding stood at about Rs 3,732 crore after adjusting for cash and cash equivalents of about Rs 1,258 crore. The company has previously said that lowering its cost of borrowing would precede a material reduction in absolute debt, with stronger collections expected to support refinancing and deleveraging.

The operating update comes after a weak reported financial quarter. Embassy posted a consolidated net loss of Rs 237.97 crore in Q1 FY27, although management has maintained that revenue recognition in residential projects typically lags pre-sales and collections because revenue is booked closer to completion and handover.

As of 3:54 p.m. on October 8, 2026, Embassy Developments shares were trading at Rs 56.42, down 1.43 per cent from the previous close. The stock has declined 39.81 per cent over the past year, compared with a 4.54 per cent fall in the BSE 500, and was about 40.7 per cent below its 52-week high of Rs 95.19.

The company said the disclosed operating figures are provisional and subject to limited review. Its ability to sustain the first-half sales pace will depend on timely approvals, further launches and progress in converting booked sales into construction-linked collections.

Disclaimer: The article is for informational purposes only and not investment advice.