Q1 2027 Embassy Developments Ltd Earnings Call

August 11, 2026

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Aditya Virvani, Promoter and Managing Director of Embassy Developments Limited. Thank you, and over to you, sir.

Speaker #2: Good morning, everyone, and thank you for joining us today. I'm joined by Sachin Shah, our CEO and Executive Director, and Rajesh Kaimal, our CFO and Executive Director.

Aditya Virwani: 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 FY27 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 FY26 continue to translate into healthy sales and collections. We entered FY27 with substantial residential portfolio available for sale, comprising approximately INR 10,500 crores of ongoing inventory, around INR 400 crores of completed OC received inventory, and a INR 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.

Speaker #2: Our investor presentation has been uploaded to the stock exchanges and is also available on our website. We have started FY27 with good momentum.

Speaker #2: The first quarter reflects the progress we have made over the past year, especially as the launches from the second half of FY26 continue to translate into healthy sales and collections.

Speaker #2: We entered FY27 with a substantial residential portfolio available for sale, comprising approximately ₹10,500 crore of ongoing inventory, around ₹400 crore of completed OC-received inventory, and a ₹19,400 crore pipeline of fresh launches.

Speaker #2: 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.

Speaker #2: 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 continues to be healthy across both the premium and the luxury residential segments.

Aditya Virwani: 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 INR 868 crores, which is up 338% year-on-year. While collections, more importantly, increased 54% to INR 496 crore.

Speaker #2: Customers increasingly favor developers with a 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.

Speaker #2: 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.

Speaker #2: Against this backdrop, we have had a great first quarter. Pre-sales for Q1 stood at ₹868 crore, which is up 338% year-on-year, while collections, more importantly, increased 54% to ₹496 crore.

Speaker #2: More importantly, demand remained healthy across our portfolio. Nearly 60% of our inventory launched in FY26 has already been sold, and Bangalore continues to perform especially well, with approximately 72% of launched inventory sold within six months.

Aditya Virwani: More importantly, demand remained healthy across our portfolio. Nearly 60% of our inventory launched in FY26 has already been sold, and Bangalore continues to perform especially well with approximately 72% of launched inventory sold within six months. Execution remains equally important. During the quarter, Embassy One09 in Gurgaon and Five Towers in Golf City, Savroli received their occupancy certificate, 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.

Speaker #2: Execution remains equally important. During the quarter, Embassy 109 in Gurgaon and five towers in Gaul City Savaroli received their occupancy certificates, moving us closer to customer handovers.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Our approach is not only to have a 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.

Aditya Virwani: 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 our early customers to create value together. Investors should therefore expect some quarterly variability in launches. This is a function of discipline and not demands. With that said, our FY27 pipeline comprises of nine owned projects and two development management projects, both together representing a combined GDV of INR 19,400 crores. We expect to launch four of these 11 projects in the current quarter, which is Q2.

Speaker #2: Having the majority of tender drawings in place, ensuring our marketing experience is ready, and developing a very careful and deliberate sales strategy to ensure pricing is optimal while leaving room for early customers to create value together.

Speaker #2: Investors should therefore expect some quarterly variability in launches. This is a function of discipline and not demand. With that, with that said, our FY 27 pipeline comprises of nine owned projects and two developed man development management projects, both together representing a combined GDV of 19,400 crores.

Speaker #2: We expect to launch four of these 11 projects in the current quarter, which is Q2. We remain comfortable with our FY27 guidance of ₹6,000 crores in pre-sales from the owned developments, ₹2,000 crores from the developed managed projects, and approximately ₹3,000 crores of collections.

Aditya Virwani: We remain comfortable with our FY27 guidance of INR 6,000 crores in pre-sales from the owned developments, INR 2,000 crores from the develop managed projects, and approximately INR 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 for 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.

Speaker #2: 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.

Speaker #2: Our balance sheet also continues to strengthen. The Board has just approved a preferential allotment for convertible warrants to the promoter Embassy Group, subject to shareholder approval.

Speaker #2: The proceeds will be used to repair outstanding shareholder debt of Embassy Group, further strengthening our balance sheet and reducing our cost of capital over time.

Speaker #2: More importantly, the continued support of our shareholders and promoters reflects their confidence in the business we are building and the opportunity that lies ahead.

Speaker #2: 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.

Aditya Virwani: 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.

Speaker #2: So, to conclude, we are pleased with the start of the year, but we believe we are still in the early stages of what Embassy can achieve in the residential development space.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Thank you.

Speaker #3: 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 FY27, highlighting our business updates, progress, and outlook for the year.

Sachin Shah: Thank you, Aditya, and welcome, shareholders. I shall add to what Aditya spoke about with respect to the operational performance for Q1 of FY27, highlighting our business updates, progress, and outlook for the year. We have been focused on project execution this Q1, 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 INR 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.

Speaker #3: We have 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.

Speaker #3: 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.

Speaker #3: 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 crore, representing approximately 56% of collections.

Speaker #3: As projects come out of the ground, we expect construction activity, collections, and operating cash flows to strengthen meaningfully over the coming quarters. Construction progress is broadly in line with planned schedules across our portfolio, and we achieved several key milestones during the quarter, including receipt of the OC certificate for our 109 Phase One, Gurgaon, and for five additional towers at Gaul City, Savaroli.

Sachin Shah: Construction progress 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 our 109 Phase One, Gurgaon, and for five additional towers at Golf City, Savroli. Our OC receipt 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 FY27. Similarly, Embassy Edge and Embassy East Avenue are progressing well towards completion in FY28, with both projects already substantially sold. We also continue to see strong traction across our newer launches. Embassy Verde Phase Two, Embassy Greenshore, and Embassy Eden have recorded healthy sales while construction advanced in line with plan.

Speaker #3: 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 priorities. Embassy Springs and Balance Towers of Gaul City, Savaroli, are nearing completion and slated for OC in FY27.

Speaker #3: Similarly, Embassy Edge and Embassy East Avenue are progressing well towards completion in FY28, with both projects already substantially sold. We also continue to see strong traction across our newer launches. Embassy Birthday Phase Two, Embassy Greenshore, and Embassy Eden have recorded healthy sales while construction advances in line with plan.

Speaker #3: In Mumbai, Embassy Citadel has secured approvals for all 81 floors, a significant differentiator in the Mumbai market. Combined with its prime, worldly location, this positions the project as one of the most compelling luxury residential developments in our portfolio, with strong long-term value and surplus.

Sachin Shah: 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 INR 13,630 crores of cumulative unsold inventory across residential and commercial launches, providing a strong basis for future collections, cash flows, and revenue recognition. FY27 launch pipeline.

Speaker #3: Overall, our portfolio reflects a healthy mix of projects nearing delivery and new developments progressing on construction. This phase maturity provides good visibility into future completions, revenue recognition, and cash flow generation over the coming years.

Speaker #3: 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.

Speaker #3: FY27 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.

Sachin Shah: We continue to target approximately INR 19,400 crores of launch GDV, comprising nine owned projects with a GDV of INR 13,300 crores, along with two development management projects contributing an additional INR 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 INR 1,400 crores. Embassy Knowledge Park Villas and Apartments in North Bengaluru on 80-plus acres with a combined GDV of approximately INR 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 INR 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 INR 2,000 crores.

Speaker #3: 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 crore.

Speaker #3: Embassy Knowledge Park Villas and Apartments in North Bengaluru span over 80-plus acres, with a combined GDV of approximately ₹4,450 crores. The front parcel, featuring villas and apartments at Embassy Springs, has 1.7 million square feet of residential development, with a GDV of roughly ₹1,900 crores.

Speaker #3: 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.

Speaker #3: 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, with our share being 91%.

Sachin Shah: Embassy Hub Plot A in Hebbal, Bengaluru, where we have 1.2 million square feet to sell and a GDV of roughly INR 2,100 crores, and our share being 91%. Finally, 109 Commercial Phase 2 in Gurgaon, where we have a GDV of INR 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 Jaratsar, a new 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, our 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 INR 23,470 crores.

Speaker #3: And finally, 109 Commercial Phase Two 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 the Embassy Terazza Jew development management project, which is a low-density, uber-luxury residential development.

Speaker #3: 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.

Speaker #3: Beyond 27, we have a development pipeline of roughly 20.3 million square feet, with an estimated GDV of approximately ₹23,470 crore. There's also a fully paid, 3,000-plus acre land bank, which includes a 1,400-plus acre NASIC land for which we're looking to seek an amicable solution with MIDC.

Sachin Shah: There is also a fully paid 3,000-plus acre land bank, which includes a 1,400-plus acre Nasik land, for which we are 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 key 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 launch projects. Therefore, we remain optimistic of achieving our FY27 guidance for pre-sales, collections, construction milestones, and approvals.

Speaker #3: In addition, we have strengthened our senior leadership in the NCR as well as our business development team in Mumbai, and we are actively looking for new projects in the NCR and MMR regions.

Speaker #3: 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 our ongoing shift towards trusted and branded developers.

Speaker #3: We have a strong launch pipeline and continue to execute well on our launch projects. Therefore, we remain optimistic about achieving our FY27 guidance for pre-sales, collections, construction milestones, and approvals.

Speaker #3: With that, I will now hand it over to our CFO, Rajesh Kaimal, who will take you through the financial performance of the company.

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

Speaker #2: Thank you, Sachin, and good morning everyone. I will take you through the financial performance for the quarter ended June 30, 2026. Before discussing the reported numbers, it is important to reiterate the accounting characteristics of our business.

Rajesh Kaimal: Thank you, Sachin, and good morning, everyone. I will take you through the financial performance for the quarter ending 30 June 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 FY27. During Q1 FY27, revenue from operations stood at INR 217 crores compared to INR 681 crore in Q1 FY26. Total income was INR 241 crore versus INR 694 crore in the corresponding quarter last year.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Financial performance Q1 FY27. During Q1 FY27, revenue from operations stood at ₹217 crore compared to ₹681 crore in Q1 FY26. Total income was ₹241 crore versus ₹694 crore in the corresponding quarter last year.

Speaker #2: EBITDA for the quarter was negative ₹106 crore, compared with positive ₹2 crore in Q1 FY26. Consequently, the company reported a net loss of ₹234 crore, compared with a net loss of ₹166 crore in the corresponding quarter last year.

Rajesh Kaimal: EBITDA for the quarter was -INR 106 crore, compared with +INR 2 crore in Q1 FY26. Consequently, the company reported a net loss of INR 234 crore, compared with a net loss of INR 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 INR 496 crore, supported by steady customer inflows across our ongoing projects. As our launch pipeline gathers pace and execution advances across ongoing projects, milestone link collections are expected to accelerate over the balance FY27. 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 FY27 collections guidance of approximately INR 3,000 crore.

Speaker #2: 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 remained strong.

Speaker #2: Collections during the quarter increased 54% year on year to ₹496 crores, 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 of FY27.

Speaker #2: 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 FY27 collections guidance of approximately ₹3,000 crores.

Speaker #2: 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.

Rajesh Kaimal: 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 30 June 2026, our gross institutional debt stood at approximately INR 4,500 crore, while cash and cash equivalents were approximately INR 1,200 crore, resulting in net institutional debt of approximately INR 3,300 crore and a net debt to equity of 0.35x. As on date, the outstanding shareholder debt stands at INR 1,063 crore, INR 700 crore from Blackstone and INR 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 INR 111.51 per share, in line with the previous preferential issue price.

Speaker #2: As of June 30, 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.

Speaker #2: As on date, the outstanding shareholder debt stands at ₹1,063 crore—₹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.

Speaker #2: 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.

Rajesh Kaimal: 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 the maximum permitted tenure 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 6 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.

Speaker #2: This is a strategic step to deleverage the balance sheet and reduce our cost of capital. As against the 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 6 months.

Speaker #2: 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.

Speaker #2: 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.

Rajesh Kaimal: 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 FY27.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Overall, we remain confident in the company's financial outlook and our ability to support the operational targets outlined for FY27. With that, we would now be happy to take your questions.

Rajesh Kaimal: With that, we would now be happy to take your questions. Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star-one on their touch-tone telephone.

Operator 3: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touchtone telephone. The first question is from the line of Karthik Sundararaman, an individual investor. Please proceed.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touchtone telephone. The first question is from the line of Karthik Sundararaman, an individual investor. Please proceed.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use a handset while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue is assembled. A reminder to all participants: anyone who wishes to ask a question may press star then one on their touch-tone telephone.

Speaker #1: The first question is from the line of Karthik Subramaniam, an individual investor. Please proceed.

Speaker #3: So, great job on the quarter. So, Prestige, on their Q1 earnings call, says that four of their projects in Bangalore shifted from Q1 to Q2 due to RERA and building plan delays.

Karthik Sundararaman: Great job on the quarter. Prestige on their Q1 earnings call said that four of their projects in Bangalore ships from Q1 to Q2 due to RERA building compliance. Are we seeing the same issue?

Speaker #3: Are we seeing the same issue?

Speaker #4: 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 a planning authority, has not been able to sit for meetings. But I would not attribute our non-launching in Q1 to that.

Aditya Virwani: 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 BDA, which is a planning authority, has not been able to sit for a meeting. But 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 are 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 is a ready building that we have 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.

Speaker #4: 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 at the end of Q1 or in Q2.

Speaker #4: Embassy One is actually rare, 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.

Speaker #4: We just intentionally didn't want to do it. And 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.

Aditya Virwani: And 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. Embassy REIT has terminated Four Seasons, and therefore we had also terminated Four Seasons from the branded residences here. We are 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, and it is a launch project of Q2. I can officially say that. On Embassy Knowledge Park, we are 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 has gone viral on social media and we are seeing a lot of interest for it.

Speaker #4: Now Embassy REIT has terminated Four Seasons, and therefore we had also terminated Four Seasons from 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, and it is a launch project of Q2—I can officially say that. And at Embassy Knowledge Park, we're very, very close on getting our building plan.

Speaker #4: 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.

Speaker #4: 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.

Aditya Virwani: I think we have 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.

Speaker #4: Hopefully in this month, in fact.

Speaker #3: Fantastic. Given that you know 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 ₹2,800 crore of GDV launches within this financial year?

Karthik Sundararaman: 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 INR 13.8 thousand crores of GDV launches within this financial year?

Speaker #4: Yeah, I mean, our plan is to fast-track everything in Bangalore, as it's our home market. We understand the system here well, and we're very comfortable with Bangalore.

Aditya Virwani: Yeah, our plan is to fast track everything, and Bangalore is our home market. We understand the system here well. We are very comfortable with Bangalore. Quite comfortable with Mumbai as well at this point. But definitely Bangalore is a place we are 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 into Q4, but we have a pretty fair amount between Q2, Q3, Q4. Just to recap, we have four projects which we will launch Q2, which are North Tower and Juhu, which are already RERA received. So those are already launch projects. Knowledge Park is two different projects. We do feel beyond that, Alibag in Mumbai, we have RERA, we are just waiting for the monsoon to subside before we officially launch it.

Speaker #4: Quite comfortable with Mumbai as well at this point, but definitely Bangalore is a place where we're more comfortable, and the other projects that we have lined up, the Bangalore ones especially, are all on track to launch between Q3.

Speaker #4: Maybe some might spill into Q4, but we have a pretty fair amount between Q2, Q3, and Q4. So just to recap, we have four projects which will launch in Q2, which are North Tower and Juhu, which are already RERA received.

Speaker #4: So those are already launched projects. And Knowledge Park is two different projects. And we do feel, beyond that, Alibag in Mumbai, we have Rarer, which is waiting for the monsoon to subside before we officially launch it.

Speaker #4: And 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.

Aditya Virwani: And the other projects between Gurgaon and Bangalore, we feel comfortable that Q3 is what we are targeting. But I know this business, Q3, Q4 is where I can see the rest of the projects landing.

Speaker #3: Perfect. I have more questions, but I can wait if there are other questions.

Karthik Sundararaman: Perfect. I have more questions, but I can wait if there are other questions.

Speaker #4: Sure. Thank you.

Aditya Virwani: Sure. Thank you.

Speaker #1: Thank you. The next question is from the line of Rusmik Oza from Nine Ways Equity Research. Please proceed.

Operator 3: Thank you. The next question is from the line of Ruth Mekozza from Nuvama Equity Research. Please proceed.

Operator: Thank you. The next question is from the line of Ruth Mekozza from Nuvama Equity Research. Please proceed.

Ruth Mekozza: Thanks for the opportunity. I wanted to understand the cash flows. If you can just help us, those reported numbers, because of the accounting entry, don't reflect the true potential. If you can help us, what could be the operating cash flows, maybe for Q1 as against the INR 106 crore debit loss and for this fiscal year, if you can just give some color of what could be the potential operating cash flows, that would be helpful.

[Analyst]: Thanks for the opportunity. I wanted to understand the cash flows. If you can just help us, those reported numbers, because of the accounting entry, don't reflect the true potential. If you can help us, what could be the operating cash flows, maybe for Q1 as against the INR 106 crore debit loss and for this fiscal year, if you can just give some color of what could be the potential operating cash flows, that would be helpful.

Speaker #3: Thanks for the opportunity. I just want you to understand the cash flows—if you can just help us with reported numbers, you know, because the accounting entries don't reflect the true potential. But if you can help us with what could be the operating cash flows, maybe for Q1 and against the ₹106 crore debit loss, and for this fiscal year, if you can just give some color on what could be the potential operating cash flows, that will be helpful.

Speaker #4: Sure. Thanks for your question. I'll just redirect that to Rajesh Karmala, CFO.

Aditya Virwani: Sure. Thanks for your question. I'll just redirect that to Rajesh Kaimal, CFO.

Speaker #3: So we started off the year with about ₹1,600–1,165 crores of cash balance, and in the first quarter, since we didn’t launch any projects, we had a negative operating cash flow of ₹285 crores.

Rajesh Kaimal: We started off the year with about INR 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 INR 285 crores. This is a factor, if you know that in most of our projects got launched in Q3, Q4 of last financial year. As these project 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 INR 500 odd crores, against the INR 1,680 odd crores of collection last financial year. I think we are well positioned in terms of cash flow from operations.

Speaker #3: But this is a factor, if you note, if you know that most of our projects got launched in Q3 and Q4 of last financial year.

Speaker #3: And 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.

Speaker #3: So 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 crore.

Speaker #3: 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 we'll see a positive trend.

Rajesh Kaimal: Barring this one quarter where there was a negative operating cash flow, the next quarter we'll see positive trend.

Speaker #3: And if I could just add to that, I just want to point out that the big launches we did last year were Verde, Green Shore, Eden and, obviously, the big one was Citadel, the Worli project.

Aditya Virwani: And if I could just add to that, I just want to point out that the big launches we did last year was Embassy Verde, Embassy Greenshore, Embassy Eden, and obviously the big one was Embassy 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. I say that because we collect a lot once a slab cycle start. 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. I believe that is a big inflection point for us. I just want to state two facts is last year, collection to pre-sales ratio was around 35%.

Speaker #3: And 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 a slab cycle starts.

Speaker #3: We are early in our capex cycle, where excavation is going on in most of these projects. When we get out of the ground and you start seeing the slab cycle come up quite rapidly, that's when a significant amount of collections start coming into the company.

Speaker #3: And I believe that's a big inflection point for us. I just want to state two facts. Last year, our collection to pre-sales ratio was around 35%.

Speaker #3: This year, we're targeting ₹3,000 crores of collections, compared to the ₹6,000 crores from our fully owned projects. That's a 50% ratio. Now, I know the industry average is 70%.

Aditya Virwani: This year, we are targeting INR 3,000 crores of collections, compared to the INR 6,000, which is our fully owned projects. So that is a 50% ratio. I know industry average is 70%. We are on our way to get to that industry average. I do feel that mid of next year is when we reach that inflection point around, let us say, April, May, is my prediction, when all these projects, Embassy Greenshore, Embassy Verde, Embassy Citadel, will be out of ground. Also the projects that we are launching now will start bringing home significantly more cash than pre-sales. So, just something to keep in mind as you track our execution.

Speaker #3: We are on our way to reach that industry average. And I do feel that by the middle of next year, around April or May, is when we'll reach that inflection point. That's my prediction—when all these projects, Green Shore, Verde, Citadel, will be out of the ground, and also the projects that we're launching now will start bringing home significantly more cash than pre-sales.

Speaker #3: So, just something to keep in mind as you track our execution. Thanks for the detailed reply. My second question was regarding this GDV for this year—₹19,400 crores.

Ruth Mekozza: Thanks for the detailed reply. My second question was regarding this GDV for this year, INR 19,400 crores. If I have to split in the H1 and H2 of the fiscal year, how do you see these launches in the H1, and the H2? If you can just break it will be helpful.

[Analyst]: Thanks for the detailed reply. My second question was regarding this GDV for this year, INR 19,400 crores. If I have to split in the H1 and H2 of the fiscal year, how do you see these launches in the H1, and the H2? If you can just break it will be helpful.

Speaker #3: if I have to split in the first half and second half of the fiscal year how do you see this launches in the first half and the second half if you can just break it little bit helpful.

Speaker #4: Sure. So I'll break it, and if you do have your investor deck in front of you, I'd refer you to page 13, where...

Aditya Virwani: Sure. So I will break it, and if you do have our investor deck in front of you, I would refer you to page 13.

Speaker #3: Yeah.

Ruth Mekozza: Yeah.

[Analyst]: Yeah.

Speaker #4: The first, so North Tower, both the Embassy Knowledge Park and Juhu, which is the DM project, are Q2 launches. And like I mentioned, Embassy One and Juhu are already launched. Embassy Knowledge Park is the key focus for Q2.

Aditya Virwani: 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 H1, and everything else will be in the H2.

Speaker #4: And 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 into Q4.

Speaker #4: So, I mean, 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.

Speaker #3: Okay, okay, that's helpful. The third question was regarding any developments on the two commercial opportunities we have in Bangalore. So, any progress or any timelines on when you will start developing those commercial projects, or...

Ruth Mekozza: Okay. That's helpful, Aditya. The third question was regarding any developments on that two commercial opportunities we have in Bangalore. Any progress or any timelines when you will start developing those commercial projects or

[Analyst]: Okay. That's helpful, Aditya. The third question was regarding any developments on that two commercial opportunities we have in Bangalore. Any progress or any timelines when you will start developing those commercial projects or

Speaker #4: Yeah, so the company has two large commercial lands, which are Embassy East Business Park and Embassy Knowledge Park—the commercial portion. So, 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.

Aditya Virwani: Yeah. The company has two large commercial lands, which is Embassy East Business Park and Embassy Knowledge Park, the commercial portion. Embassy East first phase we launched last year. Excavation is going on. 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 any 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. Now, I want to say that we're in very early days of finalizing that product.

Speaker #4: We look at the REIT as an exciting strategy that the group has, and Embassy Knowledge Park is something that we have intentionally told the market, please don't look at it. We have not taken it in any surplus or any in the GDV in any of our decks.

Speaker #4: Because we said that when we have clarity on what the product is, we will come to the market with that. Now, I want to say that we're in the very early days of finalizing that product.

Speaker #4: 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 center.

Aditya Virwani: It's not gonna 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. 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. 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.

Speaker #4: And we are in the planning phases of it, and we feel by the end of the fiscal year we will come out with clear timelines, clear GDV, and clear surplus of what that project will entail.

Speaker #4: So, 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. You know, Embassy East is on ITPL Main Road—it's as prime as you can get.

Speaker #4: So that's one that's a little bit different, and the request is by the end of this fiscal for us to come back with more clarity on that.

Speaker #3: Thanks, Aditya. My third question was regarding the entire land bank that we have. Any update or progress on how the monetization of this will pan out in the next one, two, or three years?

Ruth Mekozza: 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 pan out in the next 1, 2, 3 years?

[Analyst]: 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 pan out in the next 1, 2, 3 years?

Speaker #4: Yeah, 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 Rygard region where we see a lot of land compounding and a lot of growth that's going to happen.

Aditya Virwani: Yeah, 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. But other than Nasik, 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. But 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 JDA, the land that we did last September.

Speaker #4: but un un and in unless NASIC other than NASIC sorry 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.

Speaker #4: And we feel that that is something that we will address when the company has a sufficient amount of surplus to deploy into that. But our first priority is to just launch the launchable lands, generate surplus, you know, collect money, look at BD opportunities as well where we can get off the ground very fast—like the Whitefield land that we did last September.

Speaker #4: We're already launching it in Q3 this year. So, 12 months is quite fast for any project to move from greenfield to launch. So, 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.

Aditya Virwani: We're already launching it in Q3 this year. So 12 months is quite fast for any project to move from greenfield to launch. So 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 Nasik one, maybe since that's a significant, that's half the land bank almost. Maybe I'll just give this one to Sachin Shah to give a status update on Nasik.

Speaker #4: On the NASIC one, maybe since that's a significant—that's half the land bank almost—maybe I'll just give this one as such and give a status update on NASIC.

Speaker #3: Sure. Thanks, Aditya. On NASIC, what we have is 1,400-plus acres, and we are working with MIDC. We've met them a couple of times to try to see if we can reach an amicable solution.

Sachin Shah: Sure. Thanks, Aditya. On Nasik, what we have is 1,400 plus acres, and 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 de-bonding exercise as well. The de-bonding exercise requires us to go through 5 different agencies, government agencies. And so we're working through that entire process. My sense is the de-bonding process will, from today, still take probably another 6 to 9 months to get completed. At the same time, we're working to figuring it out with MIDC. And while the case is going on, it's moving slowly. A company that we've subleased 80-plus odd acres to has also now been intervened in the application. So I think legally, it will go slowly.

Speaker #3: At the same time, we are working through the de-bonding exercise as well. The de-bonding exercise requires us to go through five different government agencies, and so we're working through that entire process.

Speaker #3: My sense is the de-bonding process will, from today, still take probably another six to nine months to get completed. At the same time, we're working through, you know, figuring it out with MIDC.

Speaker #3: And while, you know, the case is going on, it's moving slowly. One, like a company that we had subleased eighty-plus odd acres to, has also now been intervened in the application.

Speaker #3: So, 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 de-bonding exercise.

Sachin Shah: I think the solution over here will be a mix of amicably working out something with Maharashtra Industrial Development Corporation and at the same time, carrying on the de-bonding exercise. Back to you, Aditya.

Speaker #3: Back to you, Aditya. Thanks. Thank you so much. I'll come back and look at you. Thank you.

Ruth Mekozza: Yeah. Thank you so much. I will come back in loop with you. Thank you.

[Analyst]: Yeah. Thank you so much. I will come back in loop with you. Thank you.

Speaker #2: Thank you. A reminder to all participants: anyone who wishes to ask a question may press star and one on their touch-tone telephone. The next question is from the line of Kevin Gandhi.

Operator 3: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and 1 on their touchtone telephone. The next question is from the line of Kevin Gandhi from CapGrow Capital Advisors. Please proceed.

Operator: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and 1 on their touchtone telephone. The next question is from the line of Kevin Gandhi from CapGrow Capital Advisors. Please proceed.

Speaker #2: From Capgrow Capital Advisors. Please proceed.

Kevin Gandhi: My second question, I hope my voice is audible. Sir, just wanted to know whether annualized run rate of interest cost currently for the company. And what is the rate of interest for and what is the interest for the Blackstone debt of 7 million share? That is the first question.

Speaker #3: This is my question. I hope my voice is audible. Sir, I just wanted to know whether the interest cost currently for the company is annualized or on a run rate basis, and what's the rate of interest for the project? Also, what is the interest for the Blackstone data share?

Speaker #3: That's what was question.

Speaker #4: Okay I'll just ask Rajesh to take this one. So our average cost of debt is around fourteen percent and and we are looking to reduce the cost of debt as the pro as all the projects progress and collection kicks in.

Aditya Virwani: Okay, I will just ask Rajesh to take this one.

Rajesh Kaimal: Our average cost of debt is around 14%, and we are looking to reduce the cost of debt as all the projects progress and collection kicks 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 did not catch the first part of the sentence. Your line was not clear. Can you just repeat that, please?

Speaker #4: Your second question was on the Blackstone conversion. We are in talks with Blackstone for converting their portion of the debt to equity, and we're waiting to hear from them.

Speaker #4: Sorry, I didn't catch the first part of the sentence—your line was not clear. Can you repeat that, please?

Speaker #3: Sir, I just wanted to know, what is the rate of interest that we are paying to Blackstone for the semi of debt right now?

Kevin Gandhi: Sir, so my question was that what is the rate of interest which we are paying to Blackstone for 70 odd debt right now?

Speaker #4: We are paying Blackstone at a rate of 18%. That interest is being accrued in the books and being added to the capital or the gross debt.

Rajesh Kaimal: We are paying Blackstone at the rate of 18%. That interest is being accrued in the books and being added to the capital of the cross debt. It is not a payout from the books.

Speaker #4: It's not a payout from the books.

Speaker #3: Hold it. Hello. Am I audible?

Kevin Gandhi: Hello. Hello. Am I audible?

Speaker #4: Yes you are.

Operator 3: Yes.

Operator: Yes.

Rajesh Kaimal: Yes, you are.

Speaker #3: Yeah. sir my second question was just wanted to understand what is like what what road map do we envisage to reduce this debt of four thousand hundred share.

Kevin Gandhi: Yeah. Sir, my second question was, just wanted to understand what roadmap do we envisage to reduce this debt of INR 4,500 crore? Just to actually add on that, we are planning a collection of close to kind of INR 3,000 crore. So 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 another? Something which I just wanted to understand. Thank you.

Speaker #3: So, just to actually add on to that—we are planning a collection of those two, kind of three-thousand share. So, what will be the estimated construction cost, and how much would actually be left so as to repay the debt? And how are we seeing this debt repayment go on for the—another—something which I just wanted to understand.

Speaker #3: Thank you.

Speaker #4: So the debt that we have today our net debt is around three thousand three hundred odd crores and this debt was taken over last year and and the current year.

Rajesh Kaimal: The debt that we have today, our net debt is around INR 3,300 crore, and this debt was taken over last year and the current year. Predominantly to launch the INR 16,000 crore of inventory that we launched last year and the INR 19,000 crore of inventory that we are trying to launch this year. So that's a total of about INR 35,000 crore. Against that, we have a net debt of about INR 3,300 crore. If you see our debt to equity, it's about 0.35x, which is 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. Once we start kicking, 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%.

Speaker #4: predominantly to launch the sixteen projects sorry the sixteen thousand crores of inventory that we launched last year. And the nineteen thousand crores of inventory that we are trying to launch this year.

Speaker #4: So that's a total of about thirty five thousand crores. I against that we have a net debt of about three thousand three hundred crores.

Speaker #4: If you see our debt to equity it's about point three five x which is comfortable comfortable level of debt on our balance sheet. Our our priority will be to execute well.

Speaker #4: That will bring in collections as the project progresses. And once we start kicking, 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%.

Speaker #4: So, it's basically the projects which will pay for this debt, and our first priority is to refinance the debt at a lower cost, and then try and repay the debt over a period of time.

Rajesh Kaimal: So it is 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. A net debt to equity is what we are targeting.

Speaker #4: We think our debt to equity ratio based on the future launches as well will be in the region of point three to point three five x a net debt to equity is what we are targeting.

Speaker #4: And if I could just add to that I feel our evolution will be the following. Which is we did four thousand six hundred crores of pre-sales last year.

Aditya Virwani: And if I could just add to that. I feel our evolution will be the following, which is we did INR 4,600 crore of pre-sales last year. I feel very confident we will hit our INR 6,000 crore 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 refi 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 spends, 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.

Speaker #4: I I feel very confident we'll hit our six thousand crores of our own projects guidance this year. And 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 refi the whole portfolio like Rajesh said initially first bring our cost of debt down and then as the projects start throwing out surplus surplus cash beyond the construction spends then ca debt as a whole will ca start coming down.

Speaker #4: So, just to sum that up, you can expect the cost of debt to first come down, and then overall debt will start coming down.

Speaker #3: So, this, I've got it. So, like, next year, March to April is something which we're actually estimating, that for this number, like the total gross debt, actually should start coming down.

Kevin Gandhi: Okay. So like, next year, March to April is something which you are estimating that this number of the total gross debt actually would start coming down. Is my assumption correct?

Speaker #3: Is my assumption correct?

Speaker #4: That's right. The cost of debt. Yeah.

Aditya Virwani: That is right. The cost of debt, yeah.

Speaker #3: okay sir. Thank you.

Kevin Gandhi: Okay, sir. Thank you.

Speaker #4: Thank you.

Aditya Virwani: Thank you.

Speaker #2: Thank you. A reminder to all participants: anyone who wishes to ask a question may press star one on their touchtone telephone. The next question is from the line of Abhishek Lodhia.

Operator 3: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch-tone telephone. The next question is from the line of Abhishek Lodhia from Antique Stock Broking. Please proceed.

Operator: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch-tone telephone. The next question is from the line of Abhishek Lodhia from Antique Stock Broking. Please proceed.

Speaker #2: From Antiques Stock Broking. Please proceed.

Speaker #3: Yeah, good morning Aditya and Sachin. Yes, just one question. I mean, how do you see the perception changing for Embassy as a brand with the completion of projects under the name India Boots, right?

Abhishek Lodhia: Yeah. Good morning, Mayur, Shrey, and Sachin. Just one question. How do you see the perception changing for Embassy as a brand with the completion of projects under the name Indiabulls? Similarly, how demand is panning out for your new project, and what could be the sales percentage we would be achieving in first six months of launch?

Abhishek Lodhiya: Yeah. Good morning, Mayur, Shrey, and Sachin. Just one question. How do you see the perception changing for Embassy as a brand with the completion of projects under the name Indiabulls? Similarly, how demand is panning out for your new project, and what could be the sales percentage we would be achieving in first six months of launch?

Speaker #3: And similarly, how demand is panning out for a new project, and what could be the sales percentage we would achieve in the first six months of launch?

Speaker #4: So the I'll answer your last question first. The first six months you know like I mentioned in Bangalore seventy-two percent in in Mumbai it's sixty and I I think Citadel skews that a little bit because such a large project that you know eight nine thousand crores of of stock that we'll sell over the next few years.

Aditya Virwani: I will answer your last question first. The first 6 months, like I mentioned, Bangalore is 72%, in Mumbai it is 60%. I think Embassy Citadel screws that a little bit because such a large project that 8,000, 9,000 crores of stock that we will 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 are seeing on ground. Your earlier question on how does Embassy cement our brand? This is the 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.

Speaker #4: So I would look at the Bangalore ratio to really give a sense of, you know, what kind of a launch and what kind of robust demand we're seeing on the ground.

Speaker #4: Your earlier question on, you know, how do we change—how does Embassy cement our brand? Look, I think this is a big thing in the company, because from a Bangalore point of view, we have an amazing brand.

Speaker #4: We are the top developer in Bangalore for luxury residential. We always have been. We have been focusing a lot on commercial, but now it's a refocus back into residential.

Aditya Virwani: We have been focusing a lot on commercial, but now it is a refocus back into residential, and that is 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 are seeing with Embassy Springs, and you are seeing a lot of our sales actually come through that premium segment. Now we need to replicate this in Mumbai. The journey has started, and it has been a very honest journey. With Embassy Citadel, Embassy Juhu, we just launched. These are two marquee locations, irreplaceable locations, I would say. The Embassy 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.

Speaker #4: And that's actually how the brand started, how my father started the company. And 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.

Speaker #4: And you're seeing a lot of our sales actually come through that premium segment. So now we need to replicate this in Mumbai, and the journey has started—and it's been a very honest journey.

Speaker #4: With Citadel Juhu, we just launched—you know, these are two marquee locations. Irreplaceable locations, I would say. The Juhu one is a two-and-a-half-acre plot touching the sea.

Speaker #4: And this is our 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.

Aditya Virwani: Yes, we have the legacy projects of Indiabulls that we have taken up that liability to fix it. 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 is 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 is fully back. Banks are funding the customers. Sales is happening. The whole project is revamped, and we are very proudly putting our name on it. There are some projects that we intentionally said, "Let us not put our brand on it," because they were too close to completion.

Speaker #4: And I really feel that the customers there are feeling the honesty that Embassy is putting forward, going in there, making good on the earlier management's mistakes.

Speaker #4: 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.

Speaker #4: There are forty laborers on site today, that's fifteen hundred laborers. The project is fully back; banks are funding, the customers, sales is happening. You know, it's—the whole project is revamped.

Speaker #4: 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.

Speaker #4: So you're seeing that with Savroli. You're seeing that with 109 in Gurgaon for the first phase. But we finished it. We've got OCs.

Aditya Virwani: You are seeing that with Savroli, you are seeing that with Embassy One09 in Gurgaon for the first phase. But we finished it. We have got OCs. A lot of the collections were backended. The earlier management had done a lot of 20, 80 schemes. So we started unlocking a lot of those collections. Yes, that is a little bit of a, I do not want to say headache, but it is a painful job that the company has to do and fulfill those obligations, close those books, and honor it. At the same time, we are building our brand, building the trust aspect that I mentioned. I think that is such a key factor for a development company, and it is a journey. It is going to take some time. We know that in Bangalore, we get a premium to all the other developers when we launch projects.

Speaker #4: A lot of the collections were back-ended. You know, the earlier management had done a lot of 20:80 schemes. So, we started unlocking a lot of those collections.

Speaker #4: So yes, that's a little bit of a, you know, I don't wanna say headache, but it's a painful job that the company has to do—to fulfill those obligations, close those books, and honor it.

Speaker #4: 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 a development company.

Speaker #4: And it's a journey. It's going to take some time. We know that, you know, in Bangalore we get a premium to all the other developers when we launch projects.

Speaker #4: You know, and 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, and showcase the product a little bit before we start taking up the pricing and competing with the top developers of Mumbai.

Aditya Virwani: 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. But 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.

Speaker #4: Juhu is quite a special project. You know, from that point of view, I feel we are already on par with our competitors in that region.

Speaker #4: But it's just—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.

Speaker #3: I think it's Aditya—one more question, right? In Gurgaon, India Bulls, the soil company, is also active, right? And we are also, I mean, active in NCR as a whole.

Abhishek Lodhia: Thank you. Aditya, one more question. In Gurgaon, Indiabulls, the erstwhile company, is also active. We also are active in NCR as well. Are we facing any challenges because of the perception and name of the erstwhile company?

Abhishek Lodhiya: Thank you. Aditya, one more question. In Gurgaon, Indiabulls, the erstwhile company, is also active. We also are active in NCR as well. Are we facing any challenges because of the perception and name of the erstwhile company?

Speaker #3: So, are we facing any challenges because of the perception and the name of the soil company?

Speaker #4: Not really, to be honest. Some landlords whom I meet—because we're actively trying to grow in Gurgaon and looking for pipeline—I spend a lot of my time there.

Aditya Virwani: Not really, to be honest. Some landlords who I meet, because we're actively trying to grow in Gurgaon, looking for pipeline. I spend a lot of my time there. We're building our 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. So some landlords think, "Hey, are you working together?" But absolutely not. We have nothing to do with Indiabulls. They are doing their own thing. We are doing our own thing.

Speaker #4: We're building our team there. We've hired someone who's heading that region for us. Here and there, some people are a little bit, you know, asking that question.

Speaker #4: It will just take a little bit of time, because I think this whole terminology of 'merger' has confused people. In reality, it was a takeover.

Speaker #4: We took over this company, acquired it, and changed the brand. But the technical definition was a merger. So some landlords think, hey, are you working together? But absolutely not.

Speaker #4: We have nothing to do with India Bulls. 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.

Aditya Virwani: 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 nine, 10 months ago, when I met some landlords there.

Speaker #4: 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 gotten this in a long time, but yeah, there were some comments maybe nine, ten months ago.

Speaker #4: when I met some landlords there.

Speaker #3: Yeah, thanks. Thanks for the answer.

Abhishek Lodhia: Yeah. Thanks for the answer.

Abhishek Lodhiya: Yeah. Thanks for the answer.

Speaker #1: Thank you. A reminder to all participants: anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Ameesh Kanani from No Wise Investment Managers.

Operator 3: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. The next question is from the line of Amish Panani from Novaice Investment Managers. Please proceed.

Operator: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. The next question is from the line of Amish Panani from Novaice Investment Managers. Please proceed.

Speaker #1: Please proceed.

Speaker #2: Yeah, hi. Hi, sir. Congrats on a reasonably good operational, you know, quarter. Sir, you know, collection, you know, for this year as a guidance?

Amish Panani: Yeah. 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 if the construction continues? Because we know that even Q-over-Q, that dip in pre-sales is high. But construction spend and collection dip on Q1 over Q4 is not so bad. So the question is collection guidance, how confident are we that it will be collected 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 was mentioned previously, there is a change of government, we may slip by a quarter here and there. So that is the first question, sir.

Amish Kanani: Yeah. 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 if the construction continues? Because we know that even Q-over-Q, that dip in pre-sales is high. But construction spend and collection dip on Q1 over Q4 is not so bad. So the question is collection guidance, how confident are we that it will be collected 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 was mentioned previously, there is a change of government, we may slip by a quarter here and there. So that is the first question, sir.

Speaker #2: Is it dependent on any of the launches for this year, or should we presume that collection will continue if the construction continues?

Speaker #2: Because we know that, you know, even QoQ, that dip in presales is high. But, you know, construction spend and collection dip in Q1 over Q4 is not so bad.

Speaker #2: So the question is collection guidance. How confident are we that, you know, it will be collected if the progress on construction continues?

Speaker #2: And is not dependent on the new launches for this year, also because, you know, quite a few of the Bangalore projects are planned for this year.

Speaker #2: And as you know, as was mentioned previously, there's a change of government. We may slip, you know, by a quarter here and there. So that's the first question, sir.

Speaker #4: Okay, so 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 presales guidance.

Aditya Virwani: Okay. So, thanks for that question. It is 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. This is what I request everyone to keep tracking us, that if you see collections going up, that means we are executing well. We cannot shy away or hide anything from collection. So, it is a big focus for us. I would say most of our INR 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 launched projects that are scheduled for Q2, Q3, we roughly say, let us say 10% to 20% is what we collect. So we collect 10% on booking and another 10% in 90 days.

Speaker #4: And this is what I request everyone—to keep tracking us. If you see collections going up, that means we are executing well. And we can’t shy away from or hide anything from collections.

Speaker #4: So, it is a big focus for us. I would say most of our ₹3,000 crore collections will actually come from the ongoing projects that are already launched.

Speaker #4: Because they start hitting a period where milestones bring home far more cash. The launched projects that are scheduled for Q2, Q3—you know, we roughly say, like, let's say 10% to 20% is what we collect.

Speaker #4: So, we collect 10% on booking and another 10% in 90 days. So, Q2 will have 20%. Q3 will have 10% to 20%.

Aditya Virwani: 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 H2 of last year. That is where majority of the collections are. I feel very strong about the INR 3,000. I do not want to say anything yet, but I feel we can even better that, but maybe Q3 can give you a bit more accuracy on what we can see with that collections.

Speaker #4: And Q4 will really only have ten percent. The majority of the collections will come from Greenshore, from Verde, from Eden—all the projects that were launched basically in the second half of last year.

Speaker #4: That's where the 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—that's, I feel we can even better that.

Speaker #4: But maybe Q3 can give you a bit more accuracy on what we can see with that collections.

Speaker #2: sure sir that's that's good to hear. and sir you know coming back to the debt part. You know we are doing a a promoter you know preference at hundred and eleven.

Amish Panani: Sure, sir. That is good to hear. Sir, coming back to the debt part, we are doing a promoter preference at 111, and it is a very good signal at least to the market that we are very confident about our old transaction and the value. The question is, sir, why was it required in the first place if it is a promoter's debt? Because anyway, it is not cash outflow if the structure of the debt was similar to what probably a Blackstone debt, what you explained, where it is getting accumulated. One, the need for this transaction, is it signaling or it is the need for liquidity? Second, sir, in that context, if you can give us some sense of construction spend as a percentage of sales is only 56%. Why do we need this liquidity is the context of the question.

Amish Kanani: Sure, sir. That is good to hear. Sir, coming back to the debt part, we are doing a promoter preference at 111, and it is a very good signal at least to the market that we are very confident about our old transaction and the value. The question is, sir, why was it required in the first place if it is a promoter's debt? Because anyway, it is not cash outflow if the structure of the debt was similar to what probably a Blackstone debt, what you explained, where it is getting accumulated. One, the need for this transaction, is it signaling or it is the need for liquidity? Second, sir, in that context, if you can give us some sense of construction spend as a percentage of sales is only 56%. Why do we need this liquidity is the context of the question.

Speaker #2: And it's a which is it's a very good signal you know at least to the market. And that we are very confident about our you know old transaction and the value.

Speaker #2: The question is, sir, you know, why was it required in the first place if it's a promoter's debt? Because anyway, you know, it's not a cash outflow.

Speaker #2: If if the structure of the debt was similar to what you know probably a Blackstone you know debt what you explained. Where you know it's getting accumulated.

Speaker #2: So one the need for this transaction is it signaling or it's the need for liquidity. and second sir in that context you know how do you you know if you can give us some sense of you know construction spend as a percentage of sales is is only fifty-six percent.

Speaker #2: So why do we need this liquidity, is, you know, the context of, you know, the question.

Speaker #4: Yeah I I let Rajesh take this question. Just to I mean just to clarify. This is not bringing in additional liquidity into the system.

Aditya Virwani: I will let Rajesh take this question.

Rajesh Kaimal: Just to clarify, this is not bringing in additional liquidity into the system. This is basically a promoter converting their-

Speaker #4: This is basically a promoter converting their their liquidity. This is and this is just to give confidence. So this debt was growing at upwards of fifteen percent.

Amish Panani: Yeah.

Amish Kanani: Yeah.

Rajesh Kaimal: This is just to give confidence. This debt was growing at upwards of 15% because interest was getting accrued. We wanted to send a very clear signal that the promoters are very confident of the platform that they have created and the business opportunity that it provides. The pricing of INR 111.51 was very deliberate. This was the price that we did the previous pref at, a couple of years back before the merger. That is the reason why we did it at INR 111.5. I hope that answers your question.

Speaker #4: 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.

Speaker #4: And the business opportunity that it provides. And and the the pricing of hundred and eleven point five one was very deliberate. This was the price that we did the previous prep at.

Speaker #4: couple of years back before the before the merger. And that's the that's the reason why we did it at hundred and eleven point five.

Speaker #4: I hope that answers your question.

Speaker #2: Yeah and and sir the question is that you know is it yeah so the the last question sir in that context is you know we we give this surplus you know as a valuation you know parameter.

Amish Panani: Yeah. Sir, the question is, the last question, sir, in that context is, we give this surplus as a valuation parameter for us to give us some sense of what will be the potential value. Globally, there were few things where the NAV was also actually calculated and shared with the investor because the accounting profits is a challenge for us. Then, share price because of the regulatory risk is fluctuating very wildly. There is a pledge also on the promoter's side. If you can give us more information regarding the valuation of say either a land bank or a NAV of the whole value, that will help us to give comfort to the market that we are on track. That is just a suggestion.

Amish Kanani: Yeah. Sir, the question is, the last question, sir, in that context is, we give this surplus as a valuation parameter for us to give us some sense of what will be the potential value. Globally, there were few things where the NAV was also actually calculated and shared with the investor because the accounting profits is a challenge for us. Then, share price because of the regulatory risk is fluctuating very wildly. There is a pledge also on the promoter's side. If you can give us more information regarding the valuation of say either a land bank or a NAV of the whole value, that will help us to give comfort to the market that we are on track. That is just a suggestion.

Speaker #2: For us to kind of, you know, give us some sense of what will be the potential value. But you know, we can—you know, globally there were a few things, you know, where the NAV was also actually calculated.

Speaker #2: And you know, shared with the investor, because we are challenging the accounting profits. It is a challenge for us. And then, you know, share price, because of the regulatory risk, is, you know, fluctuating very, very wildly.

Speaker #2: And there is a pledge also on the promoter's side. So if you can give us more information regarding the valuation of, say, either a land bank or the NAV of the whole, you know, value.

Speaker #2: that will help us to you know kind of you know give comfort to the market. that you know we are on track. So that's just a a suggestion.

Speaker #2: And, you know, in that context, can you just briefly give us the sense—the cash, as you know, the cash, the way the bridge year you've given is showing us an incremental, you know, cash not needed.

Amish Panani: In that context, if you can just briefly give us the sense, the way bridge you have 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 looking at construction spend versus collection and debt repayment? That was also referred to by one of the previous participants.

Amish Kanani: In that context, if you can just briefly give us the sense, the way bridge you have 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 looking at construction spend versus collection and debt repayment? That was also referred to by one of the previous participants.

Speaker #2: But operating cash flow is negative, so if you can just explain for the year how we are, you know, kind of looking at construction spend versus collections and debt repayment.

Speaker #2: That was also kind of referred to by one of the previous participants, sir.

Speaker #4: so i+if you see slide number fifteen we are given our GDV at fifty-seven thousand crores. And and cash surplus at thirty thousand crores. just to give you a a kind of a a nuance into the into the business.

Rajesh Kaimal: If you see slide number 15, we have given our GDV at INR 57,000 crores and cash surplus at INR 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.

Speaker #4: Of development, around 30 to 35 percent is your land cost, 30 to 35 percent is your construction spend, and around 30 to 35 percent is your profit margin.

Speaker #2: Yeah but kind of.

Amish Panani: Profit margin.

Amish Kanani: Profit margin.

Speaker #4: The projects, yeah. So this is the rough breakup. And if you see all the projects that we launched last year and the projects that we are going to launch now.

Rajesh Kaimal: Yeah. This is the rough breakup. If you see all the projects that we have launched last year, and the projects that we are 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 us say two years later. That is how I think you should look at this business rather than just going on NAV on today's basis.

Speaker #4: 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.

Speaker #4: So we are seeing a cash surplus of more than fifty percent on all our projects. So, from that point of view, you know, you can see the next few years, the cash surplus really picking up.

Speaker #4: And that will then reflect in the pro in the P and L over the next let's say two years later. So that's how I think you should look at this business.

Speaker #4: And rather than just going on a NAV on, you know, on today's basis.

Speaker #2: Sure, sir. And so, the last clarification, sir: a few of the companies do adopt, you know, the percentage completion method on the project, rather than, you know, waiting for completion of the projects.

Amish Panani: Sure, sir. Sir, last clarification. Sir, few of the companies do adopt percentage completion method on the project rather than waiting for completion of the projects and then booking the entire income. Just if you can explore whether that is possible in our case and without any taxation liability. It will probably give us a better flavor of the accounting profit as well. That is just a suggestion. Thanks a lot and all the best, sir.

Amish Kanani: Sure, sir. Sir, last clarification. Sir, few of the companies do adopt percentage completion method on the project rather than waiting for completion of the projects and then booking the entire income. Just if you can explore whether that is possible in our case and without any taxation liability. It will probably give us a better flavor of the accounting profit as well. That is just a suggestion. Thanks a lot and all the best, sir.

Speaker #2: And then booking the entire income just if you can explore whether that's possible in our case. And you know without any taxation liability you know it will probably give us you know a better flavor of of the accounting profit as well.

Speaker #2: So that's just a suggestion. Thanks a lot, and all the best, sir.

Speaker #4: Thanks, Anish. We are actually actively exploring this suggestion, and we will review it and make the required changes if needed.

Rajesh Kaimal: Thanks, Amish. 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.

Speaker #2: Sure, sir. Thanks a lot, and all the best, sir.

Amish Panani: Sure, sir. Thanks a lot and all the best.

Amish Kanani: Sure, sir. Thanks a lot and all the best.

Speaker #4: Thank you.

Speaker #1: Thank you. The next question is from the line of Vinayak Bujari from Vinayak Capital. Please proceed.

Rajesh Kaimal: Thank you.

Operator 3: Thank you. The next question is from the line of Vinayak Bjari from Vinayak Capital. Please proceed.

Operator: Thank you. The next question is from the line of Vinayak Bjari from Vinayak Capital. Please proceed.

Speaker #2: Hello. Hello.

Vinayak Bjari: Hello. Hello. Sir, am I audible? Okay. Hello, Aditya. Sir, my question is, you have declared that we will be declaring the losses for another five, six quarters. Then why can't we sort of take a provision once and for all for all the quarters rather than declaring losses continuously for another five, six quarters? This is my first question.

[Analyst] (Vinayak Capital): Hello. Hello. Sir, am I audible? Okay. Hello, Aditya. Sir, my question is, you have declared that we will be declaring the losses for another five, six quarters. Then why can't we sort of take a provision once and for all for all the quarters rather than declaring losses continuously for another five, six quarters? This is my first question.

Speaker #1: Yes.

Speaker #2: Sir, am I audible? Okay. Hello, Aditya sir. My question is: you have declared that we will be declaring the losses for another five to six quarters.

Speaker #2: Then why can't we—I mean to say, we can sort of take a provision once and for all for all the quarters, rather than declaring losses continuously for another five or six quarters.

Speaker #2: This is my first question.

Speaker #4: Sorry, Vinayak. If I understood your question correctly, you said that because of this accounting issue, the company will be declaring losses for the next few quarters.

Rajesh Kaimal: 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.

Speaker #2: Sir. You are correct. I mean to say we can we can take a provision or I mean once and for all we can take the total provision whatever the losses we are I mean to say we are visioning in the future whatever losses we have to take in the five or six different quarters.

Vinayak Bjari: Sir, you are correct. I mean to say we can take a provision or once and for all we can take the total provision, whatever the losses. I mean to say we are envisioning 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?

[Analyst] (Vinayak Capital): Sir, you are correct. I mean to say we can take a provision or once and for all we can take the total provision, whatever the losses. I mean to say we are envisioning 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?

Speaker #2: We can take it once and for all. Isn't that so?

Speaker #4: Okay, I'll just explain that. So, Vinayak, accounting standards don't permit us to make a provision for the reason of anticipation of cost.

Rajesh Kaimal: Okay, I'll just explain that. Vinayak, accounting standards don't permit us to make a provision without a reason, anticipation of a cost. That's really not possible to do as per the accounting standards that we follow.

Speaker #4: So that's really not possible to do, as per the accounting standards that you mentioned.

Speaker #2: Okay. Hello.

Vinayak Bjari: Okay. Hello?

[Analyst] (Vinayak Capital): Okay. Hello?

Speaker #4: Yes yes go ahead Vinayak.

Rajesh Kaimal: Yes. Go ahead, Vinayak.

Speaker #2: Sir, my second question is: in layman's terms, how can I understand the goodwill that is being reflected in your balance sheet? Although I know the accounting standards.

Vinayak Bjari: 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 it in the layman terms.

[Analyst] (Vinayak Capital): 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 it in the layman terms.

Speaker #2: But if you could explain it to me in layman's terms.

Speaker #4: So the goodwill that we have on the balance sheet today is was was done during the reverse merger accounting. which we which we did in last January.

Rajesh Kaimal: So, the goodwill that we have on the balance sheet today was done during the reverse merger accounting, which we did in last January. So this reflects the price of the share at that point in time because it is the projects that were there in the company. So this was the Indiabulls Real Estate, which was there at that point of time. So the share price prevailing at that time, because it is the value of the projects at that point of time, the difference is treated as goodwill in the books. So let us say the share price was at INR 100 and value of all the projects was, let us say, INR 90. The INR 10 is the goodwill that is recorded in the books.

Speaker #4: So this reflects the price of the share at that point in time, whether it's the projects that were there in the company. So this was the India Booth Real Estate, which was there at that point of time.

Speaker #4: So, the share price prevailing at that time—whether it's the value of the projects at that point of time—the difference is treated as goodwill in the books.

Speaker #4: So, let's say the share price was at 100 rupees and the value of all the projects was, let's say, 90 rupees. The 10 rupees is the goodwill that is recorded in the books.

Speaker #2: Sir. So ultimately two five zero zero crores is of not not of much use. I mean to say I mean it's I mean it's not of it's not much of use.

Vinayak Bjari: Sir, so ultimately INR 2,500 crores is of not of much use. I mean to say, it is not much of use, this particular INR 2,500 goodwill.

[Analyst] (Vinayak Capital): Sir, so ultimately INR 2,500 crores is of not of much use. I mean to say, it is not much of use, this particular INR 2,500 goodwill.

Speaker #2: This particular $2,500 goodwill.

Speaker #4: No, sir. So, it's not that it's not of much use, because if you see, in India the land price keeps going up every year.

Rajesh Kaimal: No, sir. It is not that it is not of much use because if you see in India, the land price keeps going up every year. Every 6 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 is not that it is of no value, it is just that it is priced in a little ahead of the schedule.

Speaker #4: So, we will see. We always, every six months, test this for impairment. And as the project value increases—the beauty of Indian real estate is land prices go up every year.

Speaker #4: And the project value goes on increasing. So it's not that it is of no value; it's just that it is priced in a little ahead of the schedule.

Speaker #2: Sir, my other question is, out of 3,200 acres of land, 1,400 acres is of nothing. There's 1,600 to 1,800 acres of other land.

Vinayak Bjari: Sir, my other question is, out of 3,200 acres of land, 1,400 acres is of Nasik, whereas 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 the land which can be capitalized in the very near future? I mean to say, what is the actual value of this remaining 1,800 acres? Actually, what is the actual quantity of the land that can be used for development?

[Analyst] (Vinayak Capital): Sir, my other question is, out of 3,200 acres of land, 1,400 acres is of Nasik, whereas 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 the land which can be capitalized in the very near future? I mean to say, what is the actual value of this remaining 1,800 acres? Actually, what is the actual quantity of the land that can be used for development?

Speaker #2: Sir, out of this 1,800 acres of land, which is the particular stretch and what is the quantity of this land which can be capitalized in the very near future?

Speaker #2: I mean to say, what is the actual value of this remaining 1,800 acres? Actually, what is the size—I mean, what is the actual quantity of the land which can be used?

Speaker #2: Development.

Speaker #4: So Vinayak.

Rajesh Kaimal: Vinayji.

Speaker #2: Of the yes sir.

Vinayak Bjari: But-

[Analyst] (Vinayak Capital): But-

Rajesh Kaimal: Yes, sir.

Speaker #4: I understood your question. You know, besides Nasik, we have a 500 Sona Road, out of which 75 acres is developable. And we have started the process to get that ready.

Aditya Virwani: I understood your question. Besides Nasik, we have 500 acres on the Murbad Road. Out of that, 75 acres is developable, and we have started the process to get that ready. The balance lands are all scattered lands that I would not even say on launching now, because I know how land aggregation works in this country. It takes six amount of time. Due to those reasons, it is not a focus, and we do not really want to come out to the market and say, "This is anywhere in the pipeline." When we start working on it and it is ready anywhere in the pipeline and frankly, we are not on the scattered lands.

Speaker #4: The balance plans are all scattered lands that you wouldn't even say something on launch now. Because I know how land aggregation works in this country.

Speaker #4: It takes a predictable amount of time. For those reasons, it's not a focus, and we don't really want to come out to market and say this is anywhere in the pipeline.

Speaker #4: When we start working on it and it's ready. We've not had anyone in the pipeline, and frankly, we're not on the scattered lands.

Speaker #2: Hello. Hello, sir. That will be all, sir. Thanks a lot.

Vinayak Bjari: Hello? Hello?

[Analyst] (Vinayak Capital): Hello? Hello?

Aditya Virwani: Yes, Vinayji, you can go ahead.

Vinayak Bjari: Sir, that will be all, sir. Thanks a lot.

[Analyst] (Vinayak Capital): Sir, that will be all, sir. Thanks a lot.

Speaker #4: Thank you.

Aditya Virwani: Thank you.

Speaker #1: Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to management for closing comments.

Operator 3: Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir.

Operator: Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir.

Speaker #1: Over to you sir.

Speaker #4: 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.

Aditya Virwani: Thank you everyone for joining and for all the confidence you give Embassy. We are very grateful for your support. Thank you, and have a good week.

Speaker #1: Thank you. On behalf of Embassy Developments Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

Operator 3: Thank you. On behalf of Embassy Developments Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you. On behalf of Embassy Developments Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 Embassy Developments Ltd Earnings Call

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