Embassy Office Parks REIT (EMBASSY) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1 leasing of 2 million sq ft across 25 deals, with strong demand from GCCs, technology, and healthcare sectors, and pre-leasing in Chennai exceeding 500,000 sq ft.

• Revenue from operations for Q1 FY26 was Rs. 10,597.86 million, up 13% year-on-year, with NOI at Rs. 8,718 million, and net profit of Rs. 1,551.69 million.

• Distributions declared at Rs. 5.80 per unit (Rs. 5,498 million), a 4% year-on-year increase, with 23% of FY26 guidance achieved in Q1.

• Portfolio occupancy improved to 88% by area and 91% by value, with 10 of 14 properties above 90% occupancy.

• Raised Rs. 42 billion of debt at a blended coupon of 7.18%, including a landmark 10-year NCD issuance.

Financial highlights

• Total income for Q1 FY26 was Rs. 10,808.17 million, with EBITDA at Rs. 8,420 million, and net distributable cash flows at Rs. 5,510.48 million.

• Distributions per unit for Q1 FY26 at Rs. 5.80, up 4% year-on-year.

• Hospitality segment delivered 9% year-on-year growth in both revenue and EBITDA, with a 10% increase in ADR.

• Net debt to GAV stood at 33%, with an average debt cost of 7.55% and net borrowings ratio at 32%.

• Operating margin remained strong at 82% for Q1 FY26.

Outlook and guidance

• FY26 NOI guidance: Rs. 3,589–3,811 crore; DPU guidance: Rs. 24.50–26 per unit, implying 13% NOI and 10% DPU growth at midpoint.

• Portfolio occupancy expected between 90–91% by area by year-end, with 24% of annual NOI and DPU guidance achieved in Q1.

• Embedded growth levers include 5 million sq ft vacant area lease-up, 6.1 million sq ft new developments (59% pre-leased), and 5% annual contracted escalations.