Embassy REIT posts Rs 155 cr Q1 profit, appoints Amit Shetty as new CEO

India's largest REIT raised Rs 4,225 crore in Q1 to fund growth; posts 2 million sq ft in leasing and declares Rs 550 crore in distribution

Embassy Office Parks REIT, India’s largest real estate investment trust by market capitalisation, reported a 13.1 per cent year-on-year (YoY) decline in net profit to ₹155.1 crore for the first quarter of FY2026. The decline was primarily attributed to a deferred tax expense of ₹121.2 crore related to the previous year.

 

Revenue from operations rose 13.2 per cent YoY to ₹1,059.7 crore. However, sequentially, revenue dipped 2.4 per cent from ₹1,085.8 crore in the previous quarter.

 

Leadership transition: Amit Shetty takes over as CEO

 

As part of a leadership restructuring, Embassy REIT has appointed Amit Shetty as Chief Executive Officer effective August 1, 2025. Shetty previously served as Chief Operating Officer. Ritwik Bhattacharjee, the current CEO, will transition into the role of Senior Advisor. 

 

“I am really pleased to lead Embassy REIT at such an exciting time for our business. Our business is in great shape with strong fundamentals and demand drivers, and the outlook for the Indian office has never been brighter,” said Shetty.

 

Debt raised to fuel growth at favourable rates

 

During the quarter, Embassy REIT raised ₹4,225 crore in debt at an average coupon of 7.18 per cent to support growth initiatives. This includes a ₹750 crore issuance of non-convertible debentures (NCDs) at a 6.97 per cent coupon—the lowest rate achieved by the REIT in four years.

 

The REIT also leased 2.0 million square feet (msf) across 25 deals, a 9 per cent YoY increase. This comprised 1.0 msf of new leases, 0.36 msf of renewals, and approximately 0.67 msf of pre-leases.

 

“We are delighted to report a strong start to FY2026, with 2.0 msf of leasing this quarter and growing momentum in Chennai,” said Bhattacharjee. “Our revenue grew 13 per cent YoY, and distributions grew by 4 per cent YoY, reflecting the continued strength of our portfolio.”

 

Q1 distribution declared; GCCs drive portfolio resilience

 

The Board declared a distribution of ₹550 crore or ₹5.80 per unit for Q1 FY2026. The record date for the distribution is August 5, 2025, with payments expected on or before August 12, 2025.

 

REIT distributions comprise dividends, interest, debt amortisation, or a combination of these, and REITs are mandated to distribute 90 per cent of taxable income to unitholders.

 

Chennai led the pre-leasing activity with over 500,000 square feet signed, including space taken by a global healthcare major. Bengaluru assets, which represent 75 per cent of Embassy REIT’s Gross Asset Value, maintained over 90 per cent occupancy. Ten out of 14 properties have above 90 per cent occupancy, and six are fully occupied. Global Capability Centers (GCCs) remain the key demand driver, contributing 64 per cent of rentals.

 

Capital recycling and new development opportunities

 

Embassy REIT has signed binding agreements to divest around 376,000 square feet across two strata-owned blocks at Embassy Manyata, Bengaluru, as part of its capital recycling strategy. 

 

The REIT also received an invitation to offer from Embassy Developments Limited for a potential 3.3 msf commercial project in Whitefield, Bengaluru. This proposal is under evaluation in line with governance norms.

 

Embassy REIT’s active development pipeline spans 6.1 msf across Bengaluru and Chennai, with 60 per cent already pre-leased—signalling robust forward demand.

 

The company announced its Q1 FY2026 results after market hours on Thursday. Shares closed at ₹395.51 on the BSE, down 0.50 per cent.