Revenue rose 34.81%, but Embassy Developments' loss widened
Operating margin improved by 9.00 percentage points as revenue grew faster than expenses, but higher interest costs deepened the pre-tax loss.
Filed 03 Nov 2026, 20:55 IST · after market close · Embassy Developments Ltd (EMBDL)
Key takeaways
- Consolidated revenue rose 34.81% sequentially, but net loss widened 15.70% to Rs 271.20 cr.
- Operating margin improved by 9.00 percentage points as revenue growth outpaced expense growth, although the company still reported a Rs 149.84 cr operating loss.
- Interest expense rose 14.94% sequentially, while other income represented -7.60% of pre-tax profit as the company remained loss-making.
Price around the results
Revenue growth did not prevent a larger loss
Embassy Developments reported consolidated revenue of Rs 292.21 cr in Q2FY27, up 34.81% sequentially from Q1FY27. Expenses rose 27.24%, allowing the operating margin to improve by 9.00 percentage points to -51.28%, but the company still reported a Rs 149.84 cr operating loss. Net loss widened 15.70% sequentially to Rs 271.20 cr, with EPS moving to Rs -1.95 from Rs -1.69.
Interest costs offset the operating-margin improvement
Interest expense increased 14.94% sequentially to Rs 136.29 cr, outpacing the 5.70% rise in depreciation. Pre-tax loss widened 19.04% to Rs 278.68 cr, despite other income of Rs 21.17 cr; other income represented -7.60% of pre-tax profit because the company remained loss-making. The tax rate also rose by 2.80 percentage points to 2.68%, adding to the sequential change in net profit.
Margin remained near the bottom of the reporting peer set
Among 188 Consumer Discretionary peers that had reported the same quarter, the sector median operating margin was 12.23%. Embassy Developments' -51.28% margin was 63.51 percentage points below that median and ranked third from the bottom. Sequentially, margin improved from -60.28%, but the available trend shows only one prior quarter, so it does not establish a multi-quarter direction.
Results were filed after market close
The consolidated results were filed after market close on 03 Nov 2026. The stock reaction was therefore not yet available in the reported results window, and there is no post-results reaction history to compare with this quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹292 cr | ₹217 cr | +34.81% |
| Other income | ₹21 cr | ₹28 cr | -24.64% |
| Expenses | ₹442 cr | ₹347 cr | +27.24% |
| Operating profit | ₹-150 cr | ₹-131 cr | -14.68% |
| Operating margin (%) | -51.28% | -60.28% | — |
| Interest | ₹136 cr | ₹119 cr | +14.94% |
| Depreciation | ₹14 cr | ₹13 cr | +5.70% |
| Profit before tax | ₹-279 cr | ₹-234 cr | -19.04% |
| Tax | ₹-7 cr | ₹0 cr | — |
| Net profit | ₹-271 cr | ₹-234 cr | -15.70% |
| EPS (₹) | ₹-1.95 | ₹-1.69 | -15.38% |
Operating margin of -51.28% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves from -51.28% after the 9.00-percentage-point sequential recovery.
- Whether interest expense moderates from Rs 136.29 cr after its 14.94% sequential increase.
- Whether net loss narrows from Rs 271.20 cr and EPS improves from Rs -1.95.