Embassy REIT Q2 FY27 revenue rises 16% to ₹1,303 crore, NOI up 15%

What Embassy REIT reported

Embassy Office Parks REIT published its Q2 FY27 results on Wednesday, 28 October 2026. The REIT is listed on the stock exchanges and owns office parks and city-centre office assets, mainly in Bengaluru, with other holdings in Mumbai, Pune, Delhi-NCR and Chennai.

Key figures for the quarter ended 30 September 2026:

• Revenue from operations rose 16% year on year to ₹1,303 crore.
• Net operating income rose 15% to ₹1,069 crore.
• The board of Embassy Office Parks Management Services Private Limited, the REIT's manager, declared a distribution of ₹670 crore, or ₹7.07 per unit, up 9% year on year. The company describes this as the highest-ever quarterly distribution.
• Gross asset value rose 16% year on year to about ₹74,000 crore, and net asset value rose 18% to ₹524.74 per unit. Management attributed the NAV growth to higher market rents, new building additions and favourable valuation.

Leasing and pricing

The REIT leased 1.5 million sq ft in the quarter across 17 deals. This was made up of 0.9 million sq ft of new leasing, 0.1 million sq ft of renewals and 0.5 million sq ft of pre-leasing on space not yet built.

New leases of 0.9 million sq ft were signed at an average 9% premium to market rents. At Embassy Manyata in Bengaluru, 0.5 million sq ft of new leasing was agreed at ₹117 per sq ft per month, against an assessed market rent of ₹107.

The largest single transaction was the full pre-lease of Block 6 at Embassy TechVillage, a 0.5 million sq ft building, to a global engineering company at 15% above current market rent. Chief Executive Amit Shetty said the pre-lease "underscores the pricing power" of the company's office campuses.

Pune also contributed about 0.2 million sq ft of leasing across three assets, roughly 25% of new leasing in the quarter. Shetty said occupancy in Pune improved by 300 basis points during the quarter as a result.

Hotels and development pipeline

Hotel revenue grew 22% year on year, and average daily rates rose 10%. The Hilton Garden Inn at Embassy TechVillage, which opened recently, reached operating cash break-even within its first quarter of operation.

The REIT's development pipeline stands at 5.6 million sq ft across Bengaluru and Chennai. Management estimates about ₹600 crore of stabilised NOI upside from this pipeline over the next four years. In the Q2 release, the Chennai block delivered in the quarter (0.6 million sq ft) was described as fully committed to a US-based GCC.

Bengaluru market context

Bengaluru is the REIT's core market. It accounts for about 75% of gross asset value and was 94% occupied at the end of the quarter. Outer Ring Road, where Embassy TechVillage is located, is one of the city's most sought-after commercial belts, with links to Marathahalli, Bellandur, Sarjapur Road and Whitefield.

Industry data cited for the same period points to strong demand. Cushman & Wakefield reported office leasing of 5.2 million sq ft in Bengaluru in Q3 2026, with GCCs making up 65% of demand and Outer Ring Road accounting for 61% of leasing. A Knight Frank review for the first half of 2026, reported through a secondary source, recorded 14.1 million sq ft of office transactions, of which 8.5 million sq ft came from GCCs, and average office rents up 8% year on year to ₹102 per sq ft per month. The same period saw 10.4 million sq ft of new Grade A office completions across the city.

What it means for buyers and investors

This is a report on office leasing and the income of a listed REIT. It does not announce any residential sale, new housing project, or price list for homes.

For investors, the main points are:

• Embassy REIT is primarily an income vehicle, so the record distribution is the figure most relevant to unitholders.
• Because Block 6 is substantially leased before completion, the development risk on that building is lower than it would be for a speculative build. This is an analysis point from one market commentary, not a company statement.
• Headroom remains in the portfolio: about 4.6 million sq ft of vacant space is available to lease, contracted rent escalations average around 5% a year, and leases expiring through FY2030 carry an estimated 14% mark-to-market opportunity.

Commentary on the results also flags risks. Pune remains under-occupied, debt maturities need to be managed, and hotel income is less steady than office income.

For the local office market, the 15% pre-lease premium on Block 6 is the clearest signal in the report that rents for new, well-located Grade A space in Bengaluru are holding up.

What comes next

• 29 October 2026, 08:30 IST: Investor conference call on the Q2 FY27 results.
• 31 October 2026: Record date for the Q2 FY27 distribution.
• On or before 6 November 2026: Distribution payment date.
• June 2027: Targeted delivery of Block 6 at Embassy TechVillage. The Q2 release gives its size as 0.5 million sq ft; an earlier Q1 FY27 summary listed it at 0.4 million sq ft.
• Later in FY27: The remaining 318-key Hilton hotel is expected to launch.
• End of 2027: Metro station opposite Phase 2 of Embassy Business Hub, which Shetty said will be operational by then.
• June 2028: Targeted completion of Embassy Business Hub Phase 2, which is 23% pre-leased to a major Indian flexible-office operator.

The next test for the company, as one market analysis put it, is whether leasing strength can continue while it fills Pune vacancy, completes its development pipeline and manages funding costs.