Embassy Developments Limited

Real Estate — Real Estate - Diversified · NSE

₹55.15+₹0.20 (+0.36%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, small-cap size, which brings sharper price swings, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Embassy Developments Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Embassy Developments Limited operates as a real estate company in India. The company engages in developing real estate, specializing in the construction and development of residential, commercial, and special economic zone (SEZ) projects.

IndustryReal Estate - Diversified

SectorReal Estate

Employees296

Annual revenue₹1,634 Cr

How does it make money?

Turns over ₹1,634 Cr a year. Of every ₹100 of sales, about ₹-53 reaches shareholders as profit, with ₹-20 left at the operating level before interest, tax and depreciation. Each of its 296 employees supports ₹5.52 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.52 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -2.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +361% while net margin moved -69% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+361%

Margin effect-69%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 7.8 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -141.4% to -19.6% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -16.6% to -8.8%.
Return on capital is rising
ROCE has improved from -13.3% to -2.5%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1886% over 3 years, from ₹268 Cr to ₹5,322 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹873 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.1x to -0.8x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 157% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -141.4% to -19.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 50% a year✓ 66.4% CAGR
Latest reported year was -68.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -22%✓ -19.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ -0.8x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -2.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹7,666 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.78x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-4.58

Loss-making

Negative earnings per share — the business is losing money

ROE

-8.8%

Weak

Weak capital efficiency

ROCE

-2.5%

Weak

Low return on total capital employed

Debt/Equity

0.53x

Low

Conservative leverage

Revenue Growth (YoY)

-68.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-537.2%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-66.3%

Weak

Thin margins leave little room for error

Net Margin

-74.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.04

Market-like

Moves roughly in line with the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

56.7 / 59.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹355 Cr	₹1,090 Cr	₹2,120 Cr	₹1,634 Cr	+66.4%
EBITDA	-₹501 Cr	₹60 Cr	₹326 Cr	-₹320 Cr	—
EBITDA Margin	-141.4%	5.5%	15.4%	-19.6%	—
PAT (Net Profit)	-₹608 Cr	-₹497 Cr	₹200 Cr	-₹873 Cr	—
EPS	₹-11.29	₹-9.2	₹2.65	₹-6.43	—
ROE	-16.6%	—	2.1%	-8.8%	—
ROCE	-13.3%	0.5%	3.6%	-2.5%	—
Total Debt	₹268 Cr	₹7,749 Cr	₹4,613 Cr	₹5,322 Cr	+170.8%
Free Cash Flow	-₹344 Cr	₹599 Cr	₹1,407 Cr	₹1 Cr	—

🟢 Revenue has grown at 66.4% a year over 3 years.

🟢 EBITDA Margin has risen from -141.4% to -19.6% over 3 years (+121.8 pts).

🟢 ROE has risen from -16.6% to -8.8% over 3 years (+7.8 pts).

🟢 ROCE has risen from -13.3% to -2.5% over 3 years (+10.9 pts).

🔴 Total Debt has grown at 170.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹344 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21,538 Cr

Total Liabilities

₹11,574 Cr

Cash & Equivalents

₹436 Cr

Operating Cash Flow

₹44 Cr

Capex

-₹44 Cr

Shareholding (proxy)

Institutional Holding

8.5%

Insider Holding

64.9%

Corporate Actions

Ex-Dividend Date

06 May 2014

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

4 mixed2 general

Embassy Developments HC order sets aside May 12 ruling on KIADB land

scanx.trade, 18 Oct

Embassy Developments Stock Signals to Watch This Week

Univest, 24 Sept

Embassy Developments shares gain 3% on signing ₹711cr deal for residential tower at Juhu

Moneycontrol.com, 22 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Embassy Developments shares rally 8% as board gave nod for ₹160 crore fundraising via NCDs; details here

Upstox, 21 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Embassy Developments share price news: ₹711cr Juhu Deal Fuels Rally

Alice Blue, 22 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Embassy Developments Shares Surge 8% Before Paring Gains

HDFC Sky, 29 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Revenue growth is negative (-68.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑