Realty Major Targets Higher Construction Spending to Accelerate Project Delivery Across Key Markets

Bengaluru: Real estate developer Embassy Developments Ltd plans to invest approximately ₹1,800-2,000 crore in construction activities during FY27, significantly increasing its spending to ensure the timely completion of residential projects across major Indian cities.

The company, part of the Embassy Group, invested nearly ₹1,200 crore in construction activities during FY26 and is now scaling up investments as housing demand continues to remain strong across premium and branded residential developments.

Embassy Developments Increases Construction Investment for FY27

Speaking about the company's growth strategy, Managing Director Aditya Virwani said Embassy Developments is focusing on accelerating project execution across its ongoing developments in Bengaluru, Mumbai Metropolitan Region (MMR), and Delhi-NCR.

According to Virwani, the company expects to invest between ₹1,800 crore and ₹2,000 crore during the current financial year, reflecting its commitment to faster delivery and stronger project execution.

The increased investment comes at a time when India's residential real estate market is witnessing robust demand, particularly for projects developed by established and trusted brands.

Rising Construction Costs Impact Real Estate Sector

Virwani noted that construction costs have increased by around 5-6 percent, primarily due to rising prices of key raw materials and higher labour expenses.

Industry experts attribute the increase in material costs to ongoing geopolitical tensions in West Asia, which have impacted global supply chains and commodity prices.

Despite these challenges, Embassy Developments remains focused on maintaining construction momentum across all ongoing projects.

Sales Bookings More Than Double in FY26

The company reported strong operational performance during FY26, with sales bookings more than doubling to ₹4,631 crore compared to the previous year.

The surge in bookings highlights growing buyer confidence in reputed developers as homebuyers increasingly prefer branded residential projects that offer quality construction, timely delivery, and transparency.

Encouraged by this momentum, Embassy Developments has set an ambitious target of achieving ₹8,000 crore in sales bookings during FY27.

₹20,000 Crore Worth of New Housing Launches Planned

As part of its expansion strategy, Embassy Developments plans to launch residential projects worth nearly ₹20,000 crore across Bengaluru, Mumbai Metropolitan Region, and Delhi-NCR during the current fiscal year.

The company also holds approximately ₹11,000 crore worth of inventory across its existing projects, providing a strong foundation for future sales growth.

In addition, Virwani revealed that the FY27 sales target includes around ₹2,000 crore worth of sales from a housing project being developed under the Development Management (DM) model.

Strong Land Bank Supports Future Growth

Embassy Developments continues to maintain one of the largest land reserves in the Indian real estate sector, with a land bank exceeding 3,000 acres across major metropolitan markets.

This extensive land portfolio provides significant long-term development opportunities and positions the company to capitalize on India's growing demand for residential, commercial, and mixed-use developments.

Financial Performance

For the financial year 2025-26, Embassy Developments reported a net loss of ₹872.47 crore, compared to a profit of ₹193.63 crore recorded in the previous fiscal year.

The company's total income stood at ₹1,905.12 crore, compared with ₹2,546.97 crore in FY25.

Despite short-term financial pressures, the company remains focused on strengthening its project pipeline, expanding residential launches, and driving future revenue growth.

Embassy Group Expands Real Estate and Lifestyle Portfolio

Beyond Embassy Developments, the Embassy Group has built a diversified portfolio spanning multiple real estate segments.

The group owns:

These businesses collectively strengthen the group's position across commercial real estate, residential housing, flexible workspaces, and lifestyle accommodation segments.

Outlook for FY27

With rising housing demand, aggressive project launches, and increased construction investments, Embassy Developments is positioning itself for a strong growth phase in FY27.

The company's focus on timely project delivery, premium housing developments, and expansion across key urban markets is expected to support its long-term growth strategy as India's real estate sector continues to witness sustained momentum.

(With inputs from agencies)