Embassy REIT Q2 NOI rises 15% to ₹1,069 crore on strong GCC leasing demand

Embassy Office Parks REIT reported a 15% year-on-year increase in net operating income to ₹1,069 crore for the quarter ended 30 Sep 2026. The board declared a distribution of ₹670.16 crore, up 9%, as the REIT leased 1.5 million sq ft, led by global capability centres.

NEW DELHI: Embassy Office Parks REIT (Embassy REIT) reported a 15 per cent year-on-year increase in net operating income (NOI) to ₹1,069 crore for the quarter ended September 30, 2026. Revenue from operations increased 16 per cent year-on-year to ₹1,303 crore during the quarter.

The REIT’s net consolidated total income increased 14.1 per cent to ₹1,318.48 crore in Q2 FY27 from ₹1,155.62 crore in the corresponding quarter of the previous fiscal. Net consolidated profit after tax increased to ₹831.01 crore from ₹232.17 crore in Q2 FY26.

The board of directors of Embassy Office Parks Management Services, manager to Embassy REIT, declared a distribution of ₹670.16 crore, equivalent to ₹7.07 per unit, for the quarter, up nine per cent year-on-year. The distribution comprises ₹13.27 crore, or ₹0.14 per unit, in the form of interest; ₹81.52 crore, or ₹0.86 per unit, as dividend; and ₹575.37 crore, or ₹6.07 per unit, through repayment of debt at the special purpose vehicle level.

Embassy REIT leased 1.5 million sq. ft. during the quarter, with global capability centres (GCCs) accounting for 85 per cent of leasing demand. New leasing stood at 0.9 million sq. ft. and was concluded at an average nine per cent premium to prevailing market rents. The REIT pre-leased an entire 0.5-million-sq.-ft. building at Embassy TechVillage in Bengaluru to a global engineering company at a 15 per cent premium to current market rents.

Portfolio occupancy stood at 93 per cent by value. Occupancy in Bengaluru, Chennai and Noida stood at 94 per cent, while the Mumbai portfolio was fully occupied. “We delivered an exceptional quarter, with 1.5 million sq ft of leasing driven by continued GCC demand and healthy rental growth,” said Amit Shetty, chief executive officer of the company.

The REIT delivered a 0.6-million-sq.-ft. office block at Embassy Splendid TechZone in Chennai, which is fully committed to a US-based GCC. Its current development pipeline stands at 5.6 million sq. ft. across Bengaluru and Chennai.

Embassy REIT raised ₹2,050 crore of debt during the quarter at a blended interest rate of 7.14 per cent. This included ₹1,000 crore of bank financing raised at the trust level under the Reserve Bank of India’s lending framework for REITs. Gross asset value increased 16 per cent year-on-year to approximately ₹74,000 crore. The REIT declared a net asset value of ₹524.74 per unit as of September 30, 2026, up 18 per cent year-on-year.

Hotel revenue increased 22 per cent year-on-year during Q2 FY27, supported by a 10 per cent increase in average daily rates. The recently opened Hilton Garden Inn at Embassy TechVillage achieved operating cash break-even within its first quarter of operations. Embassy REIT also completed the acquisition of 8,048 sq ft of fully leased retail space at FIFC in Bandra Kurla Complex, Mumbai.

For H1 FY27, the REIT’s net consolidated total income increased 15.3 per cent to ₹2,578.49 crore from ₹2,236.44 crore in H1 FY26. Net consolidated profit after tax rose to ₹1,026.23 crore in H1 FY27 from ₹387.34 crore in the corresponding period of the previous fiscal.