Embassy REIT Q3FY26: ₹1,193 Crore Revenue; Strong Growth with 4.6 msf Leasing YTD

Embassy REIT Q3FY26

Bengaluru: Embassy REIT Q3FY26 results reflect strong operational performance, sustained leasing momentum, and strategic expansion initiatives by Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602), India’s first listed REIT and the largest office REIT in Asia by area.

The company reported its financial and business performance for the quarter ended December 31, 2025 (Embassy REIT Q3FY26).

Embassy REIT leased 1.1 million square feet (msf) across 22 deals in Q3 FY2026, taking total leasing to 4.6 msf year-to-date.

The REIT also reported its highest-ever Revenue and Net Operating Income (NOI), demonstrating strong growth across its portfolio.

Also Read: Olive by Embassy Enters Pune with Dual Hotel Launch in Baner and Wakad

The Board of Directors of Embassy Office Parks Management Services Private Limited (EOPMSPL), Manager to Embassy REIT, declared distributions of ₹613 crores or ₹6.47 per unit for the quarter (Embassy REIT Q3FY26), representing 10% YoY growth.

The record date is February 11, 2026, and the distribution will be paid on or before February 18, 2026.

Embassy REIT Q3 FY2026 Business Performance and Leasing Momentum

Amit Shetty, Chief Executive Officer of Embassy REIT, said: “Embassy REIT Q3FY26 marked another strong quarter for the company, underpinned by sustained leasing momentum, robust GCC demand across our gateway markets, and disciplined financial execution.

We delivered 4.6 msf of leasing year-to-date, reported our highest-ever Revenue and NOI, announced our first third-party acquisition and continued to enhance distributions for our unitholders.

The invitation to offer for Embassy Zenith reflects our focus on acquiring high-quality, income-accretive assets that strengthen our world-class portfolio and create long-term value.”

During the quarter, Embassy REIT received an invitation to offer for the acquisition of Embassy Zenith, a 0.4 msf prime office tower in Bengaluru, fully leased to a multi-trillion-dollar global technology company.

Key business highlights include:

  • Leasing of 1.1 msf across 22 deals, including 0.8 msf of new leases at 17% re-leasing spreads
  • Leasing signed at an average 5% premium to market rents
  • Bengaluru contributed over two-thirds of total leasing
  • Strong leasing traction in Chennai, accounting for 42% of the REIT’s development pipeline
  • Portfolio occupancy at 94% by value, with 3 of 5 cities at or above 95% occupancy

Also Read: Embassy REIT Divestment: INR 530 Crore Asset Sale Closed at Embassy Manyata, Bengaluru

Embassy REIT Q3FY26: Financial Highlights

Embassy REIT delivered strong financial performance during the quarter:

  • Revenue from Operations increased 17% YoY to ₹1,193 crores
  • NOI grew 19% YoY to ₹985 crores
  • Quarterly distributions stood at ₹613 crores (₹6.47 per unit), up 10% YoY
  • Raised ₹400 crores through commercial paper at an effective rate of 6.44% per annum
  • In-place cost of debt reduced by 61 basis points over nine months to 7.29%
  • Hotel segment NOI grew 13% YoY, supported by a 100 bps occupancy increase to 60% and 11% ADR growth

Embassy REIT Q3FY26: Development and Portfolio Expansion

Embassy REIT continued to expand its development and hospitality portfolio during the quarter:

  • Delivered 0.4 msf development at Embassy Splendid TechZone, Chennai, 100% leased to a global healthcare firm
  • Launched third redevelopment project at Embassy Manyata in Bengaluru (0.8 msf) with a 23% yield on cost
  • Total development pipeline stands at 7.6 msf
  • Proposed 116-key hotel at Embassy TechZone, Pune
  • Announced third-party acquisition of a 0.3 msf marquee office asset at Embassy GolfLinks, Bengaluru
  • Completed ₹530-crore divestment at Embassy Manyata
  • Delivered ~25% total returns in CY2025
  • Expanded unitholder base to over 125,000 from 4,000 at IPO

Author

  • Salil Urunkar

    Salil Urunkar is a senior journalist and the editorial mind behind Sahyadri Startups. With years of experience covering Pune’s entrepreneurial rise, he’s passionate about telling the real stories of founders, disruptors, and game-changers.

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