Embassy REIT posts record Q2 with 16% revenue growth and Bengaluru pre-lease

Record distribution as Embassy REIT revenue climbs 16 per cent

Embassy Office Parks REIT, India's first listed real estate investment trust, reported its results for the second quarter of FY27 on 28 October 2026, covering the quarter ended 30 September 2026. Revenue from operations rose 16 per cent year on year to ₹1,303 crore, while net operating income grew 15 per cent to ₹1,069 crore. The figures were reported from New Delhi on the evening of the announcement.

The Board of Directors of Embassy Office Parks Management Services Private Limited, the manager of the REIT, declared the highest quarterly distribution in the trust's history, amounting to ₹670 crore or ₹7.07 per unit, which is 9 per cent higher than a year earlier. The headline leasing transaction was a full-building pre-lease at Embassy TechVillage in Bengaluru, agreed at a premium to prevailing rents.

Leasing, occupancy and rents across the portfolio

The REIT leased 1.5 million square feet across 17 deals during the quarter. This comprised 0.9 million square feet of new leasing, 0.1 million square feet of renewals and 0.5 million square feet of pre-leasing. Global capability centres accounted for 85 per cent of the demand. New leases were signed at an average premium of 9 per cent to market rents.

Portfolio occupancy stood at 93 per cent by value. Bengaluru, Chennai and Noida were each at 94 per cent, while Mumbai was fully occupied at 100 per cent. In Pune, leasing of 0.2 million square feet across three assets contributed to a 300-basis-point improvement in occupancy during the quarter, which management described as renewed momentum in the city.

The company also highlighted several specific transactions:

• At Embassy TechVillage, a 0.5 million square foot building was pre-leased in full to a global engineering company at a 15 per cent premium to current market rents.
• At Embassy Manyata in Bengaluru, 0.5 million square feet of new leasing was agreed at ₹117 per square foot per month, against an assessed market rent of ₹107.
• A 0.6 million square foot office block in Chennai was delivered and is fully committed to a US-based GCC.
• Hotel revenue grew 22 per cent year on year, with average daily rates up 10 per cent. The newly opened Hilton Garden Inn at Embassy TechVillage reached operating cash break-even within the first quarter of operation.

Gross asset value increased 16 per cent year on year to around ₹74,000 crore, and net asset value rose 18 per cent to ₹524.74 per unit. Management attributed the growth in NAV to higher market rents, new building additions and favourable valuation. Chief Executive Officer Amit Shetty described the quarter as exceptional and linked the TechVillage pre-lease to the pricing power of the company's office campuses.

TechVillage on the Outer Ring Road corridor

Embassy TechVillage sits on the Outer Ring Road, one of the most sought-after commercial belts in Bengaluru. The campus is well connected to Marathahalli, Bellandur, Sarjapur Road and Whitefield, which together form a dense cluster of technology and global capability centre employers. The business park spans 84 acres.

The Block 6 building that has been pre-leased is progressing with construction. Q2 reporting puts its size at 0.5 million square feet, while an earlier Q1 summary listed it at 0.4 million square feet. Delivery is targeted for June 2027.

Transport links in the area are improving. Embassy TechVillage is the site of an upcoming elevated station on the Blue Line of Namma Metro, and Shetty has said the metro station opposite Phase 2 of Embassy Business Hub is expected to be operational by the end of 2027.

Market data for Bengaluru points to continued demand from the same occupier segments. Cushman and Wakefield recorded office leasing of 5.2 million square feet in the third quarter of 2026, with GCCs driving 65 per cent of demand and the Outer Ring Road accounting for 61 per cent of leasing. Knight Frank reported 14.1 million square feet of office transactions in the first half of 2026, of which 8.5 million square feet came from GCC leasing. Average office rents rose 8 per cent year on year to ₹102 per square foot per month.

Embassy REIT's scale and development pipeline

Embassy REIT holds a portfolio of 53 million square feet of office space across Bengaluru, Mumbai, Pune, Delhi-NCR and Chennai, described as the largest office REIT in Asia by area. The portfolio comprises 14 premium office ecosystems, including large integrated office parks and city-centre assets, and is home to around 280 leading global and domestic corporations.

The REIT acquired the Embassy TechVillage assets in Bengaluru in November 2020 for $1.3 billion, equivalent to ₹9,782.4 crore. Embassy Group chairman Jitendra Virwani has said the group is pleased to support the REIT platform through the right of first offer pipeline.

The company has identified a development pipeline of 5.6 million square feet across Bengaluru and Chennai. Management estimates this could add about ₹600 crore of stabilised net operating income over the next four years. For FY27, the REIT has guided to net operating income of ₹4,150 crore to ₹4,350 crore.

What comes next

• 29 October 2026, 08:30 IST: investor conference call to discuss the Q2 FY27 results.
• 31 October 2026: record date for the Q2 FY27 distribution.
• On or before 6 November 2026: payment of the distribution.
• June 2027: targeted delivery of Block 6 at Embassy TechVillage.
• Later in FY27: expected launch of the remaining 318-key five-star Hilton hotel.
• June 2028: targeted completion of Embassy Business Hub Phase 2, which is 23 per cent pre-leased to a major Indian flexible-office operator.

Attention now turns to whether the leasing momentum in Pune can continue, as the REIT works to fill vacancy there while delivering its development pipeline.