Embassy REIT Q1 revenue jumps 17% on strong GCC, AI leasing

Embassy Office Parks REIT has reported a 17% year-on-year growth in both revenue from operations and net operating income (NOI) for the quarter ended June, driven by sustained office leasing demand from Global Capability Centres (GCCs) and AI-led occupiers.

Revenue from operations rose to Rs 1,241 crore during the quarter, while NOI increased to Rs 1,020 crore, the Real Estate Investment Trust (REIT) said in its earnings release.

The REIT leased 1.3 million sq ft across 17 transactions during the quarter, including 0.7 million sq ft of new leases at 11% re-leasing spreads and 0.6 million sq ft of renewals at 9% higher spreads.


GCCs contributed 81% of the leasing demand during the quarter. New entrants accounted for 86% of new leasing, including 21% from AI-related companies, with leases signed at an average premium of 8% to market rents.

“This reflects the growing depth and quality of India’s office market, with companies shaping the AI-driven economy choosing our campuses as platforms for growth. This strong momentum is also being complemented by greater recognition of REITs in India’s capital markets,” Amit Shetty, CEO, Embassy REIT.

The REIT has declared a distribution of Rs 598 crore, or Rs 6.31 per unit, for the quarter, up 9% year-on-year. The record date for the distribution is August 4, 2026, and it will be paid on or before August 11, 2026.

Portfolio occupancy stood at 93% by value, with Mumbai achieving 100% occupancy, followed by Bengaluru at 95%, Noida at 93% and Chennai at 92%.

During the quarter, Embassy REIT also raised Rs 3,045 crore of debt at a blended coupon of 7.46% per annum through a combination of commercial papers, non-convertible debentures and bank loans.

Its hotel portfolio reported a 6% year-on-year increase in NOI, supported by a 100-basis-point rise in occupancy to 61% and 5% growth in average daily room rates.

On the development front, the REIT launched the 211-key Hilton Garden Inn, the first phase of the 529-key dual-branded Hilton development at Embassy TechVillage in Bengaluru. The 318-key five-star Hilton hotel, along with a 37,000 sq ft convention centre, is scheduled to open later this year.

Embassy REIT also announced that Four Seasons will conclude its management of the hotel at Embassy ONE, Bengaluru, effective February 28, 2027. The company said it is evaluating potential hospitality operators and expects to finalise a new partner in the near term.

The REIT has a development pipeline of 6.2 million sq ft with a capital outlay of Rs 3,500 crore, of which around 60% of deliveries over the next two years are already pre-leased. Its solar plant generated 44 million units during the quarter and delivered a stabilised quarterly NOI of Rs 23 crore.