Arkade Developers Limited Q4 and FY 2026 Earnings Conference Call

Operational Performance Highlights

Q4 FY26 Performance:

  • Pre-sales: ₹303 crores (40% YoY growth vs. ₹217 crores in Q4 FY25)
  • Area sold: 110,000 square feet (57% YoY growth vs. 70,000 square feet in Q4 FY25)
  • Collections: ₹195 crores

Full Year FY26 Performance:

  • Pre-sales: ₹901 crores (17% YoY growth vs. ₹773 crores in FY25)
  • Area sold: 315,000 square feet (27% YoY growth vs. 249,000 square feet in FY25)
  • Collections: ₹728 crores (2% YoY growth vs. ₹716 crores in FY25)

Financial Performance

Q4 FY26 Consolidated Financials:

  • Revenue: ₹199 crores (48% YoY growth vs. ₹134 crores in Q4 FY25)
  • EBITDA: ₹38 crores
  • EBITDA Margin: 19.4%

Full Year FY26 Consolidated Financials:

  • Revenue: ₹828 crores (19.2% YoY growth vs. ₹695 crores in FY25)
  • EBITDA: ₹189 crores
  • EBITDA Margin: 23.2%
  • Profit After Tax: ₹5 crores (after exceptional item and tax provision)

Strategic Acquisition - Filmistan Pvt. Ltd.

The company completed a strategic acquisition comprising two components:

1. Land Acquisition: Acquired underlying land parcel from Aspen Properties and Kamanwala Housing for ₹165 crores, fully paid in January 2025

2. Tenancy Rights Acquisition: Acquired tenancy rights through Filmistan Pvt. Ltd. valued at approximately ₹182.6 crores

Post-acquisition restructuring:

  • Filmistan Pvt. Ltd. became a wholly owned subsidiary
  • Tenancy rights were merged from Filmistan Pvt. Ltd. and transferred directly to Arkade Developers
  • Resulting one-time exceptional accounting impact: ₹182.17 crores write-off of tenancy rights in consolidated financial statements

Project Development Plans:

  • Project under approval, expected launch by financial year-end (March 2027)
  • Planned development: Landmark uber-luxury residential project in Goregaon West
  • Expected Gross Development Value (GDV): ₹3,500 crores
  • Estimated cumulative bottom-line contribution: ₹1,000-1,200 crores over 3-5 years

New Project Pipeline

Kandivali East Cluster Redevelopment:

  • MOU signed on May 26, 2026, for cluster redevelopment of 9 societies at Ashok Nagar
  • Estimated RERA carpet area: 3.25 lakh square feet
  • Projected GDV: ₹1,100 crores

Market Insights and Trends

  • Luxury segment sales in MMR increased to 44% in nine-month FY26 from 31% in FY21
  • Properties priced between ₹2-5 crores dominate sales registration
  • Market inventory at historic low (1.2-1.4 years)
  • Infrastructure development (Mumbai-Trans-Harbour link, metro lines) boosting property values
  • Shift toward premium housing with focus on lifestyle experiences and community-centric living

Management Guidance and Outlook

Revenue Guidance:

  • 20-25% year-on-year growth expected
  • Project pipeline of approximately ₹12,000 crores spread over 5-6 years
  • FY27 revenue target: ₹1,200-1,300 crores
  • Exponential growth expected in FY28-FY29 from Thane and Filmistan projects

Margin Guidance:

  • EBITDA margin target: 27-28%
  • PAT margin target: 18-19%

Operational Updates:

  • 20% manpower increase in execution and sales departments
  • Thane project launch planned for current financial year
  • Current pre-sales consistent but slower due to global economic situation, war impact, and fuel prices

Q&A Session Highlights

  • Filmistan project clarity expected by financial year-end
  • Exceptional item of ₹182 crores is one-off accounting impact that will reduce future project cost
  • Revenue recognition for ₹12,000 crore pipeline expected over approximately 6 years
  • Q4 typically shows better sales than Q1 in real estate sector