Summary
Arkade Developers Limited - Q3 FY 2026 Earnings Call Summary Thursday, January 29, 2026 4.00 p.m.
Event Participants
Executives 3 Amit Jain (Chairman and Managing Director), Deepti Nair (Head of Marketing), Samshet Shetye (Chief Financial Officer)
Analysts 5 Brijesh (Individual Investor), Dhananjay (Sunidhi Securities), Disha (Sapphire Capital), Heet Shah (Excel PMS), Parth Patel (Patel Investments)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Pre-sales | ₹267 crores | +21% YoY; Highest ever quarterly pre-sales driven by Nest (Bhandup) and Rare (Mulund). |
| Area Sold | 96,000 sq. ft. | +30% YoY; Up from 74,000 sq. ft. in Q3 FY2025. |
| Collections | ₹212 crores | +19% YoY; Reflects strong execution and milestone-linked payments. |
| Revenue | ₹199 crores | -13.8% YoY; Decline due to high base in Q3 FY25 (OC receipts for Santacruz and Aspire projects) and registration time lags. |
| EBITDA | ₹54 crores | -4.4% YoY; Marginal dip in absolute terms, though margins remained resilient. |
| EBITDA Margin | 27.4% | +30 bps YoY; Margin expansion maintained despite lower revenue recognition. |
| PAT | ₹40 crores | -20% YoY; Impacted by lower revenue recognition cycles; PAT margin at 20.2%. |
| Net Debt | Low/Minimal | Management maintains a lean balance sheet to avoid interest pressure on margins. |
Geographic & Segment Commentary
- MMR Residential Market: Mumbai recorded over 1.5 lakh registrations in 2025, the strongest in a decade. Management observes a premiumization trend where homes >₹1 crore now constitute 50% of transactions, with a 7% price appreciation in Mumbai despite a high base.
- Greenfield Projects: Currently 65% of the portfolio, offering higher PAT margins of 25-27%. Recent acquisitions include a 14,363 sq. m. land parcel in Bhandup West for ₹148 crore and a 6.28-acre parcel in Thane to bolster the central MMR pipeline.
- Redevelopment Projects: Comprises 35% of the portfolio with PAT margins of 17-19%. The company focuses on prime micro-markets (Goregaon, Malad) and plans to balance the portfolio toward a 50:50 mix between greenfield and redevelopment.
Company-Specific & Strategic Commentary
- Execution-First Approach: Strategy focuses on timely delivery and faster revenue recognition rather than land banking. The company aims for OC for the Pearl and Malad Eden projects in Q4 FY2026.
- Diversification - Arkade 360 & Financing: Formed a facility management subsidiary and a home loan coordination unit. The financing arm acts as a commission agent to facilitate ₹600-700 crore in annual home loan volume for customers.
- Filmistan Project: Marquee greenfield project in Goregaon West with a 30% PAT margin potential. Management highlights its unique status as a non-redevelopment land parcel in a crowded market, catering to affluent gentry seeking superior socio-economic exclusivity.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Launch Pipeline | 5 projects in FY2027 | Backlog caused by environment clearance delays to be cleared; targeting one launch per quarter. |
| GDV Launch Target | ₹5,000 - ₹7,000 crores | Focus on marquee projects like Filmistan and Thane in FY2027. |
| Revenue Growth | 20-25% CAGR | Management maintains a conservative long-term growth outlook despite high GDV potential. |
| PAT Margin | 18% - 20% | Expected steady-state level on a diluted basis across all project types. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Delays | Environmental clearances caused launch delays in FY2026. Future timing remains dependent on government office efficiency and RERA timelines. |
| Commodity Inflation | Rising construction costs pose a threat to margins. Management mitigates this by selling inventory in phases to capture price appreciation as projects progress. |
| Market Competition | High density of redevelopment projects in suburban micro-markets. Arkade intends to differentiate via “all-surface” parking and premium lifestyle planning. |
Q&A Highlights
Project Launch Delays
- Question: Why have launches been delayed and revenue recognition slowed? (Dhananjay)
- Answer: Environmental clearances were delayed due to stay orders at the approval offices. Revenue recognition was lower YoY because FY2025 benefited from two major project completions (OCs), whereas current pre-sales will reflect in P&L after registration lags (Amit Jain/Samshet Shetye).
Secondary Market Entry
- Question: Can you clarify reports of a ₹500 crore project in Karjat-Neral? (Heet Shah)
- Answer: The transaction is under consideration and in advanced stages of negotiation, but no definitive documents have been signed yet (Amit Jain).
Filmistan Demerger
- Question: What is the status of the Filmistan demerger? (Heet Shah)
- Answer: The matter is with NCLT; the final date is next month. Completion is expected this quarter to allow Arkade to develop the project and recognize revenue (Samshet Shetye).
GDV and Growth Potential
- Question: With ₹11,900 crore GDV, isn’t 20-25% CAGR guidance too low? (Heet Shah)
- Answer: We are being conservative by nature; we prefer to guide lower and over-achieve (Amit Jain).
Redevelopment vs. Greenfield Margins
- Question: What is the margin differential between the two segments? (Parth Patel)
- Answer: Redevelopment offers 17-19% PAT, while Greenfield offers 25-27%. Marquee projects like Filmistan can reach 30% (Samshet Shetye).
Key Takeaway
Arkade Developers delivered a resilient Q3 FY2026, recording its highest-ever quarterly pre-sales of ₹267 crore (+21% YoY) despite a temporary dip in P&L revenue due to timing of project completions. The company is strategically shifting toward a balanced 50:50 mix of high-margin greenfield projects and steady redevelopment ventures, supported by a ₹148 crore land acquisition in Bhandup and a massive ₹11,900 crore total GDV pipeline. While environmental clearance hurdles delayed launches in the current year, management is poised for a strong FY2027 with a target of 5 new launches totaling ₹5,000-7,000 crore in GDV. Key focus areas include the marquee Filmistan project and new facility management and financing verticals to capture ancillary revenue. Arkade maintains a disciplined, low-debt approach targeting steady 18-20% PAT margins as it navigates commodity cycles and suburban competition.
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