Signatureglobal (India) Limited Q3 FY26 Earnings Call Summary

Summary

Signatureglobal (India) Limited - Q3 FY26 Earnings Call Summary Wednesday, February 04, 2026, 11:00 AM IST

Event Participants

Executives 7 Devender Aggarwal, Lalit Kumar Aggarwal, Pradeep Kumar Aggarwal, Rajat Kathuria, Ravi Aggarwal, Sanjeev Kumar Sharma, Preetika Singh

Analysts 7 Adhidev Chattopadhyay, Akash Gupta, Eesha, Lakshminarayana, Murtuza Arsiwala, Parvez Qazi, Pritesh Sheth

Financials & KPIs

Geographic & Segment Commentary

• Gurugram (NCR): Remaining the core growth driver, accounting for nearly half of new launches in Delhi NCR. The company launched “Sarvam” in Sector 37D (3.6 million sq. ft.) and “Cloverdale” in the SPR market, with realizations increasing 15% on a like-to-like micro-market basis.
• Mid-Income Housing: Strategic shift continues from affordable to mid-income, with unit sizes optimized at 1,800-2,000 sq. ft. to maintain a “sweet spot” ticket size. This segment is driving the gross margin expansion toward the 35% target.

Company-Specific & Strategic Commentary

• Land Bank & Deployment: The company holds 21 million sq. ft. of land stage inventory with a GDV potential of ₹35,000 - ₹40,000 crores. Management noted approx. 90% of land is owned rather than via JDAs, ensuring higher cash retention.
• Earthquake Safety Technology: Entered an agreement to use advanced earthquake safety tech for high-rise projects, prioritizing safety in the high-risk Delhi NCR zone.
• Execution Strategy: Monitoring 13 million sq. ft. at advanced stages; targeting 2 million sq. ft. of completions in Q4 FY26 to trigger revenue recognition.
• Operational Efficiency: Using profile checks (via BCG) for applicants in oversubscribed launches to weed out non-serious investors and maintain book quality.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Market Dynamics

• Question: What changes have occurred in the market from the start of the year? (Puneet, HSBC)
• Answer: The market has transitioned from euphoria (multiple subscriptions at launch) to a steady, mature state where 30-40% offtake at launch is the new norm (Rajat Kathuria).

Project Pricing & Sizes

• Question: Is there scope to further reduce unit sizes as prices rise? (Parvez Qazi, Nuvama)
• Answer: Unit sizes at 2,000 sq. ft. are the “sweet spot”; further reduction is limited to 5-7% to avoid losing customer preference (Rajat Kathuria).

Inventory & Cannibalization

• Question: Why rush new launches while holding existing inventory? (Pritesh Sheth, Axis Capital)
• Answer: Most inventory from previous launches like Titanium is absorbed; new launches offer differentiation in a market starved of branded, mid-income supply (Rajat Kathuria).

Revenue Recognition

• Question: Why is there an EBITDA loss on an adjusted basis? (Murtuza Arsiwala, Kotak Securities)
• Answer: Revenue recognition is lumpy; current recognition levels (₹1,500 crores) are insufficient to reflect the true margin profile until they exceed ₹2,300-2,500 crores (Rajat Kathuria).

Key Takeaway

Signatureglobal reported steady Q3 FY26 performance with pre-sales of ₹2,010 crores and a significant gross margin expansion to 40% as the product mix shifted toward mid-income housing. Despite missing the aggressive initial guidance due to macro headwinds like pollution-related construction bans and a “softening” of the euphoric demand seen in 2024, the company maintained a healthy 9-month sales run rate of ₹6,700 crores. Strategically, the firm is leveraging its 21 million sq. ft. owned land bank to sustain a 15% growth trajectory while transitioning toward a zero-debt balance sheet. Management remains focused on the “DXP Estate” and SPR micro-markets, aiming for massive project completions in Q4 to bridge the gap in revenue recognition. The company is well-positioned to capitalize on the supply-demand gap in Delhi NCR with a GDV pipeline exceeding ₹35,000 crores over the next 8-10 quarters.