Arkade Developers Limited — Q3 FY26 earnings call

Call held 29 Jan 2026

Management summary

Arkade Developers reported robust operational performance in Q3 FY26 with highest-ever quarterly pre-sales and strong collections growth. While revenue and PAT saw a YoY decline, management attributed this to a high base effect from significant OC-led revenue recognition in the previous year. The company outlined an aggressive launch pipeline for FY27 and FY28, focusing on a balanced mix of greenfield and redevelopment projects, and reiterated its commitment to an asset-light, low-debt strategy.

Highlights

  • Q3 FY26 Pre-sales reached ₹267 crores, marking a 21% YoY growth.

  • Q3 FY26 Collections stood at ₹212 crores, up 19% YoY.

  • Q3 FY26 Revenue was ₹199 crores, a 13.85% decline YoY due to a high base from prior year's OC recognition.

  • Q3 FY26 EBITDA margin was 27.4%, slightly up from 27.1% in Q3 FY25.

  • Q3 FY26 PAT was ₹40 crores, with a PAT margin of 20.2%.

  • Nine Months FY26 Pre-sales grew 8% YoY to ₹598 crores, and Collections rose 11% YoY to ₹533 crores.

  • A launch pipeline of at least five projects with a GDV of over ₹5,000 crores is planned for FY27.

  • The company targets to maintain PAT margins between 18% to 20%.

Key financials

2 periods

Q3 FY26

  • Pre-sales
    ₹267 Cr
    YoY +21.4%
  • Collections
    ₹212 Cr
    YoY +19.1%
  • Revenue
    ₹199 Cr
    YoY -13.9%
  • EBITDA
    ₹54 Cr
  • EBITDA Margin
    27.4%
  • PAT
    ₹40 Cr
  • PAT Margin
    20.2%

9M FY26

  • Pre-sales
    ₹598 Cr
    YoY +7.5%
  • Collections
    ₹533 Cr
    YoY +11.5%
  • Revenue
    ₹629 Cr
    YoY +12.3%
  • EBITDA
    ₹151 Cr
  • EBITDA Margin
    24.4%
  • PAT
    ₹115 Cr
    YoY -7.2%

What they filed

Q1 FY27: revenue down 7.5%, net profit down 34.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue202 225 131 159 264 +31%197 −12%197 +50%147 −8%
EBITDA59 61 44 34 63 +7%54 −11%38 −14%28 −18%
Net profit43 50 33 29 46 +7%40 −20%-110 −433%19 −34%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Volume

  • Minimum Projects to Launch Volume · FY27 · High confidence 5 projects
    So, we are looking at around five projects minimum to launch in the coming year.

    — Amit Jain

  • Launch Frequency Volume · FY27 · Medium confidence one project per quarter
    So, likewise, we will try to launch one project every quarter next year.

    — Amit Jain

  • Launch Pipeline GDV Volume · FY27 · High confidence ₹5,000 crore plus
    We will have GDV of around Rs. 5,000 crore plus.

    — Amit Jain

  • Bangur Nagar Pre-sales at Launch Volume · At launch · High confidence 25%
    and we expect about 25% at the launch.

    — Samshet Shetye

Profitability

  • PAT Margin Profitability · Ongoing · High confidence 18% to 20%
    So, we expect to stabilize margins between 18% to 20% PAT level.

    — Samshet Shetye

Other

  • Greenfield vs Redevelopment Mix Other · Ongoing · High confidence 50% - 50%
    We target to have a same balance, like 50% - 50%.

    — Samshet Shetye

Launch Pipeline GDV

  • Filmistan Project GDV Potential Launch Pipeline GDV · Next couple of years · High confidence ₹5,000 crores plus
    the Filmistan and Thane across these two projects only the GDV potential is Rs. 5,000 crores plus

    — Amit Jain

  • FY27 Launch GDV Launch Pipeline GDV · FY27 · High confidence ₹5,000 to ₹7,000 crores
    So, FY 2027 minimum, we are looking at launching projects with GDV worth Rs. 5,000 crores, maybe Rs. 5,000 to Rs. 7,000 crores in that range.

    — Amit Jain

  • FY28 Launch GDV Launch Pipeline GDV · FY28 · High confidence ₹5,000 to ₹7,000 crores
    So, FY 2027 is Rs. 5,000 to Rs. 7,000 and FY 2028 it is Rs. 5,000 to 7,000?

    — Amit Jain

  • Bangur Nagar Project GDV Launch Pipeline GDV · Project duration · High confidence ₹225 crores
    So, total GDV for the project is about Rs. 225 crores

    — Samshet Shetye

Risks & concerns

  • Environmental Clearance Delays

    medium

    Launches were delayed due to environmental clearances taking time, but backlog is expected to clear in the next financial year.

    Management acknowledged

  • International Macro Uncertainties

    low

    Management acknowledges international macro uncertainties but believes the company is well-positioned to capitalize on evolving demand trends.

    Management acknowledged

  • Construction Cost Inflation (Commodity Prices)

    low

    Management states that marginal increases in construction costs due to commodity prices are recovered through sales of inventory and price corrections as project progresses.

    Analyst acknowledged

Q&A highlights

3 direct
Delay in Launches and Lower Revenue Recognition Direct
So, launches got a bit delayed because the environmental clearances were taking time for the projects to be approved... And now, next financial year, we have a good lineup of launches. So, all the backlog of launches will be cleared in next financial year. ...last year, same quarter, we received OC for one of the projects, Santacruz project... So, that revenue jump was last year, the same quarter. This year, we got a good pre sale number. But there is a time lag between the booking and the registration, which takes about 1 month - 1.5 month to get it registered. So, what is being registered, the booking done in this quarter, the revenue will flow next quarter.

Clarified the reasons behind the reported revenue decline despite strong pre-sales, attributing it to prior year's OC recognition and current quarter's booking-to-registration time lag, rather than execution slowdown.

Asked by Dhananjay from Sunidhi Securities

Filmistan Demerger Status and Revenue Impact Direct
So, the demerger is with NCLT. And we have given the next date, the final date of the next month. So, we expect the outcome next month. So, by this quarter, we expect that demerger will be completed. ...Yes, that is the purpose of demerger. So, we are demerging the tenancy rights from Filmistan Limited to Arkade Limited. So, Arkade can develop the project.

Provided an update on the Filmistan demerger timeline and confirmed that its revenue will be recognized in Arkade Developers' balance sheet, clarifying a significant future revenue stream.

Asked by Heet Shah from Excel PMS

Competition and Sales Strategy for Filmistan Project in Goregaon West Direct
So, 95% of the projects that you see in that micro market are redevelopment of some form... Such a huge land parcel without redevelopment is not available or existing only in that micro market of Goregaon West... Because there is a huge difference in a non-redevelopment project and a redevelopment project. The socio-economic mix only is different in both the categories. So, in fact, a project like Filmistan has zero competition.

Addressed concerns about market saturation by highlighting the unique positioning of the Filmistan project as a large, non-redevelopment offering targeting a distinct customer segment, thereby mitigating competitive pressures.

Asked by Heet Shah from Excel PMS

3 min read 7 chapters

Detailed narrative

Record Operational Performance in Q3 FY26

Arkade Developers achieved its highest-ever quarterly pre-sales of ₹267 crores in Q3 FY26, representing a 21% year-on-year growth. Collections also saw a significant increase of 19% year-on-year, reaching ₹212 crores. The area sold during the quarter was 96,000 square feet, a 30% increase from the previous year, underscoring strong market demand and effective sales strategies.

Revenue and Profitability Dip Attributed to Prior Year's High Base

Despite robust operational metrics, Q3 FY26 revenue stood at ₹199 crores, a 13.85% decline compared to ₹231 crores in Q3 FY25. Similarly, PAT was ₹40 crores (20.2% margin) versus 21.7% in the prior year. Management clarified that the Q3 FY25 figures included a significant revenue jump due to Occupation Certificates (OCs) received for projects like Santacruz and Arkade Aspire, creating a high base. The strong pre-sales in Q3 FY26 are expected to translate into revenue in the next quarter due to the typical 1-1.5 month lag for registration.

Aggressive Launch Pipeline for FY27 and FY28

The company plans to launch a minimum of five projects in FY27, targeting a Gross Development Value (GDV) of over ₹5,000 crores. This includes marquee projects like Filmistan and Thane, each with GDV potential exceeding ₹5,000 crores. Arkade aims for a consistent launch schedule of one project per quarter in FY27, with projected GDV launches for both FY27 and FY28 ranging between ₹5,000 to ₹7,000 crores annually.

Strategic Land Acquisitions and Balanced Portfolio Approach

Arkade recently acquired a 14,363 square meter land parcel in Bhandup West for ₹148 crores, enhancing its presence in the central MMR corridor and expanding its greenfield project pipeline, which typically offers higher margins. Other key acquisitions include a 6.28-acre parcel in Thane and the Filmistan land in Goregaon West. The company aims for a balanced portfolio mix of 50% greenfield and 50% redevelopment projects going forward.

Filmistan Project: A Differentiated Offering with 'Zero Competition'

The Filmistan project in Goregaon West, with a GDV potential exceeding ₹5,000 crores, is positioned as a unique offering. Management emphasized that unlike 95% of projects in the micro-market which are redevelopment-based, Filmistan is a large land parcel without redevelopment. This caters to an affluent gentry seeking a distinct lifestyle, effectively giving the project 'zero competition' in its specific niche. Arkade's planning expertise, including features like all-surface parking, further differentiates its projects.

Disciplined Financial Strategy and Margin Outlook

Arkade maintains an asset-light model with low debt, focusing on efficient execution to ensure faster revenue recognition and lower holding costs. The company aims to stabilize its PAT margins between 18% to 20%. While greenfield projects typically yield higher PAT margins of 25-27%, redevelopment projects are expected to deliver 17-19%, with the Filmistan project specifically projected to achieve around 30% PAT margin.

New Ventures: Facility Management and Home Loan Facilitation

The company has formed Arkade 360 Facility Management Private Limited to provide facility management services for its own projects, creating a natural recurring revenue stream. Additionally, Arkade is facilitating home loans for its buyers, coordinating with NBFCs/HFCs. This initiative not only generates parallel revenue as a commission agent but also enhances customer service by offering faster and better home loan assistance.

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