Arkade Developers Limited — Q4 FY26 earnings call

Call held 2 Jun 2026

Management summary

Arkade Developers reported a strong Q4 and FY26, with record pre-sales and significant revenue growth. The company made strategic land acquisitions, including Filmistan Pvt. Ltd., and expanded its project pipeline. While PAT was affected by a one-time write-off, management expressed confidence in future growth driven by new launches and a healthy pipeline, targeting higher EBITDA and PAT margins.

Highlights

  • Highest-ever quarterly pre-sales of ₹303 crores for Q4 FY26, a 40% YoY growth.

  • FY26 pre-sales of ₹901 crores, a 17% YoY growth.

  • FY26 Revenue of ₹828 crores, a 19.2% YoY growth.

  • Q4 FY26 Revenue of ₹199 crores, a 48% YoY growth.

  • Strategic acquisition of Filmistan Pvt. Ltd. with a projected GDV of ₹3500 crores, expected to contribute ₹1000-1200 crores to bottom-line over 3-5 years.

  • Secured rights for cluster redevelopment in Kandivali East with a projected GDV of ₹1100 crores.

Concerns

  • PAT for FY25-26 was ₹5 crores, significantly impacted by a one-time exceptional item of ₹182.17 crores for diminution in value of tenancy rights.

  • Q1 FY27 pre-sales are currently slower due to 'war impact and the fuel prices impact and the global economical situation'.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹199 Cr
    YoY +48%
  • EBITDA
    ₹38 Cr
  • EBITDA Margin
    19.4%
  • Pre-sales
    ₹303 Cr
    YoY +40%
  • Collections
    ₹195 Cr

FY26

  • Revenue
    ₹828 Cr
    YoY +19.2%
  • EBITDA
    ₹189 Cr
  • EBITDA Margin
    23.2%
  • PAT
    ₹5 Cr
  • Pre-sales
    ₹901 Cr
    YoY +17%
  • Collections
    ₹728 Cr
    YoY +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.

Order book

high confidence

Total value

₹901 Cr

as of 2026-03-31 quantified

17% YoY

Inflow this quarter

₹303 Cr

Execution

pipeline of Rs. 12,000 crores to be recognized over next 6 years

Pipeline

other

Pipeline of projects spread over the next 5-6 years, including Filmistan and Kandivali East redevelopment.

The company achieved its highest-ever quarterly pre-sales in Q4 FY26 and reported strong full-year pre-sales, driven by strategic acquisitions and a robust project pipeline.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed fully paid in January '25
    • Land acquisition for Filmistan Pvt. Ltd. ₹165 Cr
    Arkade Developers acquired the underlying land parcel from Aspen Properties and Kamanwala Housing for a consideration of Rs. 165 crores, which was fully paid in January '25
  • M&A Filmistan Pvt. Ltd. Acquisition · Closed · Consideration ₹[object Object] (cash)

    Strategic acquisition of a marquee and high-value property in Goregaon West, Mumbai, for a landmark uber-luxury residential project.

    Resulted in a one-time exceptional accounting impact of Rs. 182.17 crores due to the write-off of tenancy rights. Expected cumulative bottom-line contribution of Rs. 1000-1200 crores over next 3-5 years.

    In FY26, Arkade Developers completed the strategic acquisition of Filmistan Pvt. Ltd., a marquee and high-value property located in the premium residential micro-market of Goregaon West of SV Road, Mumbai. The acquisition represents a landmark transaction for the company given the property's unique heritage, historical significance, and prime location advantages. The transaction comprised two distinct components: Outright acquisition of land, Arkade Developers acquired the underlying land parcel from Aspen Properties and Kamanwala Housing for a consideration of Rs. 165 crores, which was fully paid in January '25... Acquisition of tenancy rights through Filmistan Pvt. Ltd. Filmistan Pvt. Ltd. held tenancy and opening rights related to Filmistan Studios property, which historically had been utilized for movie shoots, advertising production, and allied entertainment activities. The tenancy rights were valued at approximately Rs. 182.6 crores. Pursuant to the transaction, Filmistan Pvt. Ltd. became a wholly owned subsidiary of Arkade Developers. Subsequently, to simplify the holding structure and consolidate complete ownership rights directly under Arkade Developers, the tenancy rights were merged from Filmistan Pvt. Ltd. and transferred directly to Arkade Developers. As a result of this structuring exercise, the tenancy rights recorded in Filmistan Pvt. Ltd. have been written-off, adjusted, resulting in one-time exceptional accounting impact of Rs. 182.17 crores in the consolidated financial statements for the period.
  • M&A Cluster redevelopment at Ashok Nagar, Kandivali East Joint venture · Announced

    Securing rights for cluster redevelopment to expand business footprint and strengthen commitment towards value-led development.

    Estimated RERA carpet area of 3.25 lakh square feet with a GDV projected of Rs. 1100 crores.

    Additionally, I am delighted to share that last evening we signed an MOU for securing the rights for cluster redevelopment of 9 societies at Ashok Nagar in Kandivali East having an estimated RERA carpet area of 3.25 lakh square feet with a GDV projected of Rs. 1100 crores.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · future · High confidence 25%
    We are targeting around 25% margin.

    — Amit Jain

  • EBITDA Margin Stabilization Profitability · future · High confidence 27-28%
    EBITDA margin is expected to stabilize around 27-28%.

    — Samshet Shetye

  • PAT Margin Stabilization Profitability · future · High confidence 18-19%
    PAT margin is expected to stabilize at around 18-19%.

    — Samshet Shetye

Revenue

  • Revenue Growth Revenue · next 5-6 years · Medium confidence 20-25%
    So, we expect about 20-25% growth year-on-year basis.

    — Samshet Shetye

Project Launch

  • Filmistan Project Launch Project Launch · FY27 · High confidence by financial year-end
    The project is under approval currently and we are looking at launching it by this year-end, financial year-end.

    — Amit Jain

Project Contribution

  • Filmistan Project Bottom-line Contribution Project Contribution · next 3-5 years · High confidence ₹1000-1200 crores
    Estimated cumulative bottom-line contribution over next 3-5 years Rs. 1000-1200 crores.

    — Amit Jain

Project GDV

  • Filmistan Project GDV Project GDV · future · High confidence ₹3500 crores
    Based on current estimates and subject to final approvals and design configurations, expected GDV of the project is Rs. 3500 crores.

    — Amit Jain

  • Kandivali East Redevelopment GDV Project GDV · future · High confidence ₹1100 crores
    Additionally, I am delighted to share that last evening we signed an MOU for securing the rights for cluster redevelopment of 9 societies at Ashok Nagar in Kandivali East having an estimated RERA carpet area of 3.25 lakh square feet with a GDV projected of Rs. 1100 crores.

    — Amit Jain

Revenue Recognition

  • Pipeline Revenue Recognition Revenue Recognition · next 6 years · High confidence ₹12,000 crores
    It should be done in around six years.

    — Amit Jain

Growth Rate

  • Exponential Growth Growth Rate · FY28, FY29 · Medium confidence exponential growth
    But once this Filmistan and Thane contribute for full year, then will have exponential growth in FY28, FY29.

    — Samshet Shetye

What to watch in Q1 FY27

Filmistan Project Launch

FY27
Current Under approval
Target Launched by financial year-end (FY27)

Why it matters

Launch of this high-value project is key to realizing its projected GDV and bottom-line contribution.

The project is under approval currently and we are looking at launching it by this year-end, financial year-end.

Risks & concerns

  • Global macro-economic slowdown impacting pre-sales

    medium

    Q1 FY27 pre-sales are 'a little slow' due to 'war impact and the fuel prices impact and the global economical situation'. This could affect near-term booking velocity.

    Management acknowledged

  • One-time exceptional write-off impacting profitability

    low

    PAT for FY26 was significantly reduced by a one-time write-off of ₹182.17 crores related to the diminution in value of tenancy rights from the Filmistan acquisition. Management clarified it's a one-off.

    Management acknowledged

Q&A highlights

6 direct
Filmistan project launch timeline Direct
The project is under approval currently and we are looking at launching it by this year-end, financial year-end.

Clarifies the expected launch timeline for a significant new project, crucial for future revenue.

Asked by Manish

EBITDA and PAT margin targets Direct
EBITDA margin is expected to stabilize around 27-28%. PAT margin is expected to stabilize at around 18-19%.

Provides specific future margin targets, indicating management's profitability outlook after the current quarter's lower margin.

Asked by Manish

Revenue guidance for next 2-3 years and pipeline Direct
So, projects are in pipeline. We have a pipeline of about Rs. 12,000 crores spread over the next 5-6 years. So, we expect about 20-25% growth year-on-year basis.

Outlines the company's long-term revenue visibility and expected growth rate, supported by a substantial project pipeline.

Asked by Manish

May pre-sales performance Partial
Consistent only. They are a little slow because of the war impact and the fuel prices impact and the global economical situation.

Indicates a potential slowdown in early Q1 FY27 pre-sales, citing macro-economic factors, which could be a short-term concern.

Asked by Manish

Nature of ₹182 crore diminution in tenancy rights value Direct
So, it's a one-off. See, as we explained in our presentation, you know, Filmistan acquisition was having two legs. One is the land acquisition, which was Rs. 165 crores. And this was the tenancy rights, which was having acquisition cost of Rs. 183 crores. ... So, that's the one-off effect in our financials.

Clarifies that the significant ₹182.17 crore write-off impacting PAT is a one-time accounting event related to the Filmistan acquisition, not an ongoing financial issue.

Asked by Vishal Jain

Recognition timeline for ₹12,000 crore pipeline revenue Direct
It should be done in around six years.

Provides a clear timeline for the realization of the substantial project pipeline, helping investors model future revenue streams.

Asked by Heet Shah

Exponential growth vs 25% CAGR Direct
Yes, this 25% was someone asked the next year's growth rate, you know. So, cumulatively, if you see FY27, we may do 20%-25%. But once this Filmistan and Thane contribute for full year, then will have exponential growth in FY28, FY29.

Distinguishes between near-term growth and longer-term exponential growth expected from key projects, providing nuance to growth projections.

Asked by Heet Shah

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Detailed narrative

Q4 and Full Year FY26 Performance Overview

Arkade Developers reported robust financial performance for Q4 and the full year FY26. Q4 FY26 saw the highest-ever quarterly pre-sales of ₹303 crores, marking a 40% year-on-year growth. Full-year FY26 pre-sales reached ₹901 crores, an increase of 17% from FY25. Revenue for Q4 FY26 grew by 48% YoY to ₹199 crores, while full-year revenue stood at ₹828 crores, up 19.2% from FY25. EBITDA margin for FY26 was 23.2%.

Strategic Acquisitions and Project Pipeline Expansion

The company completed the strategic acquisition of Filmistan Pvt. Ltd. in FY26, involving a land parcel acquisition for ₹165 crores and tenancy rights. This project, located in Goregaon West, has an expected Gross Development Value (GDV) of ₹3500 crores and is projected to contribute ₹1000-1200 crores to the bottom line over the next 3-5 years. Additionally, Arkade signed an MOU for a cluster redevelopment project in Kandivali East with a projected GDV of ₹1100 crores, further strengthening its project pipeline of ₹12,000 crores over the next 5-6 years.

Market Trends and Customer Preferences

Management noted a significant evolution in the residential real estate landscape, with luxury segments surging in FY25-26, now accounting for 44% of sales in MMR by area. Consumers are increasingly prioritizing aspirational lifestyles, superior experiences, and integrated living. The market is experiencing steady price appreciation, low inventory, and robust demand, with infrastructure development like the Mumbai-Trans-Harbour link boosting property values in extended hubs.

Profitability Impact and Future Margin Targets

Profit after tax for FY25-26 was ₹5 crores, significantly impacted by a one-time exceptional accounting write-off of ₹182.17 crores related to the diminution in value of Filmistan's tenancy rights. Management clarified this was a one-off event. Looking ahead, the company targets an EBITDA margin of 25%, with stabilization expected at 27-28%, and a PAT margin stabilization at 18-19%, driven by new project contributions.

Growth Outlook and Project Launches

Arkade anticipates a 20-25% year-on-year revenue growth, with a 'good spike' expected next financial year (FY27) due to the launch of the Thane project. The Filmistan project is expected to launch by the financial year-end. Management projects exponential growth in FY28 and FY29 once the Filmistan and Thane projects contribute for a full year, indicating strong confidence in the long-term growth trajectory.

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