Arkade Developers Ltd (ARKADE) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Arkade Developers Ltd Q2, H1 FY '27 earnings call hosted by Valorem Advisors. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you and over to you.
Purvangi Jain (Valorem Advisors): Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Purvangi Jain from Valorem Advisors. We represent the Investor Relations of Arkade Developers Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the second quarter and first half of the financial year 2027. Before we begin, a quick cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by
Purvangi Jain (Valorem Advisors): undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's conference call is purely to educate and bring awareness about the company's fundamental business and financial performance for the period under review. Now, I would like to introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Arpit Jain, Whole-time Director; Mr. Shamsher Shetty, Chief Financial Officer; and Ms. Deepthi Nair, Head of Marketing. Without any further delay, I request Mr. Arpit Jain to give his opening remarks. Thank you, and over to you, sir.
Arpit Jain (Arkade Developers Ltd): Good evening, everyone, and thank you for joining us for Arkade Developers Q2 FY '25 earnings conference call. Mumbai's residential real estate market continues to offer meaningful long-term growth opportunities, and at Arkade, our focus remains on building a scalable business backed by quality developments, disciplined capital allocation, and consistent execution. During the quarter, we maintained our operational momentum, with collections registering healthy growth while continuing to strengthen our development pipeline and prepare for the next phase of expansion. In terms of numbers, our collections grew by 22% year-on-year to INR 183 crores in Q2 FY '25, taking first-half collections to INR 347 crores, an 8% increase over the corresponding period last year. Pre-sales for the quarter stood at INR 151 crores with first-half pre-sales at INR 306 crores. While pre-sales remained moderate and moderate amid evolving market dynamics, we continue to prioritize timely project delivery, customer confidence, and operational efficiency as key drivers of sustainable business growth. On the business development front, we further strengthened our pres- presence across Western Mumbai with the addition of four redevelopment projects across Malad, Kandivali, and Borivali. These projects collectively span approximately 11 acres with an estimated saleable carpet area of 15 lakh square feet and a combined GDV potential of approximately INR 5,000 crores. These additions reinforce our redevelopment-led growth story and expand our presence across established residential micro-markets. Execution continues to remain one of our core strengths. During the phase, we achieved an important milestone at Arkade Eden in Malad West, where we handed over our flats to our buyers, and Arkade Pearl, Phase 1, where we received the Occupation Certificate ahead of the committed RERA timeline. This reflects our emphasis on construction efficiency, quality development, and timely delivery, which remains central to building long-term customer trust. Looking ahead, our development portfolio provides strong visibility for the coming years. We have a robust pipeline with an estimated GDV of approximately INR 19,000 crores across 5.7 million square feet of saleable carpet area. We are targeting launch of two projects with a combined GDV of approximately 2,850 CR in Q3 FY '25. These launches, alongside our continued focus on strategic land acquisitions across key micro-markets in the MMR, will strengthen our portfolio and support our long-term growth ambitions. As we move into the second half of FY '25, we remain focused on converting our development pipeline into execution-led growth, expanding our presence in attractive micro-markets, and delivering lasting value to our customers and shareholders. We believe that a combination of a strong project pipeline, financial discipline, and a continued commitment to quality will position Arkade well for its next phase of growth. With that, I would now like to invite Ms. Deepthi Nair to share the perspective on the marketing initiatives and strategy at Arkade.
Deepthi Nair (Arkade Developers Ltd): Thank you, Mr. Jain. At Arkade, our marketing approach is centered on building a strong and recognizable brand, understanding buyer preferences, creating meaningful engagement with prospective customers. Our positioning is built around premium residential developments, quality construction, and design excellence, and our track record of timely project delivery. We aim to further strengthen our brand presence across Mumbai through consistent brand communication, targeted marketing initiatives, and increased visibility across relevant customer touchpoints with the objective of enhancing the brand recall. Looking ahead, with two project launches targeted in Q3 of FY '25, having a combined GDV of 2,850 crores, our focus will be on aligning marketing and customer outreach with the upcoming launch plans. We aim to communicate the value proposition of each of the projects effectively based on its location, product offering, and target customer segment, while supporting customer inquiries and sales conversion through consistent and personalized engagement. In parallel, we intend to strengthen customer loyalty by nurturing long-term relationships with existing customers, enhancing post-sales engagement, and creating positive customer experiences that encourage repeat purchases and referrals.
Deepthi Nair (Arkade Developers Ltd): generating quality lead sales and strengthening brand credibility. Our combining market targeted marketing, enhancing brand visibility, customer-centric engagement, and continued commitment to quality and timely delivery, we will aim to improve top of the mind brand recall, drive customer loyalty, and referral-led sales, and support Arkade long-term growth. With that, I would now like to hand over the call to our Chief Financial Officer, Mr. Jamshed, who will take you through the company's financial performance.
Shamsher Shetty (Arkade Developers Ltd): Thank you, Deepti. Good morning, everyone. Let me take you through our financial performance for the second quarter and half year ended September 30, 2026. Coming to our financial performance for the quarter, revenue from operations stood at Rs. 145 crores. Operating EBITDA was 35 crores, translating to translating into EBITDA margin of 24%. Gross margin improved to 35% during the quarter compared to the previous quarter, reflecting the strength of our project economics and our continued focus on maintaining healthy project level profitability. Profit after tax stood at 25 crores, with a PAT margin of 17.14%. The year-on-year decline in revenue was partly attributed to a higher base in the corresponding quarter last year, when four projects commenced revenue recognition after crossing the 25% construction threshold. During the current quarter, we did not have a similar contribution from crossing this milestone. As a result, revenue recognition was relatively lower. However, our strong development pipeline and ongoing project execution provide visibility for revenue recognition in the coming period. For the first half of FY '27, revenue from operations stood at Rs. 292 crores. Operating EBITDA was 62 crores, with EBITDA margin of 21.4%. Gross margin stood at 32%, while profit after tax was Rs. 44 crores, translating into PAT margin of 15.1%. From a business perspective, collections grew by 22% year-on-year to Rs. 180 crores during the quarter, taking H1 FY '27 collections to Rs. 347 crores, up 8%. Pre-sales stood at Rs. 151 crores for the quarter and Rs. 306 crores for the first half. While pre-sales remained moderate amid evolving amid evolving market dynamics, we continue to focus on customer engagement, execution, and strengthening our sales momentum. Our balance sheet remains robust. As of September 30, 2026, we had liquid cash balance of 119 crores against gross debt of Rs. 56 crores, resulting in a net liquid cash position of Rs. 63 crores. This provides us with the financial flexibility to pursue attractive growth opportunities while maintaining prudent capital allocation. Looking ahead, we remain confident in our long-term growth prospect, supported by our strong project pipeline, planned launches, healthy collections, and disciplined financial management. We will continue to focus on timely project execution, operational efficiency, and sustainable growth to create long-term value for all stakeholders. With that, we conclude our opening remark and would not would now be happy to take your questions. Thank you.
Moderator: Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sahil Patani from Strokes Capital. Please go ahead.
Sahil Patani (Strokes Capital): Hi. Thanks for the opportunity. So, in in the presentation, I can see you mentioned that there is the sales has kind of is kind of seeing the demand being a bit moderated in in the first half. So, if you could just elaborate on that, and how are you seeing the demand now in Q3 and Q4 coming up?
Arpit Jain (Arkade Developers Ltd): So, it was specific to our company where the pre-sales remained moderate considering the new launches
Arpit Jain (Arkade Developers Ltd): have not yet come up, and we are expecting to launch two projects in the upcoming quarter. And so, existing pre-sales, if we check from the last quarter and quarter-on-quarter growth, it is more or less the same only. So, existing projects have a healthy demand.
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