Arkade Developers Ltd

Ladies and gentlemen, good day and welcome to the Arkade Developers Limited Q4 FY 2026 Earnings Conference Call.

This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.

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 touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Amit Jain – Chairman and Managing Director of the company. Thank you and over to you.

Good evening, everyone. I would like to extend a warm welcome to all of you for Arkade Developers Limited Earnings Conference Call for the 4th Quarter and annual results. I would like to begin by expressing my gratitude to all of you for taking the time to join us today.

We have on call with us our Independent Director – Mr. Abhishek Dev, Mr. Samshet Shetye – CFO, Ms. Deepti Nair – Head of Marketing. We have shared our earnings presentation. I hope you all must have had the chance to go through it.

FY25-26 has been a defining year for Arkade. It was a year where we not only expanded our business footprint but also strengthened our commitment towards creating value-led development and building long-standing communities. The Indian real estate sector, and Mumbai in particular, continued to demonstrate strong resilience and momentum.

Home ownership today has evolved significantly beyond necessity. Today's consumers seek aspirational lifestyles, superior experiences, enhanced connectivity, and long-term value creation. We have witnessed a meaningful transition in customer preferences towards premium and luxury housing and integrated living experiences.

At Arkade, we have remained committed to our philosophy of sustainable growth with disciplined execution. During the year, we continued strengthening our project pipeline through a balanced mix of redevelopment opportunities and strategic land acquisition across

key micro-markets in the MMR region. Our focus has always remained on creating projects that offer strong customer appeal while ensuring healthy profitability and efficient capital deployment.

We have added approx. 20% manpower in our front-ending team of the Execution and Sales Department in line with our growth plan. Furthermore, I wish to draw your attention to an exceptional item. 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.

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. This acquisition was highly competitive due to the rarity and strategic importance of the asset. The company intends to develop a landmark uber-luxury residential project.

The proposed development is expected to significantly strengthen Arkade Developers' positioning in the residential luxury segment and serve as a benchmark for the company's future premium developments. Based on current estimates and subject to final approvals and design configurations, expected GDV of the project is Rs. 3500 crores.

Estimated cumulative bottom-line contribution over next 3-5 years Rs. 1000-1200 crores. This project is expected to become one of the company's flagship developments and a defining milestone in Arkade Developers' long-term growth trajectory.

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. To summarize, Arkade continues to distinguish itself with our execution-first mindset.

We strongly believe that value creation in real estate does not come merely from owning land, it comes from timely execution, customer trust and delivering projects with consistency and quality. Beyond numbers and business achievements, this year has also been about reinforcing our brand philosophy, creating homes that enrich lives and build stronger communities. We remain optimistic about the opportunities ahead and are confident that Arkade is well- positioned to participate meaningfully in the next phase of growth.

I would now like to invite our Head of Marketing, Ms. Deepti Nair, to share insights on marketing, consumer behavior and Arkade's brand journey.

I would like to address all of you today and I sincerely appreciate your continued trust, support and association with Arkade.

FY25-26 has been a year of significant evolution within the residential real estate landscape.

Historically, mid-segment launches dominated the MMR market.

However, luxury segments have now surged in FY25, matching mid-segment activities and trends that have trended in the nine-month FY26. The share of luxury segment sales in MMR has sharply climbed to 44% in the nine-month FY26, up from 31% in FY21 in terms of area sold, driven by an evolving consumer preference for larger premium homes. The luxury segment is expected to account for a dominant share of launches in FY26-27, while the mid-segment is likely to retain a meaningful presence.

We identify a shift to premium housing. So, a mass in affordable housing, roughly about 1 crore, has steadily shrunk as a proportion of total sales. Properties priced between 2 to 5 crores now dominate sales registration and accounting for the bulk of recent market momentum.

Steady price appreciation is another attribute that we see in the current market. Record absorption and low inventory. The years to sell has hit a historic low, hovering around 1.2 to 1.4 years, indicating a robust year-end demand, outstripping the pace of new launches.

Infrastructure as a catalyst. The market center of gravity is expanding considerably. Periphery and extended hubs, such as Thane, Navi Mumbai, Mira Road, are becoming hotspots.

Enhanced connectivity through infrastructure, especially the Mumbai-Trans-Harbour link and extended metro lines, has significantly boosted local property values. The sector witnessed a strong continuation of premiumization trends, with customers increasingly prioritizing quality of life, lifestyle experiences, wellness, convenience, and community-centric living

environments. At Arkade, our approach has always centered around understanding customer aspirations and translating them into meaningful experiences.

I would now like to hand over to our Chief Financial Officer, Mr. Samshet Shetye, to take you through the financial performance. Thank you.

Thank you, Deepti. Good evening, everyone.

We achieved highest-ever quarterly pre-sales of Rs. 303 crores for Q4 FY26, a growth of 40% on year-on-year basis, vis-à-vis Rs. 217 crores in Q4 FY25.

The area sold during the quarter stood at 1,10,000 square feet, up 57% year-on-year, as compared with 70,000 square feet in previous corresponding quarters. Collections for Q4 FY26 came in at Rs. 195 crores in Q4 FY26.

The key operational highlights for the full year ended March ‘26 are as follows:

We recorded pre-sales of Rs. 901 crores for FY26, a growth of 17% on year-on-year basis, as against Rs. 773 crores in the previous corresponding year. The area sold during the quarter stood at 3,15,000 square feet, up 27% year-on-year, over 2,49,000 square feet sold in the previous year. Collections for FY26 came in at Rs. 728 crores, registering a year-on-year growth of 2%, from Rs. 716 crores in FY25.

Now coming to our consolidated financial performance for the 4th Quarter and full year ended 31st March 2025:

Our revenue for Q4 FY26 stood at Rs. 199 crores, up by 48%, compared to Rs. 134 crores in Q4 FY25. EBITDA for the quarter stood at Rs. 38 crores. The EBITDA margin for Q4 FY26 stood at 19.4%.

Revenue for FY26 stood at Rs. 828 crores, compared to Rs. 695 crores in FY25, reflecting a growth of 19.2% year-on-year basis. EBITDA for the period stood at Rs. 189 crores. The EBITDA margin for FY26 stood at 23.2%. Profit after tax for FY25-26 stood at Rs. 5 crores, which is after giving the effect of exceptional item, which is a diminishing value of tenancy rights of Rs. 182 crores and income tax provision of Rs. 2 crores. Operationally, we witnessed strong performance in key business metrics, including pre-sales and area sold during Q4 FY26 as well as full year FY26.

Our balance sheet remains healthy, providing us with flexibility to pursue growth opportunities while maintaining financial discipline. We remain confident in the long run outlook of the

business and believe our strong fundamentals, discipline strategy and execution capabilities position us well for the opportunities ahead.

With that, I conclude my remarks and we may open the floor for questions.

Thank you very much. We will now begin the question-and-answer session. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take our first question from the line of Manish, an individual investor. Please go ahead Hi sir. Good evening. I hope you are doing good. I would like to know regarding the Filmistan one. When do we expect more clarity on the project, sir?

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

Okay, And the second query is regarding the EBITDA margin. The EBITDA margin, the profit margin, if you see from the last quarter, has reduced. So, going forward, what is the EBITDA margin that we are targeting, sir? We are targeting around 25% margin.

EBITDA margin is expected to stabilize around 27-28%. PAT margin is expected to stabilize at around 18-19%. EBITDA is 27-28% you are saying? Yes. Okay.

Thank you. We have a follow-up question from the line of Manish, an individual investor. Please go ahead.

Sir, what is the revenue guidance for the next 2-3 years, sir?

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.

So, you are saying 20-25% growth year-on-year basis means you are targeting Rs. 1200-1300 crores next year?

Yes, next year should be more only because we are launching our Thane project this financial year. So, it should have a good spike in the growth rate.

Okay, sir. And sir, how has the pre-sales been in the month of May?

Consistent only. They are a little slow because of the war impact and the fuel prices impact and the global economical situation.

So, you are saying that because in Q4 we did around 40% pre-sales growth, so it's lesser than that or more than that?

No, no, it's definitely not more than that. It's not more than that, yes. Okay, thank you, sir.

And Q4 and Q1, historically Q4s are always showing better sales than the Q1 in real estate.

Okay, sir. Sorry, I have been new to Arkade, so apologies for asking silly queries.

Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone now. We have a question from the line of Vishal Jain from Divita Investments. Please go ahead

Hi, good evening, sir. So, I just had a single question regarding this diminution in value of tenancy rights as like Rs. 182 crores in this quarter. I just wanted to know if this value is just like a one-off or does it have a financial implication on the company or it's just an accountancy practice?

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. You know, as we filed for the demerger and we got the demerger order in March ‘26, the tenancy rights got demerged from Filmistan Limited and merged to Arkade. So, that Rs. 183 crores, which was the value of tenancy rights, has got diminished. So, that's the one-off effect in our financials.

So, whatever we have considered in this year as a cost, it will reduce the project cost for the Filmistan project going forward.

Okay, perfect. That helps. Thank you. That was my answer to the question. Thank you.

Thank you. Participants who wish to ask a question may please press star and one on their phone. We have a question from the line of Heet Shah, an individual investor. Please go ahead.

Okay, so I had a question regarding the future revenue growth. So, I wanted to know the 12,700 CR revenue from the upcoming project. Approximately how many years will it take to get all the 12,000 odd crores to get recognized in the books? It should be done in around six years. In six years.

That's what we are targeting here.

Okay, so one question. As Mr. Samshet said that we are targeting a growth of approximately 25%. So, based on the growth of 25% in six years, the total revenue recognized hardly, as per the financials of this year, adding the 25% every year, hardly the combined revenue of the next six years goes to 5,000 to 6,000 CR. So, are we seeing any exponential growth in any year coming in the next two to three years?

Yes, Thane and Filmistan projects and other two cluster redevelopment projects will make the growth exponential. Okay, so… And cumulative basis, if you do the workings, it should be around that figure in six to seven years. Okay.

Cumulative compounding factor, if you calculate either.

Yes, I am asking based on the compounding, based on my calculation as per compounding factor only. So, based on compounding factor, if we add 25% revenue growth each year in next five to six years, the total combined revenue for next six years reaches almost 5,000 to 6,000 CR. So, that was my question, because if we don't see any exponential growth, then based on 25% growth, 25% CAGR, the total reaches to almost 5,000 to 6,000 CR. So, that was my question.

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. Yes, thank you. That's it.

Thank you. As there are no further questions, I now hand the conference over to Mr. Amit Jain for closing comments. Over to you.

We thank all the participants for joining the conference call. Thanks.

Thank you. On behalf of Arkade Developers Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.