Arkade Developers Navigates Growth and Strategic Expansion in H1 FY26

Arkade Developers Limited, a prominent player in the Mumbai Metropolitan Region (MMR) real estate sector, recently announced its financial and operational performance for the second quarter and first half of fiscal year 2026. The company reported a robust top-line growth, driven by strategic land acquisitions and a strong project pipeline, even as it managed to navigate a dynamic market environment.

For the first half of FY26, Arkade Developers recorded a consolidated revenue of Rs. 430 crore, marking a significant 30.7% increase compared to H1 FY25. The second quarter alone contributed Rs. 265 crore to this figure, growing by 30.3% year-on-year. Despite this impressive revenue growth, profitability metrics showed a relatively flat trend. Consolidated EBITDA for H1 FY26 stood at Rs. 98 crore, a slight decrease of 3.1% from H1 FY25, while Profit After Tax (PAT) saw a marginal increase of 1.5% to Rs. 75 crore. This indicates that while sales volumes are strong, the company is either absorbing higher costs or strategically investing in growth, impacting immediate margin expansion.

Financial Highlights: A Snapshot

Strategic Moves and Operational Momentum

Arkade Developers has been proactive on the strategic front, particularly in land acquisitions. In H1 FY26, the company added projects with a projected Gross Development Value (GDV) of Rs. 6,300 crore. Key acquisitions include a 4-acre land parcel in Goregaon (Filmistan Pvt Ltd) with a projected GDV of Rs. 3,000 crore, and a 3.5-acre land parcel in Bhandup (Woollen Mills) with a projected GDV of Rs. 1,000 crore. These acquisitions significantly bolster the company's future development pipeline and reinforce its presence in prime micro-markets within MMR.

Operationally, the company achieved pre-sales of Rs. 331 crore in H1 FY26, with 109,000 sq. ft. of carpet area sold. While Q2 FY26 saw a year-on-year decline in pre-sales value (-12.0%) and collections (-16.7%), management expressed optimism for the second half of the fiscal year. The festive season and the visible construction progress of ongoing projects are expected to drive increased buyer interest and sales velocity. The company also completed four residential projects and has five more ongoing projects set to launch in the coming months, demonstrating its commitment to timely delivery.

Outlook and Management Commentary

Management reiterated its disciplined, execution-first philosophy, focusing on delivering projects efficiently and ahead of schedule. This approach aims for faster revenue recognition and lower holding costs. Looking ahead, Arkade Developers has a robust pipeline of 6-7 project launches scheduled for FY27, with a combined potential sale value exceeding Rs. 8,000 crore. These launches will include a mix of greenfield and redevelopment projects, with a greater inclination towards greenfield developments.

Despite the negative operating cash flow of Rs. 483 crore in H1 FY26, largely attributed to the Rs. 550 crore spent on land acquisitions, the company maintains that its debt levels are strategically managed. Net debt increased to Rs. 110 crore as of September 2025 from a negative Rs. 21 crore in March 2025, reflecting capital deployment for future growth. Management is confident that the annual figures for the full year will show improved performance on a year-on-year basis, particularly in profitability, driven by the strong momentum in the second half.

Arkade Developers Limited continues to focus on value-driven development in prime micro-markets, leveraging favorable economic conditions and strategic opportunities in the resilient Indian real estate sector. The company's expansion into eastern Mumbai suburbs and its robust pipeline position it well for sustained growth and long-term value creation for its stakeholders.