Arkade Developers FY26: Strong Pre-Sales, A One-Time Accounting Hit, and a Bigger Luxury Bet

Arkade Developers ended FY26 with steady top-line growth and improving operating momentum, but a sharp distortion in bottom-line profitability due to a one-time exceptional accounting impact linked to the Filmistan acquisition structure.

On a consolidated basis, FY26 revenue rose to INR 828.2 crore from INR 694.6 crore in FY25. EBITDA stood at INR 189.1 crore versus INR 206.1 crore in FY25, implying a lower EBITDA margin of 23.2 percent compared with 30.2 percent last year. Profit after tax fell sharply to INR 5.3 crore from INR 156.9 crore in FY25, largely because FY26 includes an exceptional item of INR 182.2 crore.

In Q4 FY26, Arkade reported revenue of INR 199 crore and EBITDA of INR 38 crore. The quarter’s net profit was negative INR 109 crore, highlighting how accounting items can dominate reported profitability in real estate developers even when bookings remain healthy.

Operating momentum stayed strong in FY26

While reported profits were affected by the exceptional item, Arkade’s operating metrics pointed to demand strength in its focus micro-markets across the Mumbai Metropolitan Region.

For FY26, the company reported pre-sales of INR 901 crore, up 16.7 percent year-on-year, and collections of INR 728 crore, up 1.7 percent. Carpet area sold rose to 315,000 square feet from 249,000 square feet in FY25.

The March quarter was particularly strong on bookings. Q4 FY26 pre-sales were INR 303 crore, a 40 percent year-on-year increase. Carpet area sold in the quarter was 110,000 square feet, up 57.5 percent year-on-year. Collections were INR 195 crore in Q4 FY26.

The company also provided a detailed ongoing project table that bridges future revenue visibility. Across eight ongoing projects, total projected revenue was INR 2,312 crore, with INR 842 crore already recognized and INR 1,470 crore yet to be recognized.

The Filmistan acquisition: strategic asset, exceptional accounting impact

A defining FY26 event was Arkade’s acquisition of Filmistan Private Limited and the underlying property rights in Goregaon West, described by management as a marquee and rare asset.

The transaction had two components. First, the company acquired the underlying land parcel from Aspen Properties and Kamanwala Housing for a consideration of INR 165 crore, which was fully paid in January 2025. Second, Filmistan Private Limited held tenancy and operating rights related to the Filmistan Studios property, valued at about INR 182.60 crore. Filmistan Private Limited became a wholly owned subsidiary of Arkade Developers.

Subsequently, Arkade simplified the holding structure by demerging the tenancy rights from Filmistan Private Limited and transferring them directly to Arkade Developers. As a result, the tenancy rights recorded in Filmistan Private Limited were written off or adjusted, resulting in a one-time exceptional accounting impact of INR 182.17 crore in the consolidated financial statements.

Management’s strategic intent is clear. The company intends to develop an uber-luxury residential project at Filmistan. Based on current estimates and subject to approvals and final design configurations, Arkade indicated an expected gross development value of about INR 3,500 crore and an estimated cumulative bottom-line contribution of INR 1,000 to 1,200 crore over the next 3 to 5 years.

On the earnings call, management said the Filmistan project is currently under approvals and the company is looking at launching it by the financial year-end.

Pipeline scale-up across MMR, with Thane as a key catalyst

Arkade’s presentation and call positioned FY26 as a year of pipeline strengthening. The company’s upcoming projects table disclosed a projected turnover of INR 12,785 crore across a set of premium category projects, spanning both greenfield and society redevelopment opportunities.

The largest single projects in the disclosed upcoming pipeline include Filmistan at INR 3,500 crore and Thane at INR 1,900 crore, along with Woollen Mills (Bhandup) at INR 1,000 crore and Ashok Nagar (Kandivali East) at INR 1,100 crore. Several additional redevelopment projects are listed across Dahisar, Borivali, Malad, Andheri, Santacruz, and Goregaon.

In the conference call, the CFO stated the company has a pipeline of about INR 12,000 crore spread over the next 5 to 6 years and expects about 20 to 25 percent year-on-year growth. The CMD added that the next year should be higher because the Thane project is expected to be launched in the current financial year.

One additional update from the call was an MOU signed for securing cluster redevelopment rights for nine societies at Ashok Nagar in Kandivali East. Management disclosed an estimated RERA carpet area of 325,000 square feet with a projected GDV of INR 1,100 crore.

Margin guidance and near-term demand commentary

Investors focused on profitability given the margin decline in FY26. In response on the call, the CMD said the company is targeting around 25 percent EBITDA margin. The CFO added that EBITDA margin is expected to stabilize around 27 to 28 percent, while PAT margin is expected to stabilize at around 18 to 19 percent.

Management also noted that May pre-sales were consistent but somewhat slow due to war impact, fuel prices, and the global economic situation. The CMD also stated that historically Q4 tends to show better sales than Q1 in real estate.

Cashflows and balance sheet: strong operating cashflow, heavy project investment

Arkade’s abridged cashflow summary showed a positive operating cashflow of INR 331.9 crore in FY26, supported by net collections of INR 728 crore and construction cost outflows of INR 324.4 crore.

However, the company also highlighted significant outflows for land, acquisitions, tenancy rights, and approvals. The combined Land/Acquisitions/TDR/Approval cashflow line was negative INR 475.9 crore in FY26, including land cost of INR 186.2 crore, tenancy rights of INR 182.6 crore, and TDR/premium/approval costs of INR 109.1 crore.

On leverage, the debt profile slide shows Debt to Equity at 0.08 as of March 2026 and positions the company as maintaining minimal debt levels.

Closing takeaways

Arkade’s FY26 story is best understood as two parallel tracks. The first is operating momentum: pre-sales and area sold grew, collections remained stable, and the company disclosed a sizable under-construction revenue base. The second is the structural reset tied to Filmistan: the tenancy rights write-off created a major one-time exceptional impact, compressing reported PAT, while the underlying asset is positioned as a flagship luxury project with a stated GDV of INR 3,500 crore.

The next phase hinges on execution and launches. Management highlighted the importance of timely delivery, and the company’s growth commentary suggests that Thane and Filmistan, along with cluster redevelopment projects, could drive a step-up in scale over the coming years if approvals and execution remain on track.