Signature Global in FY26: Higher realizations, a leaner balance sheet, and a sharper FY27 roadmap

Signature Global ended FY26 with a balance sheet that looks very different from a year ago. Consolidated revenue from operations rose slightly to INR 2,600 crore, while reported profit after tax jumped to INR 1,090 crore. The company also brought net debt down to INR 200 crore at March 31, 2026, from INR 880 crore a year earlier.

Operationally, FY26 was not a straight line. Pre-sales fell to INR 8,250 crore from INR 10,290 crore in FY25, and collections dipped to INR 4,010 crore from INR 4,380 crore. But management positioned FY26 as a year of steady progress, helped by sharper pricing and tighter cash discipline. Average sales realization rose to around INR 15,250 per sq ft, up from about INR 12,457 per sq ft in FY25. The company sold more than 2,100 units in FY26, with an average ticket size of INR 3.88 crore.

A key context point is that Signature’s FY26 profitability includes gains linked to its transaction with RMZ Group. Management and the investor deck both state that FY26 PAT includes realized and unrealized gains from the RMZ deal involving a subsidiary. That boosts headline profitability but reduces comparability for investors trying to isolate core operating performance.

FY26 performance: stable revenue, mixed margins

In the consolidated P&L snapshot, revenue from real estate properties was INR 2,540 crore in FY26 versus INR 2,430 crore in FY25. The company’s reported mix remained dominated by mid-income housing, but the pricing environment improved as premium and group housing sales increased.

Adjusted gross profit was INR 760 crore in FY26 with an adjusted gross margin of 29.7%. Adjusted EBITDA was INR 240 crore, but the adjusted EBITDA margin fell to 9.3% from 14.3% in FY25. The company attributed its FY26 pricing strength to higher sales in premium markets and price increases across key regions.

Cash flows and leverage: operating surplus rose, net debt fell sharply

The clearest operating strength in FY26 was the company’s cash position and deleveraging. FY26 operating cash surplus before land investment rose to INR 2,150 crore from INR 1,630 crore in FY25, even though collections were lower. The cash flow bridge in the presentation also includes proceeds from the RMZ transaction, which supported overall liquidity.

The press release states that cash and cash equivalents stood at INR 2,770 crore at the end of FY26. On leverage, the company’s stated objective is to keep net debt below 0.5 times annual operating surplus. The investor deck also shows net debt to operating cash surplus reducing to 0.09x at March 2026.

This balance sheet positioning is important because Signature is also scaling its project pipeline. The company reported a saleable area portfolio of 53.3 million sq ft, with 12.3 million sq ft ongoing, 21.2 million sq ft in recent launches, and 19.8 million sq ft as forthcoming projects. Management aims to deliver the ongoing portfolio over the coming 4 to 5 quarters.

Strategy and pipeline: three micro markets and a new commercial leg

Signature’s strategy is tightly anchored to three Gurugram micro markets: Sector 71 on SPR, Sector 37D on Dwarka Expressway, and the Sohna corridor. FY26 launches included Cloverdale SPR and Sarvam at DXP Estate, reflecting the company’s steady shift from affordable and lower mid-income housing towards premium group housing.

The most meaningful strategic development is the joint venture with RMZ Group for a large-scale commercial project on SPR. The JV is structured as a 50:50 partnership through Gurugram Commerciality Limited. The presentation describes a mixed-use design district with offices, hotel(s), and retail. Scale is presented as about 4.0 million sq ft of FSI on around 17 acres, with about 5.6 million sq ft of leasable or saleable area. The slide cites an indicative developable value of INR 14,000 to 15,000 crore.

On the conference call, management explained why it chose the JV route. Signature has historically focused on build-to-sell residential projects, while commercial real estate requires leasing capability and institutional asset management. RMZ is expected to lead on design and leasing, while Signature will support approvals and construction execution. The CFO also clarified that any debt at the JV level will remain in the JV’s books, while any equity put in by Signature will appear as an investment in the JV.

FY27 guidance: higher completions and sharper growth targets

The company’s FY27 guidance is ambitious, with explicit targets across launches, pre-sales, collections, and revenue recognition.

Management guided to launches of INR 15,000 crore and pre-sales of INR 10,000 crore. Collections are guided at INR 5,000 crore, and revenue recognition is also guided at INR 5,000 crore, with the company attributing the step-up to projects at advanced completion stages.

In the Q&A, management shared launch phasing: a branded residence project in Sector 71 in Q1 FY27 through collaboration with Tonino Lamborghini, another Sector 71 launch around late Q2 or Q3, and a third around Q4. It also indicated a smaller launch in Sohna and further inventory release under Sarvam. Separately, management stated a business development spend range of INR 1,000 to 1,500 crore for FY27.

The next year’s delivery execution will likely determine how much of the guided revenue recognition and collections are achieved. Management acknowledged that FY26 completion timelines slipped due to excessive rains and extended NGT restrictions, with some spillover into FY27, and it indicated a more conservative stance on timing while still keeping guidance targets.

Takeaways

Signature Global’s FY26 story is best read as a combination of stronger pricing, much lower leverage, and a widening platform of projects. While FY26 pre-sales and collections were lower than FY25, realizations improved and the balance sheet strengthened materially.

For FY27, the market will track two variables closely: the pace of project completion that underpins the INR 5,000 crore revenue recognition target, and absorption of the planned INR 15,000 crore launches. The RMZ commercial joint venture adds a new strategic leg, but it also introduces a multi-year execution cycle that will need separate monitoring as the project is activated and capital is deployed.