Arkade Developers Reports Decline in Q2 Profit and Revenue Amid Moderate Pre-sales

Arkade Developers Limited has released its financial results for the quarter ended September 30, 2026, registering a notable year-on-year decline in both revenue and profit. Consolidated revenue from operations fell 45.1 per cent to ₹1,447 million, compared to ₹2,637 million recorded in the corresponding quarter of the previous financial year.

The company's profit after tax (PAT) dropped 45.9 per cent to ₹248 million for the quarter, down from ₹458 million in Q2 FY26. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a decrease of 45.4 per cent, landing at ₹345 million. Despite the drop in absolute earnings, the EBITDA margin remained relatively stable at 23.84 per cent, marking a marginal decline of 13 basis points compared to 23.97 per cent in the same period last year.

On a sequential basis, the company showed signs of operational recovery. EBITDA rose 24.1 per cent and PAT increased by 29.8 per cent over the first quarter of FY27.

During the quarter, Arkade Developers recorded pre-sales of ₹1,510 million, reflecting a 20.1 per cent year-on-year decrease. In contrast, collections grew by 22 per cent to reach ₹1,830 million. The company sold 66 units covering 0.5 lakh square feet, achieving an average price realization of ₹30,082 per square foot. For the first half of FY27, cumulative pre-sales stood at ₹3,060 million, while collections reached ₹3,470 million, representing an 8.4 per cent increase over H1 FY26.

Chairman and Managing Director Amit Mangilal Jain pointed to execution focus and timely project delivery as the drivers behind the growth in collections, while noting that pre-sales remained moderate under prevailing market conditions.

Regarding its project pipeline, Arkade reported 9 ongoing projects with a combined gross development value (GDV) of ₹25,670 million, alongside 15 upcoming projects with a GDV of ₹191,600 million. The company plans to launch two projects with a combined GDV of ₹28 billion in the third quarter of FY27. As of September 30, 2026, the company maintained a net cash-positive status, holding liquid cash of ₹1,190 million against a gross debt of ₹560 million.

On the stock exchange front, shares of Arkade Developers closed at ₹108.02 on the National Stock Exchange on October 29, 2026. The stock has seen a decline of approximately 37.5 per cent over the past year, compared to a 12 per cent drop in the Nifty 50 index over the same timeframe.

"The financial results of Arkade Developers highlight the cyclical nature of the real estate sector, where top-line figures can fluctuate based on project launch schedules and market conditions. While year-on-year revenue and profit faced sharp corrections, the sequential growth in profitability and a net cash-positive balance sheet indicate underlying operational stability. For real estate firms, maintaining strong collections and a robust project pipeline are critical levers to navigate short-term pre-sales moderation and sustain long-term value creation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes