- Arkade Developers Q4 and FY25 Results: Strong Growth and Clear Strategy
- Solid Performance in FY25
- Exclusive Focus on Mumbai Metropolitan Region (MMR)
- Inventory Update and Monetization Plans
- Strong Project Pipeline for FY26 and Beyond
- Demand for Premium Housing on the Rise
- Financial Discipline and Low Leverage
- Management Outlook: Clear Goals and Strong Confidence
- Frequently Asked Questions (FAQs)
- Summary
- Related Posts
Arkade Developers Q4 and FY25 Results: Strong Growth and Clear Strategy
Solid Performance in FY25
Arkade Developers delivered a strong performance in FY25. The company achieved pre-sales of ₹773 crore, which is a 20% rise compared to the previous year. Collections also increased by 22%, reaching ₹716 crore. The total area sold during the year was 2.5 lakh square feet, showing a 23% year-on-year growth.
The profit after tax (PAT) for FY25 stood at ₹157 crore, up 28% from the previous year. The PAT margin was 22%, reflecting solid profitability. In Q4FY25 alone, Arkade reported a PAT of ₹33 crore, marking a 70% jump. The EBITDA margin in the quarter was 34%, which shows efficient cost management.
The company continues to maintain a low-debt profile. As of now, total debt stands at just ₹50 crore, while cash and investments amount to ₹230 crore. This gives Arkade enough financial flexibility to fund growth internally.
Exclusive Focus on Mumbai Metropolitan Region (MMR)
Arkade has clearly stated that it will continue focusing only on the Mumbai Metropolitan Region. This strategy has helped the company build strong expertise and a solid reputation in this market.
It is now considered among the top 10 developers in the MMR area. What’s more, all of Arkade’s projects have received occupancy certificates (OC), and there are no legal issues or stalled projects. This level of compliance and delivery has earned the company a trusted brand image. As a result, Arkade can charge a premium for its homes in key micro-markets across Mumbai.
Inventory Update and Monetization Plans
As of now, Arkade has inventory worth ₹900 crore at cost, while its estimated market value is around ₹1,500 crore. Out of this, the company expects to monetize ₹400 to ₹500 crore within the next six months.
There are only about 11 to 12 unsold units in completed projects with occupancy certificates, which together are valued at approximately ₹70 crore. This reflects the strong demand and the company’s ability to sell projects effectively.
Table: Inventory Snapshot
| Metric | Value |
|---|---|
| Inventory at Cost | ₹900 crore |
| Market Value of Inventory | ₹1,500 crore |
| Expected Monetization (6 months) | ₹400–500 crore |
| Unsold Units (Completed Projects) | 11–12 units |
| Value of Unsold Units | ~₹70 crore |
Strong Project Pipeline for FY26 and Beyond
Arkade has lined up several high-value projects for FY26. The company is making its debut in the ultra-luxury housing segment with its Filmistan project in Goregaon West. Additionally, redevelopment projects are planned in Santacruz, Malad West, and Goregaon.
The launch pipeline for FY26 alone is valued between ₹3,500 to ₹4,000 crore. Projects currently under execution are worth over ₹2,000 crore. Over the next five years, the company is targeting a pipeline with a gross development value (GDV) of ₹6,700 crore.
Arkade has set a long-term goal of ₹10,000 crore in revenue and ₹2,000 crore in PAT over five years.
Table: Project Pipeline Overview
| Timeline | GDV (Approximate) |
|---|---|
| FY26 Launches | ₹3,500–4,000 crore |
| Projects Under Execution | >₹2,000 crore |
| 5-Year Pipeline GDV | ~₹6,700 crore |
| Long-Term Target Revenue | ₹10,000 crore |
| Long-Term PAT Target | ₹2,000 crore |
Demand for Premium Housing on the Rise
The real estate market in Mumbai is seeing a clear shift towards premium homes. There’s strong demand for housing in the ₹1 crore and ₹2–5 crore price segments. This trend is driven by working couples and families looking for bigger, better homes.
Another big opportunity lies in redevelopment. More than 25,000 old buildings in MMR are eligible for redevelopment. This creates a market potential of nearly ₹30,000 crore.
Arkade is planning to tap into this demand by staying focused on quality housing. With its strong brand image and proven track record, the company is in a good position to lead in this space.
Financial Discipline and Low Leverage
Arkade Developers continues to take a conservative approach to debt. The company has no plans to take on long-term borrowings. If needed, it will use construction finance only for short-term requirements.
All project investments, including capex, are expected to be covered using internal cash flows and the company’s existing funds. This disciplined approach helps Arkade maintain financial stability while also supporting future expansion.
Management Outlook: Clear Goals and Strong Confidence
The management is aiming for a 20% compound annual growth rate (CAGR) in both revenue and net profit in the coming years. There are no plans to expand outside the MMR region. Instead, Arkade wants to continue leveraging its deep understanding of this market.
Execution quality and strong risk management are seen as major strengths. The leadership team is confident that the company can maintain strong margins and keep growing steadily, thanks to its focused strategy and solid foundation.
Frequently Asked Questions (FAQs)
Q1. What was Arkade Developers’ total pre-sales in FY25?
Arkade reported pre-sales of ₹773 crore in FY25, which is 20% higher than the previous year.
Q2. How much profit did the company make in FY25?
The profit after tax stood at ₹157 crore in FY25, up 28% year-on-year.
Q3. What are the key upcoming projects?
Key projects include the ultra-luxury Filmistan project in Goregaon West and redevelopment projects in Santacruz, Malad West, and Goregaon.
Q4. Is Arkade expanding outside Mumbai?
No, Arkade is staying focused only on the Mumbai Metropolitan Region (MMR). The company believes its local experience gives it a competitive edge.
Q5. How much inventory is Arkade planning to monetize?
The company expects to monetize around ₹400 to ₹500 crore worth of inventory over the next six months.
Q6. What is Arkade’s long-term revenue goal?
Arkade is targeting ₹10,000 crore in revenue and ₹2,000 crore in profit over the next five years.
Summary
Arkade Developers ended FY25 on a strong note. The company reported solid sales, healthy margins, and increased profit, all while keeping debt low. With a clear strategy focused on Mumbai, a growing pipeline of premium and redevelopment projects, and rising demand for quality housing, Arkade is well-prepared for continued growth.
Its financial discipline, strong brand image, and sharp execution give it an edge in the real estate market. Over the next few years, Arkade aims to build on this momentum and deliver consistent value to homebuyers and stakeholders alike.
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I’m Rahul Chaudhary, and I write about everything related to the Share Market. From Stock Trends and Share Prices to the Latest News and IPO Updates, my articles aim to provide you with valuable insights to help you navigate the world of investing. Stay tuned for expert tips and updates to keep you informed!
