Ladies and gentlemen, good day and welcome to the Signature Global (India) Limited Q2 FY2026 earnings call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Adhidev Chattopadhyay from ICICI Securities. Thank you, and over to you, sir.
Good afternoon, everyone. On behalf of ICICI Securities, I'd like to welcome everyone on the call today. From the management, we have with us Mr. Pradeep Kumar Agarwal, the Chairman and Whole-time Director, Mr. Lalit Kumar Agarwal, the Vice Chairman and Whole-time Director, Mr. Ravi Agarwal, the Managing Director, Mr. Devendra Agarwal, the Joint Managing Director and Whole-time Director, Mr. Rajat Kathuria, the Chief Executive Officer, Mr. Sanjeev Kumar Sharma, the Chief Financial Officer, and Ms. Kritika Singh, the Head of Investor Relations. I would now like to hand over the call to the management for their opening remarks. Over to you. Thank you.
Yeah, thanks, Adhidev. Hello, everyone. It is a pleasure to welcome you all to the Q2 FY2026 conference call of Signature Global. We appreciate you taking the time to join us today. I trust you have had a chance to go through our results and investor presentation. I would like to start with a brief look at India's housing landscape, which continues to be a major force behind the country's economic progress. Today, real estate is a core center stone of the economy, supporting over 200 linked industries such as cement, steel, and furnishing. The sector contributes about 8% of India's GDP and is projected by CREDAI to become a $5 trillion-$10 trillion market by 2047, accounting for nearly 20% of GDP. It is also the second largest employer, with housing alone expected to generate nearly 20 million new jobs by 2030.
Reflecting national trends, Delhi- NCR residential market remains strong, recording sales of about 62,000 units worth INR 1,530 billion in 2024 and around 26,795 units worth INR 934 billion in the H1 2025. In Gurugram, our focused micro-markets like Dwarka Expressway, Southern Peripheral Road, or Sohna continue to attract high-net-worth individuals or working professionals seeking modern, well-connected homes supported by robust infrastructure and rising buyer confidence. As per industry pool, property prices along Dwarka Expressway have nearly doubled, with around 98% growth between 2020 and 2024. Gurugram Southern Peripheral Road has also seen remarkable appreciation, with prices rising by nearly 125% over the last five to six years. The Sohna corridor has similarly emerged as a high-growth zone, with property values increasing by about 151% in the past five years, driven by the infrastructure upgrade and growing residential demand.
As this positive momentum continues, we at Signature Global remain committed to growth that is both responsible and future-ready. Sustainability is central to our vision, guiding how we plan, build, or deliver our projects. Reinforcing this commitment, we recently raised INR 8.75 billion, which is almost $100 million, through a private placement of non-convertible debenture to the International Finance Corporation, the World Bank lending arm, making Signature Global first-ever listed debt transaction. The fund will be used to develop mid-income and ESG-aligned housing projects while strengthening our balance sheet through debt-reducing. This partnership with IFC underscores our financial discipline and our focus on creating communities that are modern, efficient, and environmentally responsible. Our performance in the first half of the current fiscal year reflects the continued strength of our business fundamentals and the trust that customers, investors, and other stakeholders place in Signature Global.
Driven by our strong performance, favorable market conditions, and a robust launch pipeline in the coming quarters, we are very much confident to achieve our FY2026 guidance, which includes pre-sale of INR 125 billion, revenue recognition of INR 48 billion, and steady growth across other key operating metrics. We believe our continued focus on execution, excellence, and customer trust will help us sustain this growth momentum in the quarters ahead. With that, I would now like to invite our CEO, Mr. Rajat Kathuria, to talk to you through the company's financial performance. Thank you once again for being here and for your continued trust in Signature Global.
Thank you, Pradeep. Thanks, everyone, for taking our time today morning. I'll just take a bit of a deep dive into some of these numbers and happy to pick up any questions which you may have post that. During the first year, we've achieved about INR 46.6 billion of sales, which is a little short of 40% of our annual guidance of about INR 125 billion, which we do intend to achieve very positively. As a background to the sales achievement, first, I would like to talk about the launches which we've done during this half of the year. Previous year, a lot of our launches were planned during the first half, whereas for this year, some of these launches are getting drifted towards the second half of the year.
During the first half, we've launched about 2.5 million sq ft, 2.45 to be precise, which is worth INR 43 billion. However, during the second half of the year, we are planning launches almost close to 8 million sq ft, which will be in two of our three key markets. In Sector 37D, we plan to launch roughly 3.6 million sq ft, which is within this quarter itself. In Sector 71 on the Southern Peripheral Road, we plan to do launches in excess of 4 million sq ft. The GDP potential of these launches is expected to be in the range of INR 13,000 crore-INR 14,000 crore. Once these launches are done, we'll comfortably meet our annual launch target, which is INR 170 billion.
Quite a few launches planned during the second half, which we feel will have a very strong and a positive impact on both sales and cash flows of the company. Taking a deep dive into the first half sales, we achieved about INR 46.6 billion, which could be broken down in two different ways. One is that we've sold roughly 3 million sq ft at an average pricing of about INR 15,700 a foot. The other metric could be that we've actually sold about 1,338 units with an average ticket price of each unit nearing INR 35 million per unit. The key takeaway is that during the first half, all the key micro-markets have contributed to these sales.
If I have to give a very broad breakup of these 1,338 units, roughly 500+ units got sold in the Sohna region, about 450 odd units were sold in the Southern Peripheral Road, Sector 71 micro-market, and about 300+ units were sold in the Dwarka Expressway market, which was a mix of both in Sector 37D as well as in Sector 84, where we have the project by the name of [De-Luxe]. In effect, on sales and launches, just to reiterate, we've managed to achieve sales across key markets, and bulk of the launches are getting planned in the second half. I can safely say that a launch pipeline, a very advanced-level launch pipeline of 8 million sq ft, is unparalleled. I do not think you'll see such quantum of launches coming from any large company in the micro-market. Besides that, I think collections were steady.
Out of our sales done till date, we've done some good collections to keep the liquidity position in the company very healthy. We've achieved total collections of about INR 18.6 billion for the first half of the year. Bulk of the money went into construction. Almost 47% of collections, including taxes, went into construction, and the balance, you could say, close to 25%-27% gone into SG&A brokerage and taxes. Post that, we created a free cash of about INR 4 billion, which was primarily spent on land and approvals for the company. Since we are building up this massive launch pipeline, there was money spent on both land and approvals aspect. During the year, we've also added certain land parcels in Sohna. Two key kind of additions on the business development side.
In the Sohna market, we've added about 2.3 million sq ft, which was a mix of both. About 500,000 sq ft equivalent of development size was the acquisition, and about 1.8 million sq ft was added by taking up one of our GDA partners' share in this market. About 2.3 million sq ft of area. We sold 3 million. We've added 2.3 in the Sohna market. More importantly, as we are planning our projects in Sector 71, where we have access to about 92 acres plus land, which is mostly owned by the company. Till recently, we've been giving guidance that this will have a sale potential of about 17 million sq ft. However, as we are going more granular into planning of these projects, our estimate as of today stands at about 18.5 million.
Almost 1.5 million sq ft of additional planned area is something which we are envisaging out of the Sector 71 portfolio, which is without really adding any further land into this whole piece. On the BD side, there is area getting added into Sohna market as well as 71 by virtue of more refined planning. On the overall portfolio level, where we stand as of today, we have delivered close to 16 million sq ft. There is another 9 million sq ft which is getting close to delivery. The number was quite similar even at the end of the previous quarter, but there were very heavy rains in the previous quarter, which did impact some bit of the construction activity on multiple sites. Multiple times, we had to face the rain fury, and there was lots of momentum which happened at various occasions during the previous quarter.
By and large, we were at about 9.2 million of area which was yet to be completed. We are still close to about 9 million, at which we are at a good stage of completion, but yeah, our target is to kind of complete and hand over these sites on an as early as possible basis. Besides this, if we look at the inventory which we've launched in the recent months, we got publicly listed in September 2023, and since February and March of 2024, we've been launching newer projects on a very sustained basis. If we cumulatively look at our launches, and hence the inventory which we've launched, where bulk of the cash flows are yet to be received, we've launched close to 17+ million sq ft since February-March 2024 till about September 2025, which has a GDP potential in excess of INR 234 billion.
Bulk of this inventory has been sold. As I guess you had more than INR 180 billion inventory out of whatever we've launched has been sold, and we'll have probably inventory closer to about INR 50 billion, which is still unsold across these projects which have been launched since the earlier part of the previous year. Effectively, 80%+ sales have been achieved. More importantly, if we look at projects which are nearing a launch, like 8 million is something which we are about to launch in the coming three to four months, but cumulatively, there's almost 24 million sq ft of development potential of land-based inventory which we are sitting on. Now, this forthcoming launch inventory has a GDP potential in excess of INR 420 billion.
If we bucket forthcoming and recently launched projects, there's almost like 41 million sq ft, 42 million sq ft of developable area, which we are bringing to a launch stage at a very good pace, and it adds up to a GDP potential of more than INR 650 billion. Our thesis of the company has always been to do a fast churn on inventory. The idea of buying any land is to bring it to development stage on an early basis rather than holding up any land stage inventory for the next five, six, seven years, or eight years. Whatever is pending after launching this 8 million is something which we will launch within the next two years itself.
Against this massive forthcoming and already launched inventory which exceeds INR 650 billion, there's a net debt which is quite modest, which is by and large range bound, but yeah, less than INR 10 billion. About INR 9.7 billion of debt is something which is still in the company. Over the coming 12 months-15 months, we do see that this net debt will come down to a zero level. Like Pradeep also mentioned, just a bigger transaction which we did on the debt front was raising NCDs, where IFC subscribed to all of those NCDs, almost $100 million equivalent was raised. This is a new tap, a new manner in which we've accessed listed non-convertible debentures, which is first of its kind for the company, and we were rated A+ stable by CARE Ratings Agency. Just a quick impact on the revenue recognition and the guidance plans.
During the first half, we've done recognition of about INR 12 billion. Our GP margins stood at about 29%, which is much higher than the previous financial year's first half. The EBITDA margin dipped because of lower than anticipated quantum of revenue recognition, but we do intend to make it up during the later part of the year. Over the span of time, we've been working with good quality contractors. We've onboarded contractors like Ahluwalia Contracts, Capacit'e, Arabian Construction Company. Just as an additional layer of efficiency improvement, we've also now onboarded Bain & Company, which will further help us in improving construction-related efficiency across various projects which are nearing completion.
Over the next 18 odd months, I'm not being very specific with timeline here, but yeah, let's say over the next 18 months-20 months, our target is to complete almost inventory worth INR 10,000 crore. That's the precise mandate which we've given to Bain & Company to work alongside us so that these projects get completed in a timely manner. Just to complete, and as a last note, we stand firm on our guidance on launches of INR 170 billion, on sales of INR 125 billion, on collections of INR 60 billion, and revenue recognition of INR 48 billion for this financial year. Thanks a lot.
Are we good to go for the questions?
Yes, please.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah, thanks for the opportunity, and good afternoon, team. First is on the launches, 8 million sq ft you talked about. While you said 6 million sq ft in 37D and 4 million sq ft in Sector 71, that's a massive supply for that market at one shot. How are you planning to phase this out over the next six months or couple of quarters? Yeah, that's my first question.
Sure. Pritesh, see, the critical aspect for the company is to bring any land stage inventory to launch stage because there is a lot of planning and approval-related activities which need to be completed. When we are saying there is land stage inventory which is roughly 24 million sq ft, the good part is that almost two-thirds of it is coming to a launch stage just within the span of the next three to four months. That really makes a lot of shift in the quality of land stage inventory which is there with the company. Also, Pritesh, we do intend to do the construction of these large projects at one go. We will not go tower by tower.
We will hand out construction contracts at one go because we are very comfortable with the current financial position of the company, and we do intend to do the construction of these projects at one go. These will not be phased over multiple phases. As far as sales are concerned, see, there is not much new sale coming in the Sector 71 market. We are amongst few large supply creators in the Sector 71 market, and hence, we are very positive as far as the sales offtake is concerned. Even on Dwarka Expressway, the way the entire infrastructure is concerned, see, we have done large-scale projects in the past. We may do some cosmetic sort of phasing. It is possible that we may launch X number of units first, which would be reasonably large, and we do a second small phase within a short span of time.
Fundamentally, this is one project. This is not like a project which has to be launched across multiple phases over, let's say, 12 or 18 months. By and large, besides some marketing optics, this will remain one single project.
Got it. Got it. So, 4 million sq ft from Sector 71 and another 4 from 37D is how we should look at in terms of launches in second half?
Yes. For now,
okay. Okay.
Yeah.
Got it.
Pratesh, just to add on, see, what we've also done is that, see, in general, the pricing in the market's gone up. The simple reason is that while projects have been launched in these middle-income categories, a lot of inventory has come in the upper-mid segment. What we've really done with both of these projects is to launch projects around 1,800 odd. Earlier, let's say if launches were being done with an average size of about 2,200 sq ft, 2,300 sq ft, we are now launching projects with starting apartment sizes of about 1,800 odd sq ft. We've tried to ensure that the ticket size remains attractive, and it's affordable for the end user to participate in these launches.
Got it. Got it. Just a couple of follow-ups on this, right? I mean, you mentioned that amongst the inventory that we have launched since February 2024 till now, there is INR 5,000 crore worth of inventory which is left in the project. If you can split that up between Sohna, SPR, and 37D, that would be helpful. Looking at the last launch that we did in Sector 71, which was also not a sellout, right? We sold like 55%-60% worth of inventory. How do you consider, how are you expecting the velocity for these two launches? You said financially you are okay. I mean, you are well strengthened to manage such a large-scale construction.
Is your underlying assumption that probably construction spend would be ahead of collections, and we are okay to take some debt if needed, but we want to go with a large-size launch in the market?
Pritesh, I hear you, and there are like two broad questions that if there's inventory worth INR 5,000 crore, why are we doing these larger launches? What is the nature of unsold inventory which stands in the company right now? Thirdly, you're talking about financing of these projects, correct?
Yeah.
Yeah. So, see, as far as the unsold inventory is concerned, if I have to categorize it based on the nature of the development, then in the group housing or high-rise apartments, there is about, you could say, INR 2,800 crore of inventory which is still unsold. In the mid-rise or low-rise floors, there's about INR 850+ crore of inventory, out of which certain floors are blocked as well. It's not that we've opened up all floors to sale, and hence that inventory is lying. This is primarily induction. There are certain floors which are yet to be opened up for sale, and hence this inventory, while it's getting counted as unsold, we've not lost it as well. There are certain plots, industrial plots, both induction and City of Colours, which is worth, let's say, INR 750+ crore.
This is bulk of the inventory which is yet available with the company. There is a gap between what is with the company and what is getting launched. Amongst the group housing, there are still a lot of apartments which are larger size, like titanium. We were doing apartments as large as 3,600 sq ft. There were quite a few penthouses which are there in each of those towers. The inventory which is left out will also comprise of these larger-sized apartments. What we currently intend to do and launch is inventory which is smaller in size and hence more affordable for the buyer to participate. That is on the inventory side. We have always maintained that creating supply is a very challenging task. It takes its own incubation time, line effort, and capitalization.
In the housing market, the bulk of the capitalization does take place while you're acquiring land and seeking approvals on those land parcels. Demand side, the reason why I brought up the cumulative sales, the reason was that since February or March, whatever we've launched, 80%+ has already got sold. When we are doing these larger launches, the intent is that it can get consumed over a 12 month-15 month period. The intent is not that as we launch, it all gets sold. At least we've cleared a big critical milestone of creating that supply. That is what I would suggest that it gets rightfully understood. As far as construction is concerned, in recent past, we've not seen a situation that we've launched something and we've not achieved financial closure basis the sales getting made.
Having said that, the overall cash position of the company is quite strong. Whatever projects are getting completed are throwing up cash, and that is why the net debt stays where it is. If you look at the last two years, ever since we got listed until date, I can share those numbers separately, but our portfolio has risen dramatically, and the net debt is constant. Let's say the company has grown 2x, 2.5x in terms of portfolio size, and the net debt remains the same. That clearly indicates that a lot of it has been funded out of organic cash flows. We also did one round of fundraise from the markets, and we have never had the intent of going again. There was no need to kind of raise further equity money from the markets, which still remains the situation.
We are confident of achieving good sales and these projects funding their construction on their own.
Got it. Got it. That answers largely. I mean, you mentioned that you are preparing these projects to sell within 12 months-15 months. Just to clarify, will that be your underlying assumption that whatever we are launching, we are able to sell in 12 months-15 months? That should be a good number to achieve.
See, there are two sets of lines, Pritesh. There are launches which are being done, and there are absorption which happens over a span of time. This is real estate, and it should be, and this has been the assumption. See, maybe last year we launched one or two projects where just at launch we managed to sell everything. That cannot be the assumption from a company perspective. We have always supposed to plan for a more pragmatic sales scenario that as we launch, since these are, this is inventory worth INR 2.5 crore, INR 3 crore, INR 3.5 crore, it will take certain time for it to be consumed. Since we are launching it as a single phase, you can also appreciate that we are confident that all of this is getting sold within a finite span of time. Exact number of months, no one knows.
Yes, this is definitely, we are very positive that during the second half, we'll be able to achieve good sales and meet up our annual guidance.
Sure. Got it. I have a few more questions, but I'll jump back in the queue. Thank you.
No stress, Pritesh. Thanks.
Thank you. We would like to remind our participants, if you wish to ask your questions, you may press star and one on your touchstone phone. The next question comes from th`e line of Saishwar Ravekar from ICICI Securities. Please go ahead.
Hello, team. My question is like the ongoing portfolio is heavily dependent on affordable and mid-income housing. While forthcoming pipeline emphasizes on group housing and premium segment. My question is basically like, how does the revenue recognition profile will evolve in upcoming fiscals when this project will complete? Since the absorption rate definitely changed. If you can guide us.
See, there is almost 9 million sq ft of inventory which is coming to close over the next five to six quarters. Some of our newer projects had a mix of both plotted developments as well as low-rise developments. In both of our large projects like Daxin, it is almost a 125-acre project where there is between INR 1,500 crore-INR 2,000 crore worth of plotted development which we have sold. Likewise, in City of Colours also, it is a large township with a lot of plotted development. In the manner of completion, we will first see this 9+ million getting completed. Then there are these developed plots which are kind of getting completed, and hence that revenue recognition will kick in. Post that, there are almost, there are more than 2,500 low-rise floors which have been launched and bulk of them sold in the project Daxin. That will get completed.
Post that, some of these group housing projects which we've launched over the last 15 months-18 months, they will also come in queue of completion. It is not that we are only relying on group housing projects, and hence the revenue recognition is getting pushed by many years. There is multiple inventory, and every year we'll see a mix of that getting completed. Lately, you'll see the pattern in revenue recognition and profit margin. The portion of middle-income home completion is getting higher, and hence the GP margin is improving. If we do a like-to-like comparison with the previous year, our GP margin has gone up to 29% versus 23%. The simple reason is that the proportion of low-rise floors has increased versus affordable housing projects. We are now left with five or six affordable projects which are kind of getting delivered over the coming quarters.
Hence, once they are done, all the balance completion will have a very strong GP margin accruing against those projects.
Okay. One more question. One of your peers, you must have heard this. One of your peers has taken entry in the Mumbai market. You are also thinking for expansion, like geographic diversification.
No plans as of now. We wish best of luck to everyone who's entering new markets, whether it's people from NCR going to the Mumbai market or other players coming to the Gurugram market because, see, there is huge scope. The fundamental symbol, each of these geographies have like a country-sized population. For instance, NCR in itself has close to 40 million people. There is a massive amount of work which is there for all organized players. If you see it as a theme, as an industry, over the last four to five years, growth has been consistent across board. Balance sheet position has improved for multiple peers. I think people are seeding newer markets. We still are focusing on some of these larger launches in our key market.
At future stage, once we are close to entering any new market, we'll keep everyone posted about it.
Okay. Thank you, team. All the best.
Thank you very much.
Thank you. Before we take the next question, we would like to remind participants, if you still wish to ask your questions, you may press star and one. The next question comes from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Thanks for the follow-up. So, just a couple of questions on the cash flows overall. So, we have done collections of INR 1,900 crore versus guidance of INR 6,000 crore. If I look at your presentation, we have pending collections of INR 2,200 crore from the ongoing projects. Another INR 18,000 crore worth of inventory you have sold from inventory launched since 2024. And then you have another INR 12,000 odd crore of sales expected in second half. How would you bucket your balance collections in these three categories: ongoing, recently launched, and upcoming? So that we can build that confidence in the numbers to come in second half in terms of collections.
See, from an overall perspective, Pritesh, ongoing and recently launched will give us numbers anywhere between INR 4,000-4,500 crore, whereas INR 1,500 crore will come out of the launches for the year. Where if you look at the overall numbers, we've done about 20%-23% of GDP terms launches as yet. Q1, we had done a project in Sector 71. Q2, there was no launch. Q3, Q4, we are planning two large launches. About INR 1,500 crore is expected out of new launches, whereas about INR 4,000-4,500 crore, anywhere in that range, is expected out of the existing set of projects. That's our plan for the year.
Sure. Bulk of that till now, I mean, INR 1,900 crore has come from ongoing and recent. While new launches, obviously, there was a large launch in first quarter. That would have contributed about INR 500 crore till now?
Not INR 500 crore. I think that's not the number which has come as yet. As of now, out of this INR 1,900+ crore, INR 1,960 odd crore, you could say about around somewhere in the range of 85%-90% has come out of the erstwhile inventory, whereas you could say about, yeah, approximate 10%. We can share the exact number. Between 10% and 15% has come from newer launches. As these launches mature over the span of time, that's why I'm saying that overall, about 25% of the overall collection is expected from the newer launches.
Got it. Got it. In terms of the spending for construction, you expect these numbers to remain same in second half and probably ramp up next year with the launches that we'll have in second half. How would you expect the overall construction spend for this year and OCF generation in this year?
Construction will go up. Not in a massive way. We spent about INR 900+ crore during the first six months, INR 940 odd crore during the first six months on construction. I think that number should be between INR 1,000 crore and INR 1,100 crore for the second half of the year. I do not think it will cross INR 1,200 crore, but it should be in that range of INR 1,000 crore-INR 1,100 crore for the year. With enhancement in collections in the second half, a lot of it will trickle down to the operating cash surplus for this year.
Sure. Got it. That's really helpful. Thank you. That's it from my side. All the best.
Thanks, Pritesh.
Thank you. As there are no further questions from the participants, I now hand the conference over to the management of Signature Global (India) for closing comments. Over to you, sir.
Yeah. Thank you, everyone, for joining today's call and taking out time. Thanks a lot.
Thank you.
Thank you.
Thank you, everyone. Thank you, sir. On behalf of ICICI Securities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.