Ladies and gentlemen, good day, and welcome to the Signature Global (India) Limited Q3 FY 2026 earnings conference call. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities. Thank you, and over to you, sir.
Yeah. Good morning, everyone. On behalf of ICICI Securities, I'd like to welcome everyone on the call today. From Signature Global management, as always, we have with us Mr. Pradeep Kumar Aggarwal, the Chairman and Whole-time Director, Mr. Lalit Kumar Aggarwal, the Vice Chairman and Whole-time Director, Mr. Ravi Aggarwal, Managing Director, Mr. Devender Aggarwal, Joint Managing Director and Whole-time Director, Mr. Rajat Kathuria, the Chief Executive Officer, Mr. Sanjeev Kumar Sharma, Chief Financial Officer, and Ms. Preetika Singh from the Investor Relations team. I'd now like to hand over the call to the management for their opening remarks and comments. Over to you. Thank you.
Good morning, everyone. It is a pleasure to welcome you all to the quarter three FY 2026 earnings conference call of Signature Global. Thank you for taking the time to join us today. I hope you have had the opportunity to review our financial results and the investor presentation shared yesterday. To begin, I would like to briefly speak about the broader housing and economic environment in India, which continue to support long-term growth. The Union Budget 2026 once again highlighted the government's strong focus on infrastructure and urban development. The increase in public capital spending to INR 1.2 lakh crore in FY 2027, representing a 9% rise over FY 2026, is expected to help speed up project execution and encourage greater private investment. Urban development continues to receive strong support, with INR 5,000 crore allocated each year for the next 5 year toward city economic regions.
Along with this continued focus on Tier 2 and Tier 3 cities, is helping create a new growth center. These steps will support planned urban growth, improve city infrastructure, and drive housing demand across emerging locations. Overall, the budget align well with the vision of Viksit Bharat by 2047 and supports steady and inclusive growth. Over the last decade, India's housing market has grown steadily, supported by rising income, rapid urbanization, and supportive government policies. Today, real estate play a important role in Indian economy, contributing around 7%-8% to GDP and acting as a key driver of infrastructure and urban development. According to a recent Cushman & Wakefield report, the Delhi NCR region witnessed a strong December quarter in 2025. New housing launches rose by 39% over the previous quarter and more than doubled compared to the same period of last year.
Gurugram led this growth, accounting for nearly half of total new launches. In the positive market environment, Signature Global remains focused on responsible and long-term growth. Customer satisfaction and more comfort are the top priority. As the Delhi NCR region falls in a high earthquake risk zone, we have recently entered in a agreement to use advanced earthquake safety technology across our high-rise projects, so our customer can feel safer and more comfortable in their homes. Our performance in the first nine months in FY 2026 reflects the strength of our business and the trust placed in us by our customers and investors. Our adjusted gross profit margin improved to 31% in nine months FY 2026, and 40% in quarter three FY 2026, supported by higher margin mid-income housing projects.
Building on a strong performance, we remain focused on executing our project on time, maintaining financial discipline, and delivering quality homes across our key markets. Our focus continue to be on steady growth and customer satisfaction, and creating long-term value for all our stakeholders. With that, now I'd like to invite our CEO, Mr. Rajat Kathuria, to take you through the company's financial performance in more detail. Thank you once again for joining us today, and for your continued support to Signature Global.
Yeah. Good morning, and thanks, everyone, for joining this call today. So overall, nine months have been good. I think activity level has stayed steady and more range-bound. But you know, we are seeing some sustained progress on multiple accounts, and I'll kind of you know talk through each one of them individually. So as far as launches are concerned, we started the year with comparatively lower levels of unsold stock. So, you know, it was important and critical to launch newer projects, and over the nine months, we've come up with two larger launches. The first one was in the first quarter itself, by the name of Cloverdale, and the second larger launch happened towards end of December by the name of Sarvam.
Both of these are large group housing projects, which we've launched with fairly competitive pricing and good locations in the, you know, micro market. But overall, adding on some of the smaller launches as well, we've launched close to 6.8 million sq ft during the first nine months, which in GDV terms is upwards of, you know, INR 104 billion. So we've created, you know, some reasonable supply over the last nine months.
The supply trend is expected to continue because, by the month of March, we were only planning to go whole hog with, like, 4 million launch, but we'll definitely be doing more than 2 million of launch in the month of March, which will again be, you know, should give us an additional GDV potential between INR 45 billion-INR 50 billion. So overall, we started the year with a guidance of about, you know, INR 170 billion worth of launches. I would say we'll be range-bound, you know, to that, with our launches definitely exceeding, you know, INR 150 billion. The launch, which is being planned, is also in the SPR market, and we are very closely and actively working towards it.
In terms of the sales, you know, for the last quarter, we did about INR 20.1 billion, taking our nine-month sales average closer to INR 67 billion. Sales was expected to be a little higher, but the launch of Sarvam happened just at the fag end of the quarter and, you know, given the pollution scenario and, you know, some of these bans in the Delhi NCR market, I think the customer movement was limited. We could have gone a little bit better on the sales, but, you know, I would say that we at least stayed range-bound with more than INR 20 billion of sales, which got clocked. We have, you know, inventory from Sarvam and from Cloverdale with us, which continues to be offloaded in the market in a gradual manner.
To break down on the sales numbers, we've sold about 1,700 units over the last 9 months, with an average unit price of about INR 38 million per unit. In square footage, we've sold close to 4.5 million sq ft, with an average realization crossing INR 15,000 per sq ft mark. The product which has been sold is fairly high on quality and specs, and you know, given the current land prices, we feel you know, it's a good compelling buy for the customers when they're getting the product at about 15,000 odd INR a sq ft. There has been some bit of rise in land prices and construction over the span of time, so the market's definitely a little above.
Since we want to drive good volumes, on the product front, you know, we try to stay as competitive on the product pricing as possible. But, to give the realization, you know, to put it into context, INR 15,200 per sq ft of realization is about 20% higher vis-à-vis the previous year. One of the key factors being that, last year, a lot of sale also came out of our township projects, which are outside of Gurugram. Whether it was Daxin or City of Colours, I think they also contributed to, to a fair bit of sales during the first nine months in previous years, along with some sales in Gurugram.
But this year, I think the composition of sale from Gurugram is higher, and that's one of the factors why, you know, the realization is almost more than 21%, higher than the previous year. But even on a like-to-like market, you know, individual markets also, we have seen an escalation closer to about 15% odd in each of our key micro markets. As far as total collections are concerned, the quarter was definitely better than the previous two quarters. We collected, closer to INR 12.3 billion, and even the current quarter, we're seeing, good collections. So I think, definitely, the second half of the year, as anticipated, will be much better than the first half of the year in terms of collections.
Overall, till date, we've like, till 31st of December, we've collected close to INR 31 billion from our customers. At this level of collection, as well, we've been, you know, created good, cash surplus, you know, cash profits, cash surplus, whatever, you know, term we may want to use. We've almost created a surplus of about 8.6 billion, 860 odd crores, in the company within the span of 9 months, which was primarily used for business development. We've added stock, bought some land from our JDA partners, wherein, you know, which happened where we used about INR 6.7 billion, and another INR 0.7 billion went in terms of approvals for, you know, forthcoming projects. So by and large, bulk of the business development has happened out of internal accruals.
Balance some money was used for interest payments, and there was a minor, you know, increase in the net debt position, which stays in that, you know, INR 10 billion sort of position. Individually, gross debt and cash and cash equivalents both have gone up. We've a little over INR 30 billion in gross debt and over INR 20 billion in terms of cash and cash equivalents, hence, the net debt position stayed in that, you know, INR 10 billion sort of a range. And, you know, we've been in this range for the last 2 years-3 years. We've despite the growth being done by the company, the net debt position is where it is.
To put into perspective the portfolio, you know, which we are dealing with, the scale which we are dealing with as of today, we've completed, you know, close to in excess of rather 16 million sq ft till date. There's another 13+ million sq ft, which is at advanced stages. You know, last quarter, there were a lot of restrictions, and we got very little days to kind of, you know, complete some of these projects. But the current quarter, we are anticipating almost close to in that, you know, 2 million sq ft of range of completions to happen within this, you know, ongoing quarter as well. So there's about 13 million, which is kind of getting addressed on a quarterly basis, with current quarter also contributing to a fair bit of, you know, completions in the company.
This 13 million put together has a GDV of about INR 98 billion, which will get recognized in, you know, the coming, 4-6 quarters. But besides that, and more importantly, there is almost close to 42 million sq ft, which is, as of today, almost getting equally sliced into halves. One is projects which we've launched over the last two years. You know, the category in the investor deck, which we've shared, is, you know, we've termed it as recently launched projects, which is close to 21 million sq ft. This consider launches starting from De Luxe DXP, which we launched around February, March 2024. From that launch, till date, we've done multiple group housing projects, whether it was De Luxe DXP, Titanium, Cloverdale, Twin Towers, Sarvam, and also two large township projects, whether it was, Daxin and City of Colours.
Across all these projects, we've launched roughly about 21 million sq ft on a very sustained basis. Every quarter, we've been adding supply and, you know, it takes its own sort of diligence, time, effort to, you know, in parallel, accumulate land, get approvals, come up with a project, and a product, you know, which well suits the customer requirements. But over the last two years, we very successfully launched 21 million sq ft with a GDV of close to INR 3,300 billion or INR 30,000 crore.
But in addition to what we've done over the last two years, we also have another 21 million sq ft with us right now, which has an even higher GDV, which will be in the range of INR 350 billion-INR 400 billion, almost like 35,000 crore-40,000 crore worth of your inventory something, land stage inventory something, you know, which we hold and will be launching over the coming, you know, 8-10 quarters. Bulk of this land is in, you know, is in a good position. It's, it's mostly kind of, you know, contiguous. There are certain approvals which are in place, the balance are being obtained. So it's not land which will take significantly longer than, let's say, next 8-10 quarters for us to launch.
Hence, if we go 2 years forward from now, you know, the last 4 years, we would have then launched almost projects worth, let's say, INR 65,000 crore-INR 70,000 crore, and the entire, you know, portfolio, which we see as of today, would have been like a, you know, cash-generating portfolio for the company. In contrast to this, you know, very rich, very prime land resource and projects which we've launched, there's a very limited, you know, net debt position in the company. So, given that the, you know, net debt position is low, we are fairly confident that, you know, within this calendar year, this net debt position should actually come down to a 0 level. Can't really comment on timing of it, but, very confident that this net debt level will come down to 0.
You know, while we continue to do more launches, that will help us in getting good cash flows for the company. In terms of the revenue recognition, I think we have completed projects worth INR 15 billion over the last nine months, but given that project completion tends to be lumpy in nature, we expect quite a bit of these, you know, completions to happen in the ongoing quarter. So this number could actually change, is expected to change significantly as we end the year. But the silver lining is that as our mid-income projects are, you know, are gaining a higher share in overall completions vis-à-vis the affordable projects, there are just few more affordable projects which are still to be completed. Our, you know, gross profit margin is surging past 31%.
We expect this to further to go up in times to come. As for the guidance for the year is concerned, one would notice that there is still a bit of gap between the current achievement and the overall guidance for the year. This is supposedly a good quarter for the company on various fronts, whether, you know, there's one large launch which is still pending, whether it's a sale momentum, given that, you know, weather is better and we have good, you know, inventory. So there are good level of site visits which are happening as of today, and hence we are hopeful that it would lead to good conversions. Collections are picking up. Last quarter was much better than the earlier two quarters, and we expect that trend to continue as well.
And completions, we are quite hopeful of good completions during this quarter. So I think we will largely cover the gap between the guidance numbers and, you know, the actual performance for this year. But, you know, there is no point preempting a particular number since we are very close to, you know, end of the year. But, yeah, I think, we are very positive given the business momentum and activity scenario across various, you know, supply and demand streams, that this gap will significantly come down by the end of the year. And, you know, all these numbers also, we should look into perspective that last three to four years, we've gone through a significant, you know, growth phase.
If you go back to fiscal year 2022, our pre-sales number used to be closer to like, you know, a quarter of what we achieved last year. So we've actually seen like a good close to 60% sales CAGR over the last three years. And, you know, given the opportunity, we are very positive on this, you know, good sales activity to continue in the region. Our positioning remains very unique. We do want to position ourselves as the preferred brand, you know, preferred choice of customers in this, you know, middle-income housing market in the Delhi NCR market, which is definitely starved in terms of good quality, you know, developments and coming from branded developers. So our strategy for coming, you know, years, is gonna remain, similar to address this, you know, mid-income housing market.
We are well poised to kind of, you know, tap the opportunity around it. Thank you very much.
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 touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset 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 Puneet with HSBC. Please go ahead.
Yeah, thank you so much, for the, for the, you know, color on the market. Just a bit more, if you can talk about what are the key changes in the market that you've seen from the start of last year till now, and how do you see room for price appreciation in your products?
Sure, Puneet. Thanks for, you know, asking a very important, you know, question. So, Puneet, if you look at the housing market within Gurugram, there was literally very little supply during 2014 to, let's say, 2022. For that 7 years-8 years, literally the market saw very little supply while, you know, a lot of hard infrastructure, social infrastructure, you know, related improvements were happening. And a clear trend also emerged post the pandemic, that a lot of people from Delhi and, you know, wanted to move to Gurugram. And that, you know, pace has been kind of, you know, that activity has been happening at a very, you know, kind of significant pace. So when supply started to roll out in the market, significant supply, you know, we were always doing some, you know, bit of work.
But as an industry, more supply came into the market during 2023, 2024, 2025, all of a sudden, you know, there was a price spike in the market because literally very little supply was available for a lot of demand, which was there for almost a decade. So there was kind of a euphoria in the market, you know, developers, including ourselves, you know, we were launching projects, and we were getting, like, four or five subscriptions for, you know, these projects. And it was a little scary because we weren't sure the quality of book which was getting created. So that's why we had to, you know, do deep profile checks of customers who are buying these units, you know, not to kind of give multiple units to any single individual.
So stuff like that, you know, was happening. But I would say there was kind of a euphoria in the market, and it was very inordinate for something like real estate, that on the date of launch, you know, there were multiple, like, subscriptions happening. I would say, there has been good supply in the market, and hence, the demand trends in comparison to supply have matured. Wherein, let's say, sharing an example, let's say we launched Sarvam. This was end of December, but, we opened up about, you know, 800 units for sale. And we managed to sell about 300+ units, you know, at the time of launch itself. We are also expecting more good sales around this project to happen within this quarter.
So vis-à-vis the number of units, you know, which the company is opening up for sale, so within six months, let's say, if we are able to sell 50%-60% of those number of units, is, is more like, you know, what one would relate to. And that's the current scenario where demand is steady, but not euphoric.
Okay. How are you viewing the pricing growth trends? Do you see further room like to like in your projects?
I think the current pricing makes the business reasonably profitable for us. We continue to state that, you know, our, you know, margins in the operating margins in the business are in that 35%+ range. So we've got reasonable amount of land tied up, owned rather, not tied up, you know, because bulk of the land which I talked about is land which is owned by the company, and there is a very minuscule portion which is actually in the form of any collaboration agreements. So as we are achieving these sales and collections, bulk of the money, you know, sticks in the company rather than it going out to any landowners. I expect price to move up, you know, in, in late single digits rather than, you know, going up in double digits for the next 18 months-24 months.
Okay, that's very helpful. Secondly, on the margin itself, you talked about an embedded EBITDA margin of 35%. But when I look at the reported gross profit margin, that's at 31%. How do you bridge that gap? I would presume embedded EBITDA would have some SG&A element as well into it.
Yes. So there is a huge gap between the per sq ft realization of what is getting completed vis-à-vis what is currently being sold. What you're seeing in the profit and loss account has, you know, even elements of affordable housing, which we used to sell at INR 4,000 or INR 4,500 per sq ft on a carpet area basis. Vis-à-vis, currently we are selling product at, let's say, INR 15,000 a sq ft on super built-up area basis. So there is a huge gap between the per squar feet realization, which is having an impact on the margins.
Understood. That's clear. And lastly, on the approval cost front, now you've started, you know, last two quarters, segregating out your approval cost between what is for new land, what is for under construction. But if I broadly think about your middle income projects, which is dominant for you, what would be, you know, the share of land cost, and what would be the share of approval cost for you?
See, historical land cost for us is staying in that, you know, 10%-12% margin. But you should not... So including approvals also, which is not, like, very high, but yes, we started distinguishing it because, you know, we've been doing multiple or back-to-back launches, so we thought it's, it's more akin to, you know, land spend rather than construction. So that's why any project which is already spent, launched, and any amount being spent on approvals, you know, we are classifying it, along with construction. Whereas for any unlaunched project, any approval cost which is being spent, you know, we are categorizing it in the nature of land, related expenditure. But land and approvals put together, you know, I think an assumption of about 15%-odd of top line is, a fair assumption.
Okay, so approval is still 2%-3% only in that sense, not, not a very big number for you yet.
No. No.
Okay. That's very helpful. Thank you so much, and all the best.
Thanks, Puneet.
The next question comes from the line of Lakshmi Narayan with Tunga Investments. Please go ahead.
Yeah. Thank you. You talked about Sarvam, and that there has been, you know, 800 units were on offer, and you could actually get around 300 bookings on day one. Can you just elaborate on that project in terms of how many units are totally there? I think there are around eight towers you intend to build, and how many units and over how many, you know, I mean, what kind of tenure or what? When do you intend to, you know, complete it? Just give some color on that. And whether you, whether the, the. You mentioned that only around 50%-less than 50% of the people booked it.
Now, when you, when you compare it to the similar project in a similar sector, which is the De Luxe DXP, how was it in, when you actually launched in, between March 2024? It will be helpful to understand from you.
Sure. Sure. So first of all, you're absolutely right. De Luxe DXP and Sarvam are in the same, you know, micro market. We hold or we are executing multiple projects, within that sector, just off Dwarka Expressway, called Sector 37D. And we'll be coming up with, more supply within that sector in times to come... So one key, you know, differentiation which we started doing starting this year, is that we've started looking at overall community enhancement. As far as, Sector 37D is concerned, the first project was called De Luxe DXP, second one is called Sarvam. And we've started positioning that market as DXP Estate, wherein we do intend to bring in more elements to enhance community living, you know, for our residents.
Likewise, even in the SPR market, where we own more than 90 ac of land, and we do intend to come up with back-to-back launches, you know, we are focusing a lot more on, you know, community enhancement. And we'll be adding elements to improve the, you know, general, you know, community living/social infrastructure, you know, around these areas.
Mm-hmm.
As far as specific response in both of these, you know, projects is concerned, yes, De Luxe DXP was a project launched back in February/March 2024, wherein we did actually get 5x number of subscriptions as we launched the project. So if I'm not wrong, there were close to about 1,000-odd units, and we got more than, you know, more than 5,000 applications against that particular project. So that was absolutely, you know, euphoric and, you know, we actually had to, you know, take services of a large consulting firm to do profile checks of, you know, the customers who applied for it. And we actually did it. You know, we hired BCG and got profile checks done for these customers that how come? You know, what is it? Are these serious customers? What do we do with these applications?
So it was a bit of a headache in that sense as well. But, yeah, a good problem to have. As of now, when we've launched Sarvam, this is spread over 14 ac, about 3.6 million sq ft, and having about 1,800 odd units, which we've launched. The per square foot price has gone up. De Luxe had a base price of about INR 13,000, whereas this time the price is, you know, edging closer to INR 16,000, including, you know, cost for other services. But in order to keep that mid-income sort of positioning, we've reduced the unit sizes. So Sarvam technically has smaller unit sizes, vis-à-vis De Luxe DXP.
Mm-hmm.
You know, the unit sizes are closer to 2000 sq ft on a super built-up basis.
Mm-hmm.
And that's why, you know, overall, the project will take about close to five years to get completed. So we have ample of time to, you know, launch the balance 1,000-odd units. The ideal situation would be that, over the next 12 months, let's say, we've managed to kind of, you know, show some good construction progress on the project, you know, appoint good quality contractors, and, you know, that's when we reposition and balance the balance, about close to 50% of the inventory, which we've held with us for the time being. So that's the overall plan and strategy around Sarvam. But the entire 3.6 million is a single phase development. We're not phasing it out.
We'll complete it as one single project, and our targeted timelines is close to five years for the same.
Got it. And then of the 1,800 units, you have actually asked for around 800 units. And, what has been the fill rate so far? I mean, how many units have been booked in that quad?
Till thirty-first of December, I think we had filled about 318 odd units.
Out of the 800 you had actually proposed?
Yes.
And when will you augment the other one? Because it's going to be a one, one location, right? So when will you augment another 1,000-odd units here?
So we would like to show some progress on ground rather than just kind of, you know, timing gap. There should be, you know, differentiation in what is being offered to the customer, because the usual market trend is the second phase, you know, comes at a slight premium to the initial launch price.
Mm-hmm.
And of course, a compressed payment timeline for the incoming customers. So it has to be in line with certain, you know, project level progress. So as we, you know, start developing these project and showcase some, you know, success around it, that would be ideal time, we kind of, you know, do like a good phase to launch, of, you know-
Yeah.
or basically putting the balance units up for sale.
In terms of the other project, which is the Cloverdale, SPR-
Yeah.
When you launched that in June 2025, what has been the response there, you know? I mean, and has it dramatically changed when you actually looked at Sarvam?
No, there's no dramatic change. You know, that was a smaller project, so we didn't hold back any units for sale as we launched it. So that was like a single launch. That was about 1.7 million sq ft. And, you know, the response—the. So trend is similar. See, as we are launching a project, definitely there are certain or a rather a good healthy percentage of units which are, you know, being absorbed right at, in the same quarter, in the same month at the time of launch. But given that it's real estate, you know, it's good that it's, you know, then thereafter, we are doing sustainable sales and, it gets absorbed over a span of time.
Fair enough. I just want, can I just have another two questions.
Sir, I would request you to please come back in the queue for further questions.
Okay.
Yeah. Thank you.
Thank you.
The next question comes from the line of Pritesh Sheth with Axis Capital. Please go ahead.
Yeah, good morning, and thanks for the opportunity. Just, you know, a couple of questions, I think starting with where we left on Cloverdale. So while we are targeting to launch another phase at SPR, just want to understand how much inventory is left in Cloverdale. And overall also, like, whatever we have launched since last couple of years, just 21 million sq ft, INR 30,000 crore GDV that you highlighted. You know, how much is the inventory in that total portfolio? Just trying to understand why, you know, despite having a good amount of inventory, probably why are we, you know, rushing on launches? Are we, you know, obviously providing some differentiated offerings, which won't cannibalize our existing inventory? So just trying to understand strategy there. Yeah.
Okay. So, Pritesh, see, every project does come with certain unique sort of, you know, features attached to itself, and that will remain by and large, you know, the strategy going forward. Rather, I'll put things differently as far as Sector 71 is concerned. See, we are amongst very few developers who own reasonably large quantum of inventory in this market. You know, there's a larger developer who owns lot of area, you know, around Sector 76 in Gurugram. We own significant amount of land in Sector 71. Besides, you know, as people are coming up with only smaller project launches, you know, spread across 4, 5 odd acres. But no one's holding significantly larger quantum of land, and hence, cannot very easily create supply.
The larger trend is that, see, we came up with Titanium in June 2024, with a launch of about 2.1 million sq ft. Bulk of that inventory has now been absorbed. Then we came up with Cloverdale back in June 2025. That's also getting absorbed at a good pace. I can check on the exact numbers and share it with you, but I think, if I'm not wrong, more than 400+ units had been offloaded by the end of the quarter, December. So there is not, like, significant amount of inventory which is left over. There is definitely some, but not significant. And hence, you know, we do intend to. And there's, like, differentiation, like Titanium had larger sized units. Now, Cloverdale had, you know, comparatively smaller sized units.
So we feel there is market, there is a certain absorption, you know, which happens in each of these markets at a particular pace. These are serious customers coming and buying units of, let's say, INR 4 crore-INR 5 crore each. So, we do feel the need of coming up with another project with, with its own differentiation, and, that's why we are coming up, you know, with an additional 2 million sq ft in a couple of months. Maybe lesser than that.
Sure, got it. And, with the kind of performance on pre-sale side that we'll have, this year, right, which is expected to be similar last year, now, are we drawing a line in terms of, you know, how much we can do in Gurugram? Around INR 10,000 crore, that would be the peak of the number that one should expect, because I think, markets from here on, will keep getting matured, right? So, for growth, do we think that, now is the time we start exploring other markets beyond Gurugram, for growth? Yeah.
So, Pritesh, good question. We've grown fairly quickly, and within a short span of time, we've actually, you know, come to this level of INR 10,000-odd crore of sales, while staying focused in the Gurugram market. In fiscal year 2022, we used to do about INR 2,600-odd crore of pre-sales. That number is kind of almost quadrupled over a span of, you know, 3 years-4 years. So, definitely INR 10,000 crore of sales for a, you know, an individual market is a good number to achieve. We have certain plans to showcase, you know, how we are taking the growth forward. So, you know, you'll, you know, allow us some time to kind of, you know, share more details around it.
Mr. Pritesh, does that answer your question?
Yes, sorry. I have one more question. Yeah, one more question. Just on the operational and financial parameters.
Um, yes.
You know, we have, you know, talked about pre-sales, that we would lag that in terms of what we guided for. You highlighted about the launches as well. But collections and revenue recognition is still, we know a lot to catch up in Q4. You know, how should we see those two numbers also progressing? And specifically on collections, you know, I think it's been the second year where we have missed our guidance. If you can highlight, you know, you know, what were the key, key parameters or things that we actually lagged versus what we thought at the start of the year? Yeah.
... So see, one factor which has impacted collection, you know, a little during the current year, while we anticipated to achieve about INR 60 billion, is that, you know, on the construction front, see, construction and collection go hand-in-hand. On the construction front, you know, this year we had like, you know, a very heavy monsoon season, and then immediately backed by a very, you know, heavy, you know, pollution season, you know, in the Delhi NCR. And we've actually lost significant number of days during the current year on the construction front. And, you know, that is one of the factors why I would say this, you know, collection did get pushed by a quarter, so to say, you know. So we're getting good last one or two months on the construction front, and there's very heavy activity as far as project execution is concerned.
You know, even on the monitoring front, we're monitoring some of these project completions very closely. So I would say primarily it's driven by the level of construction activity which got impacted. So both you will see a change, you know, in tandem with each other. So if this quarter, for instance, is great in terms of construction, of course, you know, the collection activity will also improve. So that's why, you know, we are hopeful that both of these, you know, factors will see significant improvement by the time we end the year.
How much you can catch up on collections and revenue recognition, both? If you want to put a number. It won't be, you know, what we have guided for, but how much we can catch up?
I, I'll prefer to refrain, Pritesh, to put a particular number right now because we are targeting it to, you know, catch up as much as possible between actuals and guidance. You know, I'll refrain from giving a particular number at this stage, but yes, I think it will look much better by the end of the year on both the fronts.
Sure. Got it. Thanks. Helpful. All the best.
Thank you.
The next question comes from the line of Murtuza Arsiwala with Kotak Securities. Please go ahead.
Yeah, hi. I guess a lot of questions on sales and launches have been addressed as well as the guidance. I think one more piece, which I'd put, some clarity on. If we look at the adjusted EBITDA number, you know, you've talked about, about INR 600 million for nine months. The first quarter was INR 1 billion, so it almost seems to say that the second and third quarter this year, the revenue recognition, which has been weak, there is an EBITDA loss even on an adjusted basis. How should we read that number, really?
So, Murtuza, I'll, I think, you know, you understand, see, it's all, very... You know, a couple of projects getting completed, and it changes the flavor absolutely, you know, in a given quarter. And last quarter, we did see a lot of impact due to, you know, these GRAP norms and due to construction activity, you know, stopping multiple times. And what happens on ground is that, let's say, once, you know, the GRAP gets implemented for, let's say, 10 days, 15 days, you know, the labor, you know, gets demobilized. Then to again, kind of, you know, catch up to the same quantum of labor, you know, takes its own sweet time. So, you know, we've definitely lost, reasonable number of days over the last, you know, 3 months in terms of project completions.
At the current level of revenue recognition, which is only INR 15 billion, I think the only relevant parameter to see is gross profit. Till the time this number doesn't cross, let's say, INR 25 billion, you know, or at least I would say INR 22 billion-INR 23 billion, it will remain PAT neutral, for that minimum quantum of completion has to happen to give a rightful picture at EBITDA and PAT level, and we are actually striving to achieve it. To, you know, go past these benchmarks, you know, and come closer to, let's say, you know, INR 30 billion and above in terms of revenue recognition, that's when some of these SG&A costs get comfortably absorbed, and, we are able to show, you know, reasonable profits or show, show the rightful, you know, picture of the company in terms of EBITDA and PAT.
But, yeah, it's, it's more to do with the quantum of revenue which got recognized, and that's why you're seeing these numbers going in the year.
Sure. Sure. Just and again, at the cost of repeating on the pre-sales number, but, hopefully you cover some ground in the fourth quarter. But given where we are and the market conditions, any early indicators of how you are thinking of FY 2027? FY 2026 is almost over. Also, on that front, you know, you've always maintained the three key market focus. You've got the three large sort of focus areas. Any aspiration to look, you know, expand that horizon so that, you know, that growth engine could be more comfortably maintained as opposed to digging deeper in the same micro markets? So those two questions, any early indicators for 2027 and, you know, looking at more micro markets than you are broadly present in?
So, see, market condition, to us, looks better than what it was, you know, a couple of quarters ago. So don't want to preempt how, you know, what else of our future has to unfold for us. But, yeah, I think market conditions definitely, the sentiment looks better, here in the micro market with the way what it was, you know, one or two quarters ago. As far as, you know, growth plans are concerned, definitely, you know, as we end the year, we, we'll prefer to elaborate on that basis, you know, where we close, you know, this year. But there are, you know, plans in terms of, unit expansion and how we, very rightfully deploy the kind of cash flow which we expect the business to generate.
Because, Murtuza, just reiterating, you, you understand this very well, but, you know, all these projects which have been launched and which are about to be launched, you know, almost adds up to about INR 65,000 crore. It's like, you know, INR 650 billion of launches, which we are planning, and bulk of the land is owned by the company. So, you know, it's not that. So whatever cash is supposed to accrue will be in the company, and that's why, you know, we've never attempted to do any subsequent fundraise from the market. You know, we just did one fundraise of, you know, INR 600 crore of primary inclusion back in calendar year 2023 when we got listed.
So we've never felt the need to really kind of, you know, go back to the market in subsequent fundraise because operating cash flows have been strong. And we are planning out on, you know, what would be the best course, but, yeah, we'll need some more time to kind of, you know, elaborate on this particular point.
Sure. Thank you.
Thanks. Thanks, Murtuza .
The next question comes from the line of Eesha with Axis Securities. Please go ahead.
Hi. Thank you for the opportunity. I think most of the questions have been answered. One I would like to ask is, for Sarvam, we saw a 14% kind of sales on launch. So going forward, is this the kind of, run rate that we're looking at for launches? Or are we seeing, a further maturity in the market where we could see this 40% drop? Would be the first question. Thanks.
So, Eesha, just to correct, I think, so this is the units which were put on block, and given that the project was launched towards the end of the quarter, we launched this, I think, around the twentieth of December. So we've managed to, you know, sell about 40%-odd units, as an approximate basis. I think this is a fairly mature trend. There is a massive undersupply of housing units in the Delhi NCR market. If you look at the overall, you know, metrics vis-à-vis the population levels and the kind of actual supply which is available on ground, you know, the supply isn't too much, and that's one of the primary reasons why prices continue to go up.
So you're seeing around a 20% rise in our realizations, and even on the same mark-to-market basis, it's like 15%+ rise. This is primarily happening because there is a demand-supply gap, which I think is playing to our favor at this stage. But even if that, you know, realization was to go up at a lower pace, we are absolutely good with it, given that our land cost is fairly competitive. But we feel that this trend will continue, wherein at the time of launch, one should not expect more than 30%-40%, you know, offtake of the product. And the balance happening, you know, over the sustained period of project development.
Got it. Got it. And the second question would be, we've seen, like, a 60% growth CAGR, like you mentioned in the commentary, over the past several years. So, what is the kind of strategy or what is the growth rate, if you can put a number to it, in the coming years for pre-sales that we're looking at? And, what are the kind of drivers that would ideally drive this pre-sales growth for you?
So, see, in terms of sales going forward and the drivers, I think, So I would say at the current levels, one should be expecting more like 15%-odd growth, because we had that low base advantage and literally no supply in the market, and that really fueled the growth, which has happened over the last 3 years-4 years. At the current size and scale, I think, it's not practical to achieve that kind of growth rate. Second, in terms of drivers, I think definitely the ability to launch newer project is the biggest driver.
Our strategy in terms of achieving growth at current scale and having enough, sort of land resource, you know, go hand in hand, and that's why, you know, we feel achieving like a more matured, 15%-odd sort of, you know, sales growth, is doable. This year may be like, you know, similar to previous year. No denial, we are not saying that, you know, we are achieving guidance this year. Yeah, I think this will be similar to previous year. This is on back of very good 3 years-4 years, you know, almost growing at 60%-odd, 58% for the last 3years-4 years. Yeah, going forward, we feel that 15%-ish growth is something which can be undertaken.
Mm-hmm. Okay. Thank you. Thank you, and all the best.
Thanks, Eesha.
The next question comes from the line of Parvez Qazi with Nuvama Group. Please go ahead.
Hi, good morning. Thanks for taking my question. So two questions from my side. I mean, you mentioned that in both of the launches this year, Cloverdale and Sarvam, we had reduced the unit size compared to the similar launches that we've done last year in Titanium and in De Luxe DXP. You also mentioned that you expect prices to increase by maybe high single digits. So going ahead, what are our thoughts on the ticket size? Is there scope to further reduce the unit size, or do you think the overall ticket size will increase in line with the price increase for you? That's the first question. Second, of the INR 3,100 crore collections that we have done in 9 months, what proportion would have come from the projects that we have launched in FY 2026? Thank you.
... So in terms of unit size, always, I don't think there is massive, you know, scope left. 2000 sq ft of super built-up is something, you know, which is sweet spot in the Delhi NCR market. People do largely prefer getting three bedrooms, rather than, you know, smaller sizes. So, so that's kind of a sweet spot at about INR 1800-2000 a foot. Hope going for further will be lesser. Maybe we can. If need arises, we can reduce the, you know, unit sizes by another 5%-7%, but not higher. And I don't think we don't want to get into that no preference zone of customers also by really reducing the unit sizes further.
So, if the escalations tend to happen in this, you know, late single digits, that's like, that's an ideal situation. You know, the product remains by and large, affordable by the customer. We are able to achieve good volumes and, you know, turn the current land resource into very active cash flow. So, you know, that's the ideal situation which we want to foresee for our business, you know, over the next two to three years. So that's... We're trying to, you know, stick to it. So the second thing which you asked, okay, out of INR 31 billion, what is the proportion of these two project sales? I think we can, get back to you. You can write to us, and we'll get you the exact number for that.
Sure. Thank you.
Thanks, Parvez.
Thank you. A follow-up question from Puneet with HSBC. Please go ahead.
Yeah, thank you so much. So just on the Cloverdale side, in last one year, how much price appreciation have you already seen in the project?
So, Puneet, I'll prefer to compare Titanium versus Cloverdale, because those are two phases of one larger project. That's about 22 acres of land, as part of one single license from the government, which has two separate phases. I would say between the two phases, between June 2024 and June 2025, we saw about a 15% escalation.
Okay. And 25 till now, any data based on your... what you hear from the secondary market?
We've not really, you know, changed our prices on the, in the primary market. So they're by and large, you know, similar.
Okay, you've not changed them. And any approval-related issues? There are construction issues which you talk about, but any approval-related issues that is hurting the pace of launch, or that's not a problem in NCR right now?
No, that's not an issue.
Great. That's very helpful. Thank you so much, and all the best.
Thank you, Puneet.
Thank you. The next question comes from the line of Akash Gupta with Nomura. Please go ahead.
Hi, am I audible?
Yes.
Yeah, yeah, Akash, go ahead.
Yeah. Hi, thank you so much for the opportunity. So I was reading your operational update, and I saw this line: "The overall market environment has turned softer, and that has impacted us." I wanted to understand that, during the beginning of the year when we were setting our guidance, what was the launch performance that we were expecting from our projects, and how has that changed, and that's why we are missing our guidance? So, just some thoughts there.
Yeah, sure, Akash. That's a, you know, a good way to, evaluate start of the year versus the current commentary. So see, we started the year with a situation where literally we had very little inventory or meaningful inventory. You know, anything and everything which was getting launched was being absorbed. Okay? Which we anticipate to continue over a longer term basis, because, see, every city in the country, and if I have to talk in more details about the Delhi NCR market, it's almost like a 40 million population people with, with reasonably higher per capita, you know, GDP, situation. So the purchasing power is good. We attract a lot of customers from, you know, hinterland as well, from, you know, Delhi, which is fairly rich in terms of, you know, real estate ownerships.
So till the start of the year or rather the last year, the situation was that as we're launching a project, you know, it is getting oversubscribed, and launch was looking like a big challenge, which we addressed. You know, we did fairly large acquisitions over the last 2 years-3 years, like, you know, acquiring land parcels in Sohna or something, creating a very market position in Sector 71. At the time, let's say 2 years ago, 3 years ago, when land prices had not spiked. You know, land prices have really gone higher over the last 2 years-3 years, but we were lucky to kind of, you know, pick a lot of land towards before, you know, it started escalating in the manner it has done. So the only challenge which used to look at the...
Which we used to foresee at the start of the year was that, you know, one should be able to launch the project. Now, that's been the case with, with multiple players in the industry, and supply levels have improved across, you know, the spectrum. So we've managed to now come up with supply on a sustained basis. Like, every quarter we've been, you know, launching projects. And I would say the supply-demand dynamics have, you know, come in some sync with each other.... Till last year, it was like literally very little supply and lot of demand, but now I think prices have gone up. Demand and supply are in somewhat balanced situation with each other. But at the same time, land prices have also gone up, and that makes it even tougher for people to come up with sustained supply in times to come.
You know, there was supply coming in over the last 1 or 2 years from some smaller developers as well. People who are, let's say, holding 5 ac, 10 ac of land, and, you know, they were kind of launching projects in Gurugram. But with growth in land prices, you know, it's become tougher for, you know, such supply to continue. So in a way, as of when we say the market is softer, it's only in a relative context, that in context to the previous year, definitely, you know, the market has softened. Last 1, 2 quarters rather, were also not very good in terms of, you know, general macro headwinds, global headwinds have been there. There've been layoffs which have happened in the market, and, you know, all markets in their own way get impacted.
We had, like, a very heavy monsoon and very heavy, you know, pollution situation. So last one or two quarters in general, in terms of whether it is a macro, you know, environment or in some of these, you know, micro factors, weren't very supportive for the business. We've been working to create continuous supply because, you know, it's not that we are sitting on very large, you know, stockpile at this point in time. We had very little unsold stock at the start of the year, and we still have, like, not very high level of, you know, supply available to us, in each of the micro markets. So that's why this softening of market is more relative in context, you know, than in general parlance, you know, so to say.
Just to follow up on that: so when we were setting up our guidance, is that, like, we were expecting, like, our Sarvam launch to sell 60%, 70% or maybe 80% at launch, and we have done 40%, because 40% is a decent number. So is that what we were planning? Like, we, we will sell 70%, 80% at launch for Sarvam, and that's how we'll reach our guidance?
Yes, that's correct.
Understood. Thank you so much.
Thanks.
Thank you. A follow-up question from Lakshmi Narayan with Tunga Investments. Please go ahead.
Yeah, two questions. One is, you mentioned that, you did some survey in terms of, whether people are genuine buyers or not. And we also hear a lot of speculation that is happening in the NCR market. So, do you actually track as to how many are actually genuine buyers, like people have actually taken a home loan, and therefore they will pay up? Or, I mean, how that has changed, do you actually ensure that people buy it, and not cannot, they cannot transfer? Is there a way in which you have some process where you avoid speculation, which is just paying a token amount and then waiting for the price appreciation? That is one question: what is how you have changed your process, especially with Sarvam, has anything been changed?
Second is that, you know, who is the contractor for the 37D project, both the De Luxe and the Sarvam you have launched? Is it the same, who's handling the project in terms of construction? And the last one is that if you look at that 37D area, is it sufficiently served, or we are actually really the number one builder there, and there is definitely a paucity of supply, which makes a project even more, you know, appealing to our end consumers. So these are the three questions in terms of Sarvam.
Sure. So, Lakshmi Narayan, thanks for asking these questions. So, see, in terms of short-term investors/flippers, if I may use these terms with regard to certain category of investors who at times participate in real estate market. And yeah, I agree, you know, Delhi NCR is more defamed than some of, you know, the other markets in this context. But I think whenever you see, you know, price surge, you know, taking place, so like, you know, a lot of... To, you know, put an analogy, let's say there's a lot of, you know, movement in a share price on a daily basis. You know, of course, you know, you have these, you know, trader mindset, you know, investors who do get very active.
Given that we are not seeing a very sharp change in price, you know, it's fair to assume that some of these actors are showing less activity, and that's what I would assume as some of these, you know, recent launches are concerned. That since, you know, price is not moving very differently, that, you know, the activity is at almost very low levels as of today.
No, my question is that-
As well as-
Sorry, my question is, what kind of process you have put in place to weed out speculation, and therefore, let's say somebody wants to, you know, you ask for a call for the next, amount, they actually say, you know, "We don't want to pay," or something like that. How do you ensure that the speculation element is actually weeded out at the start? What process change you have made?
See, there are certain standard practices, for instance, okay, let's say someone wants to use the product for endings or for an investment. Beyond a level, we can't weed it out technically. But let's say if the person does not pay up in time, you know, those units will get canceled. So we have a simple process, you know, there's a particular payment plan which is put forth, and it's fairly standard. It's not that, you know, we'll come up with very complex or multiple sort of payment plans. You know, there's usually a singular payment plan, you know, which is being offered to almost everyone. You know, let's say a project is getting launched in December, so there'll be a construction-linked—there'll be initially a time-linked plan and a construction-linked plan, which is in place.
In case those payments do not turn up in time, you know, those units will get canceled. So that's like, you know, on the face of it, we cannot judge whether someone is a, you know, an investor, end user, flipper. You know, you'll have to do a leap of faith and, you know, go ahead with that, transaction. But at times, there are things which come up, let's say, you know, if, let's say, out of some private limited company, let's say, someone's trying to book, let's say, three units, then of course, you know, it will catch our attention and we'll try to, you know, not encourage any such sales.
Let's say whether it is, you know, an X customer or Y customer, you know, we'll go ahead with those sales and see the performance of that customer basis the collections which are demanded.
Okay. Then who is the contractor for both these projects, 37D?
We've awarded Ahluwalia Contractors for De Luxe DXP, and-
Mm-hmm.
and Sarvam will be, you know, similar pedigree. We are in process of finalizing.
I mean, Sarvam is not... Is it you have given to [LX]? Who you have given Sarvam to?
We are in process of finalizing the contractor.
Okay.
But it will be similar pedigree, you know, someone as capable, whether it is Ahluwalia or, you know, another contractor, but something, someone same pedigree. Because these are, you know, high-rise developments and good premium products coming from Signature Global, so we would want to ensure that they're best in class in terms of the developments.
The last question in terms of the micro market, how are we a high-grade developer in that area, or what kind of competition you see in that 37D?
So see, 37D, in terms of geography, is just off Dwarka Expressway. And I don't know whether you've got a chance to ever visit the micro market, but this is like a phenomenal infrastructure development, which, you know, the city, you know, the entire, I would say, the Delhi NCR market has seen over the years, it's probably one of the best highways which has been developed technically within the city. It's almost like an elevated highway for, you know, like a 28-km stretch, and really cuts down on time between parts of Delhi, which is more towards southwest and West Delhi to, you know, Gurugram. It really cuts down on time. So it's a phenomenal infrastructure development which has taken place.
Sector 37D, in terms of location, is midway between start and end of this highway, closer to Gurugram than to Delhi. But, yeah, you know, from Delhi, it takes hardly, like, 10 minutes if you're on the highway to reach Sector 37D. And it's a sector which has seen a lot of developments. It's a large sector, almost spread across, you know, 400 ac-500 ac of land, is there in the sector. And we've been developing projects in tandem. You know, we've done affordable projects. Then, as things progress, we've done, you know, some low-rise developments, and now we are doing more premium developments very next to the highway itself. So, we are a relevant, you know, player in this entire Dwarka Expressway market.
Almost like 15%-20% of the supply which comes in this market is from Signature Global. Our positioning remains simple, that, you know, we offer good quality projects at product at a competitive price. So that's like the positioning we play with in order to achieve good volumes.
Thank you, sir. Ladies and gentlemen-
Thank you very much.
That was the last question. I now hand the conference over to the management for closing comments.
Yeah, thank you very, very much for your time today, and, you know, we look forward to this conversation at the end of the year, where we are actually hopeful of, you know, having closed out on a fair bit on the guided and, you know, the actual performance numbers. But we look forward to seeing you all in a couple of months over that call. Thank you very much.
Thank you.
Thank you. Thanks a lot. Thanks, sir.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.