Ladies and gentlemen, good day and welcome to the Signature Global (India) Limited Q1 FY 2027 earnings conference 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 this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Adhidev Chattopadhyay. Thank you, and over to you, sir.
Good evening, everyone. On behalf of ICICI Securities, I'd like to welcome everyone on the Signature Global call today. As always, from the management, 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, the Managing Director, Mr. Devender Aggarwal, 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. Preetika Singh, Head of Investor Relations. I'd now like to hand over the call to the management for their opening remarks and comments. Over to you. Thank you.
Quarter one FY 2027 earning conference call of Signature Global. Thank you for joining us today. I hope you have had the opportunity to review our financial results and investor presentation shared earlier today. India's housing market continues to be supported by a strong macroeconomic environment, sustained infrastructure development, supportive government policies, and rising urbanization, all of which are driving long-term demand. The center's recent advisory directing state RERA to grant a four-month extension for eligible projects impacted by the Middle East conflict further reflected a proactive policy approach towards the sector. Combined with the evolving homebuyer aspiration and a growing preference for quality development, these factors are creating significant growth opportunity for organized real estate developers. According to a recent report of Cushman & Wakefield, 18,470 residential units were launched in Delhi NCR during H1 2026, making a 10% year-on-year increase.
Gurugram retained its position as a premium residential hotspot, accounting for 74% of all luxury housing launches. Additionally, the average launch price of homes in Delhi NCR rose 24% year-on-year in Q2 2026, reflecting sustained demand for premium housing in the region. Against the positive backdrop, Signature Global continued to increase its presence across the residential macro market while expanding its diversification strategy. During the quarter, we entered in a branded residence segment through our collaboration with Lamborghini for a premium residential project in Sector 71 on Southern Periphery Road, Gurugram. This launch aligns with the rapid growth of the branded residence segment, which industry estimates projects will expand by nearly 60% by 2027.
Driven by the rising demand for premium and experience-led living, the strong response to the first phase of sales further confidence in this segment, and we will continue to pursue similar opportunities that align with the evolving customer aspirations. The quarter also reflected steady operational progress, healthy demand across our projects, improved sales realization, and sustained momentum in our core markets. This performance was supported a very healthy project execution, improved operational efficiency, and successful monetization of our portfolio, reframing the strength of our business model and disciplined approach to the sustainable growth. Looking ahead, we remain optimistic about the long-term outlook for the housing sector, particularly in Gurugram and the wider NCR region. Our focus will continue to be on timely delivery, project delivery, customer certainty, financial discipline, and creating long-term value for all stakeholders.
With that, I would now like to invite our CEO, Mr. Rajat Kathuria, to take you through the company financial performance in detail. Thank you once again for joining us today and for your continued support of Signature Global. Thank you.
Thank you, Pradeep Ji, and thanks, everyone, for joining today's call. Digging a little deeper into details. During this quarter, we did a fairly good launch of this group housing and apartment project development, wherein we did a tie-up with lifestyle brand, Tonino Lamborghini. This is a reasonable-sized project, more than 12 acres in size and more than 2 million square foot in terms of super built-up area. We launched the project at the highest ever price we've achieved ever, which is a little above INR 22,000 a foot. Hence, taking the GDV value in excess of INR 4,000 crore, about INR 44 billion, to be precise. Overall, the project had more than 800 odd units. We opened up about 400 odd units, for the first phase of sale, and more than 300 + units were sold.
We are fairly enthused that at these price points, we got a very strong response from the market. Even this needs to be looked upon in the context of the macro headwinds which we were witnessing throughout the first quarter with the Middle Eastern war. There were every day bad print, bad media stories getting covered, currency devaluations being talked about, et cetera. Given all of that, I think, we were very happy with the way the project launch happened and performed, and it's satisfying in the way it has happened. We'll be planning more launches for the year. Our overall guidance stays firm to come up with new launches worth INR 150 billion for this year. There are more launches planned during the third and the fourth quarter. More around Diwali, there's another launch which is getting planned.
We should by and large, be able to achieve it. There's a launch in the fourth quarter, which is planned. We look comfortable around our annual guidance of new launches of INR 150 billion for this particular year. I would also like to point out that if we look at the previous eight to nine quarters, we've consistently been launching projects across categories and across markets within Gurgaon, whether these are larger townships where we launched two large townships, one of 125 acres, the other of 140 acres. Consistently launching group housing projects, starting from Signature Global De Luxe DXP to Signature Global Titanium SPR, Signature Global Cloverdale SPR, and Signature Global Twin Towers DXP, and now Tonino Lamborghini Residences. All these launches have been done in good tandem because our fundamental thesis and learning of working in this market is that it's hugely supply-constrained.
Gurgaon market saw very little supply creation happen between 2014 and 2022 at an industry level, that created a vacuum. The demand for new homes is significantly high, we feel the supply constraint can be met only by consistent supply, which Signature Global has been working upon over the last few years. As far as the numbers go, we've done close to INR 2,000 odd crores, about INR 20 odd billion of pre-sales got achieved. Given our launch pipeline, we stay confident of achieving about INR 100 billion of pre-sales for the current year. This can be looked at in multiple ways. I think 20% of the target got achieved in first quarter itself. Usually, quarter three tends to be a good quarter in North India, with more launches planned around that time, we are feeling comfortable with INR 100 billion target for the full year.
As far as the price points, realizations, and collections go, we achieved a per square foot realization in excess of INR 17,000 a foot. For the whole of last year, this number stood at a little above INR 15,000 odd a foot. We've grown significantly in terms of price per square foot, which is primarily driven by more premium launches. A premium launch within this first quarter, that's one of the primary reason why the per square foot realization's gone up. Even in general, in Gurgaon, we are seeing, at an industry level, people getting an inflation plus level increment in selling prices. Primary reason for that being that demand is outpacing supply and demand is steady. Developers are feeling confident of enriching the product, giving better quality product, and backed up by good quality infrastructure which has come up over the years.
I think some of these places which were a little ahead from the city are very much part of the city. There is more plans in terms of city level infrastructure, the metro development, the phase two metro development is approved, that's going to be, again, a game changer for the Gurgaon city. Overall, prices continue to go up. In line with the trend, we've also witnessed realizations going up. As far as our collections are concerned, I think we collected about INR 6.7 billion during this quarter. This number will grow significantly during the current year because collections often are basis the milestones getting achieved. We are achieving completion on a lot of our projects during this current year. We anticipate completing projects in excess of INR 5,000 odd crores and recognizing revenue of INR 5,000 odd crores, about INR 50 odd billion.
Hence, in line with that, collections are expected to pace up during the rest of the year. As far as the current portfolio position goes, we have delivered about 19 million square foot till date. There is another 9 million square foot , which on an average completion timeline is two to three, two to two and a half quarters. By another four quarters or five quarters, bulk of this 9 million would have been completed with few exceptions. But the average completion timeframe of this 9 million square feet is just anywhere between two to three quarters now. In terms of recently launched project, like I just talked about, that we have consistently created supply.
We have launched projects of almost 23 million sq uare feet since February 2024, when we launched a group housing project called De Luxe DXP. The GDV value of all these launches is INR 334 billion.
This is one other significant bucket. A lot of portfolio is actually converting into cash. These are not just futuristic land parcels which will be getting launched in five or seven or 10 years. This is actually projects where work has commenced, and we are actively developing these projects now. Besides that, there is a forthcoming portfolio of about 17 million sq uare foot of which 5 million sq uare foot is a commercial development where we did a tie-up with the RMZ Group, and we announced it in March. Besides that, there is another 12 million square foot which we will be launching as part of this year and the coming year. As far as adding to the portfolio is concerned, we are very actively involved in doing new business development during this year.
We are very hopeful of adding a significant amount of land within our core markets and even outside of our core markets. By outside, I mean markets outside of the Delhi NCR. Both of these markets, we are very hopeful of doing significant new business development. Besides that, the balance sheet position of the company stays very good. We are sitting on cash and bank balances of close to INR 25 billion. Our net debt position is close to less than INR 3.9 billion, so very low levels of net debt. While doing business development during the year, the net debt numbers could go a little bit higher. Not significantly higher, but these could grow during this year as we intend to do significant amounts of business development. Besides that, I think there were few project completions. We completed few affordable housing projects.
They are just few now, more to go, and we would be done by all affordable housing completions in a couple of quarters. Even in this quarter, there was more affordable housing completion than mid-income segment. The average per square foot realization of inventory which got completed during this quarter was less than INR 6,000. While currently we are selling at an average realization of INR 17,000, during the first quarter, our average revenue was recognized on inventory which got completed was less than INR 6,000, hence, the P&L is not fully reflective of the current position. During the course of the year, we are very comfortable that we will recognize revenue of more than INR 50 billion and show a very good PAT number emerging out of historical projects which are getting completed. By and large, we stay comfortable with our overall business guidance. The business performance is steady.
Completions are happening at a good pace. Rains have been quite heavy last couple of days, but by and large, we've got good number of working days. There aren't too many disruptions happening out of rain this year, and we are fairly confident with regard to timely completions and collections. Launches are planned. We look comfortable with the guidance we gave at the start of the year. It's a good beginning, is the way we look at this particular year. Just to add on, I think in terms of a bit of flavor on the nature of business development, we feel comfortable doing large format developments. The way we've seen success of Project Dakshin and Project City of Colours in our core market, we want to take that particular product segment across various markets, even outside of Delhi NCR.
Low-rise developments, large format developments spread across 100, 150 odd acres, is somewhere we are focusing on. You'll see more additions on that format happening during the rest of the year. Happy to take up any questions which you guys follow-ups. Yeah. Adhidev, hi. Are you there?
Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one. Anyone who wishes to remove themselves from the question queue may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Good evening, thanks for taking my question. My question is regarding business development activity. If I heard you right, you said that we are okay looking at projects outside NCR also. Did I get that right?
Yeah, Parvez, that's right.
Have you firmed up which geography are we looking at? Is this largely going to be North India, or we are okay looking at other metro cities as well?
We are evaluating few opportunities. Let it come to the stage where we can share more. I would prefer not to suggest the particular location. Yes, we are looking at larger format developments outside of the Delhi NCR market as well.
Sure. Ballpark, what kind of land cap rates are we comfortable with during the current day?
See, the number could be in the range of around INR 1,500-INR 1,800 odd crores for the year.
Sure. Regarding our launches in H2, fair to suggest that one of them could be in Dwarka Expressway and the other at SPR?
It could be. It's possible that both of them could be in the SPR itself. The second one is definitely in SPR. The third one, we're yet to decide, but most likely it could be SPR again.
A related question. First quarter, we had a launch with a GDV of about INR 4,400 crore. With a guidance of about INR 15,000 odd crore, that leaves almost about INR 10,000, INR 10,500 for the second half. Are we okay bringing that kind of inventory in a single micro market, or can there be launches outside these micro markets also?
See, there will be some launches outside. I'm not saying the entire INR 150 billion gets achieved out of the single market. Yes, a good portion of the launches for the current year are planned in Sector 71, and we are comfortable creating that kind of supply because there is very little getting supplied in that market at this stage because there are very few developers locally who own any reasonable quantum of land in that particular market, which is coming out very well in last couple of years.
Last question. In SPR, we are comfortable with the kind of ticket size and the unit size which we have roughly about INR 5, INR 5.5 crore. Would that be a fair assessment?
Yes.
Sure. Thanks, and all the best.
Thank you.
Thank you very much. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask a question may press star and one. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah, thanks for the opportunity. Just on continuing on these launches, I think we had a branded residence launch this quarter, and there are a couple of more which are also planned as a branded residence in same market. In general, how do we differentiate with these products? Considering that we launched four and a half, we would've sold maybe INR 1,000-INR 1,500 crore this quarter. We still have good enough inventory there. Bringing couple of more branded residences, how does customers differentiate in terms of which one to prefer that way? Yeah, that's my first question.
Pritesh, thanks for asking this. See, there is differentiation which is getting created. Differentiation in terms of the product offering, the brand which is being offered, the size of units which is currently being offered, and the overall orientation of the project. There are multiple ways in which differentiation will get created. The second project is very thoroughly being worked upon, so that it's clearly different from what we recently launched. We've achieved good sales. We've crossed INR 1,500 odd crore out of this particular launch itself, and it's not that we're putting the rest of the inventory immediately into the market. Some sales are happening even during the current quarter. Thereafter, we may park some of the inventory and bring it up for sale in a subsequent manner. There will be a clear product differentiation across the projects which are coming.
Sure. How should we think about the monetization cycle now? Obviously earlier, I would say, maybe two years, three years back, it used to take maybe just a quarter or two quarters to monetize everything to offer. With these branded residencies, now it should be a one-year product or a two-year monetization cycle. How should we think about or how would our monetization strategy be in that sense?
Pritesh, with some of these projects, the way we plan internally is that, see, a lot of these lands are typically already owned by us, and paid for. Right? These are owned land parcels with very little level of debt in the company. By and large, these are paid-for land parcels. Our development costs and SG&A costs do not cost 30%-35% of the sale value for these projects. Anytime we are crossing, let's say, a 40% benchmark in terms of the number of units for each of these incremental launches, the financial closure for each of these projects at a project level gets achieved. Our orientation of sales for these projects is that, let's say, we sell about, give or take, 50% of the project within three to six months of launch.
You launch about 10% of the inventory on an annualized basis till the time the project goes for completion, that you balance out on both quantum of sales, price appreciation, and anyways, financial closure gets achieved right at the start. That's the broad split in terms of sales which we plan to offer in the market, because when you get into this upper mid segment, it's not a volume play anymore. You want to launch a good portion of that project at launch. At the same time, you want to show progression on the project as you achieve more sales. We don't want to achieve 100% sales within a particular span of time.
Sure. Perfect. That's helpful. Second on the collections, I think, obviously it was quite weak versus our usual trend, that we have been maintaining since quite a few quarters now. Specific reasons for that, and in general, see, while our sales run rate in a quarter is INR 2,000 crore-INR 2,500 crore since-- I mean, INR 2,000 ballpark, in that range since quite some time. Would we ever get to INR 2,000 crore in terms of collections, or anything between INR 1,300 crore-INR 1,500 crore collections in a quarter is a good number to base. This is your business plan that you have made, in terms of collections. Yeah.
You're right that we are averaging around INR 2,000 odd crores of pre-sales for a few quarters now. I think even last year, the best quarter was the first quarter where we achieved close to INR 2,600 odd crores. But yeah, we are averaging around this INR 20 billion mark in terms of pre-sales for a few quarters. Which we believe is kind of fair number, INR 2,000 crore to INR 2,500 crore odd of sales coming out of a particular quarter from, by and large, Gurugram, which we've been achieving. That's where we think that at these numbers, it's good kind of sales getting achieved. Collections, yes. This quarter was a bit of an aberration. We've been closing out on INR 1,000 crore-INR 1,100 crore odd of collections per quarter.
I think we'll soon get back to that number. Even the coming quarter, we expect it to be quite good.
The reason of missing out this year was certain milestones with lumpy collections getting slipped into the coming quarter, that's why the collection number stood at a mark where it is. Eventually, yes, to your point, all the sales has to converge into collections on a quarterly basis. I can't give you a particular quarter where it's happening. Excel can speak a story which you want to narrate. Yeah, all of this sales is going to definitely convert into collections because even if you look at the historical trend, if we've launched 23 million sq uare foot over the last nine quarters, the GDV value is close to INR 334 billion. We've achieved sales of, let's say, INR 230 billion-INR 240 billion has been achieved. Since first is supply, then a sale, and then, of course, it's collection, we don't see any doubt around it.
Ladies and gentlemen, we have lost the last participant's line. We will be moving on to the next participant. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead.
Thank you for the opportunity. Just wanted to understand on the supply side now because of the geopolitical issues. Has there been any increase in the cost of the key raw materials for our finishing things? One next maybe on medium term, do you see any cost escalation in the projects for that? Just wanted to understand how this is playing out.
Sure. Adhidev, even if we go almost a decade back and see the trend, usually costs tend to go up in late single digits. You do an average of material and labor both, I think you'll see anywhere between 7%-8% kind of escalation on cost, which has happened over the last decade. Far, we've not seen any inordinate increase in cost over the last quarter. We do always take this kind of escalation into our budgets when we are planning for it. The 7%-8% kind of cost escalation is something which one should budget over the coming years, so to say.
Okay.
By and large, nothing inordinate. No crazy spike on any particular key building product so far.
Okay. Secondly, just to allude to your comments on exploring and our opportunities outside NCR, we had also mentioned this a few quarters back. In terms of the margin and the projects which you want to do, would it be similar to what we are doing in Gurugram, or you're looking to get into maybe something ultra-luxury or mid-income? What sort of products are you looking to get into in these markets in terms of ticket ?
See, the preference is to do low-rise developments, more spread out developments, because any new market which you get into, the idea is not to pick up small five, 10-acre parcels and just work for that. The idea is to gain relevance in any of these markets where we enter. Low-rise is a good model because you enter and execute, and you're able to show your delivery capability sooner in a new market. While Gurugram, Delhi NCR, people may know Signature Global. As we get into newer markets, for that brand recognition, execution capability to be displayed, it's good to do lower rise developments and showcase that delivery capability at a good pace. That's why the format we're opting for is larger format, low-rise developments. Definitely mid-income focus, neither affordable nor on the premium side. More mid-income developments in some of these newer markets.
Sure. Finally, that's all from my side. Yeah. Thank you. All the best.
Thank you, Adhidev.
Thank you. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.
Thanks, everyone. Thanks a lot.
Thank you, everyone.
Thank you.
On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.