Arkade Developers Limited — Investor Meet, 28-01-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Arkade Developers reported consolidated revenue of ₹560 Cr for the nine months of FY '25, up 9.3% YoY from ₹513 Cr. EBITDA rose to ₹170 Cr, reflecting a 20% increase YoY, with a margin improvement to 30.5%. Profit after tax (PAT) grew by 19.7% YoY to ₹124 Cr, with a PAT margin of 22.1%. For Q3 FY '25, revenue was ₹231 Cr, marking a 13.8% sequential rise. EBITDA for the quarter reached ₹68 Cr, a 12.3% increase QoQ, while PAT improved to ₹50 Cr, a 15.4% sequential growth.

**Future Outlook and Growth Drivers:** Management highlighted a strategic focus on expanding residential development in the Mumbai Metropolitan Region, particularly through luxury housing projects. They anticipate a positive sentiment in real estate driven by lower interest rates and high demand for properties.

**Order Book and Operational Updates:** The company has announced new redevelopment projects covering 5 acres with a potential turnover of ₹2,150 Cr, spanning Andheri East, Malad West, and Borivali West. Their ongoing projects have an unsold revenue potential of around ₹2,500 Cr, complemented by a robust backlog of ₹7,000 Cr from redevelopment projects.

**Analyst Q&A Insights:** Analysts raised queries about cash flows and land acquisitions. Management clarified that they are in advanced land acquisition discussions to bolster their project pipeline. They maintain a healthy approach to their debt level, aiming for a ratio of about 20% if necessary.

**Market or Regulatory Updates:** While no regulatory updates were emphasized, the management underscored that Mumbai's real estate remains an attractive market for long-term investment, benefiting from solid infrastructure and connectivity.

**Strategic Focus Areas:** The company maintains a solid execution track record, underscoring timely delivery and operational efficiency, providing a competitive edge in the growing luxury real estate sector.

**Investor Insight:** Arkade Developers exhibits healthy financials and promising expansion plans. With their focus on luxury real estate and substantial upcoming revenue potential, the outlook appears favorable, suggesting a positive stance for investors.