Arkade Developers Q2 FY27 results: net profit down 45.8% to ₹24.81 crore, revenue down 45.1%

How did Arkade Developers perform in Q2 FY27?

Arkade Developers reported consolidated revenue from operations of ₹144.65 crore in Q2 FY27, down ₹119 crore, or 45.1%, from ₹263.65 crore in Q2 FY26. Against Q1 FY27, revenue was lower by ₹2.32 crore, or 1.6%. Total income was ₹146.83 crore, against ₹264.77 crore a year earlier and ₹148.68 crore in the previous quarter.

Consolidated EBITDA was ₹34.52 crore, down ₹28.70 crore, or 45.4%, from ₹63.22 crore in Q2 FY26. The EBITDA margin was 23.9%, against 24.0% a year earlier, a change of 0.1 percentage points. From Q1 FY27, EBITDA rose ₹6.72 crore, or 24.2%, and the margin widened by 5.0 percentage points from 18.9%.

Profit before tax was ₹33.23 crore, against ₹61.57 crore in Q2 FY26 and ₹26.11 crore in Q1 FY27. Net profit was ₹24.81 crore, down ₹21 crore, or 45.8%, from ₹45.81 crore and up ₹5.73 crore, or 30.0%, from ₹19.08 crore. Basic EPS was ₹1.35, against ₹2.47 and ₹1.03. On a standalone basis, revenue was ₹144.65 crore and profit was ₹24.77 crore.

What changed in Arkade Developers' costs and profit?

Total expenses fell ₹89.61 crore, or 44.1%, to ₹113.60 crore from ₹203.21 crore in Q2 FY26, lower than the ₹122.57 crore recorded in Q1 FY27. Cost of materials was ₹86.36 crore, up ₹12.79 crore, or 17.4%, from ₹73.57 crore a year earlier, and down ₹17.75 crore, or 17.0%, from ₹104.11 crore in the previous quarter.

Employee cost was ₹8.11 crore, up ₹1.19 crore, or 17.2%, from ₹6.92 crore a year earlier, while finance costs were ₹0.20 crore and depreciation was ₹3.28 crore. Other expenses were ₹7.40 crore, up ₹0.27 crore, or 3.8%, from ₹7.13 crore a year earlier and up ₹1.72 crore, or 30.3%, from ₹5.68 crore in Q1 FY27. Other income was ₹2.18 crore, up ₹1.06 crore, or 94.6%, from ₹1.12 crore.

There was no exceptional item in Q2 FY27. Tax expense was ₹8.47 crore, down ₹7.29 crore, or 46.3%, from ₹15.76 crore in Q2 FY26 and up ₹1.44 crore, or 20.5%, from ₹7.03 crore in Q1 FY27. Against Q1 FY27, the higher EBITDA and other income were partly offset by the increase in other expenses and tax.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹291.62 crore, down ₹131.48 crore, or 31.1%, from ₹423.10 crore in H1 FY26. Total income was ₹295.51 crore, down ₹134.81 crore, or 31.3%, from ₹430.32 crore a year earlier.

Profit before tax for the first half was ₹59.34 crore, down ₹40.43 crore, or 40.5%, from ₹99.77 crore. Net profit was ₹43.88 crore, down ₹30.68 crore, or 41.1%, from ₹74.56 crore, while EPS was ₹2.38 against ₹4.02 in H1 FY26.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹1,173.25 crore against ₹1,127.22 crore at 31 March 2026, and total equity was ₹926.77 crore against ₹882.16 crore. Borrowings fell to ₹56.03 crore from ₹98.06 crore, while cash was ₹8.23 crore against ₹23.74 crore. Inventories were ₹901.71 crore against ₹910.11 crore, trade receivables ₹18.32 crore against ₹24.04 crore, and trade payables ₹30.17 crore against ₹43.62 crore.

H1 FY27 operating cash flow was ₹89.70 crore, compared with an outflow of ₹46.73 crore in H1 FY26. Investing cash flow was negative ₹62.40 crore against negative ₹19.61 crore, and financing cash flow was negative ₹42.81 crore against positive ₹56.09 crore. Capital expenditure was ₹1.13 crore, against ₹204.45 crore a year earlier.

How has Arkade Developers done over the last 8 quarters?

Revenue across the last eight quarters peaked at ₹263.65 crore in Q2 FY26 and was at ₹144.65 crore in Q2 FY27, close to the ₹146.97 crore recorded in Q1 FY27 and below the ₹196.73 crore of Q3 FY26. Net profit in the period ranged from a net loss of ₹109.57 crore in Q4 FY26 to ₹50.08 crore in Q3 FY25, and was ₹24.81 crore in the latest quarter.

The EBITDA margin reached its high of 33.8% in Q4 FY25 and its low of 18.9% in Q1 FY27 before rising to 23.9% in Q2 FY27. Revenue was at ₹144.65 crore, down from ₹146.97 crore in the previous quarter, while profit after tax rose from ₹19.08 crore to ₹24.81 crore.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 28 October 2026. The results had been reviewed by the audit committee, and the statutory auditors issued a limited review report on the standalone statements. The company had earlier notified the board meeting on 23 October 2026 and closed its trading window from 1 October until 48 hours after the results were declared.

At the same meeting, the board approved the incorporation of a wholly owned subsidiary, with the required disclosures to follow after incorporation. The board also approved Maria S John as interim company secretary and compliance officer from 1 December 2026, during the maternity leave of Sheetal Solani from 30 November 2026. The company also filed an investor presentation on 29 October 2026 and an intimation of the earnings call that day; no dividend or fund raise was disclosed in these filings.

What did Arkade Developers' management say?

Management said the development pipeline has an estimated GDV of approximately ₹19,000 crore across 5.7 million square feet of saleable carpet area, planned for rollout over the next four to five years. It said RKD Vogue in Bangur Nagar and RKD Safari in Santacruz are expected to enter revenue-recognition brackets over the next few quarters or FY28, and that the Matunga MOU is expected to complete within the coming months, with two additional acquisition opportunities over the next 12 months.

Management said Q2 collections rose 22% year on year to ₹183 crore and H1 collections rose 8% to ₹347 crore, while pre-sales remained moderate amid evolving market dynamics. It ended September 2026 with ₹63 crore of net liquid cash after ₹56 crore of gross debt. Management identified competition in Mumbai redevelopment, which has increased sharply over the last 12–18 months, and the dependence of revenue recognition on projects crossing the 25% construction threshold among the risks.

How did Arkade Developers shares react?

The stock traded after the results were announced. It fell 0.5% five minutes after the filing appeared, then was up 1.3% at 15 minutes and 1.3% at 30 minutes. It closed the reaction day up 1.4% from its pre-results close, and by the next day's close the stock was up 1.9% from that close.

The industry median move was up 0.5% on the reaction day and down 1.1% by the next day's close, so Arkade's excess return versus the sector was 1.0 percentage point on the reaction day and 2.9 percentage points by the next day. The Nifty Microcap 250 was up 0.7% on the reaction day and down 1.9% by the next day's close. Past results-day moves were negative in seven of the eight listed instances, including falls of 3.1% on 11 August 2026 and 6.1% on 27 May 2026.

How did other Residential Commercial Projects companies do?

Among the 34 Residential Commercial Projects companies compared for the quarter, the median revenue growth was 22.4%, against a decline of 45.1% for Arkade Developers. One peer grew revenue more slowly than the company and 33 grew faster. Of the 34 peers for which profit was compared, 20 reported higher profit, as of 4 November 2026.