Arkade Developers Ltd (NSE: ARKADE) Q3 2025 Earnings Call dated Jan. 24, 2025
Corporate Participants:
Amit Mangilal Jain — Chairman and Managing Director
Samshet Shetye — Chief Financial Officer
Analysts:
Aman Baheti — Analyst
Kaushal Sharma — Analyst
Unidentified Participant
Deekshant Boolchandani — Analyst
Nikita Mehta — Analyst
Jagdish Sharma — Analyst
Aditya Shah — Analyst
Akash Sharma — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to The Arcade Developers Limited Q3 and 9 months FY25 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict.
As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your Touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Jain, Chairman and Managing Director from Arcade Developers Limited. Thank you. And over to you sir.
Amit Mangilal Jain — Chairman and Managing Director
Good evening everyone. I would like to extend you a warm welcome to you all for Arcade Developer Ltd. Earnings conference call for the third quarter and nine months ended 31st December 2024. I would like to begin by expressing my gratitude to you all for taking the time to join us today. We have on call with us Mr. Samsev, SEPE CFO and Astraktors PR for our investors. Relations team. We have shared our results presentation. I hope you all must have gone through it since this is only our second earnings call. I would like to share a brief overview of our company and its recent development before we get into the business and financial performance for the period.
Arcade Developers were established in 1986 as a real estate development company with a focus on high end residential properties. Over the years we have garnered a reputation for developing top tier residential projects. Driven by our deep understanding of the market and the commitment to quality, we have managed to create a niche for ourselves being among the top 10 luxury developers in Mumbai Metropolitan Region, one of India’s most lucrative and high growth real estate markets.
Since inception we have completed over 30 projects spanning across 5 and a half million square feet and over 2 million square feet under development across the city of Mumbai and as over 5,500 happy families joined us in this journey, our strategic approach combining greenfield and redevelopment projects across Mumbai has allowed us to capture significant market share in high demand areas like Borivali, Goregaon and Santa Cruz where we have built a strong foothold presence. Backed by a reputation for delivering projects on time, in prime locations and with exceptional quality, we continue to lead the charge in creating aspirational living spaces for the urban home buyer.
The company’s focus on sustainability, innovative design and delivering unmatched value ensures that we are not just building home but crafting the future of urban living and changing landscapes in Mumbai. In September 24th we saw a key milestone in our journey as the company listed on stock exchanges. Our IPO was raised which raised 410 crore rupees through a fresh issue of 3.2 crore equity shares was met with a robust investor interest leading to 107 times over subscription. The book provides us with a major platform to access a bigger market and will help us expand our business while delivering sustainable value for all stakeholders.
Looking at the industry outlook as per CBRE Research report on Indian Real Estate based on the market scenario in 2014. It is expected that the momentum of Indian real estate market is set to accelerate in 2025. Globally, Japan and India are poised to lead the way in real estate purchasing activity, with India embracing opportunistic strategies that capitalize on its dynamic growth potential. Moreover, investor sentiment is at an all time high with net buying intentions increasing from 5% in 24 to 13% in 25. Key drivers of this consumer enthusiasm include interest rate cuts and asset repricing which have made real estate as an even more attractive investment plan.
Mumbai in particular has solidified its position on the real estate map, ranking among the top 10 cross border investment destinations for the first time. This achievement underscores the city’s appeal as a prime market for long term investors eager to expand their exposure in the world’s fastest growing economy. With Mumbai’s unparalleled connectivity, robust infrastructure and thriving luxury real estate market, we stand at the cusp of tremendous opportunities. As a key player in the Mumbai metropolitan region, we are confident in our ability to contribute to and benefit from this positive trajectory. 2025 is not just another year, it’s a year where innovation, resilience and growth will shape the future of real estate in mmr. With continued demand for luxury homes in mmr, we are well positioned to capitalize on the market growth now.
Looking at the recent development, it has been an eventful time for Arcade as we continue to cross several milestones along with our growth journey. The last quarter has seen many such developments. In terms of our projects, as you might be aware, we are strategizing to expand our footprint across many servers in the NMR region while continuing a focus on luxury housing. To support this and to strengthen our presence in western Mumbai, we added three redevelopment projects in Andheri East, Mallar west and Boreveri West. Cumulatively, these spans an area of approximately 5 acres and offers 5.85 lakh square feet of saleable carpet area. Together, these projects are expected to generate a turnover of rupees 2150 crores.
In Andheri near the Western Express highway, our project will deliver 1.29 square feet with a turnover of estimated 527 crore. In Malar west we are coming up with a 2.12 lakh square feet expected to achieve a revenue of 750 crores and our largest of the three projects is in Borivali west which is having potential of 2.44 lakh square feet with an expected revenue of 865 crores. One of our luxurious projects, Arcadora at Santa Cruz Web received OCA year prior to the targeted pera date and we completed this project within 26 months from CC2OC. Other OCS received in the last two quarters include those for Arcade Crown and Arcade Square while Arcade prime is expected to be received in this quarter.
Furthermore, we have recently launched two towers at Arcade Next and Arcade first and we have received a great response. I am glad to share that we have a strong pipeline of eight upcoming projects. An important aspect which distinguishes us from the industry is our commitment to on time delivery of projects. We are proud to maintain our track record of delivering our projects before time which instills confidence in all stakeholders and makes Arcade a reliable and trusted name in the industry. Timely delivery also helps save on rent given to tenant in case of redevelopment projects as well as other overheads.
As a part of a brand building initiative, we are also associated with Happy Streets in David to create awareness about our brand and reinforcing our beliefs and philosophy of family. First, through all these initiatives, our core ethos remains to develop family centric living spaces that help improve the standard of living for everyone. We believe the real estate sector is set to play a transformative role in India’s economic growth and Arcade developers is well positioned to play a major role in this. Together we are not just shaping buildings but creating a brighter, more vibrant future for Mumbai.
I would now like to hand it over to Mr. Samshed Sethe, our CFO who will take you through our financial performance for his period.
Samshet Shetye — Chief Financial Officer
Thank you. Ramit sir. Good evening everyone. I will brief you all about our consolidated financial numbers for this quarter and nine months. Our consolidated revenue for nine months FY25 was rupees 550 crore visa vis rupees 513 crores. In nine months FY24 registering a growth of 9.3%. The EBITA for this period stands at 170 crores as against rupees 141 crore in the previous corresponding period. Registering a growth of 20% on yoy basis. The EBITDA margin for nine months FY25 came in at 30.5% versus 27.6% in nine months FY24 profit after tax sank at rupees 124 crore again 103 crores growing at 19.7% on yoy. The PAT margin for nine months FY25 was 22.1% visa vis 20.2% in nine months FY24.
Coming to the quarterly numbers on QOQ basis our revenue for Q3FY25 stood at 231 crores as against 203 crores since quarter to FY25 growing at a rate of 13.8% year on year. EBITDA for the quarter stands at 68 crore as against rupees 60 crore in Q2FY25 registering a 12.3% growth on Q2 basis. EBITDA margin for Q3FY25 tanked at 29.3%. The profit after tax stands at rupees 50 crores against 43 crores in Q2FY25 registering a 15.4% growth on KoQ basis. The PAT margin for Q3FY25 stands at 21.7% as against 21.3% in Q2FY 2010.
Now speaking about the key operational highlights for the quarter. For the nine months ended 31st December 24th we achieved sales booking of 179,000 square feet of area which amounts to 556 crores which is up by 24% on yoy basis. The collections grew at 16% to 478 crores during this quarter we achieved booking up 74,000 square feet of area which amount to rupees two hundred and twenty crore which is up by 93% on yui basis. The selections for Q3FY25 stood at 178 crores. This is all from our side.
We can now open the floor for questions.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and participants are requested to use answers 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 Aman Bahiti with incredible capital. Please go ahead.
Aman Baheti
Hi. Hi sir. Thank you for the opportunity and congratulations on a decent set of numbers. I had a few questions regarding our focus. So I’ve been seeing that the company has been focusing on the society redevelopments as of late. So I just wanted to know what will be our focus going forward. And plus the cash we have from the IPO is around 400 crores. And I know that the management is looking for an area in Thane and just wanted to know the progress around that.
Amit Mangilal Jain
So we are in advanced stage of land acquisitions as well. And as you already rightly mentioned about the Thane Singh and other land passes in Mumbai also. And those are having potential of matching the business from the redevelopment projects. It’s just that the redevelopment projects have come in first. But they are. The land buys are expected anytime this quarter.
Aman Baheti
Okay. And what kind of
Amit Mangilal Jain
Will also happen? Yeah.
Aman Baheti
Okay sir, I. I got it. So what kind of land bank do we have currently with us?
Amit Mangilal Jain
So we have nine redevelopment projects lined up which is having a total potential of close to 7,000 crore business. And we have an ongoing project of around 2,500 unsold revenue. So both combined should have a potential of 10,000 crores ongoing as well. Upcoming.
Aman Baheti
Okay, sir. Okay. And are we. Are we focusing on building something you know, in the category like something greenfield and which is a premium project?
Amit Mangilal Jain
Yes, yes. All the land by projects are greenfield and they are in the premium category that we are coming up with. Ultra premium you can say.
Aman Baheti
Okay. Okay. And what will be the segmental margin going forward? So we have been doing around 20% on an EBITDA level. I mean on a PAT level. So I mean that will be, you know, sustainable or
Amit Mangilal Jain
We are able to manage the show until now that way. So we are hopeful that will continue this way as well.
Aman Baheti
Okay. Okay. Thank you, sir. That’s it from us.
Operator
Thank you. The next question comes from the line of Kostu Sharma with Equinox Capital Ventures. Please go ahead.
Kaushal Sharma
Am I audible?
Operator
Yes, I’m a question.
Amit Mangilal Jain
Good evening.
Kaushal Sharma
Thank you for giving me opportunity. But I just want to know that we are having several project online and we are around 3000 crores of order pipeline. So how long will we take to execute them? Like what is the typical length of the project that we execute?
Amit Mangilal Jain
The ongoing projects? This six ongoing projects we are expecting to complete in the next financial year. And we’ll be launching three, four projects every year, you know. So the current pipeline of existing projects should be completed in four years of the existing as well upcoming both combined.
Kaushal Sharma
And Cheryl, I can see that your receivables have increased substantially in this six months. So what is the reason of that? Are we facing any challenges in receiving.
Samshet Shetye
Hi, Sanshik here. So those data is basically the demand what we raised during last 15 days of September 24th. And we realized those money in the next 15 days, October 15th, 15 days of October, we realized that money. So that wasn’t that high.
Kaushal Sharma
Okay, so we have received a substantial amount of money, right? Hello.
Samshet Shetye
Yeah. Yes, we have received it.
Kaushal Sharma
Okay, sir, thank you.
Operator
Thank you. The next question is from the line of Shishant Virmani with confidential. Please go ahead.
Unidentified Participant
Hi, thanks a lot for this appointment and congratulations on very good set of numbers before going forward. I say that you have built a very good business and you are almost the best developer that are best balance sheets in market. So congratulations on creating a very good company so far. And with good projects online, it seems to be good prospects for the company. I have three questions. One, I want to understand what what exactly is the cash and check component when anyone purchases a platform architecture?
Second question, I want to understand the growth prospects that you are eyeing in both greenfield and redevelopment space. Obviously we already have the published information. In your investor presentation you show your order book broadly. But are there any other projects that you’re eyeing beyond that? Especially in the ultra premium category? For example, in Gulgaon we see flags going beyond 2 million, $3 million. Can we see similar kind of ticket size coming from market developers? And my third question is broadly around the succession planning and the new management that could be incorporated. How are you mentoring the new set of leaders within the business? Thank you.
Amit Mangilal Jain
So hi, coming to the first question, I didn’t understand cash and check. It’s all always check only there is no.
Unidentified Participant
Thank you.
Amit Mangilal Jain
Second is the growth prospect. So we’ve shared the upcoming project list of eight projects which is having a potential revenue of 5,000 crore approximately. And another 5,000 crore worth of projects are in the final stages of acquisition which will be shared very soon in this quarter, maybe by this quarter. Okay. Make it a total potential of 10,000 crores in times to come. Yeah. Other than the ongoing projects of 2000 crore plus unsold revenue,
Unidentified Participant
Over how many years is 10,000 crores in revenue?
Amit Mangilal Jain
Say five years,
Unidentified Participant
Five year timeline. Okay, excellent. So you’re paying 10,000 crores of revenue and broadly 20% back. So 2000 crore rupees of that in the next five years. Broad numbers. Okay, great. Thanks a lot.
Amit Mangilal Jain
Odd numbers.
Unidentified Participant
And third question was about
Amit Mangilal Jain
I’m too young, I’m not even 50 currently. And we have very young directors in the company who are themselves very young, you know. So you can say we have a young team. It’s selected too early for succession planning by a very equipped team.
Unidentified Participant
Excellent, excellent. Thanks a lot, Amitji. And final question is more about. I want to understand the inventories. You have around 600 crores of inventory. Can you help me understand how is the split between the projects that are already finished and how is that is a work in progress inventory. Can you split the 600 crores into already built inventory and the work in process?
Samshet Shetye
So this inventory basically consists of the unsold, unsold, unsold construction, under construction areas even as we are following the percentage completion method. So this is recognized revenue based on the percentage completed. And we have a benchmark of completion of 25% of the construction cost to recognize the revenue. Okay. So these inventory consists of the what we’re developing at which we have, we have purchased the land. Construction has, has already started but it hasn’t yet reached the 28% threshold for recognizing the revenue. So that inventory is there. And for other project, other development projects, they have a inventory which is not yet sold.
Unidentified Participant
Okay. Are there any assets, are there any inventories which are already fully constructed and ready for possession but are still unsold? Are there any such flats?
Samshet Shetye
Yeah, it is there, but that is not that high.
Amit Mangilal Jain
The combined inventory in projects which have occupation should be in the range of 100 crore or so among three projects, round and Aura.
Unidentified Participant
And when do you expect it to get sold? In how many quarters from now?
Amit Mangilal Jain
This year we are in January. So we expect it to be sold by March.
Unidentified Participant
Okay, excellent, excellent. Got you. Thanks a lot. And related to inventory, are there any. So how many of the existing projects for which you have already received the cash but the possession is still not been allowed. So what exactly is that advance cash number for nine months? 25.
Samshet Shetye
Can you repeat the question?
Unidentified Participant
I want to understand what exactly is the advance that you have received from the customers but they have not got the flags. Sale has not been made, but the cash has been received. What exactly is that increment amount of cash that you received?
Samshet Shetye
Yeah, so it is for the. It is for the two projects which are. For which we haven’t yet started recognizing the revenue which is Arcade, Nest and Arcade. But for other projects we have started the recognizing revenue. So advance is lying in. Balance sheet is not at high about 100 crores.
Unidentified Participant
Okay, many times Amitji and very kind of you and thanks a lot. Looking forward to it. Thank you.
Operator
Thank you. The next question comes from the line of Aman Baheti with Incred Capital. Please go ahead.
Aman Baheti
Hi, thanks again. Just wanted to ask, I mean after you know using. I mean maybe in the next fiscal when you use 400 crores of cash that you have what is the management eyeing after that? Because our debt is very low on. I mean on the books. As a real estate developer, it’s quite rare to see, you know. Yes, yes, that’s what sir. So are you. Are you looking to take any deck net expansion or you will be, you know, diluting your equity going forward. So what will be your plan as of now?
Amit Mangilal Jain
The plan is to deploy the funds that is raised and if required, if we fall short and interim debt of say 20% debt to equity ratio is what we are comfortable with if required, you know, makeshift arrangement because we have very strong cash flow. So normally we avoid taking debt. And as of equity dilution there is nothing on tax right now for the equity dilution.
Aman Baheti
Okay, answer. When do you intend to use the cash? I mean the 400 crores.
Amit Mangilal Jain
So we have already deployed more than 100 crores. Currently there is a fund of around 300 crores of out of the IPO which should be half of which should be deployed by March this year. And remaining half by this year end which is towards the construction of the ongoing project. And half of which towards land acquisition should be deployed by March.
Aman Baheti
So you mean the Thane land acquisition.
Amit Mangilal Jain
Yeah. Either of either of the land acquisition should be done by March wherein half the funds will be deployed.
Aman Baheti
Okay. Okay. Got it sir. Thank you.
Operator
Yeah, thank you. The next question is from the line of Dikshan with DB Wealth. Please go ahead.
Deekshant Boolchandani
Congratulations on such great set of numbers. So my question is basically on our revenue recognized and the revenue that is yet to be recognized for most of our projects. So I think it’s going to be more on the line of form our cfo. So sir, the Crown Bodiwali project and the Aspire Goregaon project and the Aura Santa Cruz project. All these are completed and it’s shown in PPT that 325 is for the Crown project. 490 crores is for Aspire and 276 is for the Aura. Which is the potential revenue out of this. How much has been realized and how much is yet to be realized? Can you just give some broad numbers there?
Samshet Shetye
So out of these three projects around as per told 100 crores of inventory, what is there which will which is going to sell by this month.
Deekshant Boolchandani
Okay. So in Tino message Now we have 100 crores of revenue which is yet to be recognized. Is it
Amit Mangilal Jain
Unsold goods?
Deekshant Boolchandani
Yeah, got it. So got it. So secondly is on our project on Prime Andheri. How is the work going? And since we already have such a great track record do we think that we can achieve the completion before like December 25th?
Amit Mangilal Jain
Yes. Yes. So we’ll receive the OC for Arcade, Purse and Eden. Maybe by December. Trying to any moment. Maybe next week.
Deekshant Boolchandani
Congratulations. Congratulations. I recently had visited one of your properties in Bando. So liking over Ra. Amazing sir. Amazing. Because it’s a greenfield project and has 750 crores of potential revenue. That was first on my list.
Amit Mangilal Jain
Also visit a Mulan project next time. It beats Pando
Deekshant Boolchandani
100%. 100%. So I want to ask you just basically the Thane we are looking for expansion and redevelopment. The game is just starting. Oh yes sir, you just mentioned that over 200 crores of money we’ll be spending on a than a project. Right. Okay. So what are your thoughts on Navi Mumbai as an expansion plan? Because we see a lot of inventory coming up there.
Amit Mangilal Jain
Yes. So we go one step at a time. So the first choice that we zero down after Bombay western suburbs is maybe after. But as of now our focus is on Chinese.
Deekshant Boolchandani
Okay, got it. So one question. It’s a pretty basic question. Please forgive me if it’s too basic for you. But let’s say that once we have received the OC for a project and it is ready to be occupied. So we can book hundred percent of our revenues at that point of time, right?
Samshet Shetye
Yeah, yeah. But only for the sold unit.
Deekshant Boolchandani
Of course for the sold units. So let’s say that once you receive the project for Andheri and we are able to start selling those units and this quarter we would be able to recognize the 100% of our revenues, right?
Samshet Shetye
Yeah. But as we are following the percentage completion method out of the total turnover which is there for this project we might have recognized about 80% which is a sold inventory.
Deekshant Boolchandani
Okay. Got it. So out of 165 crores around 20% which would be around 30 to 33 crores we can recognize
Amit Mangilal Jain
That will be there.
Deekshant Boolchandani
Okay. So last question is on the collections versus presales. So 220 crores of collections we of pre sales we have done. Out of this 168 has been collected. So this remainder, what is it going to be next quarter that we would be able to report on our revenue.
Samshet Shetye
So there is no direct relation between the pre sale and collection. Because collection happens based on the milestone. What we. What we achieve.
Deekshant Boolchandani
Okay. Okay. Okay. Can you tell me that which of the segment has is seeing the highest pre sales right now? Which product we are seeing the highest pre sales? Is it the Greenfield Andheri and rare or is it something else?
Amit Mangilal Jain
So sales is kind of uniform. The mid segment as in the 2thk. You can say it’s the ever moving item and then bigger the ticket. Size may be slower is the velocity but there is no differentiation as such between redevelopment or a greenfield project. The velocity is similar. Rates in greenfield are more than redevelopment but the velocity is similar.
Deekshant Boolchandani
Okay sir, if I can just ask a couple of questions on our upcoming projects particularly on our Nutan Ayojan, Rani Sati and Satya Shripal. These three projects sir are the land. Is the land big enough that we can give the amenities to get higher?
Amit Mangilal Jain
So the average sizes of all this project would be one and a half acres. We don’t take projects which have land sizes less than an acre because then you cannot fit in the amenities. The average land size is 1 and a half. Satish re is 2 acres in fact. Got it. 1.75 acres.
Deekshant Boolchandani
G G Sir, which of the sort of upcoming redevelopments can be like? Because I don’t see any number of date completion. What would be the completion
Amit Mangilal Jain
In near future? Lakshmi Ramana and Maheshwar. Two projects we are trying to launch in the first quarter of next financial year April to June.
Deekshant Boolchandani
Sorry for the long question but in every other sort of company that we are seeing in real estate right now there seems to be some slowdown in the pre sales and we have actually reported very strong pre sales numbers. What do you think is aiding this particular thing? Apart from our of course our reputation that you have built for decades now. What do you think?
Amit Mangilal Jain
Delivery and the speed of the project, the delivery, the consistency of the delivery, the consistency of giving more than what is promised. Our projects are at like various projects. As I mentioned we are having projects across all stages. You know the scientific cruise project is at a width occupation stage. So those are the stages wherein you will get sales. Inevitably like moral project is headed towards getting occupation. So whatever balance residual inventory does get sold very fast. Apart from this village Pandey is at an advanced stage. So the stage of the projects are intimately such that they are having good visibility of delivery. And all our projects are fully approved. So the buyer feels much more secure than what he does in general with. So that’s great.
Deekshant Boolchandani
Okay. Got it. Got it.
Amit Mangilal Jain
The bankers vouch for us. You know the bankers recommend an arcade project with other developers.
Deekshant Boolchandani
Got it, sir. Got it. So do we see the next quarter to be stronger than this quarter? Because this quarter was a bit milder when we look at it on year. On year basis.
Amit Mangilal Jain
Yeah. But if you observe the bottom line figure of nine months is already. It is already close to what it was for the last full year.
Deekshant Boolchandani
No, no, ji, agree 100% on that. Sir.
Amit Mangilal Jain
23 is the profit for last year. And we already are at 120 this year. So whatever comes in the last quarter is kind of growth. It is an addition.
Deekshant Boolchandani
I agree. So but do we see that because you have such a better view on this is do we see surpassing 200 crores in the next quarter or is that too much of a big ask for us right now?
Amit Mangilal Jain
200 pre taxes. Fine.
Deekshant Boolchandani
Okay. Okay. Got it, sir. Got it. Thank you so much, sir. Thank you.
Operator
Thank you. The next question is from the line of Nikita Mehta who’s an investor. Please go ahead.
Nikita Mehta
Hello. Thank you for the opportunity, sir. I have couple of questions, sir. So firstly I would like to ask like can you give us an idea or an update on the use of the IPO proceeds till date?
Amit Mangilal Jain
Yes. We raised 410 crore from IPO. Out of which we’ve already utilized 176 crore. And the balance funds are 234 crore from the IPO. And out of the 176 crore utilized construction has consumed 26 crore. Approvals have consumed 82 crore. 43 crore is for general corporate purpose and IPO expense is 25 crore.
Nikita Mehta
Okay. Okay, sir. And sir, in what ways have these investments contributed to the company’s overall growth strategies?
Amit Mangilal Jain
Come again?
Nikita Mehta
In what ways have these proceeds helped us? This investment contributed to the company’s overall growth strategy.
Amit Mangilal Jain
Growth as in like when we deploy the funds raised from the IPO towards new acquisitions the effective top line and consequent bottom line will increase which in itself is growth. And so had we raised the debt to do the same, it would have cost us interest. And that would have eaten into the bottom line of the balance sheet. So we avoid that debt, we save on the interest. Then we have more capital to work for. It will make more money by having a bigger bottom line. Bigger and better bottom line and top line. We are able to do more projects because we have more money as principles.
Nikita Mehta
Okay, sir. And sir, do you have any plans to pursue bidding opportunities for new projects apart from western suburbs? And what is your outlook on these potential or outlook on the potential of these emerging areas?
Amit Mangilal Jain
We are already having projects in eastern suburbs which are land by projects in Bandot, in Mullon. We have completed a project in Kanjur. So these are all projects. Barring western suburbs in Kanjur we’ve completed a project handed over position of 700 flats. That is a factory that we developed into a residential project.
Nikita Mehta
Okay. Okay, sir. Got it. So that answers my question. Thank you so much, sir.
Amit Mangilal Jain
Thank you.
Operator
Thank you. The next question is from the line of Jagdish Sharma who’s an investor. Please go ahead.
Jagdish Sharma
Hi sir. Congratulations. Good state of Sambhav. I just want one clarification first. What is the margin profile of redevelopment projects and greenfield projects?
Amit Mangilal Jain
So the average margin across the balance sheet is 20%. Post tech, post tax. Yeah.
Jagdish Sharma
Okay. So because there is a. Your one of your peers having a difference of margin. So I just asked to ask for this clarification.
Amit Mangilal Jain
So the differentiation like the greenfield projects margins are more and the redevelopment projects margins are less. Like going forward. Going forward. In the past we’ve made good margin in redevelopment also. But now the competition has increased a lot in redevelopment. So the margins are squeezed. So going forward the margins in redevelopment project can go down to as low as 15%. And land by the greenfield projects will continue to make better margins. 25% or so.
Jagdish Sharma
Okay. This is the fat margin you are talking, right? Yeah. Okay. My second question is you. You just mentioned that you have a 10,000 crores worth of upcoming projects, right? What did the redevelopment projects contribution and greenfield projects contribution.
Amit Mangilal Jain
So the development should be in and around six and a half thousand and greenfield three and a half thousand.
Jagdish Sharma
Okay. So this 10,000 will be coming in FY26.
Amit Mangilal Jain
No, no. Not all of it will come. It will be like we’ll be launching it spread across 11 projects. So we’ll have three, four projects coming in every year. So it will be a launch across two to three years. And the completion may be in five years from today.
Jagdish Sharma
Okay, so any guidance you want to give for FY26. Sir, that is true. But FY26 revenue top line or anything like that.
Amit Mangilal Jain
Sir can refer a track record now. So we try to stay consistent.
Jagdish Sharma
We will be okay. Fine, fine, fine. All the very best, sir. And congratulations on the good set of numbers. Thank you sir.
Operator
Thank you. The next question is from the line of Aditya Shah from Meteor Wealth Management. Please go ahead.
Aditya Shah
Hello sir. So just a few couple of basic questions I had. One is that any strategies you for projects outside Mumbai. Have you any development in that
Amit Mangilal Jain
Second case is outside proper Mumbai. So Thane is where we are coming up with.
Aditya Shah
No, no. But what many is like Pune in these kind of.
Amit Mangilal Jain
Not yet. Not.
Aditya Shah
Okay. And second is sir, are you planning to do any commercial development or only residential?
Amit Mangilal Jain
It’s with the retail shop line and part commercial. But broadly the inventory is residential.
Aditya Shah
Okay, so. Okay. All right. So the not exactly in the commercial space as of now?
Amit Mangilal Jain
No.
Aditya Shah
Okay, answer. According to you out of all the projects where do you see the highest occupancy rate and which area do you see? Generally low occupancy rate for the flat suburbs
Amit Mangilal Jain
Is difficult to find land purses. So you have like the probability to find land parcels is more in eastern suburbs and then western suburbs. Western suburbs. That is why redevelopment is strongly prevalent.
Aditya Shah
So I’ll be more specific. Say a project which is in Villa Pal East. What is the current occupancy rate? In that the current occupancy rate which have all the flats been like already booked or by signal project get occupancy occupation only.
Amit Mangilal Jain
We are managing to sell 90% of our inventory. 90% of inventory by the time of OC and the balance in three to six months. Historically that’s how it has been.
Aditya Shah
Okay. Okay.
Amit Mangilal Jain
And please say if I have to give you an idea. Currently we may be 40% of project completed and we we sold 30 35% of goods.
Aditya Shah
Okay. Spider says in the next six months you expect up to 90%.
Amit Mangilal Jain
Yeah. By this year. Calendar year.
Aditya Shah
And one last question I have. So usually regarding on the parking. Usually we see that many builders or many developers. Sell the parking sector separately from the charges of the flat. So do you have the same concept or you include the parking cost within with the flats. How is it like
Amit Mangilal Jain
It’s all inclusive. Our box prices includes everything.
Aditya Shah
Okay. And assuming that person says buy more parking for his extra and extra parking. So do you charge on that? How is it?
Amit Mangilal Jain
Parking will rechargeable but the normal parking, say whatever is tied up with the flat is included in the box pricing one or two cases the size of the flat.
Aditya Shah
All right, just adding on to that. See you know place like Villay where the construction is and if a occupant wants to buy an extra parking. So what would be the average cost you’ll be charging or charged as a person?
Amit Mangilal Jain
Maybe a 10 lakh rupees in the park. Depends on the size of the parking. Again like big car, small car.
Aditya Shah
Okay. Okay. All right. That was it from my side. So thank you so much.
Operator
Thank you. Yeah, thank you. A reminder to all participants, you may press Star and one to ask a question. The next question is from the line of Akash Sharma who’s an investor. Please go ahead.
Akash Sharma
Yeah. Hi sir. Hello. A few questions. So just wanted to ask like have a pre sales begin for recent development projects and when do we, you know, expect to see the pre sales revenue especially for the new developments that in the key western suburban areas such as Borivali, Mallard and Anderi.
Amit Mangilal Jain
Okay. This new projects you’re talking, those will take some time. Yeah. The Malar and. And projects they’ll take, maybe they’ll be launched in the next financial year. Okay. They’ll take time for approval and all say minimum six to nine months.
Akash Sharma
Okay. Okay. So they’re still in the approval stage. Okay.
Amit Mangilal Jain
We have projects that are required before these projects which will go on floor first. The Santa Cruz one and the Gorega Malad ones.
Akash Sharma
Okay sir. And so my next question is like that. With a combined salable carpet area for 5 to 6 lakh square feet across these projects, what is this expected average price per square foot?
Amit Mangilal Jain
Average is around 30,000 rupees.
Akash Sharma
Okay. Okay. And sir, how does it, you know, compare to the current market rates?
Amit Mangilal Jain
We get a premium compared to the average market rate.
Akash Sharma
Okay. What, what will the average market rate approximately
Amit Mangilal Jain
Average should be. We get a premium of 10%. So average maybe 10% below 27. Around 27.
Akash Sharma
Okay. And last is like were there any tangible cost. Efficiency that we have seen due to faster project delivery.
Samshet Shetye
Can you please repeat the question?
Akash Sharma
Yeah, sir. Have we seen any tangible cost efficiency there due to faster project delivery?
Amit Mangilal Jain
Yes. So we save on the rentals, we have a faster turnaround. We have better irr. The receivables come in faster and we save on the admin cost, salaries and renters. And the money turning is faster. That gives us a better ir. The overheads are lesser, the rentals are lesser.
Akash Sharma
Got it? Got it, sir. Okay, sir. Thank you, sir. That. That’s it. From my side.
Operator
Thank you. The next question is from the line of Kostoop Sharma with Equinox Capital Ventures. Please go ahead.
Kaushal Sharma
So I can see that we are having several.
Operator
So may I request you to use your handset, sir. Your audio is slightly muffled, sir.
Kaushal Sharma
Now I am audible.
Operator
Yes, sir. This is better. Sir.
Kaushal Sharma
We are having several projects ongoing. So the three projects, Arcade, Crown Arcade, Aspire, Arcade Owner has been completed and the rest of the projects are ongoing. So what is the average completion stage of these projects and how much have we recognized the revenue so far?
Amit Mangilal Jain
These three projects we have completed in an average of 25, 26 months from CC to OC. 25. Yeah.
Kaushal Sharma
Okay. So okay. 25% of the revenue we have recognized in panel.
Amit Mangilal Jain
No, no. 25 months is the average completion time. You asked me the average completion time.
Kaushal Sharma
Yeah, yeah, yeah. So if. Because we are recognizing our revenue as per the percentage of completion method. So I just want to know the stage of the these projects. The ongoing project. So in terms of percentage of completion, how much would be the percentage of completion on an average?
Samshet Shetye
Recognize the revenue based on the percentage completion. That is right. But we start recognizing the revenue once we complete the 25% of the construction cost. So if you. If you see our chart of the ongoing project, we will find that few of the projects have not yet completed 25% tasks like the Arcade Nest Arcade Rare Arcade Vista views. So those are yet to start utilizing the revenue. But for other projects we have started utilizing the revenue.
Kaushal Sharma
So the Prime Nest and parallel that we have started recognizing the value. Correct.
Samshet Shetye
Sorry. Which project is referred
Kaushal Sharma
RK Trine Nest Peril Addon,
Samshet Shetye
No net rare Vista views are yet to start recognition. All of us started as started recognizing the revenue.
Kaushal Sharma
Okay. And you said that market Crown aspire around 1091 odd crores out of which 100 crores would be recognized by 2025, right?
Samshet Shetye
Yes. In the last quarter.
Kaushal Sharma
Yeah. So rest of the revenue would be recognized in the next year?
Samshet Shetye
No, it has already been recognized till date.
Kaushal Sharma
Okay. That is okay. Thank you. Thank you sir.
Operator
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Mr. Amit Jain for closing comments.
Amit Mangilal Jain
I thank the entire team of arcade developers for their untiring efforts, hard work and dedication which drives the company forward through various market conditions. Also, I appreciate all of you for participating in our conference call. Please do get in touch with our investor relations team for any further questions. Thank you.
Operator
Thank you. On behalf of Arcade Developers Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.