Arkade Developers Ltd (NSE: ARKADE) Q4 2025 Earnings Call dated May. 13, 2025
Corporate Participants:
Amit Jain — Chairman And Managing Director
Deepti Nair — Head of Marketing
Samshet Shetye — Chief Financial Officer
Unidentified Speaker
Analysts:
Unidentified Participant
Paras Chheda — Analyst
Majid Ahamed — Analyst
Analyst
Sagar Shah — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to Arcade Developers Ltd. Q4 and 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 guarantees of future performance and involves 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, Arcade Developers Limited. Thank you and over to you sir.
Amit Jain — Chairman And Managing Director
Good evening everyone. I would like to extend a very warm welcome to you all. For Arcade Developers Ltd. Earning conference call for the fourth quarter and year ended 31 March 2025, I would like to begin by express. Expressing my gratitude to you all for taking the time to join us today. We have on call with us Mr. Samset Seth, CFO Ms. Amita Singh, CSO Ms. Dipshti Nair, Head of Marketing and Ad Factors PR Our investor relations team. We have shared our results presentation. I hope you all must have gone through it. As we navigate through today’s complex global situation, I’d like to begin by acknowledging the recent challenges posed by the Indo park situation. Despite these difficulties, India has demonstrated resilience and is emerging stronger and the global superpower to reckon with. Our nation’s growth trajectory remains robust with strategic alliances and recent agreements and dialogues. Of the recent interest rate cut by 25 basis points by RBI and we expect further cuts in the year will positively enhance liquidity and will boost consumption as we move forward. Our industry is well positioned for steady growth driven by favorable economic conditions and strategic opportunities.We are optimistic about the future and committed to capitalizing on the emerging trends. Since this is our third earnings conference call, I would like our head of marketing Ms. Dipti to share a brief overview of our company before we get into our recent developments, business and financial performances for this period.
Deepti Nair — Head of Marketing
Thank you Mr. Jain. After being established in 1986 as a real estate development company, we’ve garnered reputation for developing top tier Grand Central projects. Driven by our deep understanding of the market and commitment to quality, we have managed to create a niche for ourselves being among the top 10 developers in NMR. Our strategic approach combining greenfields and redevelopment projects across Mumbai has allowed us to capture significant market share in high demand areas especially along the eastern and western suburbs where we have built a strong 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. In September 2024 we saw a key milestone in our growth journey as the company listed on the stock exchanges. Our IPO which raised 410 crores through the fresh issue of of 3.2 crore equity shares was met with a robust investor interest leading to 113 times over subscription. This move provides us with a major platform to access bigger markets and with the help expand our business. While delivering sustainable value for our stakeholders. Talking about industry outlook, the recent report by Knight Frank shows that the sector has tremendous momentum and is accelerating in 2025. Strong sales and prices seen in the residential sector over the recent months is driving growth. Overall, the sales volumes increased 2% year on year during the January to March quarter of 2025. Growth was driven by key markets like Pune, Chennai and Mumbai. In fact, Mumbai saw the highest sales volume touching just about 25,000 units during this period. Moreover, continuing the trend towards exploration and luxury spaces, the share of sales in the one floor and about ticket size grew by 46% in the first quarter of this calendar year. The share was 40% in the previous year. Sales in the sub Canary grew 15% year on year driven by higher demand for larger living spaces and better lifestyle. If we look into the higher ticket size unit, the share of the 2 to 5 cross segments it has grown from 12% in Q1 of calendar year 24 to 16% in the Q1 of calendar year 25. There is a clear trend towards higher category units among home buyers which is in line with our focus on premium spaces. We see a lot of scope in the Mumbai market both in terms of Greenfield, especially in the outsource and in terms of redevelopment opportunities. For instance, as for real estate industry body Mchiray, more than 25,000 building in MMR are eligible for redevelopment worth about 30,000 crore. 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 mmr, we are confident in our ability to contribute to and benefit from this positive trajectory. We continue demand for luxury homes in mmr. We are well positioned to capitalize on the market growth and remain optimistic about the ongoing fiscal year. I would now like to hand back the MIC to our chairman Mr. Amit Jain to take us through the development and other highlights.
Amit Jain — Chairman And Managing Director
Thank you. So the last quarter has been a significant one for arcade developers as we continue to build on our momentum and scale new heights in the mmr. This year we’ve seen the highest ever pre sales standing at 773 crores. A growth of 20% year on year basis followed by a collection of 716 crore. A growth of 22% year on year, an area sold of 2 and a half lakh square feet again an increase of 23%. These numbers showcase a strong operational excellence and outlook. In line with our strategic focus on premium housing and deeper market penetration, we have made considerable progress on the redevelopment front. We recently acquired a prominent 4 acre land parcel in Gorega west currently leased to Filmisan Private Limited. The acquisition opens up tremendous development potential on a sought after location reinforcing our long term vision for Western Market. The development marks our foray into the uber luxury segment designed to have three, four and five bedroom residences and penthouses for the evolved customers. Our commitment to cluster development also remains strong. We have signed key redevelopment agreements in Borivilli west and Maladway, both of which are yet to be a pivotal role in driving our growth forward. These have estimated GDVs of 850 crore and 750 crore respectively. Moreover also we have secured one of our largest redevelopment projects to date, a six and a half acre land parcel in Alanagar Daichar with a GDV estimate of 1700 crores. What continues to set us apart is our focus on delivering projects before time stakeholders but also helps reduce renters and other costs in redevelopment always been one of our strongest commitments track record which and makes Arcade a reliable name in the industry. Looking ahead, we are poised for accelerated growth driven by strategic expansion, high potential redevelopment and future ready greenfield projects. Our focus remains sharp to build sustainably, execute with discipline and create lasting values forever. I would now like to hand it over to Mr. Samset, our CFO who will take you through our financial performance for this period.
Samshet Shetye — Chief Financial Officer
Thank you sir. Good evening everyone. I will brief you all about the consolidated financial numbers for the fourth quarter and full year. Our winning for Q4FY25 stood at 134 crores as against 123 crores in Q4FY24 growing 9% year on year. EBITDA for the quarter stands as Rupees 46 crores as against Rupees 27 crores in Q4FY24 registering 65% growth on year. On year basis the EBITDA margin for Q4FY25 stands at 34% versus 22% in Q4F. The profit after tax stands at rupees 33 crores against rupees 20 crores in Q4FY24 registering 70% growth on year. On year basis, the PAT margin for Q4FY25 stands at 25% against 16% in Q4FY24. Coming to the full year FY25 number. Consolidated revenue was FY25 was rupees 695 crores visa vis rupees 636 crores in FY24 registering a growth of 9%. The EBITDA for this year stands at rupees 206 crores as against rupees 167 crores in previous financial year registering a growth of 22% on year. On year basis, The EBITDA margin per FY25 came in at 30% versus 26% in FY24. Profit after tax stands at rupees 157 crores against 123 crores growing at 28% on year. On year basisSIDE, the PAT margin for FY25 was 22% visa vis 19% in FY24. Now speaking, picking up some of the key operational highlights for the quarter. During this quarter we achieved Pre sales worth rupees 217 crore. A growth of 11% year on year basis. The area sold during the quarter increased 9% year on year to 70,000 square feet. Collection for Q4FY25 stood at Rupees 238 crore. Having growth of 35% year on year. That’s all from our side. We can now open the floor.
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 their touchstone 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. Ladies and gentlemen, we will wait for some moment while the question queue assembles. Thank you. Sa. The first question is from the line of Heath Parikh from Ashika Institutional Equities. Please go ahead.
Unidentified Participant
Yeah, good evening and thank you for the opportunity. My first question is on the launch pipeline. So how is the launch pipeline looking for F5 26? And secondly, how is the existing inventory at our four projects where OC has already been received? What are the number of events here? And the value of the inventory is still pending to be. So thank you.
Amit Jain
For this year, financial year 26, we are looking at four launches. We have Filmiston, which is our biggest acquired project to be launched this year. And we have three redevelopment projects also in pipeline which we wish to launch this year. One is In San Francisco, one is in Gorega west and the third one is in Mallard West. So four launches when the cumulative top line would be 3 and a half to 4000 crore estimated.
Coming back to second part of your question, unsold inventory in four occupation obtained project. So we have I guess 11 or 12 units valuing around 70 crores, which is unsold and which we are expecting to be sold very soon in a couple of months. Yeah,
Unidentified Participant
That answers my question. Thank you.
Operator
Thank you. The next question is from the line of Paras Cheddar from Purple One Vertex Ventures. Please go ahead.
Paras Chheda
Yeah, hello sir. Thank you for the opportunity. I was just trying to understand. Couple of questions, sir. Our execution in, you know, March 24th was almost, you know, triple that of 2023. However, in general on execution for March 25th has been 10% higher versus 3x. So, you know, I mean, in that context, first of all, why was IT Execution Growth Ltd. And what do you expect for FY26 and 27 now? And the efficiency has now improved. I can see the EBITDA margin has gone up. Quite substantially. Is that sustainable or about mid-20s is what best. We should take it as a long term EBITDA margin.
Amit Jain
So coming to your first part of your question 24, we launched four new projects and our accounting method is percentage completion method. So only after we complete 25% of expenses of the construction part we recognize the revenue of those projects. So in 24 the increase was more because we recognized four new upcoming projects and which was not the case in the preceding years. And the second part is the percentage profit margins has increased from 19 to 22% this year.
So we are trying to maintain good margins. Our margin profit margins are amongst the best in the industry. Part of 22% is like is amongst the best and we strive and manage the same going forward. Also
Paras Chheda
EBITDA margins I was talking about which is 33%.
Amit Jain
Yeah, I was talking of profit after tax.
Paras Chheda
Yeah. But I was talking about the EBITDA margin. So is that sustainable or broadly mid 20 is what one should.
Amit Jain
If you see over the past five years, you see our figures to be in and around that range only. So we strive to maintain that and hopefully we should be able to maintain it going forward also.
Paras Chheda
Okay. The last, the total development value of 6007 and 0 is executable in your opinion over what frame? Of what time frame?
Amit Jain
Over the horizon of five years we can look at achieving this figure.
Paras Chheda
Okay. Thank you sir.
Amit Jain
Thank you.
Operator
The next question is from the line of Anuragitesh from Chair arm stockbrokers. Please go ahead.
Unidentified Participant
Hello. Inaudible
Amit Jain
Yeah, you are.
Unidentified Participant
Thank you so much for the presentation. So my first question is why isn’t the management aggressive on other cities of India like tier 2 cities? Why so much into Mumbai? Only
Amit Jain
Because we have a lot lot of work opportunities in Mumbai, our home ground where we are able to do better justice. There is lot of immense potential. In fact people from rest of the cities are eyeing to come in Mumbai because of the potential in Mumbai. We have DLF come in Mumbai from Burgaon, we have pressed come in Mumbai from Bangalore. We have Shobha coming in Mumbai Purvanka. Because there is immense potential. We are yet at a baby stage. Like there is a lot to do and you can always do better justice at your own grounds. So we are cautious, aggressive I would say.
Unidentified Participant
Okay, so sir, there are more than 2,000 buildings currently in in line like in Mumbai. And there are so many developers as you mentioned as well. So how do you see yourself competing with them? And what is the unique selling point of arpil?
Amit Jain
The consistency is the unique selling point. Consistently delivering over past four decades more than 5,000 plus units delivered without any litigation, without any stored projects. And all the projects to the last unit is having occupation in stage. So consistency is the key differentiator and our micro market presence says it all. You know the delivery, the delivery on time, which is the biggest concern for a buyer. He’ll be okay with one or two fancy amenities here and there, but his possession on time is the biggest differentiator.
And we give a possession before time. And that is only possible because we understand our business in and out. Our project launches, which are always only when we have full approvals in place. The, the cash flow closure, the financial closure of the project. Everything is taken care of before taking money for bookings. And once we take the bookings, the buyer is 100% sure of timely possession. And that is the biggest differentiator, consistency and delivery.
Unidentified Participant
Thank you so much.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and 1. The next question is from the line of Majid Ahmed from Tradewalk Research. Please go ahead.
Amit Jain
Yes, you are
Majid Ahamed
Very good numbers. That is what is the going forward pre sales guidance for FY26 and second to that is like what is the guidance in terms of adv addition going forward for this year.
Amit Jain
So we’ll always try to have a healthy growth. If you look at our past, we have had a CAGR of 20% over the past not only few years, but over past few decades also. And we’ll try to maintain the same going forward also. It won’t be appropriate to give any precise number for the same. But we have been growing and we continue to grow. We have a good inventory of. Console goods. We have good numbers of ongoing projects and with those we are confident of maintaining a positive growth next year as well. And GDV is like so far as the business development is concerned it is an ongoing process. You know you keep on scouting for new projects and you’re able to add good number of projects more than what you done the preceding year. So that is an ongoing process. Very difficult to predict numbers. You know like it would be more of like a prediction number prediction game. So we’ll avoid that. But we are looking at healthy growth.
Majid Ahamed
You can give me like a ballpark number. What is that healthy growth percentage.
Amit Jain
I. I have given you an indication that we’ve had a CAGR of 20 over past few decades. So that is
Majid Ahamed
You want to maintain.
Amit Jain
Yeah, we definitely wish to maintain beat also.
Majid Ahamed
Oh okay. And secondly how do you see like like this a follow up question on the earlier participant who asked on competitive intensity. But you know there are the area you are there, there are multiple players. But again apart from the timely submission like how are you trying to build a brand? Like what type of activity you’re trying to build the brand.
Amit Jain
So if you notice that our margins are more than what is there in the industry average that is possible only because we get a premium for our inventory. And getting premium is possible only if you are a brand. So it is already proven that you are a brand. So and because you are a brand you are able to get premium. And because you are getting premium you are able to make healthy margin all the micro market. So you are amongst the top three player who’s getting the maximum rate in the micro market.
So barring maybe first or second year, third in the micro market where there are 30, 50 developers present.
Majid Ahamed
Are you like into the redevelopment project session?
Amit Jain
We are also into redevelopment. But we are primarily a land developer and we are also into redevelopment.
Majid Ahamed
Okay. Thank you sir. Thanks. You all are very good.
Operator
Thank you. The next question is from the line of Sagar Shah and Indigil investor. Please go ahead. Mr. Sagar, your line has been unmuted. Please go ahead with your question. As there’s no response, we’ll move on to the next question. It’s from the line of Paris Chiddha from Purple one vertex. Please go ahead.
Paras Chheda
So my understanding was that this Mallard project has got stalled for some claim now. Just wanted to understand the status on that. That was one. And secondly, now we’ve got quite a bit of cash still in hand. And so do you think for your future projects would you need to sort of go for working capital or this is enough for the current GDV that is proposed or at least that is under construction.
Samshet Shetye
So first to your question is that none of our projects is solved. Forget Malag, none of our project is solved before your information and everything is in smoothly process of approval. And I mentioned that we target to launch also this year Malar project. And the second part is that having a cash reserve is always a healthy time and it helps you have good cash flows for your ongoing project. And we’ll be able to maintain our project cash flows with the sales velocity and the sales cash flow.
And if need be, we are open to taking construction finances as and when required. But we are hopeful that we will be able. We have always been good with our management of cash flows and so will be the case in future.
Paras Chheda
Okay, so when do you intend to launch the Mallard project?
Samshet Shetye
This year only. Very difficult to pinpoint the exact month. But this year towards the last quarter.
Paras Chheda
FY26.
Samshet Shetye
Yes.
Paras Chheda
Okay. So basically early next year.
Samshet Shetye
Yeah, early next year.
Paras Chheda
Okay. Enter this last story for mine. There is this inventory that has startup nearly doubled so that I believe is under construction status. Can you elaborate a little bit on that for my better understanding
Amit Jain
Which has always been the case because the demand is also growing. You know, this is even if we go back a decade back like it’s been like close to three decades that now I am into real estate and the inventory is on the incremental side, you know. And there are. There is always a set of people who will be pessimists or who take inventory, but the supply has always out beaten the inventory. The per head consumption of real estate has increased. Like earlier there used to be more people staying in a 700 sq ft apartment and then now there are lesser people staying in 1700 square feet apart. Apartment. Per capita consumption of real estate has gone up and people want newer and better projects sustained with amenities. So the requirement is always there.
Paras Chheda
No, I understand real estate is in quite a strong cycle. So just two queries. I don’t know if there is time. One is just for my understanding that. I mean, I’m new to this real estate business in general, but trying to understand what proportion of this inventory would be unsold. Is it a fair way to look at it?
Amit Jain
We completed four projects last year and we are having less than 5% of the inventory that is available in those four projects. More than 95% is already sold. So with good developers and good projects, by the time you get an occupation, you are always fully sold, unless otherwise you don’t want to sell.
Deepti Nair
And just, you know, I mean everywhere around at least, you know, what we see in Mumbai is there is huge redevelopment that is ongoing. What is your outlook on real estate in general? Prices next? You know, let’s say three, four years down the line.
Amit Jain
Very strong.
Paras Chheda
Huge amount of redevelopment activity that we see around. And that’s the reason.
Amit Jain
Huge amount of demand of goods.
Paras Chheda
Okay,
Amit Jain
You have a lot of demand also, you know, people coming in from rest of India to Mumbai, that is huge. And people wanting bigger and better home. People ready and willing to take home loans for a tenure of 15 to 20 years. The attractive interest rates at which the home loans are available, the dual income family structure which makes them eligible for a bigger amount of home loan. All of these factors combined will make it very interesting.
Paras Chheda
So real estate prices are. Your outlook would be prices would be stable even three years down the line, more or less.
Amit Jain
So pricing is subject to many factors, but historically it’s always been on the upswing. You know, barring interim pause maybe it’s always been onswing on the upswing. And if there are recessions, then those recessions will not affect real estate alone. It will affect land, which is the raw material. It will affect everything. So everything will be hand in hand. If there is a fall in real estate prices, then the cement and steel prices will also fall which will get your construction cost downwards.
Then the land prices will also fall which will get your raw material of land prices downward. You know, it will not be only a loan real estate.
Paras Chheda
Thank you.
Amit Jain
Your margins of value addition. We are concerned with the margins of value addition from a land piece to a house. So the margins will be there, the value. Addition margin cannot go anywhere.
Paras Chheda
Right?
Operator
Thank you. The next question is from the line of Akash Sharma. Please go ahead.
Unidentified Participant
Yeah. Hi sir. I have a couple of questions. My first one is that you know with the. With our growing pipeline of redevelopment project how do we see our margins panning out in these projects? Second part and you know what kind of margins are we you know expecting from the greenfield project that we have or will be doing in the Goregraon land process.
Amit Jain
So with the increase in competition, the first part you said like the margins may go down a little but there will always be room enough for everyone. So a branded developer will manage to get a buyer who wants to deal with him and who’s ready and willing to pay that added premium for the brand. Just like any consumer product, say a cell phone, you have a cell phone available smartphone from say 10,000 to a lakh rupee. And there is scope enough for everyone.
And the costly is mobile phone that we have is having the highest cash reserve by any company on earth. So it is not like anything that’s expensive won’t make margin. There is a buyer for everything. So if there are more players, there are players who are ready to pay premium also. So the margin can be intact if you are able to add that value addition to your product and be a differentiator for your buyer. So you just keep on adding value and you get margin.
Unidentified Participant
Okay. Okay sir. And so lastly you know what is our overall GDV under execution right now and the target GDP over the next two to three years.
Amit Jain
So under execution is 2000 crore regular. And as mentioned in this form only like the in pipeline figure is around 6700 or something.
Unidentified Participant
Okay sir. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Srisad Harmani. Please go ahead.
Unidentified Participant
Hello, can you hear me?
Analyst
Yeah,
Unidentified Participant
I guess in the last 10 years balance sheet can.
Unidentified Participant
Can you use your hand? Sir, please. Yeah. Can you hear me?
Operator
Yes, sir.
Unidentified Participant
Hello. Okay. So Amitji, I was saying you have built one of the best real estate businesses in the country. At least definitely in the Mumbai region amongst the ones we have evaluated. Congratulations on building a good business. I have three questions. First on the growth prospects. Second on the inventory and third on the cash and the debt balances. On the broad prospects of. In the last call you said you will be able to do a 10,000 crore rupees cumulative revenue with a 20% pack.
So broadly 2,000 rupees of PAC in the next five year time horizon. How does that stand right now? Are there any changes in that assumption or it’s still the same view?
Samshet Shetye
We are still working towards the same. And as of date everything is intact, everything is in place.
Unidentified Participant
Okay, excellent. So if you see you already have 2,000 rupees of stock in the pipeline but. Pipeline as in under construction. But contract one is around 6700 crores. So I assume you will be able to get more land parcels in the time going forward to be able to complete the 10,000 rupees target.
Samshet Shetye
Yes. Hopefully if all was well, this should be the case.
Unidentified Participant
Okay, excellent. So in that context, just a quick question. How does the land parcel acquisition work? From whom do you acquire this land? And how long would a process take for you to acquire either a redevelopment land or a greenfield? Could you please talk something on those lines and how the payment is made?
Samshet Shetye
So normally the land is bought from the landowner. You know there were many bungalows, many factories and many greenfield also in MMR region which are owned by individual families and corporates and they are vendors for the land. Normally once the handset happens it takes on an average maybe around a year to close the transaction basis. The due diligence and the title search and all the processes involved.
The PPS of the condition, precedence for the transaction. If there is a factory running, it needs to be closed labor and if it needs to be obtained. So on an average maybe a year from handshake it takes to close the transaction. And so is the case with the society. Society redevelopment also once you get an LOI then we need to close the development agreement and opt in approval which also takes on an average a year after which the society vacates and the money is transferred transaction which vary on transaction to transaction basis. Society normally when it vacates we pay them rent and the cost of is paid at. Various stages. Yeah.
Unidentified Participant
Okay. Okay, got you. Thanks for this explanation. Second question was on the terms of inventory. If I say around 900 crore rupees of inventory sitting in the book, can you please help me understand what proportion of this inventories under the construction, in what proportion is the fully built out flat?
Amit Jain
Come again? Like
Unidentified Participant
Around 900 crore rupees sitting in the balance sheet right now. So what percentage of that is fully built out flat and what percentage is under construction?
Amit Jain
Okay, so out of 900 crores I’ll hand over to my CFO, give you the breakup. We have part cash in hand, part in newly acquired projects and part in ongoing projects.
Samshet Shetye
Yeah. So here. So out of that 900 crores, 45 crores is inventory for the OC received project. We received OC for four projects during the current year. So finished goods inventory is about 45 crores. We have started recognizing the revenue during current year for two more projects that is Arcade Pearl and Arcade Aiden. So inventory for those two projects is 85 crore. Then 175 crore is lying in inventory, what we paid for the Sylvie sun line.
Unidentified Participant
Okay. Okay.
Samshet Shetye
And the balance inventory is basically for the other project which is Arcade Mesh Arcade Rare and Arcade Vistas and Views which is which we haven’t yet started recognizing the revenue because the 25% threshold is not yet made.
Unidentified Participant
Ah, okay. Got you, got you. That does make sense. So we are seeing broadly the initial buckets that you mentioned around 250 crores. By then can we expect this to be fully sold out?
Samshet Shetye
This 100 and during. During first six months. 250. Which one you are referring?
Unidentified Participant
Sorry, you mentioned about 45 plus around three components that you mentioned, right?
Samshet Shetye
Yeah, yeah. The finished goods inventory will be trying to. So sell it in a quarter, three, three to four months and balance in a year. In a year’s time and balance inventory for the other project will be to start a commission will take about two, two and a half years.
Unidentified Participant
Okay, okay, got you, got you. And my third question was the cash and the debt balance. Besides the debt has slightly increased in this balance sheet to around 50 crore of additional debt coming into a long term liability. But obviously you remain a negative kind of net debt component. That’s totally fine. But do you think there will be a risk of new loading of more debt on your balance even if 9.4.
Unidentified Participant
As you do more reconstruction and more new development, given that your IPO cash is near exhaustion too. So what is the roadmap for the manager to take on debt Then how would they make the decision? Are they going to be using their internal cash flow to finance future development or are they going to load up more debt and get into maybe more vulnerable situation which we have presented them prevented them too far.
Amit Jain
So, so cash on balance, you might have seen that 110 crores is lying in our which is in cash and mind balance. Then another 120 crores in make your fund which is, which is the current investment. So this, this will help us to run the show conception, but if need arises, we’ll look for the construction finance for a shorter period which Mr. Has already explained earlier.
Unidentified Participant
Yeah, but are you planning to take construction finance significantly more, let’s say of 500,600 crores under construction finance or would that be under maybe 100, 200?
Amit Jain
No, that won’t require because you know, even from the current credits they are generating a good cash flow.
Unidentified Participant
Okay, okay. So what is the maximum level of debt to EBITDA ratio that we can expect the management to be comparatively better?
Amit Jain
It depends. I mean as I’m telling you that that won’t be the long term debt, you know, construction finance for a shorter period which won’t sit in our longest for a long time.
Unidentified Participant
Ah, okay, okay, okay, okay. Can you put any number? What is the maximum that you’re willing to go even?
Amit Jain
Yeah, again I’m telling you that it’s difficult because it depends on the scenario. And we are pretty much confident that we may not require to take much risk looking at the investment, what we have, the IPO funds, what we have, and the strong cash flow from the whatever inventory we are sold.
Unidentified Participant
Okay, got you, got you. So now my final question is what are the new projects that are coming up for sale in this year and what is the guidance of management for the revenues of faq?
Deepti Nair
Hi, this is Amita. So the project that we are looking and we are targeting for this year is in the chronological order. It will start from Gorega west, then Malad Salma and Maheshwar Nivas. And the timelines that we are looking for is in this maybe after festival season. We are not that keen to launch any projects during the monsoon. We don’t want that wash off time. Makes sense. Correct? Correct.
Unidentified Participant
Okay. So as said, we.
Amit Jain
We don’t want to give any guidance but we are sure that we will keep a growth of 20, 25% year only.
Unidentified Participant
Okay. Both in the top 10 in the bottom. Okay. Okay. Thanks. Nice talking. Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question you may press star and 1. The next question is from the line of Parash Chiddha. Please go ahead.
Paras Chheda
Yes, just for the sake of simplicity. Out of this 900 crore inventory how much can from a clear understanding how much can be monetized within let’s say the next six months and what bucket will fall beyond that?
Amit Jain
So the completed project which is 45 will be monetized in next three, four months that have cleared then for filming. Obviously the project launch will happen towards the end of this financial year. So that will take time. But the other inventory is for sale.
Unidentified Participant
Okay. Other inventory will be how much?
Amit Jain
So 175 +45 is 210. So balance inventory is for sale. And we’re pretty sure that you maintain the growth to. What we are maintaining till now
Unidentified Participant
Is the fortify is available for sale outright. And Filmistan will be of course only after the launch inventory that will be available for finished. I mean the quantum.
Amit Jain
So 46. So 210 the total to Kingistan and ot right.
Unidentified Participant
For the balance 600 crores. Hello.
Amit Jain
The balance balance inventory is for sale. Available for sale.
Unidentified Participant
It shall be 6 to 700 crores.
Samshet Shetye
Yeah. The balance out of 900 if you remove 210. That is what is. Yeah, that. So yeah obviously this is. This is cost incurred till date. What is 9 in invented 900 is cost incurred till date. The actual value of this inventory is 1500 crores.
Unidentified Participant
Just for the sake of clarity. So out of this and I understand there is a market value on this. But just you know what can be monetized within six months more or less and what will go beyond or can go beyond. Let’s put it that way.
Analyst
What is the question? Actually if you can repeat.
Unidentified Participant
Okay. Again forgive me, I’m new to the industry. There is this inventory 900 crores. So I was just trying to understand is the capital. It is 900 at cost and there is certain market value on that. Unless.
Unidentified Participant
Trying to understand of this block of inventory in the next six months what is immediately what can be monetized within only the next
Amit Jain
Revenue for the last year for year 25 has been 70 775. Very difficult to predict it going forward. But assuming a growth of 20% which we’ve been achieving for the past the top line should be close to the 950,000. And out of which if you say on a pro data basis it should be half for six months.
Unidentified Participant
Okay. Yeah. 4 to 500 crore.
Amit Jain
But it is very difficult.
Unidentified Participant
Yeah, yeah. It’s subject to a lot of factors.
Amit Jain
We should. There is a disclaimer. It should not be taken as a guideline.
Unidentified Participant
Yeah, no, no, I understand. That’s a ballpark bank. Okay. And just one more thing sir. What net debt to equity as a peak are we looking to cap ourselves debt? So for now our debt is very very comfortable. The net debt I’m talking about. But as the project progresses and you might need working capital etc. What net debt to equity peak net debt to equity are you looking at?
Amit Jain
We are sensitive to taking debt only. So there is nothing called as a comfortable figure like O. Only if we need an SOS situation where we are required to take debt we will consider it. But as of now we are very sensitive towards taking that. So we have not even thought of taking debt. So forget the ratio.
Unidentified Participant
Understood? Yeah. Okay. Thank you.
Operator
The next question is on the line of Sagar Shah, an individual investor. Please go ahead.
Sagar Shah
Hello.
Amit Jain
Yeah. Yeah.
Sagar Shah
Thank you sir for the opportunity. Just a few basic questions. Otherwise I’m new to the company so just wanted to know the you know size that you have. That is Arcade. Arcade staff and all those projects. What is the revenue expectation? Do you see the financial year 26. That’s the first one. And second one. Can you elaborate more on the redevelopment project that you mentioned that is this the project the you have got? Yes sir.
Amit Jain
So arcade next in arcade red you want the revenue potential is combined close to 1400
Sagar Shah
Expectation from 26. Right.
Amit Jain
26. It’s difficult to give you project wise but consolidated basis. I just. Yes, we will try and achieve 20% cell. Year on a year on year basis.
Unidentified Participant
Okay. And about this data. Redevelopment projects
Amit Jain
Plus acre land parcel size of the cluster of societies that we’ve undertaken for redevelopment and we’ll be coming up with high rises in it. It is going to be a luxury project having less loaded of amenities like because of bigger land size process.
Unidentified Participant
And when will it start like when like construction phase and all will start
Amit Jain
But we are having it in this project coming up in the next year. We don’t have this project lined up for this year.
Unidentified Participant
Okay.
Amit Jain
It’s going to be a mixed user, a combination of recy and commercial.
Unidentified Participant
Okay.
Amit Jain
Yeah. It’s close to Anandagar Metro station is all I can share information.
Unidentified Participant
What an earlier participant asked about the your part. Your existence in the region like Mumbai metropolitan region. Do you want to move within the Malasa like Pune or Bangladesh? Looking at the saturation of the Mumbai Mumbai region.
Amit Jain
As of now we are focusing only on mmi.
Unidentified Speaker
Thank you. Thank you sir.
Operator
Thank you. Ladies and gentlemen, that was the last question for today’s conference call. I now hand the conference over to Mr. Amit Sen for closing comments.
Amit Jain
So I thank the entire team of arcade developers for their efforts, hard work and dedication which drives the company forward through various market conditions. Also, I appreciate all of you for taking the time to participate in our conference call. Please do get in touch with our investor relations teams 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. Thank you.