Signatureglobal (India) Ltd (NSE: SIGNATURE) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Pradeep Kumar Aggarwal — Founder and Chairman
Rajat Kathuria — Chief Executive Officer
Analysts:
Abhinav Chaturvedi — Analyst
Puneet Gulati — Analyst
Lakshmi Narayan — Analyst
Pritesh Sheth — Analyst
Murtuza Arsiwalla — Analyst
Eesha Shah — Analyst
Parvez Akhtar Qazi, — Analyst
Akash Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Signature Global India Limited Q3FY26 earnings conference call. 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. Abhidev Chaturpadhai from ICIC Securities. Thank you. And over to you sir.
Abhinav Chaturvedi — Analyst
Yeah. Good morning everyone. On behalf of ICICI Securities I would like to welcome everyone on the call today from Signature Global Management. As always we have with us Mr. Pradeep Kumar Agarwal the chairman and whole time director. Mr. Lalit Kumar Agarwal, the Vice Chairman and whole time director Mr. Ravi Agarwal managing director Mr. Devender Agarwal, joint managing director and whole time director Mr. Rajat Kathuria, the chief executive officer Mr. Sanjeev Kumar Sharma, chief financial officer and Ms. Kritika Singh from the investor relations team. And now I’d like to hand over the call to the management for their opening remarks and comments over to you.
Thank you.
Pradeep Kumar Aggarwal — Founder and Chairman
Good morning everyone. It is a pleasure to welcome you all to the quarter three FY26 earnings conference call of Signature Global. Thank you for the taking the time to join us today. I hope you have had the opportunity to review our financial results and the investor presentation shared yesterday. To begin, I would like to briefly speak about the broader housing and economic environment in India which continue to support long term growth. The Union Budget 26 once again highlighted the government’s strong focus on infrastructure and urban development. The increase in public capital spending to 12.2 lakh crore in FY27 representing a 9% rise over FY26 is expected to help speed up project execution and encourage greater private investment.
Urban development continues to receive strong support with 5000 crore allocated each year for the next five years towards city economic reason. Along with this continued focus on tier 2 and tier 3 cities is helping create a new growth center. These steps will support planned urban growth, improve city infrastructure and dive housing demand across emerging locations. Overall, the budget aligns well with with the vision of Vixit Bharat by 2047 and support steady and inclusive growth. Over the last decade, India housing market has grown steadily supported by rising income, rapid urbanization and supportive government policies. Today, real estate play an important role in Indian economy contributing around 7 to 8% to GDP and acting as a key driver of infrastructure and urban development.
According to recent Cushman and Wakefield report, the Delhi NCR region witnessed a strong December quarter. In 2025 new housing launches rose by 39% over the previous quarter and more than doubled compared to the same period of last year. Grubram led this growth accounting for nearly half of total new launches. In the positive market environment, Signature Global remain focused on responsible and long term growth. Customer satisfaction and more comfort are the top priorities as the Delhi NCR region falls in a high earthquake risk zone. We have recently entered in a agreement to use advanced earthquake safety technology across our high rise projects so our customer can feel safer and more comfortable in their home.
Our performance in the first nine months in FY26 reflect the strength of our business and the trust placed in us by our customers and investors. Our adjusted gross profit margin improved to 31% in nine month FY26 and 40% in quarter three FY26 supported by higher margin mid income housing project Building on a strong performance, we remain focused on executing our project on time, maintaining financial discipline and delivering quality homes across our key market. Our focus continue to be on steady growth and customer satisfaction and creating long term value for all our stakeholders. With that I would now like to invite our CEO Mr.
Rajat Kothuria to take you through the company’s financial performance in more detail. Thank you once again for the joining us today and for your continued support to Signature Global.
Rajat Kathuria — Chief Executive Officer
Good morning and thanks everyone for joining this call today. So overall nine months have been good. I think activity level has stayed steady and more range bound, but we are seeing some sustained progress on multiple accounts and I will kind of talk through each one of them individually. So as far as launches are concerned, we started the year with comparatively lower levels of unsold stock so it was important and critical to launch newer projects. And over the nine months we’ve come up with two larger launches. The first one was in the first quarter itself by the name of Cloverdale and the second larger launch happened towards end of December by the name of Sarvam.
Both of these are large group housing projects which we’ve launched with fairly competitive pricing and good locations in the micro market. But overall adding on some of the smaller launches as well, we’ve launched close to 6.8 million square foot during the first nine months which in GDV terms is upwards of 104 billion. So we’ve created some reasonable supply over the last nine months. The supply trend is expected to continue because by the month of March we are we were only Planning to go whole log with like 4 million launch. But we’ll definitely be doing more than 2 million of launch in the month of March which will again be, you know, should give us an additional GDP potential between 45 to 50 billion INR.
So overall we started the year with a guidance of about 170 billion worth of launches. I would say we’ll be range bound to that with our launches definitely exceeding 150 billion INR. The launch which is being planned is also in the SPR market and we are very closely and actively working towards it. In terms of the sales for the last quarter we did about 20.1 billion. Taking our nine month sales average closer to 67 billion. Sales was expected to be a little higher. But the launch of Sarvam happened just at the fag end of the quarter and given the pollution scenario and some of these bands in the Delhi NCM market, I think the customer movement was limited.
We could have gone a little bit better on the sales but you know, I would say that we at least stayed range bound with more than 20 billions of sales which got clocked. We have, you know, inventory from Sarvam and from Cloverdale with us which continues to be offloaded in the market in a gradual manner. To break down on the sales numbers, We’ve sold about 1700 units over the last nine months with an average unit price of about 38 million per unit. In square footage we’ve sold close to 4 and a half million square foot with an average realization crossing 15,000 rupees per square foot mark.
The product which has been sold is fairly high on quality and specs and given the current land prices, we feel it’s a good compelling buy for the customers when they’re getting the product at about 50,000 rupees a foot. There has been some bit of rise in land prices and construction over the span of time. So the markets definitely a little above. Since we want to drive good volumes on the product front, we try to stay as competitive on the product pricing as possible. But to give the realization, to put it into context, 15,200 per square foot of realization is about 20% higher vis a vis the previous year.
One of the key factors being that last year a lot of sale also came out of our township projects which are outside of Gurgaon. Whether it was Dakshin or City of Colors. I think they also contributed to to fair rate of sales during the first nine months in previous years along with some sales in Gurgaon. But this year I think the composition of Sale from Gurgaon is higher and that’s one of the factors. Why, you know the realization is almost more than 21% higher than the previous year. But even on a like to like market, you know, individual markets also we have seen an escalation closer to about 15 odd percent in each of our key micro markets.
As far as total collections are concerned the quarter was definitely better than the previous two quarters. We collected closer to 12.3 billion INR. And even the current quarter we’re seeing good collections. So I think definitely the second half of the year as anticipated will be much better than the first half of the year in terms of collections overall. Till date we’ve like till 31st of December we’ve collected close to 31 billion INR from our customers. At this level of collection as well we’ve been, you know, created good cash surplus, you know, cash profits, cash surplus, whatever you know, term we may want to use.
We’ve almost created a surplus of about 868.6 billion 860 odd crores in the company within the span of nine months which was primarily used for business development. We’ve added stroke, bought some land from our JDA partners wherein you know, which happened where we used about 6.7 billion and another 0.7 billion went in terms of approvals for you know, fourth coming projects. So by and large bulk of the business development has happened out of internal accruals balance. Some money was used for interest payments and there’s a minor, you know, increase in the net debt position which stays in that, you know, 10 billion sort of position individually.
Gross debt and cash and cash equivalents both have gone up. We’ve a little over 30 billion in gross debt and over 20 billion in terms of cash and cash equivalents. Hence the net debt position stayed in that you know, 10 billion sort of a range. And you know we’ve been in this range for last two to three years. Despite the growth being done by the company. The net debt position is where it is to put into perspective the portfolio, you know, which we are dealing with, the scale which we are dealing with. As of today we’ve completed you know, close to in excess of rather 16 million square foot till date.
There’s another 13 million plus square foot which is at advanced stages. You know, last quarter there were a lot of restrictions and we got very little days to kind of, you know, complete some of these projects. But the current quarter we are anticipating almost close to in that you know, 2 million square foot of range of completions to happen. Within this, you know, ongoing quarter as well. So there’s about 13 million which is kind of getting addressed on a quarterly basis with current quarter also contributing to fair bit of, you know, completions in the company.
And this 13 million put together has a GDV of about 98 billion which will get recognized in, you know, becoming four to six quarters. But besides that and more importantly there is almost close to 42 million square foot which is as of today almost getting equally sliced into halves. One is projects which we’ve launched over the last two years. You know, the category in the investor deck which we’ve shared is, you know, we’ve termed it as recently launched projects which is close to 21 million square foot. This consider launches starting from Deluxe DXP which we launched around February, March 2024.
From that launch till date we’ve done multiple group housing projects, whether it was Deluxe, GXP Titanium, Cloverdale, Twin Towers, Sarvam and also two large township projects, whether it was Dakshin and City of Colors. Across all these projects we’ve launched roughly about 21 million square foot on a very sustained basis. Every quarter we’ve been adding supply and you know, it takes its own sort of diligence time effort to you know, in parallel accumulate land, get approvals, get come up with a project and a product, you know, which, which well suits the customer requirements. But over the last two years we very successfully launched 21 million square foot with a GDV of close to 30,300 billion or 30,000 crores.
But in addition to what we’ve done over the last two years, we also have another 21 million square foot with us right now which has an even higher GDV which will be in the range of 350 to 400 billion INR, almost like 35 to 40,000 crores worth of inventory, something land stage inventory, something which we hold and will be launching over the coming, you know, eight to ten quarters. Bulk of this land is in, is in a good position. It’s mostly kind of, you know, contiguous. The certain approvals which are in place, the balance are being obtained.
So it’s not land which will take significantly longer than let’s say next eight to ten quarters for us to launch. And hence if we go two years forward from now, you know, the last four years we would have then launched almost projects worth, let’s say 65 to 70,000 crores. And the entire portfolio which we see as of today would have been like a cash generating portfolio for the company. In contrast to this very Rich, very prime land resource and projects which we’ve launched. There’s a very limited net debt position in the company. So given that the net debt position is low, we are fairly confident that within this calendar year this net debt position should actually come down to a zero level.
Can’t really comment on timing of it, but very confident that this net debt level will come down to zero while we continue to do more launches that will help us in getting good cash flows for the company. In terms of the revenue recognition, I think we have completed projects worth 15 billion over the last nine months. But given that project completion tends to be lumpy in nature, we expect quite a bit of these, you know, completions to happen in the ongoing quarter. So this number could actually change is expected to change significantly as we end the year.
But the silver lining is that as our mid income projects are, you know, are gaining a higher share in overall completions vis a vis the affordable projects, there are just few more affordable projects which are still to be completed. Our gross profit margin is surging past 31%. We expect this to further go up in times to come. As for the guidance for the year is concerned, one would notice that there is still a bit of gap between the current achievement and the overall guidance for the year. This is supposedly a good quarter for the company on various fronts.
Whether you know, there’s one large launch which is still pending, whether it’s a sale momentum given that weather is better and we have good inventory. So the good level of site visits which are happening as of today and hence we are hopeful that it would lead to good conversions. Collections are picking up. Last quarter was much better than the earlier two quarters and we expect that trend to continue as well. And completions, we are quite hopeful of good completions during this quarter. So I think we will largely cover the gap between the guidance numbers and the actual performance for this year.
But there was no point preempting a particular number since we are very close to end of the year. But I think we are very positive given the business momentum and activity scenario across various supply and demand streams that this gap will significantly come down by the end of the year and all these numbers also we should look into perspective that last three to four years we’ve gone through a significant growth phase. If you go back to fiscal year 2022, our pre sales number used to be closer to like quarter of what we achieved last year.
So we’ve actually seen like a good close to 60% sales CAGR over the last three years and given the Opportunity. We are very positive on this good sales activity to continue in the region. Our positioning remains very unique. We do want to position ourselves as the preferred brand, preferred choice of customers in this middle income housing market in the Delhi NCR market which is definitely starved in terms of good quality developments and coming from branded developers. So our strategy for coming years is going to remain similar to address this mid income housing market and we are well poised to kind of tap the opportunity around it.
Thank you very much.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone 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. The first question comes from the line of Puneet, but hsbc, please go ahead.
Puneet Gulati
Yeah, thank you so much for the, for the color on the market. Just a bit more if you can. Talk about what are the key changes in the market that you’ve seen from the start of last year till now and how do you see room for price appreciation in your products?
Rajat Kathuria
Sure, Puneet, thanks for asking a very important question. So Puneet, if you look at the housing market within Gurgaon, there was literally very little supply during 2014 to let’s say 20, 20, 22 for the seven, eight years, literally the market saw very little supply while a lot of hard infrastructure, social infrastructure related improvements were happening. And a clear trend also emerged post the pandemic that a lot of people from Delhi and, you know, wanted to move to Gurgaon. And that, you know, pace has been kind of, you know, that activity has been happening at a very, you know, kind of significant pace.
So when supply started to roll out in the market, significant supply, you know, we were always doing some, you know, bit of work. But as a industry, as more supply came into the market during 2023, 24, 25, all of a sudden, you know, there was a price spike in the market because literally very little supply was available for a lot of demand which was there for fail for almost a decade. So there was kind of a euphoria in the market. You know, developers, including ourselves, you know, we were launching projects and we were getting like four or five subscriptions for, you know, these projects.
And it was a little scary because we weren’t sure the quality of book which was getting created. So that’s why we had to, you know, do deep profile checks of customers who are who are buying these units, you know, not to kind of give multiple units to any single individual. So stuff like that, you know, was happening. But I would say there was kind of a euphoria in the market and it was very inordinate for something like real estate that on the date of launch, you know, there were multiple X subscriptions happening. I would say there has been good supply in the market and hence the demand trends in comparison to supply have matured.
Wherein, let’s say, sharing an example, let’s say we launched sarvam this was end of December, but we opened up about, you know, 800 odd units for sale and we managed to sell about 300 plus units at the time of launch itself. We are also expecting more sales around this project to happen within this quarter. So vis a vis the number of units which the company is opening up for sale. So within six months, let’s say we are able to sell 50 to 60% of those number of units is more like what one would relate to.
And that’s the current scenario where demand is steady but not euphoric.
Puneet Gulati
And how are you viewing the pricing growth trends? Do you see further room like to like in your projects?
Rajat Kathuria
I think the current pricing makes the business reasonably profitable for us. We continue to state that, you know, our margins in the operating margins in the business are in that 35% plus range. So we’ve got reasonable amount of land tied up, owned rather not tied up, you know, because bulk of the land which I talked about is land which is owned by the company. And there is a very minuscule portion which is actually in the form of any collaboration agreements. So as we are achieving these sales and collections, bulk of the money, you know, sticks in the company.
Rather than it going out to any landowners, I expect price to move up in late single digits rather than going up in double digits for the next 18 to 24 months.
Puneet Gulati
Okay, that’s very helpful. And secondly on the margin itself, you talked about an embedded ebitda margin of 35% but when I look at the reported gross profit margin, that’s at 31%. How do you bridge that gap? I would presume embedded EBITDA would have some LCNA element as well into it.
Rajat Kathuria
Yes. So there is a huge gap between the per square foot realization of what is getting completed vis a vis what is currently being sold. What you’re seeing in the profit and loss account has, you know, even elements of affordable housing which we used to sell at 4,000 rupees or 4,500 rupees per square foot on a carpet area basis vis a vis. Currently we are selling product at let’s say 15,000 rupees a square foot on super built up area basis. So there is a huge gap between the per square foot realization which is having an impact on the margins.
Puneet Gulati
Understood, that’s clear. And lastly on the approval cost front, now you started last 2/4 segregating out your approval cost between what is or new land, what is for under construction. But if I broadly think about your middle income projects, which is dominant for you, what would be, you know, the share of land cost and what would be the share of approval cost for you?
Rajat Kathuria
The historical land cost for us is staying in that, you know, 10 to 12% margin. But you should not. So including approvals also, which is not like very high. But yes, we started distinguishing it because you know, we’ve been doing multiple back to back launches. So we thought it’s, it’s more akin to, you know, land spend rather than construction. So that’s why any project which is already spent, launched and any amount being spent on approvals, you know, we are classifying it along with construction. Whereas for any unlaunched project, any approval cost which is being spent, you know, we are categorizing it in the nature of land related expenditure.
But land approvals put together, you know, I think an assumption of about 50% of top line is a fair assumption.
Puneet Gulati
Okay, so approval is still 2, 3%. Only in that sense. Not a very big number for you yet.
Rajat Kathuria
No, no,
Puneet Gulati
that’s very helpful. Thank you so much and all the best.
Rajat Kathuria
Thanks Muneet.
operator
The next question comes from the line of Lakshmi Narayan with Tunga Investments. Please go ahead. Thank you.
Lakshmi Narayan
You talked about Starvam and that There has been 800 units there on offer and you could actually get around 300 bookings on day one. Can you just elaborate on that project in terms of how many units are totally there? I think there are around eight lovers you intend to build and how many units and over how many, you know, I mean what kind of tenure or what when do you intend to, you know, complete it? Just give some color on that. And whether you, whether the. You mentioned that only X only around less than 50% of the people booked it.
Now when you compare to the similar project in a similar sector, which is the Deluxe DXP, how was it when you actually launched in March 2024? It will be helpful to understand from you.
Rajat Kathuria
Sure. So first of all, you’re absolutely right. Delex, TXP and Server are in the same micro market. We hold or we are executing multiple projects within that sector just off Dwark expressway called sector 37D and we’ll be coming up with more supply within that sector in times to come. So one key differentiation which we started doing starting this year is that we’ve started looking at overall community enhancement as far as sector 37D is concerned. The first project was called DLX DXP. Second one is called DXP Servum and we’ve started positioning that market as DXP Estate wherein we do intend to bring in more elements to enhance community living for our residents.
Likewise, even in the SPR market where we own more than 90 acres of land and we do intend to come up with back to back launches, we are focusing a lot more on community enhancement and we’ll be adding elements to improve the, you know, general community living, stroke, social infrastructure, you know, around these areas. As far as specific response in both of these, you know, projects is concerned, yes, Deluxe GXP was a project launched back in February, March 24th, wherein we did actually get 5x number of subscriptions as we launched the project. So if I’m not wrong, there were close to about 1000 odd units and we got more than or you know, more than 5,000 applications against that particular project.
So that was absolutely, you know, euphoric. And you know, we actually had to, you know, take services of a large consulting firm to do profile checks of, you know, the customers who applied for it. And we actually did it, you know, we hired BCG and got profile checks done for these customers that how come, what is it? Are these serious customers? What do we do with these applications? So it was a bit of a headache in that sense as well. But yeah, a good problem to have as of now when we’ve launched Server, this is spread over 14 acres, about 3.6 million square foot and having about 1800 odd units which we’ve launched, the per square foot price has gone up.
Deluxe had a base price of about 13,000 rupees, whereas this time the price is, you know, it’s getting closer to 16 odd thousand rupees including, you know, cost for other services. But in order to keep that mid income sort of positioning, we’ve reduced the unit sizes. So Sarvam technically has smaller unit sizes vis a vis deluxe DXP. You know, the unit sizes are closer to 2000 square foot on a super built up basis. And that’s why, you know, overall the project should really take about close to five years to get completed. So we have ample of time to you know, launch the balance thousand odd units.
The ideal situation would be that over the next 12 months, let’s say we, we’ve managed to kind of show some good construction progress on the project, appoint good quality contractors and that’s when we reposition and balance the balance about close to 50% of the inventory which we’ve held with us for the time being. So that’s the overall plan and strategy around server. But the entire 3.6 million is a single phase development. We’re not phasing it out, we’ll complete it as one single project. And our targeted timeline is close to five years for the same.
Lakshmi Narayan
Of the 1800 units you have actually asked for around 800 units. And what has been the fill rate so far? I mean how many units have been Booked in that quad.
Rajat Kathuria
till 31st of December? I think we had filled about 318 odd units out of this.
Lakshmi Narayan
Out of the 800 you are actually proposed?
Rajat Kathuria
Yes.
Lakshmi Narayan
And when will you augment the other one? Because it’s going to be a 1:1 location. Right. So when will you augment another thousand odd units here?
Rajat Kathuria
So we would like to show some progress on ground rather than just kind of, you know, timing gap. There should be, you know, differentiation in what is being offered to the customer because the usual market trend is the second phase, you know, comes at a slight premium to the initial launch price and of course a compressed payment timeline for the incoming customers. So it has to be in line with certain, you know, project level progress. So as we you know, develop, start developing these project and showcase some, you know, success around it, that would be ideal time.
We kind of, you know, do do like a good phase to launch of you know, basically putting the balance units up for sale.
Lakshmi Narayan
And in terms of the other project, which is a Cloverdale FTR, when you launch that in June 2025, what has been the response there and has it dramatically changed when you actually look at Sarvam?
Rajat Kathuria
No, there’s no dramatic change. That was a smaller project. So we didn’t hold back any units for sale as we launched it. So that was like a single launch that was about 1.7 million square foot. And the response, the so trend is similar. See as we are launching a project, definitely there are certain or rather a good healthy percentage of units which are, you know, being absorbed right in the same quarter in the same month at the time of launch. But given that it’s real estate, you know, it’s good that it’s, you know, then thereafter we are doing sustain and sales and it Gets absorbed over a span of time.
Lakshmi Narayan
Fair enough. I just want. Can I just have another two questions?
operator
Sir, I would request you to please. Come back in the queue for further questions. Yeah, thank you.
Rajat Kathuria
Thank you.
operator
The next question comes from the line of Pritesh with Access Capital. Please go ahead.
Pritesh Sheth
Yeah, good morning and thanks for the opportunity. Just a couple of questions I think. Starting with when we left on Global. So while we are targeting to launch another phase at spr, just want to understand how much inventory is left in Cloverdell. And overall also like whatever we have launched since last couple of years. There’s 21 million square feet, 30,000 crore GDV that you highlighted. How much is the inventory in that total portfolio? Just trying to understand why, you know, despite having a good amount of inventory probably why are we you know, rushing on launches? Are we, you know, obviously providing some differentiated offerings which won’t cannibalize our existing inventory.So just trying to understand strategy there. Yeah.
Rajat Kathuria
Okay. So Pritesh. See every project does come with certain unique sort of, you know, features attached to itself and that will remain by and large, you know, the, the strategy going forward. Rather, I’ll put things differently as far as Sector 71 is concerned. See we are amongst very few developers who own reasonably large quantum of inventory in this market. You know, there’s a larger developer who owns lot of area around Sector 76 in Gurgaon. We own significant amount of land in Sector 71. Besides, people are coming up with only smaller project launches spread across 4,5 odd acres.
But no one sold significantly larger quantum of land and hence cannot very easily create supply. The larger trend is that we came up with titanium in June 24th with a launch of about 2.1 million square foot. Bulk of that inventory has now been absorbed. Then we came up with Cloverdale back in June 25th. That’s also getting absorbed at a good pace. I can check on the exact numbers and share it with you, but I think if I’m not wrong, more than 400 plus units had been offloaded by the end of the quarter December. So there is not like significant amount of inventory which is left over.
There is definitely some but not significant. And hence you know, we do intend to. And there’s like differentiation. Like Titanium had larger size units now Cloverdale had, you know, comparatively smaller size units. So we feel there is market, there is a certain absorption, you know, which happens in each of these markets at a particular pace. These are serious customers coming and buying units of let’s say 4 to 5 crores each. So we do feel the need of coming up with another project with its own differentiation. And that’s why we are coming up, you know, with an additional 2 million square foot in a couple of months, maybe lesser than that.
Pritesh Sheth
Got it. And with the kind of performance on pre sale side that we’ll have this year. Right. Which is expected to be similar last year. Now are we drawing a line in terms of, you know, how much we can do in Gurgaon? Around 10,000, not crore. That would be the peak of the number that one should expect because I think markets from here on will keep getting m Which is expected to be similar last year. Now are we drawing a line in terms of, you know, how much we can do in Gurgaon? Around 10,000, not crore. That would be the peak of the number that one should expect because I think markets from here on will keep getting matured. Right. So for growth, do we think that now is the time we start exploring other markets beyond Gurgaon for growth?
Rajat Kathuria
Yeah. So Pritesh, good question. We’ve grown fairly quickly and within a short span of time we’ve actually, you know, come to this level of 10,000 odd crores of sales while staying focused in the Gurgaon market.
In fiscal year 2022, we used to do about 2600 odd crores of pre sales. That number is kind of almost quadrupled over a span of, you know, three to four years. So definitely 10,000 crores of sales for a, you know, an individual market is a good number to achieve. We have certain plans to showcase, you know, how we are taking the growth forward. So, you know, you’ll, you know, allow us some time to kind of, you know, share more details around it.
operator
Mr. Pritesh, does that answer your question?
Pritesh Sheth
Yes, sorry, I have one more question. Yeah, one more question. Just on the operational and financial parameters.
Rajat Kathuria
Yes.
Pritesh Sheth
You know, we have, you know, talked about pre sales that we would lack that in terms of what we guided for you highlighted about the launches as well. But collections and revenue recognition is still, we know, a lot to catch up in Q4, you know, how should we see those two numbers also progressing? And specifically on collections, you know, I think it’s been the second year where we have missed our guidance. If you can highlight, you know, you know, what were the key parameters or things that we actually lagged versus what we thought at the start of the year.
Yeah.
Rajat Kathuria
So see one factor which has impacted collection a little during the current year while we anticipated to achieve about 60 billion, is that on the construction front, construction and collection go hand in hand on the construction front. This year we had a very heavy monsoon season and then immediately backed by a very heavy pollution season in the Delhi NCR and we’ve actually lost significant number of days during the current year on the construction front. And you know, that is one of the factors why I would say this collection did get pushed by a quarter, so to say, you know, so we’re getting good last one or two months on the construction front and this very heavy activity as far as project execution concerned and you know, even on the monitoring front, we are monitoring some of these project completions very closely.
So I would say primarily it’s driven by the level of construction activity which got impacted. So both you will see a change in tandem with each other. So this quarter, for instance, is great in terms of construction. Of course, the collection activity will also improve. So that’s why we are hopeful that both of these factors we’ll see significant improvement by the time we end the year. How much you can catch up on collections and renovation both. If you want to put a number, it won’t be, you know, what we have guided for, but how much we can catch up.
I’ll prefer to refrain pritesh to put a particular number right now because we are targeting it to, you know, catch up as much as possible between actuals and guidance. You know, I’ll refrain from giving a particular number at this stage. But yes, I think it will look much better by the end of the year on both the fronts.
Pritesh Sheth
Sure, got it. Thanks. Helpful. All the best.
Rajat Kathuria
Thank you.
operator
The next question comes from the line of Matusa Aziwala with Kotak Securities. Please go ahead.
Murtuza Arsiwalla
Yeah, hi. I guess a lot of questions on. Sales and launches have been addressed as well as the guidance. I think one more piece some clarity on. If we look at the adjusted EBITDA number, you’ve talked about 600 million for nine months. The first quarter was a billion. So it almost seems to the second and third quarter this year, the revenue recognition, which has been weak, there is an EBITDA loss even on an adjusted basis. How should we read that number, really?
Rajat Kathuria
So I think, you know, you understand. See, it’s all very, you know, couple of projects getting completed and it changes the flavor.
Absolutely. You know, in a given quarter and last quarter we did see a lot of impact due to, you know, these graph norms and due to construction activity, you know, stopping multiple times. And what happens on ground is that let’s say once the grab gets implemented for let’s say 10 days, 15 days, the labor gets demobilized and to again kind of catch up to the same quantum of labor takes its own sweet time. So we’ve definitely lost reasonable number of days over the last three months in terms of project completions. At the current level of revenue recognition, which is only 15 billion, I think the only relevant parameter to see is gross profit till the time we this number doesn’t cross, let’s say 25 billion, you know, at least I would say 20 to 23 billion.
It will remain pat neutral for that minimum quantum of completion has to happen to give a rightful picture at a bit done pat level and we are actually striving to achieve it to you know, go past these benchmarks, you know, and come closer to let’s say you know, 30 billion and above in terms of revenue recognition. That’s when some of these SGNA costs get comfortably absorbed and we are able to show, you know, reasonable profits or should show the rightful, you know, picture of the company in terms of EBITDA impact. But yeah, it’s more to do with the quantum of revenue which got recognized and that’s why you’re seeing these numbers going in.
Murtuza Arsiwalla
Sure. Just again at the cost of repeating on the pre sales number. But hopefully you cover some ground in the fourth quarter. But given where we are and the market conditions, any early indicators of how you’re thinking of FY27, 526 is almost over. Also on that front, you know you’ve always maintained three key market focus. You’ve got these three large set of focus areas. Any aspiration to look, you know, expand that horizon so that you know, that growth engine could be more comfortably maintained as opposed to digging deeper in the same micro markets. On those two questions, any early indicators for 27 and looking at more micro market than we had already presented.
Rajat Kathuria
So see market condition to us looks better than what it was a couple of quarters ago. So don’t want to preempt how future has to unfold for us. But I think market conditions, definitely the sentiment looks better in the micro market with what it was, you know, one or two quarters ago as far as you know, growth plans are concerned. Definitely, you know, as we end the year we will prefer to elaborate on that basis, you know, where we close, you know, this year. But there are, you know, plans in terms of, you know, expansion and how we very rightfully deploy the kind of cash flow which we expect the business to generate.
Because just reiterating you, you understand this very well but you know, all these projects which have been launched and which are about to be launched, you know, almost adds up to about 65,000 crores. It’s like you know, 650 billion of launches which we are planning and bulk of the land is owned by the company. So you know, it’s not that. So whatever cash is supposed to accrue will be in the company. And that’s why, you know, we’ve never attempted to do any subsequent fundraise from the market. You know, we just did one fundraise of you know, primary infusion back in calendar year 23 when we got listed.
So we’ve never felt the need to really kind of, you know, go back to the market in subsequent fundraise because operating cash flows have been strong and we are planning out on, you know, what would be the best course. But yeah, we need some more time to kind of, you know, elaborate on on this particular point.
Murtuza Arsiwalla
Sure. Thank you.
Rajat Kathuria
Thanks. Thanks.
operator
The next question comes from the line of Isha with Access securities. Please go ahead.
Eesha Shah
Hi. Thank you for the opportunity. I think most of the questions have been answered. One I would like to ask is for Sarvam, we saw a few 14% kind of sales on launch. So going forward is this the kind of run rate that we’re looking at for launches or are we seeing a further maturity in the market where we could see this 40% drop would be the first question. Thanks.
Rajat Kathuria
So Isha, just to correct I think so basis the units which are put on block and given that the project was launched towards the end of the quarter, we launched this I think around 20th of December. So we’ve managed to sell about 40 odd percent units as an approximate basis. I think this is a fairly mature trend. There is a massive under supply of housing units in the Delhi NCR market. If you look at the overall metrics vis a vis the population levels and the kind of actual supply which is available on ground, you know the supply isn’t too much and that’s one of the primary reasons why prices continue to go up.
So you’re seeing about a 20% rise in our realizations and even on the same market to market basis it’s like 15% plus rise. This is primarily happening because there is a demand supply gap which I think is playing to our favor at this stage. But even if that realization was to go up at a lower pace, we are absolutely good with it given that our land cost is fairly competitive. But we feel that this trend will continue wherein at the time of launch one should not expect more than 30 40% offtake of the product and the balance happening over the sustained period of project development.
Eesha Shah
Got it, Got it. And the second question would be we’ve seen like a 60 kind of like you mentioned in the commentary over the past several years. So what is the kind of strategy or what is the growth rate? If we can put A number to it in the coming years for pre sales that we’re looking at. And what are the kind of drivers that would ideally drive this pre sales growth for you?
Rajat Kathuria
So see in terms of sales going forward and the drivers, I think so I would say at the current levels one should be expecting more like 15 odd percent growth because we had that low base advantage and literally no supply in the market. And that really fueled the growth which has happened over the last three to four years. At the current size and scale I think it’s not practical to achieve that kind of growth rate. Second in terms of drivers, I think definitely the ability to launch newer project is the biggest driver. And our strategy in terms of achieving growth at current scale and having enough sort of land resource, you know, go hand in hand.
And that’s why you know, we feel achieving like a more matured 50% sort of, you know, sales growth is doable. This year may be like, you know, similar to previous year. No denial. We are not saying that, you know, we are achieving guidance this year. But yeah, I think this will be similar to previous year but this is on back of very good three to four years, you know, almost growing at 60 odd percent, 58% for the last three to four years. But yeah, going forward we feel that 15ish percent growth is something which can be underwritten.
Eesha Shah
Okay, thank you, thank you and all the best.
Rajat Kathuria
Thanks Isha.
operator
The next question comes from the line of Parvesh Qazi with Nuama Group. Please go ahead.
Parvez Akhtar Qazi,
Hi, good morning. Thanks for taking my question. So two questions from my side. I mean you mentioned that in both of the launches this year, Cloverdale and Turbom, we had reduced the unit size compared to the similar launches that we’ve done last year in Titanium and Deluxe dxv. You also mentioned that you expect prices to increase by maybe high single digits. So going ahead, what are our thoughts on the ticket size? Is there scope to further reduce the unit size or do you think the overall ticket size will increase in line with the price increase for you? That’s the first question.
And second, of the 3,100 crore collections that we have done in nine months, what proportion would have come from the projects that we have launched in FY26?
Rajat Kathuria
Thank you. So in terms of unit size, I don’t think there is massive, you know, scope left. 2,000 square foot of super built up is something, you know, which is sweet spot in the Delhi NCR market. People do largely prefer getting three bedrooms rather than, you know, smaller sizes. So. So that’s kind of a sweet spot at about 1800-2000 rupees a foot. Going further will be lesser. Maybe we can, if need arises, we can reduce the, you know, unit sizes by another 5, 7% but not higher. And I don’t think we don’t want to get into that no preference zone of customers also by really reducing the unit sizes further. So if the escalations tend to happen in this, you know, late single digits, that’s like a, that’s an ideal situation. You know, the, the product remains by and large affordable by the customer. We are able to achieve good volumes and you know, turn the current land resource into very active cash flow.
So, you know, that’s the ideal situation which we want to foresee for our business, you know, over the next two to three years. So that’s, we trying to stick to it. So the second thing which you asked this is, and okay, out of 31 billion, what is the proportion of these two project sales? I think we can get back to you. You can write to us and we’ll get you the exact number for that.
Parvez Akhtar Qazi,
Sure. Thank you.
Rajat Kathuria
Thanks.
operator
Thank you. A follow up question from Puneet with hsbc, please go ahead.
Puneet Gulati
Yeah, thank you so much. So just on the, you know, Cloverdale side, in, in last one year, how much price appreciation have you already seen in the project?
Rajat Kathuria
So Puneet, I’ll prefer to compare titanium versus Cloverdale because those are two phases of one larger project. So that’s about 22 acres of land as part of one single license from the government which has two separate phases. I would say between the two phases, between June 24 and June 25, we saw about a 15% escalation.
Puneet Gulati
Okay. And 25. Till now. Any data based on your putting here from the secondary market?
Rajat Kathuria
We’ve not really, you know, changed our prices on the, in the primary market front. They’re by and large, you know, similar.
Puneet Gulati
Okay. You’ve not changed. And any approval related issues. There are construction issues which you talk. About, but any approval related issues that. Is hurting the pace of launch or that’s not a problem in NCI right now.
Rajat Kathuria
No, that’s not an issue.
Puneet Gulati
Great. Thank you so much and all the best.
Rajat Kathuria
Thank you.
operator
Thank you. The next question comes from the line of Akash Gupta with Nomura. Please go ahead.
Akash Gupta
Hi. Am I audible?
operator
Yes.
Rajat Kathuria
Yeah, yeah. Good. Yeah.
Akash Gupta
Hi. Thank you so much for the opportunity. So I was reading your operational update and I saw this line. The overall market environment has turned soft and that has impacted us. I wanted to understand that during the beginning of the Year when we were setting our guidance, what was the launch performance that we were expecting from our projects and how has that changed and that’s why we are missing our guidance. So just some thoughts there.
Rajat Kathuria
Yeah, sure, Dash. That’s a, you know, a good way to, you know, evaluate start of the year versus the current commentary. So see, we will start. We started the year with a situation where literally we had very little inventory or meaningful inventory. You know, anything and everything which was getting launched was being absorbed. Okay. Which we anticipate to continue over a longer term basis because see every city in the country and if I have to talk in more details about the Delhi NCI market, it’s almost like a 40 million population people with reasonably higher per capita GDP situation. So the purchasing power is good. We attract a lot of customers from hinterland as well from Delhi, which is fairly rich in terms of, you know, real estate ownerships. So till the start of the year, or rather the last year, the situation was that as we launching a project, you know, it is getting over subscribed and launch was looking like a big challenge which we addressed.
You know, we did fairly large acquisitions over the last two, three years, like, you know, acquiring land parcels in Sona or something, creating a very marquee position in sector 70 one at a time, let’s say two years ago, three years ago, when land prices had not spiked. Land prices have really gone higher over the last two, three years. But we were lucky to kind of pick a lot of land towards before it started escalating in the manner it has done. So the only challenge which we used to foresee at the start of the year was that one should be able to launch the project.
Now that’s been the case with multiple players in the industry and supply levels have improved across the spectrum. So we’ve managed to now come up with supply on a sustained basis like every quarter we’ve been launching projects. And I would say the supply demand dynamics have come in some sync with each other. Then last year it was like literally very little supply and lot of demand. But now I think prices have gone up. Demand and supply are in somewhat balanced situation with each other. But at the same time land prices have also gone up and that makes it even tougher for people to come up with sustained supply in times to come.
You know, there was supply coming in over the last one or two years from some smaller developers as well, people who are, let’s say holding 5 acres, 10 acres of land and they were kind of launching projects in Gurgaon, but with Growth in land prices, you know, it’s become tougher for you know, such supply to continue. So in a way, as of when we say the market is softer, it’s only in a relative context that in context to the previous year, definitely, you know, the market has softened last 1, 2/4 rather were also not very good in terms of, you know, general macro headwinds, Global headwinds have been there, they’ve been layoffs which have happened in the market.
And you know, all markets in their own way get impacted. We had like a very heavy monsoon and very heavy pollution situation. So last one or two quarters in general, in terms of whether it is a macro environment or in some of these micro factors weren’t very supportive for the business. We’ve been working to create continuous supply because it’s not that we are sitting on very large stockpile at this point in time. We had very little unsold stock at the start of the year and we still have not very high level of supply available to us in each of the micro markets.
So that’s why this softening of market is more relative in context, you know then in general parlance, you know, so to say.
Akash Gupta
So, so just to follow up on that. So when we were setting up our guidance, is that like we were expecting like our server launch to sell 60, 70% or maybe 80% and launch and we have done 40 because 40 is a decent number. So is that what we were planning? Like we will sell 70, 80 at launch for Sauron and that’s how we’ll reach our guidance?
Rajat Kathuria
Yes, that’s correct.
Akash Gupta
Understood. Thank you so much.
operator
Thank you. A follow up question from Lakshmi Narayan with Tunga Investments. Please go ahead.
Lakshmi Narayan
Yeah, two questions. One is you mentioned that you did some survey in terms of whether people are genuine buyers or not. And we also hear a lot of declaration that is happening in the India market. So do you actually track as to how many are actually union buyers? Like people have actually taken a home loan and therefore they will pay up or I mean how that has changed. Do you actually ensure that people buy it and they cannot transfer? Is there a way in which you have some process where you avoid speculation which is just paying a token amount and then paying for the price appreciation? That is one question.
What is how you have changed your process especially with servum? Has anything been changed? Second is that you know who is the contractor for the 37D project, both the Deluxe and the the Servam you have launched. Is it the same. Who is handling. The project in terms of construction and the last one is that if you look at that 37D area, is it sufficiently served or we are actually really the number one builder there and there is definitely there is a positive supply which makes a project even more, you know, appealing to our end consumers. So these are the three questions in terms of, in terms of Sarma.
Rajat Kathuria
Sure. So Lakshmi Narayan, thanks for asking these questions. So see in terms of. Short term. Investors, stroke flippers, if I may use these terms with regard to certain category of investors who at times participate in real estate market. And yeah, I agree, you know Delhi NCR is more defamed than some of the other markets in this context. But I think whenever you see price surge taking place. So like a lot of, to put an analogy, let’s say there’s a lot of movement in a share price on a daily basis. Of course you have these trader mindset investors who do get very active. Given that we are not seeing a very sharp change in price, it’s fair to assume that some of these actors are showing less activity.
And that’s what I would assume as some of these recent launches are concerned that since price is not moving very differently that the activity is at almost very low levels as of today.
Lakshmi Narayan
Sorry. My question is what kind of process you have put in place to weed out speculation and therefore let’s say somebody wants to, you know, you ask for a call for the next amount, they actually say, you know, we don’t want to pay or something. How do you ensure that the speculation element is actually weeded out at the start? What process change you have made?
Rajat Kathuria
See, there are certain standard practices. For instance, okay, let’s say someone wants to use the product for end use or for an investment beyond a level. We can’t read it out technically but let’s say if the person does not pay up in time, you know, those units will get cancelled. So we have a simple process. You know, there’s a particular payment plan which is put forth and it gets fairly standard. It’s not that, you know, we’ll come up with very complex or multiple sort of payment plans. You know, there’s a, there’s usually a singular payment plan, you know, which is being offered to almost everyone.
You know, let’s say a project is getting launched in December, so there’ll be a construction link. There’ll be initially a time link plan and a construction link plan which is in place in case those payments do not turn up in time. You know, those units will get cancelled. So that’s like, you know, on the face of it. See, we cannot judge whether someone is a, you know, an investor, end user, flipper. You know, you’ll have to do a leap of faith and you know, go ahead with that transaction. But at times there are things which come up.
Let’s say, you know, if, let’s say out of some private limited company, let’s say someone’s trying to book let’s say three units then of course it will catch our attention and we’ll try to not encourage any such sales. But let’s say whether it is an ex customer or Y customers, we’ll go ahead with those sales and see the performance of that customer basis, the collections which are demanded.
Lakshmi Narayan
Okay then who is the contractor for both these projects Akash Gupta
Rajat Kathuria
37 d so we’ve awarded Alu Alia contractors for Deluxe EXP and Servam will be, you know, similar pedigree. We are in process of finalizing.
Lakshmi Narayan
You have given to LS who you have given Sadham to.
Rajat Kathuria
We are in process of finalizing the contractor. Okay, but it will be similar pedigree. Someone is capable whether it is Alu Alia or you know, another contractor but something someone, same pedigree because these are you know, high rise developments and good premium products coming from Signature Global. So we would want to ensure that they are best in class in terms of the developments.
Lakshmi Narayan
And the last question in terms of. The micro market, how are we the high grade developer in that area or what kind of competition you see in that? 37b.
Rajat Kathuria
So see 37d in terms of geography is just off Dwarka Expressway and I don’t know whether you’ve got a chance to ever visit the micro market. But this is like a phenomenal infrastructure development which you know, the, the mic, the city, you know, the entire I would say the Delhi NCR market has seen over the years. It’s probably one of the best highways which has been developed technically within the city. It’s almost like an elevated highway for you know like a 28 kilometer stretch and really cuts down on time between parts of Delhi which is more towards southwest and west Delhi to you know, Gurgaon.
It really cuts down on time. So it’s, it’s a phenomenal infrastructure development which has taken place. 37 d In terms of location is midway between start and end of this highway closer to Gurgaon then to Delhi. But yeah, you know from Delhi takes hardly like 10 minutes if you’re on the highway to reach sector 37D. And it is being a, it’s a sector which has seen a lot of developments. It’s a large sector, almost spread across, you know, 4 to 500 acres of land is there in the sector. And we’ve been developing projects in tandem.
You know, we’ve done affordable projects. Then as things progress, we’ve done, you know, some low rise developments and now we are doing more premium developments very next to the highway itself. So we are a relevant, you know, player in this entire Dwark Expressway market. And almost like 15, 20% of the supply which, which comes in this market is from Signature Global. And our positioning remains simple that, you know, we offer good quality projects at product at a competitive price. So that’s like the positioning we play with in order to achieve good volumes.
operator
Thank you, sir. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments.
Rajat Kathuria
Yeah, thank you very much for your time today and you know, we look forward to this conversation at the end of the year where we are actually hopeful of, you know, having closed out on a fair bit on the guided and, you know, the actual performance numbers. But we look forward to seeing you all in a couple of months over that call. Thank you very much. Thank you. Thanks a lot.
operator
Thanks. Thank you. On behalf of ICICI Securities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.