Signatureglobal (India) Ltd (NSE: SIGNATURE) Q3 2026 Earnings Call dated Feb. 18, 2026
Corporate Participants:
Pradeep Kumar Agarwal — Chairman and Whole Time Director
Rajat Kathuria — Chief Executive Officer
Sanjeev Kumar Sharma — Chief Financial Officer
Sucrit Patil — Analyst
Analysts:
Adhidev Chattopadhyay — Analyst
Murtuza Arsiwalla — Analyst
Pritesh Sheth — Analyst
Parvez Akhtar Qazi — Analyst
Presentation:
Operator
Good morning, ladies and gentlemen and welcome to the Signature Global India Limited Business update conference call, hosted by ICICI Securities Limited. [Operator Instructions]
I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities Limited. Thank you. And over to you, sir.
Adhidev Chattopadhyay — Analyst
Yeah. On behalf of ICICI Securities, I welcome everyone on the call today. As always from Signature Global India Management, 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, the Managing Director; Mr. Devender Aggarwal, the Joint Managing Director and Whole Time Director; Mr. Rajat Kathuria, the Chief Executive Officer; Mr. Sanjeev Kumar Sharma, the Chief Financial Officer and Ms. Preetika Singh, the Head of Investor Relations.
And I’ll have to hand over the call to the management to take us through the recent announcements which they have done and way forward for the company. Over to you, sir. Thank you.
Pradeep Kumar Agarwal — Chairman and Whole Time Director
Thanks, Adhidev. Good morning everyone. Welcome to Signature Global’s investor call. RMZ and Signature Global are setting a stage for transforming commercial platform in Delhi NCR through a strategic joint venture in Gurugram, this partnership marked the beginning of institutional grade commercial ecosystem in one of India’s fastest growing business corridor. By combining Signature Global, the NCR market expertise spanning land acquisition approvals and acquisition. With RMZ global capability in design, development, leasing and asset management, we are creating scalable platform for future ready commercial asset. This collaboration is designed to be redefined the Gurugram skyline and build enduring commercial destination in Delhi NCR. This is a significant milestone in our growth journey. India’s commercial real estate sector is on a strong structural upcycle. The market is projected to expand from approximately $50 billion to in 2025 to nearly $250 billion by 2034, reflecting robust long term growth fundamentals.
India continue to be one of the fastest growing office market globally, with annual leasing of 50 million, 60 million square feet in recent years. Demand is being led by global capacity centers, IT, ITES, BFSI and multinational corporation. Total office stock heads surpassed 800 million square feet with sustained additional of 3D supply across leading cities. Within this landscape, Delhi NCR remains a dominant office market and Gurugram stands out with our 100 million square feet office stop, stable rental, healthy occupancy level and strong demand for global corporate.
Southern Periphery Road is emerging as a next commercial growth corridor, supported by strong connectivity to Dwarka Expressway, NH48 and Gulf Coast Extension Road, along with the ongoing infrastructure upgrades and Metro expansion plans. At Sector 71, this joint venture will develop a landmark mix use commercial project comprising premium retail grade A office space and world class hotel design to meet a global standard of quality and sustainability. For Signature Global, this marks a strategic expansion beyond residential development into large scale commercial real estate through an institutional partnership model. Over the year, we have delivered over 16 million square feet across multiple residential segment, with a disciplined execution, governance and customer first approach. This foundation positions us strongly enter the commercial segment with a confidence and long term vision. Together with RMZ, we aim to create a high quality commercial platform that deliver sustainable value for our investors and stakeholders.
With that, I now invite our CEO, Mr. Rajat Kathuria to share further detail on development. Thank you for your continued trust and support.
Rajat Kathuria — Chief Executive Officer
Hi, good morning everyone. Thanks for joining the call today morning. So, you know, over the years we’ve always focused on the housing business. In the last 10, 11 years we’ve always worked around a build to sell model and we evolved our way through in the housing business to achieve a particular sweet spot wherein we prefer to stick to the NCR region, as well as we prefer to stick to the mid income housing market. Over a span of time, the definition of mid income housing may have drifted a little with prices of land and construction have gone up, so mid income today stands at higher price points than what it used to be there about in the pre pandemic era at least. But by and large, the housing business has seen very good growth. We understand that business very well and we’ve created a very strong brand name positioning and very strong execution capabilities around our housing business. And for a while, we were looking at newer growth opportunities where once we get into a business we can scale it to much larger heights. We’ve been good with, you know, in the local market with land acquisitions, approvals, execution capabilities. But there was a missing link with regard to, you know, project conceptualizing some of these large scale, heavily capitalized projects and also with regard to leasing capabilities. And that’s where you know, we were under lot of debate internally on, you know, what’s the right way to, you know, commence such a journey.
So, I think after a lot of deliberation we kind of met the folks at RMZ. There was a lot of meeting of minds and synergy with our skill sets. So, we decided to set up a platform with the RMZ group. I think we saw very complementary skill sets because exactly what we wanted was what we were getting in terms of this partnership. They’ve executed more than 70 plus million square foot of projects till date and are very actively expanding on the back of institutional capital across the country. Have limited presence in NCR region, but see a huge potential right now to expand and do much more business in the NCR market. And the first choice even at their level is to look at the Gurgaon market, which can very safely be called as a CBD market for the entire NCR because bulk of grade A office spaces are sitting in Gurgaon right now. So, with this, you know, broader sort of agendas, you know, taking in for both the groups, you know, we decided to initiate this partnership.
So, if I have to talk specifically around the deal, we have a 100% subsidiary called Gurugram Commerce City Limited. In our investor presentation, we’ve detailed our land portfolio in Sector 71, which is on the Southern Periphery Road of about 18.5 million square foot, which emerges out of some 90 plus acres of land rights ownership. Out of this 18.5 million square foot, we’ve been conservatively calling out about 7 million square foot of development within Gurugram Commerce City Limited. The actual numbers as it is kind of getting closer to design is higher than, you know, our initial estimates. But in this 7 million, which was initially, you know, guesstimated as the development potential, there is a component of residential, which is about 30% of the development in this SPV and about 70% pertains to, you know, commercial assets. So that’s what’s permitted within this, you know, as part of the plans for this particular land parcel.
So, what we intend to do is to carve out the housing business into a parent entity and continue to do housing business 100%, you know, ourselves. That’s a core business, you know, for the last decade. But on the commercial side, once we carve out the residential business, the commercial development, whether it is office space or retail or hotels, of technically okay about we thought initially five million, but actually it’s going to be closer to five and a half million is something where we are partnering with RMZ Group. So, GCL from currently being 100% subsidiary, you know, we’ve signed up the transaction, we have to do certain set of, achieve certain conditions prior to closing which can’t estimate in exact time. But we are hoping that over the next 45 to 60 days these conditions will be met.
We will offer 50% stake to RMZ Group in GCL. As of today, there is land in this company and we are at very advanced stage of approvals. But at the stage and we intend to design it together along with the RMZ group, they will invest roughly about INR1,283 crores, subject to minor adjustments, but by and large close to INR1,280 crores for a 50% stake in this entity. These funds will primarily flow back to Signature because we’ve given a lot of loans into, you know, this entity right now or there are some third party loans, you know, so they’ll be squared. But by and large, you know, once the transaction gets done, both the partners will own about 50% each in this particular SPV. And hopefully by and large, this will be a debt free, cash free venture as we started, you know, there could be minor debt or cash, but by and large the intent is to keep it debt free and cash cash free.
The intent is very clear. This is starting of a long journey. We are starting with about 5.5 million square foot of development, which we intend to do together. This development will be funded through a mix of further equity infusions which may be needed and will be done in equal proportions by both the companies. But we’ll also be raising construction finance for development of these core assets. The plans are yet to be finalized, but by and large the asset base getting created under GCL will be from a leasing purpose. You know, the idea is to create a yield play in this business and also the intent is to grow this entity.
Since we are very strong in this region, we do keep coming across good land parcels, good opportunities and we are quite hopeful that this is just a beginning. We can actually scale up this venture significantly over the coming four to five years. With the start of 5 million, we see an opportunity here to grow this to let’s say 15 million to 20 million over the next four to five years in terms of its portfolio size and once developed, it will be a significantly large business in itself. The intent is to maintain 50% stake by both the parties. Neither do RMZ wants to dilute or nor do we want to dilute and both the parties are fairly confident that equity can be infused into this entity at a comfortable space by both of us.
Talking about ourselves, see we currently, if you look at our portfolio of, if you just look at part of the portfolio which is like recently launched and forthcoming projects which is roughly 42 million square foot, you know, that is expected to create a GDV in excess of INR65,000 crores. We’ve partly achieved some of these sales and rest are expected to be achieved over the coming years. This leaves us with a massive operating surplus and hence the idea is that we deploy only a portion of it into GCL and start creating a yield portfolio alongside RMZ in this entity. I think by and large that’s the thesis and that’s the background to this trade. Just to add on, I think the residential business which we are carving out of this entity, that in itself is significant. We’ll have another saleable area within that development of anywhere between 2 to 2.5 million square foot. And that in itself has, you know, GDP potential of about INR5,000 odd crores.
But that’s kind of, you know, coming as part of this overall, you know, numbers we’ve shared with you as part of the investor day. We were hoping that, you know, this deal gets closed before our previous call. We would have managed to do the entire updated one go but you know, the last minute, you know, signing took a week longer and hence, you know, we thought we’ll — we’ll set up another call and that’s why, you know, thanks again to all of you for joining this call today. But happy to, you know, address any questions which you have with regard to this trade or with the intent of this partnership or anything again with regard to our core business, happy to address each one of those queries.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] We have the first question from the line of Murtuza Arsiwalla from Kotak Securities. Please go ahead.
Murtuza Arsiwalla
Hi sir, just two or three questions. One on the INR1,283 crore which is there. Can you give us a breakup on, you know, what is the fresh money that’s coming into the entity? What is the stake that is being bought? Any breakup out there? And you know, you’ve put in a number of the value being of the entire development being close to INR14,000 crores to INR16,000 crores. Could you give some building blocks around that? What is the rental expected? What are the timelines that we are looking at in terms of completing this project etc.
Rajat Kathuria
Sure. Murtaza. So, Murtaza, this — the Broad contours around the stake being offered and the consideration are that see we want this entity to have or let’s say on the closing date the intent is the SPV will be able to establish, you know, almost close to 3.9 million square foot of FSI and about 5.5 million square foot of tentative, you know, leasable, saleable area in that SPV. We also intend to make it debt free and cash free. There are set of existing loans in this entity. There are — there are certain payments which are supposed to be made to you know, the Revenue Department, DTCP Haryana with regard to this particular development.
So, we are just kind of crystallizing these liabilities and achieving certain other conditions. To the extent we have to clear up liabilities in this entity which is expected to be upwards of about INR1,000 crores, we’ll seek that much money in form of a primary infusion into the company. And you know this thousand plus crores then either goes, you know, a small portion of it maybe goes to DTCP or and bulk of that money comes back to SGIL because we’ve given fair bit of loans into this SPV till now. So, about INR1000 plus crores will be in the form of primary infusion. The balance will be in the form of secondary stake sale of investment by SGIL to RMZ, both put together will add up to 50% stake being offered to RMZ. But as of today, we cannot exactly determine the quantum of liability on the closing date and hence you know that split will be available once we are closer to closing. So that’s on the deal contours.
As far as the project development is concerned, this 5.5 million, Murtaza, will be anchored around an office space development. As of today, SPR is emerging like the next critical CBD alike area after Cyber City in Gurgaon. I think this is a spot seeing maximum traction in terms of commercial developments, the upcoming infrastructure, the way it has come up, whether it is very good connectivity to golf course and golf course extension road or to the Sohna road or to the you know, Dwarka Expressway market or to the NH8. So you know it’s kind of probably best position or most sweetly positioned in terms of you know, the infrastructure of the city as of today. So, this will be primarily anchored around office spaces of about let’s say 3.5 to 4 million square foot.
The balance area, you know will be a split of either retail spaces which could be in the form of you know, very high end design district. The concept is being worked upon very closely by both the sides. And there’ll be maybe one or two hotels in this SPV. So that’s about 5.5 million square foot of development. The guesstimated rental and capital value per square foot post development is in that range of you know, 26,000 to 28,000 per square foot you know, inching closer to INR30,000 a foot is what has been estimated by both the parties.
Murtuza Arsiwalla
All right. But this INR1,000 crores, has it been paid and there is a loan payable to Signature Global or this is still money payable the DTCP approximately INR1,000 crore?
Rajat Kathuria
No, no, no, this is a bulk of this is money which — so this is, this is like you know, a lot of investment which we initially made to acquire the asset and to acquire the approvals. DTCP will be a smaller fraction in this entire, you know, sum.
Murtuza Arsiwalla
Okay, okay.
Rajat Kathuria
But effectively, Murtuza, we’ll have almost like INR1,000 plus crores post any sort of DTCP payouts or even taxes which will cleanly accrue to Signature Global or by and large you could say that, you know, the net debt which is sitting at about you know, 10 billion today, you know, should come to a zero level or maybe a negative level once we close this trade.
Murtuza Arsiwalla
Okay, thank you.
Rajat Kathuria
Yeah, thank you.
Operator
Thank you. We have the next question from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Pritesh Sheth
Yeah, thanks for the opportunity and congrats on the transaction. Just firstly on this you know, INR1,000 crore, you know, if I recollect, well I think we acquired this 93 acre, whole of 93 acre at around INR1,200 odd crores. So, correct me if I am wrong. So, you know, in that sense will we only get the a portion payout or you know, INR1,000 crore will completely, you know, be utilized to pay for whatever liabilities that whole 93 acre had? Second on the retail piece, right, I mean, you know, RMZ have developed the office management capabilities. But what’s the intent on the retail side, will it — will those capabilities be jointly developed by both the companies? Yeah, so those are my two questions.
Rajat Kathuria
So, Pritesh, the entire 71 acquisition, you know happened at much, much lower values than what are being discussed right now. You know, I don’t have the exact numbers right in front of me, but yeah, I think we’ve — we overall acquired. So, this 18.5 million square foot is by and large owned by us. There is very small portion of JDs, bulk of it is owned by us and the balance is in the form of collaboration. The acquisition or historical costs are much lower. This particular entity was within our acquisition bucket price relatively higher but much lower than the current values. I don’t have the exact number, but I don’t think we’ve acquired this entire 25 acres for more than I think INR500 odd crores would be like a tentative acquisition value. But you know we’ve invested on top of it. We’ve paid some amounts for getting approvals. We’ve held this land for a little while now. But yes, I think once this transaction consummates, we’ll — a lot of the money will flow directly into — it will be like an upside for us. So, definitely the historical cost is much lower.
As far as the capability set is concerned, yes, I think office is something where RMZ has massive leasing capabilities and we’ll get to leverage that capability. On the retail side, I think that capability at their end is being built up. They started doing bit of retail, not like a mall format or a box format retail, but more in the form of, you know, high end retail spaces. So, retail capability is something which will get enhanced alongside this development as well. Hotels of course we’ll try and get some top brands to run the hotel, our hotels within this entity.
Pritesh Sheth
Got it. Just couple of follow ups. On the rental side, while you gave the capital value of 30,000 per square feet, if I ballpark calculate it should translate to around 250 per square feet rental or no, I think 200 odd square feet per month as the rental assumptions that you would have made and what would be the capex and the completion timelines for this?
Rajat Kathuria
So on the office side I think the rental expectation five years hence is in the range of INR125 to INR130. On the retail side of course it is much higher, could be INR250 plus hence what we. And timeline wise I think it should take about five years from the, you know, start date to get the project completed. We — I do not want to give a particular number but yeah, hard cost will be in the range, your and my estimate will be not different, but you know, since that entire design is yet to be frozen, you know we haven’t yet come to a detailed, you know, cost budget for the development. But you know, all of us know, you know the range in which you know, hard costs typically line up for projects like this.
Pritesh Sheth
And five years you said for the entire project, 5.5 million square feet or it will come in phases?
Rajat Kathuria
Mostly, see it will be single phase driven. There could be bit of, you know, there could be some bit of, you know, some new towers may come earlier than later. But till plinth level and from a services perspective everything is single phase. Then we can always say on you know on the commencement date, maybe we are starting something earlier in, you know, some other tower a little later. But yeah, we’ll be able to commence bulk of this development within five years.
Pritesh Sheth
Sure. Got it. Thank you. That’s it from my side.
Rajat Kathuria
Thanks, Pritesh.
Operator
Thank you. We will take the next question from the line of Parvez Qazi from Nuama Group. Please go ahead.
Parvez Akhtar Qazi
Hi, good afternoon and thanks for taking my question. So, first question is, I mean when you said that off this INR1,283 odd crore, bulk of it will come to the parent company. Can we look at this transaction in a way that maybe the 18, 19 odd acres of land which is under this SPV, RMZ has kind of valued that land at about INR1,200 crore. Would that be a fair way to look at it?
Rajat Kathuria
So, 50% of that is getting valued at INR1,280 crores. They’re taking 50% of that.
Parvez Akhtar Qazi
Sure. And what would be the accounting treatment for this entity let’s say five years down the line, I mean if we maintain a 50% stake in this JV, you will do it as a share of profit from this JV or how will it work?
Rajat Kathuria
I’ll ask Sanjeev to answer this. I’m quite bad at accounting.
Sanjeev Kumar Sharma
So, what will happen, Parvez, that two fold accounting. One for the sale of stake on consolidated basis, it will throw a profit vis-a-vis the book value and this INR1,283 crores. And when it comes to the accounting for the consolidation, it will be an equity accounting which will be one liner in the balance sheet as an investment, fair valued every quarter or profit and loss adjustment every quarter, not fair valued. And on one line in the P&L which will be profit from this entity just like a joint venture because no one of us will have a control, direct control on this SPV.
Parvez Akhtar Qazi
Sure. And lastly, when do we expect to start construction here?
Rajat Kathuria
Within this calendar year itself, I think over the next six to nine months is when we intend to break down.
Parvez Akhtar Qazi
Sure, thanks and all the best.
Rajat Kathuria
Thanks, Parvez.
Operator
Thank you. We have the next question from the line of Adhidev Chattopadhyay from ICIC Securities. Please go ahead.
Adhidev Chattopadhyay
Yeah. Thank you for the opportunity. So, just to follow up on the previous question on the accounting. So, this will be primarily a joint venture and any loans or debt, right will be off the books during consolidation. Is that a correct understanding here?
Pradeep Kumar Agarwal
No, it will not be. What will happen if in future any loan is given because the current loan will get scared of with this around INR1000 crore infusion. But in future if whether we or RMZ gives any loan to this SPV, that will go as a loan line item only as if it is given to third party.
Adhidev Chattopadhyay
Okay. So, just to again just to re-clarify here. So, the money which will be coming right now, right, net of the costs, right for DTCP and other approvals, the money will come to Signatureglobal parent, right? And any incremental capex, right, which Signature and RMZ will do, you will have to infuse equity again in this SPV to do the capex or how does it work apart from the construction finance you may take at the SPV level?
Pradeep Kumar Agarwal
Yeah. So, Adhidev, that understanding is correct, once the transaction gets closed and all money reaches whichever, you know place it has to reach, the entity will be sitting with, you know, an approved land with a development potential we’ve talked about almost on a debt free cash basis. Hence going forward any — the construction will be funded through construction finance and the differential will be funded in the form of equity stock loan from the two, you know, partners.
Adhidev Chattopadhyay
Okay. And just to again clarify, the residential component which you alluded to, right, which will be left. So, there will be no cash flow which will be flowing from that entity to this entity, right, that is an independent project which will work on its own terms, right, if that is a —
Rajat Kathuria
Yeah. Residential business as an undertaking will be moved to our parent entity prior to this unit transaction.
Adhidev Chattopadhyay
Okay. Okay. And just a final question. So, for all these things, is there any tax liability which would come to Signatureglobal at the parent level or if it will all get settled against the outstanding loans and whatever interest carry which was there?
Rajat Kathuria
So, Adhidev, as tax is concerned to the portion which Signatureglobal India will sell, there will be a capital gain because we will be completing very soon, two years. So, it will be a long term capital gain tax on that. But as far as INR1,000 crore or around INR1,000 crore is concerned, there will not be any tax outflow. But definitely in the books there will be deferred tax liability equivalent to the long-term capital gain.
Adhidev Chattopadhyay
Okay. So the — okay, so understand. Okay. The cash portion will be only for the secondary sale, not the primary part, right?
Pradeep Kumar Agarwal
Yeah, you are right. Nothing will be there on the primary side because in the tax it will be considered as infusion of a fresh equity by one party to the entire entity.
Adhidev Chattopadhyay
Okay, okay. Okay. Okay. Fine. Okay, okay. Got that. That is pretty clear. Yeah. Thank you. And all the best.
Pradeep Kumar Agarwal
Thank you.
Operator
Thank you. [Operator Instructions] We have the next question from the line of Sucrit D. Patil from Eyesight Fintrade Pvt Ltd. Please go ahead.
Sucrit Patil
Good morning to the team. I have two questions. My first question to Mr. Rajat is beyond the demand guidance, how will Signatureglobal manage risks and uncertainty in customer acquisition and financing? What signals will guide your approach to sustaining affordability, while protecting the margin? Just want to understand your point of view on this. Thank you. That’s the first question. I’ll ask my second question after this.
Rajat Kathuria
No, sorry, I didn’t fully understand this. This portion is regarding the housing business? So, how are you? What was this question regarding or is this which were acquisitions in the commercial business.
Sucrit Patil
I’m asking about how you will handle risk in customer demand and financing, not just growth plans. And what signals will guide you — will guide affordability and margins?
Rajat Kathuria
Sorry, I’m still not clear, I haven’t understood. What do you really want to understand?
Sucrit Patil
No worries. I’ll come back in the queue.
Rajat Kathuria
Regarding which business you’re talking up, okay. Maybe we can talk offline on this. Yes. What’s your second question? Let’s take this offline. That’s okay.
Operator
Thank you very much. As there are no further questions from the participants, I now hand the conference back to the management for closing comments. Thank you. And over to you, sir.
Rajat Kathuria
Yeah. Thank you very much everyone for joining the call today. I would just want to reiterate that we are feeling fairly good as far as the performance of the housing business is concerned. We’ve grown that business significantly over the last couple of years and we’ve reached a good situation in the business where we are now seeing strong collections and for the coming calendar year, strong collections happening, good pace of completions going on and sales are keeping steady. So, all those, you know, three parameters we’ve seen good performance and this seem like a good, you know, timing for us to enter into a new business and nothing better than, you know, partnering with a group like RMZ for one of our existing large land parcels. And what it also does is that, you know, it puts into production, you know, a significant portion of our, you know, land stage to resource. So out of this 21 million square foot of land which was coming as forthcoming, you know, we’ve mapped out another 7 million square foot of 7 plus million square foot of utilization between commercial office spaces and the housing business, which, you know, is now with advanced approvals, will also come to a launch stage sometime in the calendar year.
So, it’s another, you know, 7 to 8 million which is kind of coming into production. So, really makes our cash flow situation very robust from a mid-term — medium term perspective. So, we are quite excited and enthused around this new business and do intend to scale it significantly in the coming years. Thank you very much.
Pradeep Kumar Agarwal
Thank you. Thanks a lot.
Sanjeev Kumar Sharma
Thank you. Thanks a lot.
Adhidev Chattopadhyay
Thank you.
Operator
[Operator Closing Remarks]