Signatureglobal (India) Limited held its Q3 FY ’26 Earnings Conference Call on February 4, 2026. Management highlighted strong market momentum driven by the Union Budget ’26 focus on infrastructure and Tier 2/3 city development. Key performance metrics included an improved adjusted gross profit margin of 31% for 9 months FY ’26. The company discussed sustained demand, competitive pricing strategies, and continued focus on achieving steady, high-volume sales in the Delhi NCR mid-income housing segment.
Q3 FY ’26 Earnings Call Overview
The call, moderated by ICICI Securities, featured Chairman Mr. Pradeep Kumar Aggarwal and CEO Mr. Rajat Kathuria. Management welcomed participants to the Q3 FY ’26 earnings discussion, noting the availability of financial results and investor presentations shared previously.
Economic Environment and Budget Focus
Chairman Mr. Pradeep Kumar Aggarwal began by emphasizing the supportive Indian economic environment, particularly the government’s focus on infrastructure and urban development as highlighted in the Union Budget ’26. The increase in public capital spending to INR12.2 lakh crores in FY ’27 is anticipated to boost project execution and private investment. He noted that India’s housing market continues steady growth, supported by urbanization and government policies, with real estate contributing 7% to 8% to GDP.
A Cushman & Wakefield report indicated a strong December quarter in 2025 for Delhi NCR, with new housing launches rising 39% quarter-on-quarter. Signatureglobal is prioritizing customer comfort by adopting advanced earthquake safety technology in its high-rise projects.
Financial Performance Highlights (9M FY ’26)
CEO Mr. Rajat Kathuria detailed performance, noting the strength of the business reflected in the first 9 months of FY ’26. The adjusted gross profit margin improved to 31% for 9 months FY ’26 and reached 40% in Q3 FY ’26, supported by higher-margin mid-income housing projects.
Launches and Sales
- The company launched close to 6.8 million square foot over the first 9 months, translating to a Gross Development Value (GDV) upwards of INR 104 billion.
- Launches included major projects like Cloverdale and Sarvam.
- The initial launch guidance of about INR170 billion is expected to be exceeded, remaining range-bound with launches definitely exceeding INR150 billion.
- Sales for the last quarter reached about INR20.1 billion, bringing the 9-month sales average closer to INR67 billion.
- Total units sold were about 1,700 units over 9 months, with an average unit price of about INR38 million per unit.
- Average realization crossed the INR15,000 per square foot mark, which is about 20% higher than the previous year’s realization rate.
Collections and Balance Sheet
Total collections in Q3 were better than the previous two quarters, reaching close to INR12.3 billion. Overall collections till December 31st stood at close to INR31 billion.
The business development of about INR8.6 billion in surplus was primarily funded through internal accruals. Gross debt is over INR30 billion, with cash and cash equivalents over INR20 billion, keeping the net debt position stable around the INR10 billion range.
Project Pipeline and Future Strategy
The company has completed in excess of 16 million square foot to date, with another 13 million plus square foot at advanced stages (GDV of about INR98 billion to be recognized in the coming 4 to 6 quarters).
Importantly, there is an additional 42 million square foot inventory, with about 21 million square foot recently launched (GDV of close to INR300 billion). A further 21 million square foot of land-stage inventory, valued between INR350 billion to INR400 billion, is planned for launch over the next 8 to 10 quarters. Management is confident the net debt position should come down to 0 within this calendar year.
Q&A Discussion Highlights
Market Dynamics and Pricing
Regarding price appreciation, Mr. Kathuria expects prices to move up in the late single digits over the next 18 to 24 months, rather than double digits, to maintain high sales volumes.
On margins, the difference between the 35% embedded EBITDA margin and the 31% reported gross profit margin is attributed to the mix, as current sales realization (INR15,000 per square foot on super built-up) is significantly higher than realized/completed older affordable projects (INR4,000–4,500 per square foot on carpet area).
Guidance and Operational Challenges
Management admitted there is a gap versus initial guidance, primarily due to operational disruptions. The company lost significant working days due to a heavy monsoon season and heavy pollution season (GRAP norms), which directly impacted construction pace and consequently collection timing, pushing completions and revenue recognition into Q4.
Project Specifics and Future Growth
Regarding the Sarvam launch, initial uptake was about 40-odd percent of the units released in December, which management considers a mature trend given current market conditions, though lower than the 60% to 80% initially hoped for to meet annual guidance.
Looking ahead, management projects a more mature growth rate, expecting 15-odd percent growth in presales going forward, driven by the ability to launch new projects regularly.
In terms of construction, Ahluwalia Contractors was awarded the contract for De Luxe DXP, and Sarvam will utilize a contractor of a similar pedigree.
Closing Remarks
Management expressed confidence that the operational performance would improve significantly by year-end. They look forward to discussing actual performance numbers with investors in a few months.
Source: BSE
