💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 101.4% YoY to INR 25.00 bn in FY25. In H1 FY26, mid-income housing contributed 67% of the INR 12.0 bn recognized revenue, while affordable housing contributed 33%. Real estate property revenue specifically grew from INR 11.9 bn to INR 24.2 bn in FY25.

Geographic Revenue Split

100% of operations are concentrated in the Delhi NCR region, with strategic focus on micro-markets including Sector 71 (Southern Peripheral Road), Sector 37D (Dwarka Expressway), and the Sohna region.

Profitability Margins

Net Profit Margin improved significantly from 1.29% in FY24 to 4.04% in FY25. Adjusted Gross Profit Margin stood at 30.6% in FY25 and 29.0% in H1 FY26. The improvement in margins is driven by a shift in product mix toward high-margin mid-income projects.

EBITDA Margin

Adjusted EBITDA margin increased from 10.75% in FY24 to 14.41% in FY25. However, it dipped to 6.4% in H1 FY26 due to lower-than-anticipated revenue recognition timing, though the company expects to recover this in H2 FY26.

Capital Expenditure

The company created a free cash flow of approximately INR 4.0 bn in H1 FY26, which was primarily reinvested into land acquisition and project approvals to support the 8 million square foot launch pipeline.

Credit Rating & Borrowing

Net debt stood at INR 9.7 bn as of September 2025, up from INR 8.8 bn in March 2025. The Debt-to-Equity ratio was 3.24 in FY25. The company aims to maintain net debt below 0.5x of the projected operating surplus.

⚙️ Operational Drivers

Raw Materials

Construction materials including steel, cement, and bricks; specific percentage of total cost per material is not disclosed in available documents.

Import Sources

Sourced domestically within India, primarily serving the Delhi NCR construction sites.

Key Suppliers

Key construction partners and contractors include Ahluwalia Contracts, Capacit'e, and Arabian Construction Company.

Capacity Expansion

Completed developable area stands at 10.90 million sq. ft. with 3.70 million sq. ft. currently ongoing. The company has an unparalleled launch pipeline of 8 million sq. ft. planned for the second half of FY26.

Raw Material Costs

Construction costs accounted for 47% of total collections in H1 FY26. The company has onboarded Bain & Company to improve construction-related efficiency and optimize these costs over the next 18 months.

Manufacturing Efficiency

The company achieved an 80%+ sell-through rate for projects launched since February/March 2025, indicating high inventory turnover and market demand efficiency.

Logistics & Distribution

Distribution and brokerage costs, combined with SG&A and taxes, accounted for approximately 25-27% of total collections in H1 FY26.

📈 Strategic Growth

Expected Growth Rate

92%

Growth Strategy

The company plans to achieve its FY26 revenue guidance of INR 48 bn by executing an 8 million sq. ft. launch pipeline in H2 FY26. Strategy involves shifting the product mix toward mid-income housing (which now yields 35% gross margins in Q2 FY26) and leveraging a 57% CAGR in pre-sales achieved since FY21.

Products & Services

Residential apartments (Affordable and Mid-income), commercial units, and industrial plots.

Brand Portfolio

Signature Global, Signature Global Park, Titanium SPR, City of Colours.

New Products/Services

Recent launches include Titanium SPR and City of Colours, which contributed to the 39% increase in inventory turnover.

Market Expansion

Deepening penetration in the Southern Peripheral Road (SPR) and Dwarka Expressway markets over the next 7-8 quarters.

Market Share & Ranking

Not disclosed as a specific rank, but described as having an 'unparalleled' launch pipeline in its specific micro-markets compared to other large companies.

Strategic Alliances

Partnerships with top-tier contractors (Ahluwalia, Capacit'e) and efficiency consultants (Bain & Company).

🌍 External Factors

Industry Trends

The industry is shifting from the 'Percentage of Completion' method to Ind AS 115, where revenue is recognized only upon delivery. Signature Global is positioning itself for this by accelerating construction to meet a recognition guidance of INR 48 bn for FY26.

Competitive Landscape

Competes with large national and regional developers in the Gurgaon and Sohna micro-markets.

Competitive Moat

Brand trust in the NCR region and a dominant land bank in high-growth corridors like SPR. This moat is sustainable because 80% of new launches are sold out almost immediately, creating a virtuous cycle of liquidity and new land acquisition.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles; as a real estate player, a 1% increase in home loan rates can significantly impact the affordability and demand for its mid-income housing units.

Consumer Behavior

Strong shift in consumer preference toward larger, mid-income units over basic affordable housing, evidenced by the 67% revenue contribution from mid-income segments.

Geopolitical Risks

Limited direct impact due to domestic focus, though global commodity price spikes (steel/fuel) would increase construction costs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RERA (Real Estate Regulatory Authority) and Ind AS 115. Revenue is only recognized upon receipt of the Occupancy Certificate (OC) and substantial collection.

Environmental Compliance

Certified as a 'Great Place to Work' and maintains ESG policies for GHG reduction and sustainable procurement; specific compliance costs not disclosed.

Taxation Policy Impact

Effective tax rates are subject to corporate tax norms; the company reported a PAT of INR 1.01 bn after all tax provisions in FY25.

⚠️ Risk Analysis

Key Uncertainties

Timing of revenue recognition under Ind AS 115 can cause quarterly volatility in EBITDA, as seen in the H1 FY26 dip to 6.4%.

Geographic Concentration Risk

100% of revenue is derived from the Delhi NCR region, making the company highly vulnerable to local regulatory changes or regional economic downturns.

Third Party Dependencies

Heavy reliance on third-party contractors for project execution; delays by contractors would directly postpone revenue recognition.

Technology Obsolescence Risk

Risk is low in core real estate, but the company is mitigating digital risks through an established internal control framework and efficiency consulting.

Credit & Counterparty Risk

Receivables quality is high as revenue is recognized only after substantial collections; Debtors Turnover Ratio improved to 50.65 in FY25.