1. At a Glance
Arkade Developers is that rare realty stock where both the plot (pun intended) and the margins are surprisingly tight. With a Q1 FY26 profit of ₹29 Cr on sales of ₹159 Cr and ROE that could give DLF performance anxiety, Arkade is punching well above its mid-cap weight.
2. Introduction with Hook
Think of Arkade as the Ranveer Singh of real estate: loud, fast-moving, and surprisingly profitable when it’s not being underrated.
While older players talk about “legacy” and “vision,” Arkade just:
- Acquired Filmistan Studios for ₹183 Cr
- Announced ₹3,000 Cr of premium launches
- And posted a 30.6% ROCE while some peers struggle to calculate margins
Move over Lodha, the underdog is here with better moves and lower PE.
3. Business Model (WTF Do They Even Do?)
Arkade is into premium residential development, mostly in Mumbai, which as we know is:
- Land-starved
- Permit-choked
- Profit-draining
Yet somehow they:
- Acquire land aggressively (Goregaon, Bhandup, Thane)
- Redevelop like pros (8+ projects in FY25 alone)
- And run a tight, margin-friendly ship
“Basically, they make homes for Mumbai’s aspirational elite, but operate like a Gujarati grocery store — zero waste, all margin.”
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹683 Cr | ₹635 Cr | ₹220 Cr |
| EBITDA | ₹206 Cr | ₹168 Cr | ₹60 Cr |
| Net Profit | ₹157 Cr | ₹123 Cr | ₹51 Cr |
| OPM | 30% | 26% | 27% |
| ROE | 26% | 45% | 32% |
“Real estate with tech startup growth and steel plant margins? Suspiciously efficient.”
5. Valuation
With a P/E of 23.7, Arkade isn’t cheap. But it’s also not Godrej Properties burning through capital like there’s no tomorrow.
Book Value: ₹47.6
Current Price: ₹198
CMP/BV: 4.15
Edu Fair Value Estimate:
- Method 1: P/E 20x EPS (₹8.38) = ₹167
- Method 2: DCF-style conservatism (avg FCF yield @ 6%) = ~₹190
Edu Fair Value Range™: ₹165 – ₹190
“A bit rich, but if execution continues, might justify its Bollywood-esque premium.”
6. What’s Cooking – News, Triggers, Drama
- Acquired Filmistan Pvt Ltd (yes, the Bollywood studio): ₹183 Cr
- Goregaon West Project: ₹3,000 Cr GDV
- Thane Land Deal: ₹2,000 Cr GDV
- Malad Project: ₹740 Cr
- Pre-sales in FY25: ₹773 Cr, up 22.7% in area sold
“More land grabs than a colonial empire. And somehow, it’s all paying off.”
7. Balance Sheet
| Metric | Mar 2025 |
|---|---|
| Equity Capital | ₹186 Cr |
| Reserves | ₹698 Cr |
| Borrowings | ₹115 Cr |
| Other Liabilities | ₹252 Cr |
| Total Liabilities | ₹1,251 Cr |
| Fixed Assets | ₹19 Cr |
| Investments | ₹138 Cr |
| Other Assets | ₹1,093 Cr |
“Low borrowings, high pre-sales, and land-rich? Balance sheet is cleaner than a freshly mopped 2BHK.”
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY25 | -₹218Cr | -₹229Cr | ₹445Cr | -₹1Cr |
| FY24 | ₹102Cr | -₹12Cr | -₹83Cr | ₹7Cr |
| FY23 | -₹99Cr | ₹29Cr | ₹84Cr | ₹14Cr |
“Cash flow screams ‘expansion mode’ — spending like Ambani at Antilia’s housewarming.”
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 30.6% |
| ROE | 26% |
| PAT Margin | 22.7% |
| D/E Ratio | ~0.15 |
| OPM | 30% |
“These are not ratios. These are bragging rights.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | Net Profit |
|---|---|---|---|
| FY25 | ₹683Cr | ₹206Cr | ₹157Cr |
| FY24 | ₹635Cr | ₹168Cr | ₹123Cr |
| FY23 | ₹220Cr | ₹60Cr | ₹51Cr |
“Profits doubling, sales scaling — someone’s clearly doing their homework.”
11. Peer Comparison
| Company | P/E | Rev (Cr) | PAT (Cr) | ROE |
|---|---|---|---|---|
| DLF | 43.9 | 7,994 | 4,657 | 11.4% |
| Lodha | 46.2 | 13,779 | 2,764 | 14.7% |
| Oberoi Realty | 29.8 | 4,869 | 2,062 | 14.7% |
| Arkade | 23.7 | 717 | 155 | 26.0% |
“Arkade is like the fresher topping the exam while everyone’s still memorizing answers.”
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 71.09% |
| FIIs | 1.23% |
| DIIs | 0.05% |
| Public | 27.64% |
No dividends, no dilution, and ESOPs just approved. The party is being run tight, and the bouncers (promoters) aren’t letting go of equity just yet.
“Public float is just enough to keep SEBI happy. The rest? Family-run Fort Knox.”
13. EduInvesting Verdict™
Arkade is the new-age Mumbai realty poster child — small-cap, high-margin, execution-focused, and not drowning in debt. It’s not throwing grand townships into the wind. It’s buying land, launching fast, and booking sales like there’s a pre-monsoon sale on flats.
“If Lodha is Bollywood, Arkade is the surprise indie hit. Small screen, big impact.”
Written by EduInvesting Team | 25 July 2025
Tags: Arkade Developers Ltd, Real Estate, Filmistan Acquisition, Goregaon Project, Q1 FY26 Results, Edu Style Article, EduInvesting Premium
