Arkade Q2 FY27 Results (NSE: ARKADE)
Signal: Revenue declined
The read
The key inflection is margin resilience rather than growth: revenue fell 45.1% YoY to ₹14,465.01 lakh, but gross margin expanded 530bps to 34.6% and EBITDA margin held at 23.9%; this reverses the prior-quarter margin pressure but needs confirmation because the improvement was driven mainly by a sharp fall in change in inventories, not disclosed presales momentum.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹144.65 Cr | -45.1% | -1.6% |
| EBIT | ₹31.29 Cr | -48.3% | |
| Net profit | ₹24.81 Cr | -45.8% | |
| EPS | ₹1.35 | -45.3% | |
| EBIT margin | 23.9% |
P&L walk
Consolidated revenue declined to ₹14,465.01 lakh, -45.1% YoY and -1.6% QoQ, but gross margin expanded to 34.6% from 29.3% as change in inventories fell 92.7% YoY; EBITDA margin was broadly stable at 23.9%, while PAT fell 45.8% to ₹2,480.55 lakh.
Segments
The group has one reportable segment, Real Estate Development; consolidated PAT of ₹2,480.55 lakh was only ₹4.04 lakh above standalone PAT, indicating subsidiaries and associates had negligible impact on the quarter.
Key positives
- Gross margin expanded 530bps YoY to 34.6% as construction cost plus change in inventories fell to 65.4% of revenue from 70.7%.
- EBITDA margin held at approximately 23.9% despite a 45.1% YoY revenue decline, limiting operating deterioration.
- Six-month operating cash flow was positive at ₹8,940.74 lakh versus negative ₹4,837.21 lakh in the year-ago period.
- EPS declined 45.3% versus a 45.8% PAT decline, indicating no material dilution-related earnings leakage.
Key concerns
- Revenue fell 45.1% YoY to ₹14,465.01 lakh, continuing the weak top-line trajectory after Q1FY27 revenue of ₹14,697.04 lakh.
- PAT declined 45.8% YoY to ₹2,480.55 lakh despite stable operating margin, leaving earnings dependent on project timing.
- The filing gives no presales, bookings, collections or launch data to validate the forward development pipeline.
- Employee and other expenses rose 10.5% YoY on a consolidated basis even as revenue fell 45.1%.
Research and educational content only. Not investment advice.