Arkade Q1 FY27: PAT down 34% YoY to ₹19.1 Cr, revenue -8%, margins compress vs guidance
PAT -33.65% YoY · revenue -7.83% · margins compressing
₹146.97 Cr
-7.83% YoY
₹19.08 Cr
-33.65% YoY
12.83%
-4.6pp YoY
₹1.03
Arkade Developers' consolidated Q1 FY27 (quarter ended June 30, 2026) revenue fell 7.8% YoY to ₹146.97 Cr from ₹159.45 Cr, and consolidated PAT fell 33.6% YoY to ₹19.08 Cr from ₹28.76 Cr, with basic EPS down to ₹1.03 from ₹1.55. Standalone tells the same story (revenue ₹146.97 Cr, PAT ₹19.21 Cr) — the two bases converge this quarter, no material divergence to flag.
Q1 FY-2027 vs prior quarters
Sequentially, PAT swung from a ₹109.57 Cr consolidated loss in Q4 FY26 to a ₹19.08 Cr profit, but that is not an operating turnaround: the Q4 loss was driven entirely by a ₹182.17 Cr one-off impairment on Arkade's investment in Filmistan Private Limited (tenancy-rights write-down under Ind AS 36, following an NCLT-approved demerger); this quarter carries no exceptional items. On an operating basis, margins actually compressed YoY — OPM (on revenue from operations) fell to ~18.9% from 21.5%, and NPM fell to 12.8% from 17.4% a year ago, as cost of construction and employee expenses grew faster than revenue.
The stock went into the print at ₹133.96, down 4.9% over the past month of trading.
Management projects a revenue growth of 20-25% year-on-year for the next 2-3 years, with potential for exponential growth in FY28-FY29 driven by the Filmistan and Thane projects. The company targets EBITDA margins of 27-28% and PAT margins of 18-19%. A significant project pipeline of approximately Rs. 12,000 crores is
— This quarter: missed
Against management's own guidance from the Q4 FY26 concall — 20-25% YoY revenue growth for the next 2-3 years, EBITDA margins of 27-28%, PAT margins of 18-19%, and a ~₹12,000 Cr project pipeline over 5-6 years — this quarter missed on every count: revenue declined instead of growing, and both margin lines trail target by 800-1,000+ bps. The confident, bullish tone from that prior call is not yet borne out in the numbers. We found no analyst/brokerage consensus estimates published for this specific quarter, so vsStreet is unknown rather than assumed; management also issued no press release alongside this filing to frame the print. On the corporate side, the company launched Arkade Sapphire in Santacruz West (July 30, 2026), a step toward the stated pipeline target, and appointed new senior management (June 18) shortly before the auditors' Emphasis of Matter flagged an FIR against a former senior employee (CSO) over alleged diversion of customer transactions, brokerage-related financial gain, and forged parking-space agreements involving ~₹2 Cr; no financial adjustment has been made to the results pending the investigation's outcome.
W1
Outcome and quantified financial impact of the FIR investigation into the former senior employee's alleged misconduct (auditors' Emphasis of Matter, unresolved as of this filing).
W2
Whether revenue reaccelerates toward management's guided 20-25% YoY growth — this quarter printed -7.8% YoY, a clear miss against that target.
W3
EBITDA/PAT margin trajectory toward the 27-28%/18-19% targets — current quarter at ~18.9% OPM / 12.8% NPM, both trailing guidance.
Informational and educational content only. Not investment advice.