Good evening, everyone. On behalf of ICICI Securities, I'd like to welcome everyone on the Signature Global call today.

As always, from the management, we have with us Mr. Pradeep Kumar Aggarwal, the Chairman and Whole-Time Director; Mr.

Lalit Kumar Aggarwal, the Vice Chairman and Whole-Time Director; Mr. Ravi Aggarwal, the Managing Director; Mr.

Devender Aggarwal, the Joint Managing Director and Whole-Time Director; Mr. Rajat Kathuria, the Chief Executive Officer; Mr.

Sanjeev Kumar Sharma, the Chief Financial Officer; and Ms. Reetika Singh, Head of Investor Relations.

I'd now like to hand over the call to the management for their opening remarks and comments. Over to you.

Thank you.

Quarter 1 FY27 earnings conference call of Signature Global. Thank you for joining us today.

I hope you have had the opportunity to review our financial results and investor presentation shared earlier today. India's housing market continues to be supported by a strong macroeconomic environment, sustained infrastructure development, supportive government policies, and rising urbanization, all of which are driving long-term demand.

The Centre's recent advisory directing state RERA to grant a 4-month extension for eligible projects impacted by the Middle East conflict further reflected a proactive policy approach towards the sector. Combined with the evolving homebuyer aspiration and a growing preference for quality development, these factors are creating significant growth opportunity for organized real estate developers.

According to a recent report of Cushman & Wakefield, 18,470 residential units were launched in Delhi NCR during H1 2026, making it 10% year-on-year increase. Gurugram retained its position as a region premium residential hotspot, accounting for 74% of all luxury housing launches.

Additionally, the average launches price of home in Delhi NCR rose 24% year-on-year in Quarter 2 '26, reflecting sustained demand for premium housing in the region. Against the positive backdrop, Signature Global continued to increase its presence across the residential macro market while expanding its diversification strategy.

During the quarter, we entered in a branded residence segment through our collaboration with the Tonino Lamborghini for a premium residential project in Sector 71 on Southern Peripheral Road, Gurugram. This launch aligned with the rapid growth of the branded residence segment, which industry estimate projects will expand by nearly 60% by 2027.

Driven by the rising demand for premium and experience-led living, the strong response to the first phase reinforces for the confidence in this segment, and we will continue to be pursue similar opportunity that aligned with the evolving customer aspiration. The quarter also reflected steady operational progress, healthy demand across our projects, improved sales realization, and sustained momentum in our core markets.

This performance was supported a very healthy project execution, improved operational efficiency, and successful monetization of our portfolio, reframing the strength of our business model and disciplined approach to the sustainable growth. Looking ahead, we remain optimistic about the long-term outlook for the housing sector, particularly in Gurugram and the wider NCR region.

Our focus will continue to be on timely delivery, project delivery, customer centricity, financial discipline, and creating long-term value for the all stakeholders. With that, I would now like to invite our CEO, Mr.

Rajat Kathuria, to take you through the company financial performance in detail. Thank you once again for joining us today and for your continued support of Signature Global.

Thank you.

Thank you, Pradeep, and thanks, everyone, for joining today's call. Digging a little deeper into details, during this quarter, we did a fairly good launch of this group housing and apartment project development, wherein we did a tie-up with lifestyle brand Tonino Lamborghini.

This is a reasonable-sized project, more than 12 acres in size, and more than 2 million square foot in terms of super built-up area. We launched the project at the highest ever price we've achieved ever, which is a little above 22,000 rupees a foot, hence taking the GDV value in excess of 4,000 crores, about 44 44 billion, to be precise.

Overall, the project had more than 800-odd units. We opened up about 400-plus 400-odd units for the first phase of sale, and more than 300-plus units were sold.

We are fairly enthused that at these price points, we got a very strong response from the market. Even this needs to be looked upon in the context of the macro headwinds which we were witnessing throughout the first quarter with the Middle Eastern war.

There were, every day, bad print, bad media stories getting covered, currency devaluations being talked about, etc., but given all of that, I think we were very happy with the way the project launch happened and performed. It's satisfying, and the way it has happened.

We'll be planning more launches for the year. Our overall guidance stays firm to come up with new launches worth 150 billion for this year.

There are more launches planned during the third and the fourth quarter. More around Diwali, there's another launch which is getting planned.

We should, by and large, be able to achieve it. There's a launch in the fourth quarter which is planned.

We look comfortable around our annual guidance of new launches of 150 billion for this particular year. I would also like to point out that if we look at the previous 8 to 9 quarters, we've consistently been launching projects across categories and across markets within Gurgaon, whether these are larger townships where we launched two large townships, one of 125 acres, the other of 140 acres, and consistently launching group housing projects, starting from Deluxe DXP to Titanium, Cloverdale, and Twin Towers, and now Tonino Lamborghini.

All these launches have been done in good tandem because our fundamental thesis and learning of working in this market is that it's hugely supply constrained. Gurgaon market saw very little supply creation happen between 2014 and '22 at an industry level, and hence, that created a vacuum.

The demand for new homes is significantly high, and that's why we feel the supply constraint can be met only by consistent supply which Signature Global has been working upon over the last few years. As far as the numbers go, yeah, we've done close to 2,000-odd crores, about 20-odd billion of pre-sales got achieved.

Given our launch pipeline, we stay confident of achieving about 100 billion of pre-sales for the current year. This can be looked at in multiple ways.

I think 20% of the target got achieved in first quarter itself. Usually, quarter 3 tends to be a good quarter in North India, and, with more launches planned around that time, we are feeling comfortable with 100 billion target for the full year.

As far as the price points, realizations, and collections go, we achieved a per square foot realization in excess of 17,000 rupees a foot. For the whole of last year, this number stood at a little above 15,000-odd rupees a foot.

We've grown significantly in terms of price per square foot, which is primarily driven by a premium launch within this first quarter, that's one of the primary reason why the per square foot realization's gone up. Even in general in Gurgaon, we are seeing at an industry level, people getting in an inflation-plus level increment in selling prices, primary reason for that being that demand is outpacing supply, and demand is steady.

Hence, developers are feeling confident of enriching the product, giving better-quality product, and backed up by good-quality infrastructure, which has come up over the years. I think some of these places which were a little ahead from the city are very much part of the city.

There is more plans in terms of city-level infrastructure, the metro development, the Phase 2 metro development is approved, and that's going to be again a game changer for the Gurgaon city. Overall prices continue to go up.

We've also followed in line with the trend. We've also witnessed realizations going up.

As far as our collections are concerned, I think we collected about 6.7 billion during this quarter. This number will grow significantly during the current year because collections often are basis the milestones getting achieved.

We are achieving completion on a lot of our projects during this current year. We anticipate completing projects in excess of 5,000-odd crores and recognizing revenue of 5,000-odd crores, about 50-odd billion INR, and hence, in line with that, collections are expected to pace up during the rest of the year.

As far as the current portfolio position goes, we've delivered about 19 million square foot till date. There's another 9 million square foot, which, on an average, completion timeline is 2 to 3 2 to 2.5 quarters in another 4 quarters or 5 quarters, bulk of this 9 million would have been completed, with few exceptions.

The average completion timeframe of this 9 million square foot's just anywhere between 2 to 3 quarters now. In terms of recently launched project, like I just talked about that we've consistently created supply, we've launched projects of almost 23 million square foot since February '24, when we launched a group housing project called Deluxe DXP.

The GDV value of all these launches is 334 billion. This is one other significant bucket.

A lot of portfolio is actually converting into cash. These are not just futuristic land parcels which will be getting launched in 5 or 7 or 10 years.

This is actually projects where work has commenced, and we're actively developing these projects now. Besides that, there's a forthcoming portfolio of about 17 million square foot, of which 5 million square foot is a commercial development where we did a tie-up with the RMZ Group, and we announced it in March.

Besides that, there's another 12 million square foot which we will be launching as part of this year and the coming year. Now, as far as adding to the portfolio is concerned, we are very actively involved in doing new business development as during this year.

We are very hopeful of adding a significant amount of land within our core markets and even outside of our core markets. By outside, I mean markets outside of the Delhi NCR.

Both of these markets, we are very hopeful of doing significant new business development. Besides that, the balance sheet position of the company stays very good.

We are sitting on cash and bank balances of close to 25 billion, our net debt position's close to less than 3.9 billion, very low levels of net debt. While doing business development during the year, the net debt numbers could go a little bit higher, not significantly higher, but this could grow as during this year as we intend to do significant amounts of business development.

Besides that, I think there were a few project completions. We completed a few affordable housing projects.

They're just few now more to go, and we would be done by all affordable housing completions in couple of quarters. Even in this quarter, there was more affordable housing completion than mid-income segment.

The average per square foot realization of inventory which got completed during this quarter was less than 6,000. While currently we are selling at an average realization of 17,000, during the first quarter, our average revenue was recognized on inventory which got completed was less than 6,000, and hence, the P&L is not fully reflective of the current position.

During the course of the year, we are very comfortable that we'll recognize revenue of more than 50 billion and show a very good PAT number emerging out of historical projects which are getting completed. By and large, we stay comfortable with our overall business guidance.

The business performance is steady, completions are happening at a good pace. Rains have been quite heavy last couple of days, but by and large, we've got good number of working days.

There weren't too many disruptions happening out of rain this year, and we are fairly confident with regard to timely completions and collections. Launches are planned.

We look comfortable with the guidance we gave at the start of the year. It's good beginning is the way we look at this particular year.

Just to add on, I think in terms of a bit of flavor on the nature of business development, we feel comfortable doing large-format developments. The way we've seen success of Project Daxin and Project City of Colors in our core market, we want to take that particular product segment across various markets, even outside of Delhi NCR.

Low-rise developments, large-format developments spread across 100, 150-odd acres is somewhere we're focusing on, and you will see more additions on that format happening during the rest of the year. Happy to take up any questions which you guys want to ask.

Yeah. Adhidev, hi.

Are you there?

Hi, good evening and thanks for taking my question. My question is regarding business development activity.

If I heard you right, you said that we are okay looking at projects outside NCR also. Did I get that right?

Parvez, that's right.

Have we firmed up which geography are we looking at? Is this largely going to be in North India or we are okay looking at other metro cities as well?

We are evaluating few opportunities, but let it come to that stage where we can share more. I would prefer not to suggest the particular location, but yes, we are looking at larger-format developments outside of the Delhi NCR market as well.

Sure. What kind of land capex are we comfortable with during the current year?

See, the number could be in the range of around 1,500 to 1,800-odd crores for the year.

Sure. Regarding our launches in H2, fair to suggest that one of them could be in Dwarka Expressway and the other at SPR?

It's possible that both of them could be in the SPR itself. The second one is definitely in SPR, the third one, we're yet to decide, but most likely it could be SPR again.

Then

a related question. First quarter, we had a launch with a GDV of about 4,400 crore.

With guidance of about 15-odd thousand crore, that leaves almost about 10,000, 10,500 for the second half. Are we okay bringing that kind of inventory in a single micromarket, or can there be launches outside these micromarkets?

See, there will be some launches outside. I'm not saying the entire of 150 billion gets achieved out of the single market, but yes, a good portion of the launches for the current year are planned in Sector 71, and we are comfortable creating that kind of supply because there is very little getting supplied in that market at this stage because there are very few developers locally who own any reasonable quantum of land in that particular market, which is coming out very well in last couple of years.

Last question, in SPR, we are comfortable with the kind of ticket size and the unit size, which we have typically about 5, 5.5 crore, would that be a fair assessment?

Yes.

Sure. Thanks and all the best.

Thank you.

Thanks for the opportunity. Just on continuing on these launches, I think we had a branded residence launch this quarter and there are a couple of more which are also planned as a branded residence in same market.

In general, how do we differentiate with these products, considering that we launched 4 and a half, we would have sold maybe 1,000, 1,500 crore this quarter, we still have good enough inventory there. Bringing couple of more branded residences, how does customers differentiate in terms of which one to prefer that way?

That's my first question.

Pritesh, thanks for asking this. See, there is differentiation which is getting created.

Differentiation in terms of the product offering, the brand which is being offered, the size of units which is currently being offered, and the overall orientation of the project. There are multiple ways in which differentiation will get created.

The second project is very thoroughly being worked upon so that it's clearly different from what we've recently launched. We've achieved good sales.

We've crossed 1,500-odd crores out of this particular launch itself. It's not that we're putting the rest of the inventory immediately into the market.

Some sales are happening even during the current quarter, but thereafter, we may park some of the inventory and bring it up for sale in a subsequent manner. There will be a clear product differentiation across the projects which are coming.

Sure. How should we think about the monetization cycle now?

Obviously, earlier, I would say, maybe 2 years, 3 years back, it used to take maybe just a quarter or 2 quarters to monetize everything to offer. With these branded residences, now it should be a 1-year product or a 2-year monetization cycle, how should we think about, or how would our monetization strategy be in that sense?

Pritesh, with some of these projects, the way we plan internally is that see a lot of these lands are typically already owned by us and paid for, right? These are owned land parcels with very little level of debt in the company.

By and large, these are paid-for land parcels. Our development costs and SG&A costs do not cross 30% to 35% of the sale value for these projects.

Anytime we are crossing, let's say, a 40% benchmark in terms of the number of units for each of these incremental launches, the financial closure for each of these projects at a project level gets achieved. Our orientation of sales for these projects is that let's say we sell about give or take 50% of the project within 3 to 6 months of launch, and then you launch about 10% of the inventory on an annualized basis till the time the project goes for completion, so that you balance out on both quantum of sales, price appreciation, and anyways financial closure gets achieved right at the start.

That's the broad split in terms of sales which we plan to offer in the market, because when you get into this upper-mid segment, it's not a volume play anymore. You want to launch a good portion of that project at launch, but at the same time, you want to show progression on the project as you achieve more sales.

We don't want to kind of achieve 100% sales within a particular span of time.

Sure, perfect. That's helpful.

Second on the collections, I think, obviously, it was quite weak versus our usual trend that we have been maintaining since quite a few quarters now. Specific reasons for that?

In general, see, while our sales run rate in a quarter is 2, 2 and a half thousand crore, 2,000 ballpark in that range since quite some time, would we ever get to 2,000 crore in terms of collections, or anything between 1,300, 1,500 crore collections in a quarter is a good number, this is your business plan that you have made in terms of collections? Yeah.

You're right that we are averaging around 2,000-odd crores of pre-sales for a few quarters now. I think even last year, the best quarter was the first quarter where we achieved close to 2,600-odd crores.

We're averaging around this 20 billion mark in terms of pre-sales for few quarters, which we believe is kind of a fair number, 2,000 to 2,500-odd crores of sales coming out of a particular quarter from by and large Gurgaon, which we've been achieving, and that's where we think that, at these numbers, it's good kind of sales getting achieved. Collections, yes, this quarter was a bit of an aberration.

We've been closing out on 1,000, 1,100-odd crores of collections per quarter. I think we'll soon get back to that number.

Even the coming quarter, we expect it to be quite good. The reason of missing out this year was certain milestones with lumpy collections getting slipped into the coming quarter, and that's why the collection number stood at a mark where it is.

Eventually, yes, to your point, all this sales has to converge into collections on a quarterly basis. I can't give you a particular quarter where it's happening.

Excel can speak a story which you want to narrate, but yeah, all of this sales is going to definitely convert into collections because even if you look at the historical trend, if we've launched 23 million square foot over the last 9 quarters, the GDV value is close to 334 billion. We've achieved sales of, let's say, 230, 240 billion has been achieved.

Since first is supply, then is sale, and then, of course, it's collection. We don't see any doubt around it.

Thank you for the opportunity. Just wanted to understand on the supply side now because of the geopolitical issues, has there been any increase in the cost of the key raw materials or our finishing things?

Over next maybe on medium-term, do you see any cost escalation in the projects for that? Just wanted to understand how this is playing out.

Yeah. See, Adhidev, even if we go almost a decade back and see the trend, usually costs tend to go up in late single digits.

You do an average of material and labor both, I think you'll see anywhere between 7% to 8% kind of escalation on cost which has happened over the last decade. Far, we've not seen any inordinate increase in cost over the last quarter.

We do always take this kind of escalation into our budgets when we are planning for it. This 7%, 8% kind of cost escalation is something which one should budget over the coming years, to say.

By and large, nothing inordinate, no crazy spike on any particular key building product so far.

Okay. Secondly, just to allude to the other comments on exploring another opportunity outside NCR, you had also been mentioned this, right, a few quarters back.

In terms of the margin and the projects which you want to do, would it be similar to what we are doing in Gurgaon or you're looking to get into maybe something ultra luxury or mid-income or what sort of products are you looking to get into in these markets or in terms of ticket size?

See, the preference is to do low-rise developments, more spread-out developments, because any new market which you get into, the idea is not to pick up small 5, 10-acre parcels and just work for that. The idea is to gain relevance in any of these markets where we enter.

Low-rise is a good model because you enter and execute and you're able to show your delivery capability sooner in a new market. While Gurgaon, Delhi NCR, people may know Signature Global, as we get into newer markets, for that brand recognition, execution capability to be displayed, it's good to kind of do low-rise developments and showcase that delivery capability at a good pace.

That's why the format we're opting for is larger-format low-rise developments, definitely mid-income focus, neither affordable nor on the premium side, more mid-income developments in some of these newer markets.

Sure. That's all from my side, yeah.

Thank you. All the best.

Thank you, Adhidev.

Thanks everyone. Thanks a lot.

Thank you, everyone.

Thank you.