Real estate firm Arkade Developers' Q4 profit falls 34 pc, sales tank 42 pc

IANS May 13, 2025 192 views

Arkade Developers posted a sharp 34% drop in Q4 profit alongside a 42% revenue decline. Despite this, the company cut expenses by 46% and secured key land acquisitions in Mumbai. Chairman Amit Jain highlighted FY25 milestones, including a Rs 2,000 crore Goregaon project. The firm plans expansion into eastern suburbs while maintaining focus on luxury housing.

"FY25 was a milestone year for Arkade Developers, with the acquisition of a 4-acre iconic land parcel in Goregaon." – Amit Jain, Chairman & MD
Mumbai, May 13: Real estate firm Arkade Developers on Tuesday reported a sharp drop in net profit for the fourth quarter (Q4) of FY25, as revenue also took a significant hit in the January-March quarter.

Key Points

1

Q4 net profit fell 34% to Rs 33.26 crore

2

Revenue dropped 42% to Rs 134.34 crore

3

Expenses reduced by 46% to Rs 88.76 crore

4

Acquired 17.5 acres in Mumbai with Rs 6,790 crore GDV

The company’s net profit stood at Rs 33.26 crore in Q4, down 33.58 per cent from Rs 50.08 crore in the previous quarter (Q3 FY25).

This decline came as revenue from operations fell sharply by 41.96 per cent to Rs 134.34 crore, compared to Rs 231.41 crore in Q3.

Despite the fall in both net profit and revenue, the company managed to reduce its total expenses.

Expenses came down to Rs 88.76 crore in Q4 from Rs 165.31 crore in the previous quarter, marking a 46.3 per cent drop, which helped cushion the impact on the bottom line.

Chairman and Managing Director Amit Jain said that Arkade closed the fiscal year on a "strong operational note".

He highlighted the company's successful pre-sales, timely construction milestones and continued expansion as key achievements.

“FY25 was a milestone year for Arkade Developers, with the acquisition of a 4-acre iconic land parcel in Goregaon, previously leased to Filmistan Private Limited, with an estimated gross development value (GDV) of Rs 2,000 crore,” Jain said in a statement.

In total, the company acquired 17.5 acres across Mumbai’s western suburbs -- including Andheri, Santacruz, Borivali, Malad and Dahisar -- adding up to a projected GDV of Rs 6,790 crore.

The company also announced plans to expand into eastern Mumbai suburbs with greenfield projects, while continuing to build its pipeline of redevelopment projects in the west.

Jain noted that the company’s focus on luxury housing aligns with broader market trends, and Arkade is well-positioned to maintain sustainable growth.

The company’s stock closed the intra-day trading session nearly flat at Rs 164.44, up Rs 0.28 or 0.17 per cent on the National Stock Exchange (NSE).

Reader Comments

R
Rahul K.
Not surprised by these numbers at all. The Mumbai real estate market has been sluggish for months now. Luxury housing is becoming harder to sell with rising interest rates and economic uncertainty. Arkade should focus more on affordable mid-range projects.
P
Priya M.
The 46% reduction in expenses shows good financial discipline! 💯 In tough markets, controlling costs is as important as generating revenue. The Goregaon land acquisition seems promising - Filmistan land has great potential if developed well.
A
Arvind S.
As someone who invested in Arkade's Malad project last year, this news is concerning. The management keeps talking about expansion but quarterly results tell a different story. Hope they deliver on their promises - construction quality shouldn't suffer due to cost-cutting.
S
Sanjana T.
Why is the stock price holding up despite poor results? 🤔 Seems like investors are betting on future growth from those land acquisitions. But with 42% sales drop, they need to show better execution. Eastern suburbs expansion could be risky - that market is very different from West Mumbai.
V
Vikram J.
The real test will be how they utilize those 17.5 acres. Mumbai doesn't have unlimited land - if they create quality projects with good amenities, the GDV projections might be achievable. But they need to adapt to changing buyer preferences post-pandemic (home offices, green spaces etc.).
N
Neha P.
Interesting that they're still calling it a "strong operational year" when both profit and sales tanked. Marketing spin can't hide the numbers. Maybe time for Arkade to rethink their luxury-only strategy? Middle class homebuyers are the real drivers of Mumbai's real estate.

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Arkade Developers Q4 results real estate Mumbai property Amit Jain profit decline