Author: Aditya Pareek | EQMint | Finance News
Real-estate developer Signature Global (India) Ltd. has reported a net loss of ₹46.86 crore for the quarter ended September 2025 (Q2 FY26), marking a significant reversal from a profit of ₹4.15 crore in the same period last year. The disappointing numbers underscore the pressures facing India’s residential property segment as demand moderation, delayed launches, and higher financing costs weigh on developers’ performance.
Revenue drops sharply
The company’s total income fell sharply to ₹372.5 crore, compared with ₹777.4 crore in Q2 FY25 — a decline of nearly 52 percent year-on-year. Revenue from operations dropped even further, to about ₹338 crore, reflecting slower project completions and reduced revenue recognition.
Despite the drop in revenue, collections remained stable at approximately ₹930 crore, slightly higher than the ₹920 crore reported in the corresponding quarter last year. This indicates that while fewer projects reached the stage of revenue recognition, the company’s ability to collect payments from ongoing projects remained intact — a crucial sign of liquidity resilience in the real-estate business.
Pre-sales momentum softens
During the first half of FY26 (April to September 2025), Signature Global recorded pre-sales of ₹4,650 crore, down 21 percent from ₹5,900 crore in the same period last year. The slowdown in pre-sales has been attributed to a mix of subdued buyer sentiment, slower new project launches, and a temporary pause in approvals for certain developments.
However, the company managed to increase its average sales realisation to ₹15,731 per square foot in H1 FY26, compared with ₹12,457 per square foot a year earlier. This improvement suggests a strategic shift towards higher-value projects, especially in the mid- and premium-housing categories, which could help offset volume pressure over time.
Investment and expansion continue
In spite of the challenging quarter, Signature Global continued to expand its land bank. The company acquired 33.5 acres of land during Q2, including about 31 acres in its existing Sohna micro-market — one of its key focus areas. This move aligns with the company’s strategy to deepen its presence in the Gurugram-Sohna region, a high-growth corridor within the Delhi-NCR real-estate belt.
The developer also raised ₹875 crore through non-convertible debentures (NCDs) issued to the International Finance Corporation (IFC). The infusion is aimed at funding mid-income housing projects and reducing high-cost debt. This demonstrates continued investor confidence in the company’s long-term potential, even amid temporary headwinds.
Management commentary
Chairman and founder Pradeep Aggarwal acknowledged that the quarter’s results reflect an “adjustment phase” in the real-estate market but maintained a positive outlook for the rest of FY26. He said the company remains committed to achieving its pre-sales target of ₹12,500 crore for the year and expects revenue recognition to accelerate in the second half as key projects reach completion milestones.
Aggarwal emphasized that Signature Global continues to focus on operational discipline — ensuring timely delivery, maintaining steady collections, and optimizing costs. The management believes that strong fundamentals, growing urban housing demand, and government incentives for affordable and mid-income housing will support growth over the long term.
Financial position
Signature Global’s net debt stood at approximately ₹970 crore at the end of September 2025, compared with ₹880 crore at the end of FY25. While leverage has increased slightly, the company’s debt-to-equity ratio remains within a manageable range for a developer of its scale. Stable collections have helped maintain liquidity and fund ongoing construction across key projects in Gurugram, Sohna, and South Delhi.
Operating expenses remained elevated due to input cost inflation and project execution costs. Additionally, delays in approvals and revenue recognition timing contributed to the widened loss. Management expects these challenges to normalize as construction activity gains pace and as newly launched projects begin contributing to topline growth.
Sector backdrop
The real-estate sector in India has experienced mixed trends in 2025. While luxury housing demand continues to hold firm in select metros, the mid-segment has faced slower traction due to higher home-loan rates and rising property prices. Developers are cautiously managing cash flow and launch pipelines to maintain financial stability.
In this environment, Signature Global — known primarily for its affordable and mid-housing projects — faces a delicate balancing act: sustaining profitability while expanding in a price-sensitive segment. Its continued focus on Gurugram and Sohna positions it advantageously in one of the most active residential corridors of North India.
Outlook
The coming quarters will be critical for Signature Global. Investors will be closely watching three key areas:
- Pre-sales growth — Whether demand picks up amid easing interest rates and festive season launches.
- Revenue recognition — Timely completion of ongoing projects to convert bookings into recorded revenue.
- Debt control — Efficient use of IFC funding and disciplined cash flow management.
If the company can maintain strong collections and deliver new projects on schedule, a turnaround in profitability may be possible by the second half of FY26.
Conclusion
Signature Global’s Q2 performance reflects the broader slowdown in India’s residential real-estate market. A sharp fall in revenue and widening net loss highlight the pressures developers face from slower demand and rising costs. Yet, the company’s steady collections, improved realisations, and expansion strategy suggest that it is positioning itself for recovery once market conditions stabilize.
As the housing cycle moves toward normalization and financing conditions ease, Signature Global’s resilience and focus on execution could help it regain profitability in the coming quarters.
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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.
