Arkade Developers Limited

Real Estate — Real Estate - Development · NSE

₹119.00−₹0.01 (−0.01%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:55 pm

Understanding the Business

Company site ↗

The 60-second version of Arkade Developers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Arkade Developers Limited operates as a real estate development company in India. It engages in the identification and acquisition of land, as well as the planning, execution, construction, and marketing of commercial and residential projects.

IndustryReal Estate - Development

SectorReal Estate

Employees256

Annual revenue₹811 Cr

How does it make money?

Turns over ₹811 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 256 employees supports ₹3.17 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.17 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 0.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +270% while net margin moved -97% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+270%

Margin effect-97%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.6% is weak
✗ ROE has fallen by 24.7 points over the period

Quality vs. Valuation

Company Quality

46/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

39/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

11.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 34% over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 25.4% to 0.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.1% to 0.8% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.4 points, from 30.6% to 24.3%.
🔴Receivables growing faster than salesFinancial
Receivables up 549% against revenue up 270% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹156 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 89% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 34% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 30.6% to 24.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 549% against revenue up 270%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 25.4% to 0.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 41% a year✓ 54.7% CAGR
Latest reported year was -7.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 22%✓ 24.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹156 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 0.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 3 neutral · 7 weak

Market Cap

₹2,209 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

2.50x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.23

Loss-making

Negative earnings per share — the business is losing money

ROE

0.6%

Weak

Weak capital efficiency

ROCE

0.8%

Weak

Low return on total capital employed

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

-7.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-33.5%

Falling

Profits are shrinking

Dividend Yield

1.68%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹156 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

16.8%

Good

Healthy core-business profitability

Net Margin

-0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

7.13

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

121.4 / 124.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹219 Cr	₹634 Cr	₹669 Cr	₹811 Cr	+54.7%
EBITDA	₹67 Cr	₹167 Cr	₹215 Cr	₹197 Cr	+43.1%
EBITDA Margin	30.6%	26.3%	32.1%	24.3%	—
PAT (Net Profit)	₹51 Cr	₹123 Cr	₹157 Cr	₹5 Cr	-52.7%
EPS	₹2.74	₹6.62	₹9.25	₹0.29	-52.7%
ROE	25.4%	38.0%	17.8%	0.6%	—
ROCE	24.1%	46.6%	22.1%	0.8%	—
Total Debt	₹149 Cr	₹71 Cr	₹115 Cr	₹99 Cr	-12.7%
Free Cash Flow	-₹99 Cr	₹89 Cr	-₹227 Cr	-₹156 Cr	—

🟢 Revenue has grown at 54.7% a year over 3 years.

🟢 EBITDA has grown at 43.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 30.6% to 24.3% over 3 years (-6.4 pts).

🔴 PAT (Net Profit) has shrunk at 52.7% a year over 3 years.

🔴 EPS has shrunk at 52.7% a year over 3 years.

🔴 ROE has fallen from 25.4% to 0.6% over 3 years (-24.7 pts).

🔴 ROCE has fallen from 24.1% to 0.8% over 3 years (-23.3 pts).

🟢 Total Debt has shrunk at 12.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,127 Cr

Total Liabilities

₹245 Cr

Cash & Equivalents

₹24 Cr

Operating Cash Flow

-₹119 Cr

Capex

-₹36 Cr

Shareholding (proxy)

Institutional Holding

0.6%

Insider Holding

82.3%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

01 Aug 2025

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

2 mixed1 negative3 general

Arkade Developers Gets Vile Parle OC; Shares Fall 2.53%

HDFC Sky, 25 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Arkade Developers Share Price Forecast: 3 Year Outlook to 2030

Univest, 14 Jul

Insiders Re-Evaluate Their ₹60.1m Stock Purchase As Arkade Developers Falls To ₹21b

Simply Wall Street, 22 Jan

Arkade Developers Q4 loss at Rs 109.45 cr

The Economic Times, 28 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Arkade Developers dispatches FY26 Annual Report ahead of September AGM

scanx.trade, 22 Sept

Arkade Developers consolidated net profit declines 33.66% in the June 2026 quarter

Business Standard, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-7.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑