2 Realty stocks fall up to 7% after reporting weak Q3 results

Synopsis:- Two Mumbai-based real estate stocks came under pressure after Q3 updates, with share prices falling 4–7%. One saw margin compression to 31%, while the other highlighted a strong ₹11,900 crore GDV pipeline, 4 million sq ft development visibility, and low leverage at 0.04x, indicating contrasting near-term and long-term signals.

India’s real estate sector in FY 2025 showcased resilience amid normalization, with residential sales reaching around 3.86 lakh units across top cities, down 12% YoY, while hitting a record primary sales value of ₹6.7 lakh crore for nearly 5 lakh homes in Tier-1 cities. Institutional investments surged to a peak of $10.4 billion, up from $8.4 billion in the prior year. Home prices rose 13-15% on average, signaling sustained demand.

Ajmera Realty & Infra India Ltd

Ajmera Realty & Infra India Ltd is a well-established real estate developer in India with a strong presence in Mumbai and other key cities. The company focuses on residential and commercial projects, redevelopment initiatives, and premium housing, backed by decades of experience in urban infrastructure development. With a market capitalization of Rs 2,873.22 crore, the shares were trading at Rs 146.00 per share, decreasing around 7 percent  as compared to the previous closing price.

The shares of Ajmera Realty & Infra India Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which revenue decreased by 6 percent on a year-on-year basis from Rs 192 crore in Q3FY25 to Rs 181 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue decreased by 17 percent from Rs 219 crore in Q2FY26 to Rs 181 crore in Q3FY26.

Moreover, net profit decreased by 26 percent on a yearly basis from Rs 34 crore in Q3FY25 to Rs 25 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit decreased by 17 percent from Rs 30 crore in Q2FY26 to Rs 25 crore in Q3FY26. 

Margins weakened in Q3 FY26, with EBITDA margin declining to 31% from 35% year-on-year, reflecting cost pressures. PBT margin improved to 23% from 22%, while PAT margin slipped to 15% from 17%. On a nine-month basis, EBITDA margin moderated to 30%, indicating overall margin compression during the period.

Arkade Developers Ltd

Arkade Developers Ltd is a Mumbai-based real estate company specialising in residential development, particularly redevelopment projects in the western suburbs. Known for timely execution and quality construction, the company caters to mid-income and premium housing segments, with a growing portfolio of completed and ongoing projects. With a market capitalization of Rs 2,039 crore, the shares were trading at Rs 110 per share, decreasing around 4 percent  as compared to the previous closing price.

The shares of Arkade Developers have seen bearish movement after announcing its financial performance in Q3FY26, in which revenue decreased by 25 percent on a year-on-year basis from Rs 263 crore in Q3FY25 to Rs 196 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue decreased by 13 percent from Rs 224 crore in Q2FY26 to Rs 196 crore in Q3FY26.

Moreover, net profit decreased by 13 percent on a yearly basis from Rs 46 crore in Q3FY25 to Rs 40 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit decreased by 20 percent from Rs 50 crore in Q2FY26 to Rs 40 crore in Q3FY26. 

Arkade Developers showcased strong growth visibility with a project pipeline of nearly  Rs 11,900 crore GDV spread across 4 million sq ft. Strategic land acquisitions worth  Rs 535 crore strengthened its portfolio, while a low  Rs 35 crore net debt kept leverage minimal at 0.04x. New verticals in home loans and facility management enhance long-term scalability.

Arkade Developers delivered a healthy quarterly performance, with pre-sales rising 21% year-on-year to  Rs 267 crore and collections up 19% to  Rs 212 crore in the December 2025 quarter. The company reported  EBITDA stood at  Rs 54 crore, reflecting steady execution and demand momentum.

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