Realty stock falls 7% after its pre-sales declines by 27% in Q3

Synopsis: Signature Global shares fell 7% after the company’s Q3 FY26 pre-sales fell 27% year-on-year to Rs 2,020 crore. With demand slowing, Signature Global acknowledges it will miss its Rs 12,700 crore target, which the company earlier thought was possible.

The shares of this company, engaged in real estate development, operating in the National Capital Region of Delhi (“Delhi NCR”) focussed on offering affordable and mid-segment housing, are in focus after it announced a key business update that alerted the investors in today’s trade. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 13,334 crore, the shares of SignatureGlobal India Ltd reached a day’s low of Rs 937.30 per share, down 7 percent from its previous day’s closing price of Rs 1,008.95 per share. In the last one year, the stock has corrected by over 20 percent, as compared to NIFTY 50’s positive return of 11.4 percent.

About the announcement 

SignatureGlobal, through a stock exchange filing, announced that it had a difficult Q3 FY26. The Demand fell off sharply, and the company openly acknowledged it won’t be able reach its pre-sales target of Rs 12,700 crore, a figure it was previously confident about. They cited a weaker market, and while new project launches are progressing, sales are clearly losing momentum. This is evident both in the number of units sold and the total area booked. The company also cited that they will try to maintain sales at the same levels as last year.

For the quarter, pre-sales reached just Rs 2,020 crore, down 27 percent from Rs 2,770 crore a year ago. The real impact was visible in volumes as well; units sold fell by a staggering 73 percent YoY to 408 as compared to 1,518 last year. The area sold also declined, down 42 percent to 1.44 million square feet in Q3 FY26 from 2.49 million square feet in Q3 FY25. So, the slowdown isn’t just about lower prices 

On the financial front, collections actually increased by 14 percent to Rs 1,230 crore from Rs 1,080 crore last year, but net debt also rose to Rs 1,020 crore (from Rs 880 crore at the end of FY25). So, despite stronger collections, the company is taking on more debt as sales weaken. The only notable positive is that they achieved higher sales realisations at Rs 15,182 per square foot. Still, with demand softening and the company missing its guidance, the outlook remains fairly cautious.

The revenue from operations for SignatureGlobal India stands at Rs 338 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 749 crores, down by a staggering 55 percent YoY. Additionally, on a QoQ basis, it reported a decline of 61 percent from Rs 866 crore. 

Coming down to its profitability, the company reported a net loss of Rs 47 crore in Q2 FY26, down from a profit of Rs 4 crore in Q2 FY25. Additionally, on a QoQ basis, it plunged sharply from a net profit of Rs 34 crore.

Signature​‍​‌‍​‍‌​‍​‌‍​‍‌ Global is setting a new standard of luxury in Indian real estate that focuses on trust, comfort, and the emotional aspect. The company, established in 2014, initially made a breakthrough in affordable housing, thus enabling thousands to realise their dream of owning a home. It has now diversified into mid and premium housing, mirroring the growing aspirations of India, and at the same time, sticking to its promise of quality and trustworthiness.

Signature Global, through its excellent location and developments in Gurugram’s most promising growth areas like the Southern Peripheral Road, Dwarka Expressway, and Sohn, is leading the evolution of urban living of the future. Their projects are a blend of the latest technology, environmental friendliness, and top-notch design, thereby giving Signature Global a leading position in the real estate sector that is undergoing a transformation in ​‍​‌‍​‍‌​‍​‌‍​‍‌NCR.

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