SignatureGlobal Q2 FY27 Earnings Call: Gross Margin Expands To 36%, Maintains Rs. 10,000 Cr Sales Guidance

SignatureGlobal India Ltd held its Q2 FY27 earnings call on November 05, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Margin Step-Up in Q2; H1 PAT Modest

• Q2 FY 2026-2027 gross margin of 36% / EBITDA margin of 18% — higher than H1 FY 2026-2027 (31% gross / 13% EBITDA), driven by a higher share of mid-income vs affordable completions in Q2.
• H1 FY 2026-2027 PAT of ~Rs.50 crore — on revenue recognition of ~Rs.14 billion from completed projects in H1 FY 2026-2027.
• H1 FY 2026-2027 pre-sales of Rs.38 billion — ~675 units / 1.6 million sq ft, ~40% of the maintained FY 2026-2027 sales guidance of Rs.100 billion; balance 60% targeted in H2 FY 2026-2027.
• Portfolio realizations crossed Rs.17,000/sq ft in H1 FY 2026-2027 — above the full FY 2025-2026 realization; management noted prices continue to rise at a slower pace with single-digit escalations, which it called healthy for both supplier and customer.
• Management reaffirmed FY 2026-2027 guidance on all four parameters — launches, sales, collections, and revenue recognition.

Gurugram Outperformance Underpins Demand

• KPMG–NAREDCO report cited by management — real estate supports ~7 crore jobs today, expected to reach nearly 10 crore by 2030; management cited "better infrastructure, supportive government policies and fast-growing cities" as long-term demand drivers for organized developers.
• ANAROCK data: home sales in India's top 7 cities crossed 1 lakh units in Q3 2026 — up 10% QoQ with growth in all seven cities; new launches rose 18% and prices rose 7% over the last year.
• NCR saw the fastest price rise among the top seven cities at 12% — Cushman & Wakefield recorded ~8,700 new launches in NCR during Q2 FY 2026-2027, led by Gurugram.
• JLL data: Gurugram accounts for 43% of NCR housing sales — growth led by Dwarka Expressway, Southern Periphery Road, New Gurugram and Sohna micro-markets.
• Supply remains tight — management said middle-income housing launched post 2022 (over the last 3-4 years) is largely yet to be handed over, limiting secondary stock and driving up secondary-market prices, with a positive rub-off on primary prices.
• Gurgaon market holding steady — despite macro headwinds over the past six months, management said real estate is acting like an inflation hedge.

Aggressive BD Funded Without Leverage

• ~10 million sq ft of developable area added in H1 FY 2026-2027 (net 8.4 million sq ft) — headlined by a 194-acre Farukhnagar parcel (25 acres acquired + 169 acres via collaboration) for low-density farmhouse/villa development plus a small resort, and 31 acres added via collaboration around the 125-acre Dakshin project in Sohna.
• BD spend of ~Rs.560 crore including approvals in H1 FY 2026-2027 (cited by Nomura's Parvez Qazi) — management is hopeful the elevated pace continues for the balance of FY 2026-2027, with several transactions in progress.
• Full-year FY 2026-2027 BD expected to roughly match operating cash flow — if OCF comes in at Rs.12-15 billion, BD may be done to that tune in FY 2026-2027; newly added business not expected to significantly impact debt.
• Net debt of Rs.4.5 billion — gross debt Rs.28.7 billion vs cash of Rs.24+ billion; CARE rating unchanged from the previous year at A+ with a stable outlook.
• RMZ group mixed-use project on Southern Peripheral Road (5.6 million sq ft) — transaction consummated 30 March 2026 (FY 2025-2026 year-end); KPF appointed for master planning; design and approvals progressing but launch/construction start not yet begun; bulk to be a yield portfolio with a small build-to-sell portion.
• Government's Delhi master plan provision cited as a Farukhnagar tailwind — management noted "farmhouses within Delhi must be at least 2.5 acres" (vs 1+ acre permissible in Gurgaon); the site is ~15 minutes from Dwarka Expressway and 45-50 minutes from Delhi Airport. Management declined to quantify the farmhouse market size, calling it largely unorganized with Delhi farmhouses transacting upwards of Rs.100 crore; no market-share target was given.

H2 FY27 Launches on Three Fronts; Timing Uncommitted

• Three H2 FY 2026-2027 launch fronts planned — a 2 million+ sq ft launch in Sector 71 adjacent to the Tonino Lamborghini Residences (advanced pre-launch stage; exact month not committed), a small "iconic" single-tower project with Dwarka Expressway frontage, and a pending Sohna phase awaiting approvals.
• ~300,000-400,000 sq ft planned in Sector 37D — alongside the Sector 71 launch; management did not commit to specific Q3/Q4 FY 2026-2027 months and did not quantify GDV for the H2 launches.
• Sohna: ~400 of ~2,800 units at Dakshin remain pending launch — may happen within FY 2026-2027 subject to approvals/pre-launch work.
• Tonino Lamborghini (Sector 71, 800+ units) was the only H1 FY 2026-2027 launch — the company's first branded-residences project, marking entry into the upper-mid/entry-level premium segment; management said it received a good response.
• Lamborghini launch value revised marginally from 44 (Q1 FY 2026-2027 disclosure) to 43 (Q2 FY 2026-2027 disclosure) — the CEO could not confirm the reason on the call and offered to address it separately; no price revision was confirmed.
• Brokerage on the Lamborghini project is closer to about 4% — vs a typical 3-5% range for brokerage slabs.

H2-Weighted Year; OCF Guidance Reaffirmed

• H1 FY 2026-2027 collections of ~Rs.17 billion — Q2 collections were slightly lower, termed an aberration; the 8-10 quarter trend remains steady at ~Rs.10 billion per quarter.
• Operating cash surplus of Rs.4.8 billion in H1 FY 2026-2027 — ~28% of collections, before land/approval outlays and debt repayments; expected to rise to Rs.12-15 billion by end of FY 2026-2027 on higher H2 collections and project completions.
• 19 million sq ft delivered to date, another 9 million sq ft nearing delivery — total pipeline of 50-51 million sq ft, incl. 23 million sq ft launched since February 2024 and 27 million sq ft being readied for launch over the coming 2 years; GDV of the recently launched portfolio ~Rs.350 billion, with the forthcoming 27 million sq ft estimated at Rs.300-350 billion.
• 1H FY 2026-2027 construction cost of Rs.880cr vs Rs.970cr in 1H FY 2025-2026 — CEO Rajat Kathuria attributed the lower spend to project mix, not a slowdown: two plotted developments (City of Colors in Manesar and an industrial plotting block within Dakshin) are nearing completion and inherently carry low construction spend.
• Completion-related approvals expected from the government within FY 2026-2027 for both plotted developments — expected to contribute significantly to revenue recognition and collections despite modest construction cost.
• FY 2026-2027 construction cost guided to more than double the 1H level but probably below Rs.2,000cr — historical escalation (labor plus material) has run 7-9% per annum over the last decade, with the same range anticipated for FY 2026-2027, typically not crossing double digits.

GRAP Bans Baked In; Sustenance Dip Defended

• Management plans for ~10 months of effective construction per year — CEO Rajat Kathuria called recurring winter pollution-related construction bans a "recurring and perpetual" issue that is "not going away anytime soon," and explicitly assumes NGT bans on construction will arise every year, baked into guidance.
• Construction material remains available — during heavy ban stages the company either stocks up in advance or plans for restricted movement; certain activities may still be permitted depending on pollution levels.
• Sustenance sales dip flagged by Axis Capital's Pritesh Seth — decline from the usual Rs.2,000-odd crore run rate; the CEO attributed it to a launch-light H1, said the plan was ~40% of the FY 2026-2027 target in H1, and stated the company is not carrying any incremental unsold inventory.
• Collections/OCF guidance reaffirmed despite tracking somewhat behind — management is "fairly hopeful" that FY 2026-2027 completions will materialize, providing a fillip to collections in H2 FY 2026-2027, with OCF expected to move in line.
• Unsold inventory figure under recently launched projects not provided — the CEO said the number would be pulled up during the call, but no figure was given in the segment.
• FY 2026-2027 sales guidance maintained "at this point in time" — management is tracking in line and will "stick to" it; no revision or specific figure was indicated in the exchange.