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Revenue hit by execution delays

Pre-sales guidance achieved

* Signature Global achieved pre-sales of INR16.2b, down 61% YoY (15% above our estimate) and down 42% sequentially.

* In 4QFY25, volumes stood at 1.4msf, down 54% YoY and 45% QoQ (13% higher than our estimate). Further, the company achieved volumes of 8.3msf in FY25 (+33% YoY; in line).

* The company achieved pre-sales of INR103b, up 42% YoY in FY25 (in line), surpassing its FY25 guidance by 3%. The company guided pre-sales of INR125b for FY26.

* Additionally, Signature Global launched five projects of INR138b GDV vs. its full-year guidance of INR160b. Management guided launches of INR170b for FY26.

* During FY25, the company added 7.9msf, including 5.2msf in Sector 37D and 2.7msf in Sector 71, Gurgaon. It continues to focus on consolidation in three micro markets, i.e., Sec 71, Sec 37 D, and Sohna.

* The company achieved collections of INR12b, up 16%/8% YoY/QoQ, while it missed the guidance (61% below our estimate). This was due to construction delays on account of the NGT restriction and lack of labor availability with contractors. However, completion spillover will lead to better collection in FY26. Management guided collections of INR60b in FY26.

* FY25 collections were INR44b, up 41% YoY. Further, the company achieved an operating cash surplus before land investment at INR16.3b.

* The company's debt has reduced to 8.8b in FY25 from INR11.6b in FY24.

* P&L performance: In 4QFY25, the company reported revenue of INR5.2b, down 25%/37% YoY/QoQ (37% below estimate) due to lower collections. For FY25, the company achieved revenue of INR25b, up 2x YoY (33% below estimates). FY26 revenue is guided at INR48b.

* In 4QFY25, EBITDA stood at INR439m, up 2x/3x YoY/QoQ. Margin was 8.4%, up 5.5pp/6.8pp YoY/QoQ, 7% above our estimate. In FY25, EBITDA stood at INR446m, down 86% YoY (vs. a loss of INR259m in FY24) due to recognition of lower-margin products. The margin stood at 2%.

* Adj. PAT in 4QFY25 stood at INR611m, up 48%/110% YoY/QoQ (2x above our estimate). In FY25, Adj. PAT stood at INR1b, up 5.6x YoY (2x above our estimate). PAT margin was 4% for the quarter.

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