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Recommendation Rationale

* Position in High-growth NCR Markets: Signature Global continues to maintain its competitive edge through a deep, geographically concentrated presence in the Delhi-NCR region, particularly Gurugram. Its projects are strategically located along the Dwarka Expressway, Southern Peripheral Road (SPR), and Sohna Road—corridors that have witnessed price appreciation of 100–150% over the past five years. The company’s Sector 71 land bank optimisation, which increased the developable potential from 17 Mn sq. ft. to 18.5 Mn sq. ft. through improved planning, has unlocked substantial embedded value. With a total development pipeline exceeding 65 Mn sq. ft. (launched and forthcoming), Signature Global is well-positioned to capitalise on the NCR’s sustained housing demand.

* Strong Upcoming Launches and Execution: Signature Global has lined up around 8 Mn sq. ft. of launches for H2FY26 with a GDV of Rs 13,000–14,000 Cr across high-demand micro markets. The company achieved pre-sales of Rs 4,660 Cr in H1FY26, accounting for 37% of its annual guidance of Rs 12,500 Cr, indicating on-track performance despite a back-ended launch schedule. Recent launches since Mar’24 total over 17 Mn sq. ft., with more than 80% already sold, reflecting its strong brand equity, pricing power, and robust customer response across both mid-income and premium housing segments. With around 9 Mn sq. ft. nearing completion and a large pipeline of ready-to-launch projects, Signature Global offers strong visibility on both sales and revenue recognition over the next 12–18 months

* Strong Balance Sheet: The company’s financial position has strengthened meaningfully with the Rs 875 Cr ($100 Mn) NCD issue to the International Finance Corporation (IFC) — a landmark event marking Signature Global’s first-ever listed debt transaction. This partnership enhances the company’s credibility in global capital markets and underscores IFC’s confidence in its governance standards and sustainability-focused business model. The funds will be utilised for mid-income, ESG-aligned housing projects while simultaneously supporting balance sheet strengthening and debt optimisation. Collection efficiency remains robust, with Rs 1,860 Cr collected in H1FY26, of which nearly half was reinvested into construction and another quarter allocated toward SG&A, taxes, and brokerage. After these expenditures, Signature Global generated around Rs 400 Cr of free cash flow, which was redeployed into land acquisitions and approvals to further expand its development pipeline.

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