The National Company Law Tribunal (NCLT) Mumbai Bench has given its approval for the demerger scheme between Arkade Developers Limited and its wholly-owned subsidiary, Filmistan Private Limited. This development marks a significant step in the corporate restructuring process for the two entities.

Key Points of the NCLT Order

• Approval: The NCLT Mumbai Bench has approved the demerger scheme.
• Parties Involved:
  • Arkade Developers Limited (Resulting Company)
  • Filmistan Private Limited (Demerged Company, wholly-owned subsidiary)
• Legal Framework: The scheme falls under Sections 230-232 of the Companies Act, 2013.

Dispensation of Shareholder Meetings

The NCLT has dispensed with the requirement for shareholder meetings, citing that the necessary consents have already been obtained. This decision streamlines the process, potentially expediting the demerger.

Additional Details

• The scheme also dispenses with the need for meetings of unsecured creditors of Arkade Developers Limited.
• Despite this approval, the demerger scheme remains subject to other applicable regulatory and additional approvals.

Implications

This NCLT approval is a crucial step in the corporate restructuring process for Arkade Developers and its subsidiary. The demerger could potentially lead to:

1. Streamlined operations
2. Better focus on core competencies
3. Improved efficiency in resource allocation

Investors and stakeholders of Arkade Developers Limited should keep a close watch on further developments as the company progresses through the remaining regulatory approvals for the demerger.

Note: This article is based on the latest available information and does not constitute financial advice. Investors are advised to conduct their own research and consult with financial experts before making any investment decisions.

Arkade Developers Limited, a prominent real estate developer in Mumbai, has reported a strong financial performance for the second quarter of fiscal year 2026, with significant growth in revenue and ambitious plans for future project launches.

Financial Highlights

The company's Q2 FY26 financial results showcase robust growth:

The company's performance demonstrates strong revenue growth, with a 30% year-on-year increase. While EBITDA and profit after tax showed more modest growth, the EBITDA margin remained healthy at 24%.

Operational Performance

Arkade Developers achieved notable operational milestones in Q2 FY26:

• Pre-sales of ₹331.00 crores
• Area sold: 1.1 lakh square feet (up 4% year-on-year)
• Collections: ₹320.00 crores (7% year-on-year growth)

Strategic Developments

The company has made significant strides in expanding its project portfolio:

1. Acquisition in Bhandup West: Arkade Developers entered into a share purchase agreement to acquire 100% shareholding in Woolen and Textile Industries Limited for ₹148.00 crores. This acquisition includes a land parcel of 14,363 sq m with a potential Gross Development Value (GDV) of ₹1,000.00 crores.

2. Metro Station Branding: Secured naming rights for Bangur Nagar Metro Station at Goregaon West, now known as Arkade Bangur Nagar, reinforcing the company's presence in the Malad-Goregaon belt.

3. Project Completions: Four residential projects - Arkade Adornia, Arkade Aspire, Arkade Serene, and Arkade Jayshree - have been completed and sold out.

Future Outlook

Arkade Developers has outlined an ambitious growth strategy for the coming years:

• FY26 Completions: Two ongoing projects, Arkade Pearl at Vile Parle and Arkade Eden at Malad, are scheduled for completion this fiscal year.

• FY27 Launch Pipeline: The company plans to launch 6-7 new projects in FY27, with a combined potential sales value exceeding ₹8,000.00 crores.

• H1 FY27 Launches: Three projects are confirmed for launch in the first half of FY27 - one each in Santacruz, Bangur Nagar, and Malad West Liberty Gardens.

Management Commentary

Amit Jain, Chairman and Managing Director of Arkade Developers, expressed optimism about the company's future, stating, "We remain confident and well-positioned for accelerated growth, driven by a robust pipeline of strategic acquisitions, high-value redevelopment projects, and future-ready Greenfield developments."

The management emphasized their execution-first philosophy, focusing on efficient project delivery and faster revenue recognition.

Market Outlook

The real estate sector in India, particularly in mature markets like Mumbai, is experiencing a shift towards premium housing. Arkade Developers is well-positioned to capitalize on this trend, with a strategic focus on the Mumbai Metropolitan Region (MMR).

As the company moves forward with its ambitious launch plans and strategic land acquisitions, investors and market watchers will be keenly observing Arkade Developers' ability to maintain its growth trajectory and operational efficiency in the dynamic real estate market of Mumbai.