Arkade Developers , a prominent real estate developer, has announced strong financial results for the quarter and half year ended September 30, 2025, along with several strategic business decisions.

Financial Highlights

Arkade Developers reported a robust revenue from operations of Rs 26,154.33 lakhs for the quarter, with a corresponding profit of Rs 4,466.58 lakhs. For the six-month period, revenue reached Rs 42,098.91 lakhs, accompanied by a profit of Rs 7,342.11 lakhs.

Strategic Developments

New Subsidiary Approval

The Board has approved the incorporation of a wholly owned subsidiary focused on facility management services.

Acquisition

During the quarter, Arkade Developers acquired 100% shares in Filmistan Private Limited for Rs 170 crores, making it a wholly owned subsidiary.

Demerger Scheme

The Board approved a demerger scheme for Filmistan's rental business and tenancy rights into Arkade Developers. This scheme was filed with the National Company Law Tribunal (NCLT) on October 9, 2025.

IPO Proceeds Utilization

The company's Initial Public Offering (IPO) raised Rs 38,106.50 lakhs. As of the latest report:

• Utilized: Rs 33,164.90 lakhs
• Remaining: Rs 4,941.60 lakhs (temporarily invested in fixed deposits)

The increase in net profit and revenue demonstrates Arkade Developers' performance in its core business operations. The strategic moves, including the new subsidiary formation and the acquisition of Filmistan Private Limited, suggest that the company is pursuing growth and diversification opportunities.

Arkade Developers Limited has announced a significant corporate restructuring move, approving a plan to separate the rental business from its wholly-owned subsidiary, Filmistan Private Limited. The decision was made during a board meeting held on September 29, 2025, as part of a strategic initiative to streamline operations and enhance administrative efficiency.

Demerger Details

The company's board of directors has approved a Scheme of Arrangement for the demerger of the rental business undertaking from Filmistan Private Limited into Arkade Developers Limited. This move is subject to necessary statutory and regulatory approvals, including the green light from the National Company Law Tribunal (NCLT) and other relevant authorities.

Financial Implications

The demerged rental business undertaking of Filmistan Private Limited reported a turnover of INR 13.05 lakhs for the financial year 2024-25, representing 87.30% of Filmistan's total turnover. This underscores the significance of the rental business within the subsidiary's operations.

Rationale Behind the Demerger

Arkade Developers has outlined several key benefits expected from this corporate action:

1. Streamlined Management: The demerger will consolidate the leasehold rights of the property under Arkade Developers, which already owns the underlying land. This integration is expected to result in a single ownership framework, leading to improved administrative efficiencies and rationalized operations.

2. Future Opportunities: With unified ownership, Arkade Developers will be better positioned to explore and capitalize on future business opportunities.

3. Stakeholder Interests: The company asserts that the proposed demerger is in the best interest of shareholders, creditors, and other stakeholders of both Filmistan Private Limited and Arkade Developers Limited.

Structural Changes

It's important to note that there will be no change in the shareholding pattern of Arkade Developers Limited as a result of this demerger. Filmistan Private Limited will continue to be a wholly-owned subsidiary of Arkade Developers, with the parent company retaining 100% of its equity share capital.

Timeline and Next Steps

The appointed date for the Scheme of Arrangement is set for August 1, 2025. Arkade Developers will now proceed to file the scheme with the stock exchanges in compliance with SEBI Listing Regulations. The company awaits various regulatory approvals, including the crucial nod from the NCLT, to move forward with the implementation of this strategic restructuring.

Investors and stakeholders will be keenly watching the progress of this demerger, as it represents a significant step in Arkade Developers' corporate strategy to optimize its business structure and potentially unlock value in its rental business segment.