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    Arvind SmartSpaces Limited

    ARVSMART
    Realty·11 Feb 2026
    Management Summary

    Arvind SmartSpaces reported a quarter of strong bookings, collections, and operating cash flows, with 9M bookings and collections reaching all-time highs. While reported revenue and profitability metrics saw YoY declines, the company emphasized its robust business development pipeline, conservative leverage, and focus on sales velocity. Management also addressed leadership transition and acknowledged slower approvals in Bangalore, which impacted Q4 launch plans.

    Highlights

    6

    • 9M FY26 bookings reached highest ever at ₹938 crores, up 5% YoY, demonstrating strong sales momentum.

    • Q3 FY26 bookings grew significantly by 48% YoY to ₹331 crores, driven by continued traction in sustenance sales.

    • Collections remained robust, with 9M FY26 collections at a record ₹744 crores (up 2% YoY) and Q3 FY26 collections up 38% YoY to ₹317 crores.

    • Operating cash flows were exceptionally strong, with Q3 amounting to ₹169 crores (128% YoY growth) and 9M at ₹321 crores (16% YoY growth).

    • The company maintains a strong balance sheet with net debt of only ₹79 crores as of December 31, 2025, and a debt-to-equity ratio of 0.13.

    • New business development added ~₹2,510 crores in topline potential for 9M FY26, with a robust pipeline for future launches.

    Concerns

    4

    • 9M FY26 revenue declined 25.6% YoY to ₹409 crores from ₹550 crores in the prior year.

    • 9M FY26 EBITDA decreased 34.2% YoY to ₹100 crores from ₹152 crores in the prior year.

    • 9M FY26 PAT fell 39.2% YoY to ₹59 crores from ₹97 crores in the prior year.

    • Approvals in Bangalore have been slower than expected, impacting launch timelines for some projects.

    What Changed2

    vs Q4 FY26

    Guidance items8 → 9 (+1)Risks discussed5 → 3 (-2)
    Key financials

    Metrics

    9

    Periods

    3

    Headline

    1
    • Net Debt
      ₹79 Cr

    Q3

    4
    • Revenue
      ₹166 Cr
      YoY-21%QoQ+16%
    • EBITDA
      ₹44 Cr
      YoY-26.7%QoQ+30%
    • PAT
      ₹29 Cr
      YoY-42%QoQ+38%
    • Operating Cash Flow
      ₹169 Cr
      YoY+128%

    9M

    4
    • Revenue
      ₹409 Cr
      YoY-25.6%
    • EBITDA
      ₹100 Cr
      YoY-34.2%
    • PAT
      ₹59 Cr
      YoY-39.2%
    • Operating Cash Flow
      ₹321 Cr
      YoY+16%

    Order Book

    high confidence

    Total Value

    ₹ 938 crores

    as of 2025-12-31

    quantified
    5.0% YoY

    Inflow this qtr

    ₹ 331 crores

    Execution

    Most of the ~Rs. 10,000 crores inventory expected to start coming into the market within 18 months, with monetization over 4-5 years.

    Pipeline

    other

    New business development topline potential for the year stands at ~Rs. 2,510 Cr, including two new projects in Bengaluru, and one each in Ahmedabad and Vadodara. Q4 launches planned for Baroda (Phase 1, ~Rs. 400 Cr), Orchards Phase 2 (~Rs. 100 Cr), Industrial Park (Phase 1, ~Rs. 600-650 Cr), and one Bangalore project.

    "The company reported strong bookings and collections, with a robust business development pipeline that includes significant launches planned for Q4 FY26 and a large inventory to be monetized over the next few years."

    Source:
    Prepared remarks

    Capital allocation

    6
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹79 crores

    M&A

    Vastrapur land

    acquisition · pending regulatory

    M&A

    Nallurahalli, Whitefield, Bengaluru land

    acquisition · closed

    M&A

    Sarjapur, Bengaluru land

    acquisition · closed

    Guidance & targets

    9
    CategoryTargetPriority
    Sales
    Annual Sales
    ₹1600-1700 crores
    		High
    Sales
    Sustenance Sales Run Rate
    ₹200 crores
    		High
    Business Development
    BD GDV
    ₹3500-4000 crores
    		High
    Pre-sales Growth
    Pre-sales Growth Rate
    25-30%
    		High
    Leverage
    Debt-to-Equity Ratio
    below 1:1
    		High
    Profitability
    EBITDA Margin
    22-25%
    		High
    Profitability
    IRR
    25%
    		High
    Launches
    Q4 Launch GDV
    ₹1500-1600 crores
    		High
    Pre-sales
    Q4 Pre-sales
    ₹700-750 crores
    		High

    What to watch in Q4 FY26

    5

    Bangalore Project Launch

    By end of current financial year (FY26)
    CurrentOne project expected by FY end, approvals slower than expected.
    TargetLaunch of at least one Bangalore project.

    Why it matters

    Bangalore is a key growth market, and successful launches indicate overcoming approval hurdles and execution capability.

    So, we are hoping one of those will actually come to the market by the end of the current financial year.

    Risks & concerns

    3
    RiskSeverity

    Bangalore Approval Delays

    Regulatory changes and streamlining processes in Bangalore have slowed approvals, impacting launch timelines for projects in the region. — Analyst acknowledged

    medium

    Broader Market Slowdown

    The market is not showing 'euphoric growth' as in the previous financial year, with volumes potentially flat, though values are still growing. Company believes its diversification mitigates this. — Analyst acknowledged

    medium

    Regulatory Approval Ambiguity for Launches

    While the company is confident in its project pipeline, the exact launch dates are difficult to pinpoint due to inherent uncertainties in regulatory approval processes. — Management acknowledged

    medium

    Q&A highlights

    8

    “So, the total inventory that we will be launching in Quarter 4, if I am not wrong, will be around Rs. 1500 crores. Am I right? ... See generally, if you see all our guidance and all our project underwriting, we do that 30%-40% in the launch. That is what we do. Fortunately, we have been selling a lot more than that but today I would say I think we should look at what is the general underwriting norms in the market that is about 40%-50%.”

    Clarifies the scale of upcoming launches and realistic sales expectations for new projects, contrasting with a recent high-performing launch.

    asked by Eesha

    3 min read7 chapters

    Detailed Narrative

    01

    Q3 & 9M FY26 Performance Highlights

    Arvind SmartSpaces reported its highest ever 9M bookings of ₹938 crores, a 5% YoY increase, and Q3 bookings of ₹331 crores, up 48% YoY. Collections also reached record highs, with 9M collections at ₹744 crores (up 2% YoY) and Q3 collections at ₹317 crores (up 38% YoY). Despite these strong operational metrics, 9M revenue declined 25.6% YoY to ₹409 crores, and 9M PAT fell 39.2% YoY to ₹59 crores. However, Q3 revenue grew 16% QoQ to ₹166 crores, and Q3 PAT increased 38% QoQ to ₹29 crores.

    02

    Leadership Transition

    Kamal Singal is stepping down as Managing Director to take on a broader Group-level role as Whole-Time Director, Strategy and Investments. Priyansh Kapoor will succeed him as the new Managing Director. This transition is part of the company's strategic initiatives to strengthen the organization and enhance leadership depth, with a focus on scaling the company further.

    03

    Business Development & Launch Pipeline

    The company added ~₹2,510 crores in new business development topline potential during 9M FY26, including projects in Ahmedabad and Bengaluru. For Q4 FY26, launches are planned for Baroda (Phase 1, ~₹400 crores), Orchards Phase 2 (~₹100 crores), an Industrial Park (Phase 1, ~₹600-650 crores), and one project in Bangalore, totaling ~₹1500-1600 crores GDV. The overall pipeline of upcoming inventory is approximately ₹10,000 crores, with most expected to come to market within 18 months and monetized over 4-5 years.

    04

    Financial Position & Cash Flows

    Arvind SmartSpaces maintains a strong balance sheet with net debt of only ₹79 crores as of December 31, 2025, and a debt-to-equity ratio of 0.13, well below the internal target of 1:1. Operating cash flows were exceptionally strong, with Q3 reaching ₹169 crores (128% YoY growth) and 9M at ₹321 crores (16% YoY growth). The company estimates an unrealized operating cash flow exceeding ₹4,581 crores from its current project pipeline, expected to be realized within 4-5 years.

    05

    Market Outlook & Strategy

    Management acknowledges a broader market slowdown🌐 with less 'euphoric growth' and potentially flat volumes, but notes that values are still growing. The company's strategy focuses on diversification across three markets (Gujarat, Mumbai, Bangalore) and asset classes (vertical and plotted development). It prioritizes sales velocity and cash flow generation over banking land for price appreciation, aiming for an average EBITDA margin of 22-25% and an IRR of 25% on new projects.

    06

    Operational Efficiency & Team Building

    The company attributes improved execution momentum and collections velocity to strengthening its teams and focusing on sustenance sales. The addition of new senior members, including a new COO, has brought increased energy and effort into scaling up construction spends and improving project management. Sustenance sales, which allow for higher billing percentages, have become a meaningful contributor to overall bookings and cash flows.

    07

    Impact of New Labor Codes

    The new labor codes, implemented from November, had a financial impact on the company. A provision of ₹2.59 crores was made in Q3 FY26, representing approximately 1.5% of the P&L for the quarter. The company is monitoring the situation and implementing guidelines as they crystallize further.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.