Arvind SmartSp.

Arvind SmartSpaces achieved a record annual booking value of INR1,550 crores in FY26, marking a strong 22% year-on-year growth. Q4 FY26 was particularly robust, with bookings exceeding INR600 crores, the highest ever quarterly figure. Despite this strong sales performance, FY26 revenue declined to INR564 crores from INR713 crores in FY25, and PAT decreased to INR103 crores from INR119 crores. Management attributed this decline primarily to the timing of revenue recognition for certain projects, indicating that accounting deferrals impacted the reported top and bottom lines.

FY26 was transformational for business development, with projects added having an estimated cumulative top line potential of INR3,140 crores. This included entry into the Mumbai residential apartment market via a premium redevelopment project in Santacruz, expansion in Bengaluru through acquisitions in Sarjapur and Whitefield, and strengthening Ahmedabad presence with a high-rise development in Vastrapur. Subsequent to year-end, the company signed its largest ever high-rise project in Mumbai, with an estimated top line potential of INR2,400 crores, further reinforcing its conviction in the MMR market. However, a Surat project was dropped due to technical and legal complexities.

The company demonstrated strong execution with new launches like Arvind Skycrest in Bengaluru and Arvind Greenfields in Vadodara achieving initial bookings of 53% (INR262 crores) and 42% (INR178 crores) respectively within a week. Sustenance sales also showed an encouraging trend, reflecting growing customer confidence. Management noted a 4% increase in product costing due to commodity price inflation but stated they have budgeted with sufficient cushion and do not expect to pass these costs to customers in the short term, aiming to maintain EBITDA margins in the 22-25% range.

Arvind SmartSpaces generated strong net operating cash flows of INR417 crores in FY26, with INR96 crores in Q4 alone. The current project pipeline is expected to generate unrealized operating cash flows exceeding INR4,970 crores, which are projected to be realized over the next 4 to 5 years. The company maintains a healthy financial position with net debt at INR167 crores and a net debt-to-equity ratio of 0.26, well below its guided threshold of 1:1. A final dividend of INR2.25 per equity share was recommended, reflecting commitment to shareholder returns.

For FY27, the company has set ambitious targets, aiming for BD lock-in of INR4,000-5,000 crores and expecting bookings growth of 35-40%. The launch pipeline for the year is projected to be INR3,000-3,500 crores across approximately 6 projects in Ahmedabad, Bengaluru, and Mumbai. Management emphasized strengthening organizational capabilities and talent, with nearly 50% of the direct team joining in the last year, to scale operations responsibly and sustainably, focusing on leadership depth, capital discipline, and execution capability.