Arvind SmartSpaces Limited — Q4 FY26 earnings call

Call held 21 May 2026

Management summary

Arvind SmartSpaces reported a landmark FY26 with record annual bookings of INR1,550 crores, up 22% YoY, driven by strong new launches and sustenance sales. While full-year revenue and profit saw a decline due to timing of revenue recognition, Q4 performance was robust with significant YoY growth in EBITDA and PAT. The company expanded its project pipeline significantly and maintains a healthy financial position with strong cash flows and a low net debt-to-equity ratio.

Highlights

  • Highest ever annual booking value of INR1,550 crores in FY26, representing a strong 22% year-on-year growth.

  • Q4 FY26 achieved highest ever quarterly booking and collections, with bookings crossing INR600 crores.

  • Successfully launched Arvind Skycrest in Bengaluru (53% booked) and Arvind Greenfields in Vadodara (42% booked) within a week of launch.

  • Added projects with an estimated cumulative top line potential of INR3,140 crores in FY26, significantly enhancing medium-term growth visibility.

  • Signed largest ever high-rise project in Mumbai with an estimated top line potential of approximately INR2,400 crores subsequent to year-end.

  • Strong collections and healthy profitability translated into net operating cash flows of INR417 crores during FY26.

  • Q4 FY26 adjusted EBITDA grew 26% year-on-year to INR56.4 crores.

  • Q4 FY26 PAT grew 103% year-on-year to INR44 crores.

Concerns

  • FY26 revenue declined to INR564 crores from INR713 crores in FY25, a 20.9% YoY decrease.

  • FY26 adjusted EBITDA declined to INR156 crores from INR196 crores in FY25, a 20.4% YoY decrease.

  • FY26 PAT declined to INR103 crores from INR119 crores in FY25, a 13.4% YoY decrease.

  • Decision not to proceed with the Surat project due to technical and legal complexities.

Key financials

4 periods

Headline

  • Net Debt
    ₹167 Cr
  • Net Debt-to-Equity Ratio
    0.26
  • Final Dividend per Share
    ₹2.25

Q4

  • Operating Cash Flow
    ₹96 Cr

Q4 FY26

  • Revenue
    ₹155 Cr
    YoY -4.9%
  • Adjusted EBITDA
    ₹56.4 Cr
    YoY +26%
  • PAT
    ₹44 Cr
    YoY +101.8%

FY26

  • Revenue
    ₹564 Cr
    YoY -20.9%
  • Adjusted EBITDA
    ₹156 Cr
    YoY -20.4%
  • PAT
    ₹103 Cr
    YoY -13.4%
  • Net Operating Cash Flows
    ₹417 Cr

What they filed

Q1 FY27: revenue up 211.8%, net profit up 708.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue266 210 163 102 141 −47%166 −21%155 −5%318 +212%
EBITDA66 59 34 21 30 −55%42 −29%59 +74%156 +643%
Net profit43 50 22 12 18 −58%29 −42%44 +100%97 +708%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹1,550 Cr

as of 2026-03-31 quantified

22% YoY

Inflow this quarter

₹600 Cr

Execution

over the next 4 to 5 years

Composition

  • Bengaluru (geography) ₹485 Cr 31%
  • New Launches (project type) ₹930 Cr 60%

Pipeline

other

Estimated cumulative top line potential added in FY26 and subsequent to year-end, plus unrealized OCF from current pipeline.

Cancellations & deferrals

  • cancelled: Forest Trails Bengaluru project saw cancellations and no incremental sales in FY26.
Record bookings in FY26 driven by sustained demand and successful new launches, with strong initial absorption rates.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹600 Cr
    • Investing activities for Business Development (BD) ₹600 Cr
    So last year, if you see across our portfolio, Amit, we have actually got investing activities exceeding about INR600 crores. So that is the amount which is actually going towards the BD, which has been done.
  • Debt Net ₹167 Cr
    So how the debt situation because we have already moved from negative cash to right now, INR167 crores of debt.
  • Dividend ₹2.25/share (final)
    The Board of Directors has recommended a final dividend of INR2.25 per equity share of face value of INR10 each.
  • M&A Mumbai Residential Apartment Market Acquisition · Closed

    Entry into premium redevelopment segment in Santacruz.

    We entered the Mumbai residential apartment market through a premium redevelopment project in Santacruz
  • M&A Bengaluru Footprint Acquisition · Closed

    Expansion through acquisition in Sarjapur and Whitefield.

    expanded our Bengaluru footprint through acquisition in Sarjapur and Whitefield
  • M&A Ahmedabad Presence Acquisition · Closed

    Strengthened presence with a high-rise development in Vastrapur.

    and we strengthened our Ahmedabad presence with a high-rise development in Vastrapur.
  • M&A Mumbai High-Rise Project Acquisition · Signed

    Largest ever high-rise project, reinforcing conviction in Mumbai Metropolitan region opportunity.

    Estimated top line potential of approximately INR2,400 crores.

    subsequent to the year-end, we also signed our largest ever high-rise project in Mumbai with an estimated top line potential of approximately INR2,400 crores.
  • M&A Surat Project Divestment · Abandoned

    Not comfortable with certain technical and legal complexities.

    After detailed evaluation, we have decided not to proceed with the project as we were not comfortable with certain technical and legal complexities associated with it.
  • M&A Goregaon Project Joint venture · Ongoing

    Profit sharing agreement with Oxford Sigma Group for a MHADA redevelopment project.

    Economic interest comes to about a 44% profit share.

    So our joint venture is with them. So there is a profit sharing agreement that we have with the Oxford Sigma Group... our economic interest, like you mentioned, comes to about a 44% kind of profit share.
  • Liquidity Undrawn ₹250 Cr HDFC platform had INR600 crores, INR350 crores used, leaving INR250 crores available. Additional capital lines are being created.
    Yes. So Jainam, we had a platform of about INR600 crores with HDFC. From that, we have already used INR350 crores. So the idea is to kind of backfill that number and create additional capital available for us as we expand and grow. So we're creating those lines, which are available for us on call essentially.

Guidance & targets

Business Development

  • BD lock-in value Business Development · FY27 · High confidence INR4,000 crores to INR5,000 crores
    We believe this year, we can have BD lock in about INR4,000 crores to INR5,000 crores for the financial year.

    — Priyansh Kapoor

Bookings

  • Bookings growth Bookings · FY27 · High confidence 35% to 40%
    So long-term guidance remains at 25% to 30% CAGR over the 4 to 5 years. I think this year, we have a chance of being able to do better. So I think we have a chance that we can do about 35% to 40% in the current financial year.

    — Priyansh Kapoor

Launches

  • Inventory to be launched Launches · FY27 · Medium confidence INR3,000 crores to INR3,500 crores
    We think put together, we might be putting out inventory about INR3,000 crores to INR3,500 crores with these 6 launches as some of the launches which are fairly big will be brought in the market in phases.

    — Priyansh Kapoor

Profitability

  • EBITDA margin Profitability · long run · Medium confidence 22% to 25%
    And our guidance is we are looking at projects with a 22% to 25% EBITDA margin. So in the long run, we do expect it will start getting closer.

    — Priyansh Kapoor

  • EBITDA margin Profitability · FY27 · High confidence 22% to 25%
    But when we look at the margins for the new sales that we are doing, so we are fairly confident that we can continue to maintain the trajectory of 22% to 25% even in the current year.

    — Priyansh Kapoor

Sales

  • Sustenance sales growth Sales · FY27 · High confidence about 15%
    our understanding is sustenance can show a growth of about 15% over what we have delivered in FY26.

    — Priyansh Kapoor

Debt

  • Net Debt-to-Equity Ratio Debt · long term · High confidence below 1:1
    we have internally defined a threshold for ourselves where we will always try to keep the debt equity ratio to below 1:1.

    — Amit Chamaria

Cash Flow

  • Unrealized operating cash flows realization Cash Flow · next 4 to 5 years · High confidence most of this
    So I think when you look at this current portfolio, I think largely, we're expecting to monetize most of this in the next 4 to 5 years.

    — Priyansh Kapoor

What to watch in Q1 FY27

FY27 Bookings Growth

FY27
Current FY26 growth was 22%. Guidance for FY27 is 35-40%.
Target Achieve 35-40% bookings growth for FY27.

Why it matters

Bookings are the primary leading indicator for future revenue and overall business performance in the real estate sector.

So long-term guidance remains at 25% to 30% CAGR over the 4 to 5 years. I think this year, we have a chance of being able to do better. So I think we have a chance that we can do about 35% to 40% in the current financial year.

Risks & concerns

  • Global geopolitical uncertainty and economic volatility

    medium

    Acknowledged global uncertainties, but India's domestic growth engine remained resilient.

    Management acknowledged

  • Commodity price inflation impacting project costs

    medium

    Noticed a 4% increase in costing but has sufficient budgetary cushion to absorb it without passing to customers in the short term.

    Management acknowledged

  • Project approval delays

    medium

    Slippage due to approval timelines is an inherent risk in the business.

    Management acknowledged

  • IT sector slowdown impacting Bengaluru real estate demand

    medium

    Management believes markets are stable and structural demand is strong, not seeing major worrying signs despite IT sector headwinds.

    Analyst downplayed

  • Technical and legal complexities in projects

    low

    Decided not to proceed with the Surat project due to such complexities.

    Management decided not to proceed

Q&A highlights

7 direct
Equity investment for FY26 BD projects Partial
We've generally not been giving breakup of capital deployed across each project. But there is a very specific question, we can probably take it offline, and you can reach out to the team.

Analyst sought clarity on the equity capital deployed for the INR3,200 crores BD in FY26, but management deferred a detailed project-wise breakdown.

Asked by Amit Srivastava

Difference in OCF generation between Mumbai and Karnataka projects Direct
So Bengaluru, quite a few of our recent acquisitions, as you know, were outright in nature. And Mumbai the 3 projects that we have, one, is a joint development, the other 2 are actually redevelopment. So hence, the OCF numbers are actually lower than the outright project.

Management explained that outright acquisitions in Bengaluru yield higher OCF compared to redevelopment or joint development projects in Mumbai.

Asked by Amit Srivastava

Sustainability of OCF as a percentage of collection Direct
In the long run, our guidance remains closer to that 25%. But I think for now, we might be somewhere in the 25% to 30% range for the next few years.

Clarifies the expected long-term and near-term OCF margin, indicating a slight moderation from previous higher levels due to changing project mix.

Asked by Amit Srivastava

Status of Forest Trails Bengaluru project and unsold inventory Direct
Forest Trails, purely on the numbers front looks like there is less movement on the sales, but I think there was a conscious strategy we wanted to have, some readiness on the site from an experience perspective because these are essentially row houses and villa projects.

Management addressed concerns about slow sales and cancellations in a specific project, explaining it was a strategic decision to prepare the site for a premium customer experience before aggressive sales.

Asked by Amit Srivastava

Impact of commodity cost increases on realization/margins Direct
we are seeing almost a 4% increase in the costing of the product... in our own budgeting, we have taken a sufficiently large cushion in the form of contingency and inflation... we are not worried about at least today passing this on to the customer because it won't be needed with the kind of budgeting process that we have followed.

Management confirmed a 4% increase in costing but stated they have budgeted for it and do not expect to pass it on to customers in the short term, thus maintaining margins.

Asked by Jainam Shah

Impact of IT sector layoffs/slowdown on Bengaluru real estate demand Direct
But today, at least our interpretation is that markets have become more stable... But we are not seeing, I would say, any major worrying sign because of the structural demand being quite strong from our perspective.

Management provided its perspective on the resilience of Bengaluru's real estate demand, despite macro concerns about the IT sector, attributing it to strong structural demand.

Asked by Bajrang Bafna

Mumbai launch pipeline and specific projects Direct
maybe the plotted project in Pen-Khopoli is actually ahead. The other one probably either between the Santacruz or Goregaon, that is what we feel we should be able to launch in the current year.

Management provided specific project names and their readiness for launch in the Mumbai region, offering clarity on the upcoming pipeline.

Asked by Harsh Pathak

Goregaon project JV structure and profit share Direct
So after, I would say, looking at the full nature of the deal, our economic interest, like you mentioned, comes to about a 44% kind of profit share.

Management clarified the profit-sharing arrangement for the Goregaon JV project, detailing the company's economic interest.

Asked by Biplab Debbarma

2 min read 5 chapters

Detailed narrative

FY26 Performance Highlights and Revenue Recognition Timing

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.

Strategic Business Development and Geographic Expansion

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.

Operational Efficiency, Project Launches, and Cost Management

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.

Financial Health, Cash Flows, and Capital Discipline

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.

FY27 Outlook and Growth Strategy

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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Realty earnings calls