/** Title: Arvind SmartSpaces Q4 FY26: Record Bookings, Strong Cashflows, and a Bigger Mumbai Push */

Arvind SmartSpaces Q4 FY26: Record Bookings, Strong Cashflows, and a Bigger Mumbai Push

Arvind SmartSpaces ended FY26 with its strongest ever operational year, even as reported revenue stayed volatile because of completion based real estate accounting. For FY26, the company delivered record booking value of INR 1,550 crore, up 22% year on year, and record collections of INR 1,100 crore, up 17%. Q4 FY26 was the standout quarter, with bookings rising to INR 612 crore, up 61% YoY, and collections jumping to INR 355 crore.

On the reported financials, FY26 revenue from operations came in at INR 564 crore versus INR 713 crore in FY25. Adjusted EBITDA stood at INR 156.4 crore versus INR 196.2 crore, while PAT was INR 103.4 crore versus INR 119.2 crore. Management attributed the decline primarily to the timing of revenue recognition and approvals, reiterating that sales momentum does not translate immediately into the P and L.

The operational engine: bookings, collections, and a large revenue backlog

The most important FY26 takeaway was the scale up in fresh sales. New launches contributed about 60% of annual booking value, around INR 930 crore. The momentum accelerated sharply in Q4 with two new launches.

In Bengaluru, Arvind Skycrest in Bannerghatta was launched toward the end of the quarter and achieved bookings of 164 units worth INR 262 crore, around 53% of total inventory, within a week. In Vadodara, Arvind Greenfields on Ajwa road recorded bookings of 323 units worth INR 178 crore, around 42% of launched inventory.

Collections followed, supporting liquidity. FY26 collections were INR 1,100 crore, and the company reported operating cash flow of INR 417 crore for the year. The investor presentation also highlighted unrecognized revenue of INR 3,733 crore as of March 31, 2026, up from INR 2,778 crore a year earlier. This backlog provides visibility, though it remains dependent on project progress, approvals, and handovers.

Financials: Q4 profitability improved despite flat revenue

Q4 FY26 showed stronger profitability. Revenue from operations was INR 155 crore compared to INR 163 crore in Q4 FY25, but adjusted EBITDA rose to INR 56.4 crore from INR 44.6 crore. PAT more than doubled to INR 44.2 crore from INR 21.8 crore.

Management highlighted that the quality of the business model is better seen through collections and operating cash flows, rather than quarterly revenue swings. The company generated INR 96 crore of operating cash flow in Q4 FY26, and the same INR 96 crore figure was also shown for Q2 and Q3 FY26 in the OCF trend table.

On leverage, net interest bearing funds increased to INR 167 crore as of March 31, 2026 from INR 79 crore as of December 31, 2025. Borrowing cost reduced to 9.5% at March 31, 2026 from 10.1% at March 31, 2025. Net debt to equity rose to 0.26 at March 31, 2026.

A key disclosure in the debt profile slide was that the reported debt numbers do not include OCDs of INR 110 crore issued to HDFC Platform 2 for a joint project development in Bangalore.

Strategy and portfolio: scaling Mumbai, broadening vertical exposure

FY26 was described as transformational on business development. The company reported cumulative new BD topline potential for the year at about INR 3,140 crore. This included:

A first residential apartment project in Mumbai via a Santacruz redevelopment with topline potential of about INR 300 crore.

Three premium residential high rise projects acquired outright in Bengaluru across Sarjapur and Whitefield with combined topline potential of about INR 1,740 crore and total saleable area of about 1.3 million sq ft.

A premium residential high rise project in Vastrapur, Ahmedabad acquired outright with topline potential of about INR 400 crore and saleable area of about 3.6 lakh sq ft.

Entry into Vadodara via a horizontal township project signed under joint development with topline potential of about INR 700 crore.

After year end, in April 2026, the company signed a Goregaon, Mumbai high rise project with topline of about INR 2,400 crore and saleable carpet area of about 0.67 million sq ft under a joint development model. On the concall, management clarified it is a MHADA redevelopment, involving an entity called Oxford Sigma, and said Arvind SmartSpaces has a 44% profit share.

The company also disclosed a decision to not proceed with the Surat project due to technical and legal complexities. The presentation noted that the overall portfolio area decreased due to discontinuation of the Surat project.

What management guided for FY27

Management provided several forward looking indicators on the concall.

For business development, it guided to lock in about INR 4,000 to INR 5,000 crore of GDV in FY27.

For launches, it expects about six launches, including one in Ahmedabad (Vastrapur), three in Bengaluru, and two in Mumbai. It also indicated approvals and readiness skew more toward the second half.

For bookings, it reiterated long term guidance of 25% to 30% CAGR over four to five years, and said there is a chance to do 35% to 40% growth in the current financial year.

For cash flows, management indicated that operating cash flow in FY27 could be maintained at a similar absolute level to FY26, as construction outflows are expected to rise alongside collections.

On margins, management said it remains confident of maintaining a 22% to 25% EBITDA margin profile on new sales and that the company budgets sufficient contingency to absorb cost inflation without immediately passing it on.

Key watch points: approvals, construction pace, and Forest Trails

Two issues stood out in the Q and A. First, management repeatedly emphasized that reported revenue recognition depends on approvals such as occupation certificates. It acknowledged that certain occupation certificates expected in FY26 were deferred to FY27, which affected revenue.

Second, the Forest Trails project in Bengaluru drew multiple questions because of slow sales movement and cancellations. In the project wise booking value table, Forest Trails shows negative INR 11 crore booking value in FY26. Management said the muted sales was a conscious strategy to improve site readiness and customer experience for a premium villa product and that it expects better sales performance going forward.

Closing takeaways

Arvind SmartSpaces’ FY26 performance was defined by strong sales execution, record collections, and a growing multi city portfolio, while accounting revenue stayed timing dependent. The unrecognized revenue backlog of INR 3,733 crore and operating cash flow of INR 417 crore support the scale up narrative.

The next phase will be judged on the pace of launches and approvals, the company’s ability to convert the expanded Mumbai pipeline into on ground execution, and sustained discipline on leverage as net debt has risen. The board’s recommended final dividend of INR 2.25 per share adds a shareholder return signal, but the core investment debate remains centered on execution and cash conversion over the next few years.