Arvind Smartspaces H1 PAT quadrupled, margin reached 42%

Arvind Smartspaces reported consolidated H1 FY27 profit after tax of Rs 120.1 crore, versus Rs 30.0 crore in H1 FY26, while adjusted EBITDA margin rose to 42% from 23% and revenue from operations reached Rs 475.0 crore. The figures show profit increased about fourfold during the half year.

How did Arvind Smartspaces' H1 FY27 profitability change?

Arvind Smartspaces' H1 FY27 profit after tax, or PAT, increased to Rs 120.1 crore from Rs 30.0 crore in H1 FY26, while PAT margin rose to 25% from 12%. Revenue from operations increased by Rs 232.7 crore to Rs 475.0 crore from Rs 242.3 crore over the same periods.

Adjusted earnings before interest, tax, depreciation and amortisation, or adjusted EBITDA, rose to Rs 197.4 crore from Rs 55.6 crore. Its margin expanded by 19 percentage points to 42% from 23%. Arvind Smartspaces defines adjusted EBITDA as EBITDA adjusted for interest included in cost of sales, or interest inventorised.

The increase in earnings exceeded the increase in reported revenue during H1 FY27. Revenue was nearly twice the H1 FY26 level, whereas adjusted EBITDA increased by Rs 141.8 crore and PAT by Rs 90.1 crore, alongside the disclosed margin expansion.

How did Q2 FY27 compare with the half-year result?

Arvind Smartspaces reported Q2 FY27 revenue from operations of Rs 157.4 crore, adjusted EBITDA of Rs 45.3 crore and PAT of Rs 22.7 crore. These compared with Rs 140.5 crore, Rs 31.1 crore and Rs 18.1 crore, respectively, in Q2 FY26.

Q2 FY27 adjusted EBITDA margin was 29%, up from 22% in Q2 FY26, while PAT margin rose to 14% from 13%. The quarterly margin changes of 7 percentage points for adjusted EBITDA and 1 percentage point for PAT were smaller than the H1 changes of 19 percentage points and 13 percentage points, respectively.

The H1 FY27 revenue total of Rs 475.0 crore was higher than the Rs 157.4 crore reported for Q2 FY27. The presentation does not provide a separate Q1 FY27 profit and loss statement on these pages, but the half-year result includes the reported financial performance for both Q1 and Q2.

Why do fresh bookings not immediately appear as revenue?

Arvind Smartspaces says revenue recognition follows applicable accounting standards, under which revenue is recognised on transfer of control, project completion and satisfaction of performance obligations. The company says fresh-booking momentum does not immediately appear in financial performance because of this timing lag.

H1 FY27 bookings were Rs 1,338 crore, up 120% from Rs 607 crore in H1 FY26, while H1 revenue from operations was Rs 475.0 crore. Q2 FY27 bookings were Rs 906 crore, up 110% from Rs 432 crore in Q2 FY26, compared with Q2 revenue of Rs 157.4 crore.

Gujarat contributed 49% of H1 FY27 bookings and Bengaluru contributed 51%. In Q2 FY27, Bengaluru accounted for 69% of bookings and Gujarat 31%. Sylva contributed Rs 507 crore of bookings in both Q2 and H1 FY27, while Aquacity contributed Rs 360 crore in H1 FY27.

Arvind Smartspaces reported unrecognised revenue of Rs 4,550 crore as of September 30, 2026, compared with Rs 3,733 crore as of March 31, 2026. This balance has not yet been recognised in the income statement, consistent with the company's stated recognition criteria.

What did collections and operating cash flow show in H1 FY27?

Arvind Smartspaces collected Rs 754 crore in H1 FY27, up 77% from Rs 427 crore in H1 FY26. Q2 FY27 collections were Rs 418 crore, also 77% above Rs 236 crore in Q2 FY26.

Gujarat accounted for 65% of H1 FY27 collections and Bengaluru for 35%, differing from the 49% and 51% split of H1 bookings. Aquacity generated Rs 198 crore of H1 collections, while Everland generated Rs 100 crore and The Edge generated Rs 73 crore.

Net operating cash flow was Rs 233 crore in year-to-date FY27, comprising Rs 81 crore in Q1 FY27 and Rs 152 crore in Q2 FY27. The Q2 figure exceeded Rs 125 crore in Q2 FY26. Arvind Smartspaces says this direct-cash-flow view may not correspond to accounting cash-flow classifications.

Land payments and approvals totalled Rs 338 crore in year-to-date FY27, compared with Rs 233 crore of net operating cash flow. The closing cash balance was Rs 60 crore at the end of Q2 FY27, versus Rs 62 crore at the end of Q1 FY27; net financial cash flow was Rs 125 crore during year-to-date FY27.

How did debt move by September 2026?

Arvind Smartspaces reported gross debt of Rs 712 crore and net debt of Rs 200 crore as of September 30, 2026. Gross debt increased from Rs 581 crore on June 30, 2026, while net debt decreased from Rs 215 crore over the same period.

Net debt to equity was 0.26 times at September 30, 2026, compared with 0.29 times on June 30, 2026 and 0.26 times on March 31, 2026. Borrowing cost was 9.2% at September 30, down from 9.4% on June 30 and 9.8% a year earlier.

The presentation states that gross debt excludes optionally convertible debentures, or OCDs, issued to the HDFC Platform, with Rs 195 crore outstanding at September 30, 2026, and excludes joint-venture partner infusions. Shareholders' funds were Rs 766 crore at September 30, 2026, compared with Rs 649 crore a year earlier.

Conclusion

Arvind Smartspaces' H1 FY27 results show a larger rise in profitability than in revenue: PAT increased from Rs 30.0 crore to Rs 120.1 crore, adjusted EBITDA rose from Rs 55.6 crore to Rs 197.4 crore, and adjusted EBITDA margin reached 42%. Bookings of Rs 1,338 crore, collections of Rs 754 crore and unrecognised revenue of Rs 4,550 crore provide separate measures of sales activity, cash receipts and future recognition potential.

The key matter to watch is how the Rs 4,550 crore unrecognised-revenue balance converts into reported revenue as control transfers, projects are completed and performance obligations are satisfied. Land payments and approvals of Rs 338 crore in year-to-date FY27, compared with Rs 233 crore of net operating cash flow, and the Rs 712 crore gross-debt balance are also disclosed items that will affect future financial updates.