Arvind SmartSpaces Q4 FY26: Bookings hit records as cash flow funds the next phase

Arvind SmartSpaces closed Q4 and FY26 with its strongest sales year on record, even as reported revenue stayed muted because of the completion based nature of real estate accounting. For Q4 FY26, consolidated revenue from operations came in at Rs 155 crore versus Rs 163 crore in Q4 FY25. Profitability, however, moved the other way. Adjusted EBITDA rose to Rs 56.4 crore from Rs 44.6 crore, taking the margin to 36 percent from 27 percent. PAT nearly doubled to Rs 44.2 crore from Rs 21.8 crore, with PAT margin expanding to 28 percent from 13 percent.

For the full year, FY26 revenue from operations stood at Rs 564 crore versus Rs 713 crore in FY25. Adjusted EBITDA was Rs 156.4 crore versus Rs 196.2 crore, while PAT was Rs 103.4 crore versus Rs 119.2 crore. Management underlined the familiar gap between fresh sales and accounting revenue recognition. Bookings and collections are currently doing the heavy lifting, while reported revenue will catch up as more projects reach completion and transfer of control milestones.

The story of FY26 is simple: demand held up well, new launches worked, and the company kept expanding its platform for future growth. Bookings reached an all time high of Rs 1,550 crore, up 22 percent YoY, supported by strong quarterly momentum in Q4. Collections also hit a record at Rs 1,100 crore, up 17 percent YoY. Operating cash flow rose to Rs 417 crore, up 24 percent YoY, giving the company room to invest in land and approvals while keeping leverage within a stated comfort zone.

Sales momentum: new launches drive the step up

Arvind SmartSpaces posted its highest ever quarterly booking value in Q4 FY26 at Rs 612 crore, up 61 percent YoY. The momentum was driven by a mix of new launches and improved sustenance sales, especially in newer micro markets.

Two launches stood out. Arvind Skycrest in Bannerghatta, Bengaluru, launched toward the end of the quarter, recorded bookings of 164 units worth Rs 262 crore and sold 53 percent of the total inventory within a week. In Gujarat, Arvind Greenfields on Ajwa Road, Vadodara, booked 323 units worth Rs 178 crore, or 42 percent of launched inventory, during Q4.

Across FY26, the company’s booking value of Rs 1,550 crore continued a multi year scaling trend, translating into a 27 percent CAGR from FY22 to FY26. Management noted that Arvind Skycrest, Arvind Greenfields, and Arvind Smartpark together contributed around 60 percent, or about Rs 930 crore, of FY26 booking value. A notable feature in the year was the improvement in sustenance sales, suggesting that the portfolio is beginning to sell through beyond launch bursts.

Collections reinforced the demand picture. Q4 collections were Rs 355 crore, the company’s best quarter, versus Rs 215 crore in Q4 FY25. FY26 collections reached Rs 1,100 crore, up from Rs 942 crore in FY25. For investors, collections matter because they are an early indicator of execution and customer payment discipline, and they directly feed operating cash flows.

The pipeline of future revenue is also growing. Unrecognized revenue as on March 31, 2026 stood at Rs 3,733 crore, up from Rs 2,778 crore a year earlier. This metric is a useful bridge between sales performance and future financial statements, especially in a business where revenue recognition can lag behind bookings.

Cash flow and balance sheet: investing while keeping leverage measured

FY26 operating cash flow of Rs 417 crore, including Rs 96 crore in Q4, is central to how Arvind SmartSpaces is positioning for the next leg. The consolidated cash flow statement shows collections of Rs 1,100 crore during FY26. This was deployed into construction and overheads of Rs 435 crore, direct land cost and sharing payments of Rs 202 crore, and taxes of Rs 46 crore, resulting in the operating cash flow surplus.

The company also stepped up investing cash flows, with land payments and approvals at Rs 638 crore in FY26. This reflects a strategic choice: keep replenishing and upgrading the project portfolio while the demand cycle remains supportive.

Leverage did rise during the year, but from a low base. Net interest bearing funds moved to Rs 167 crore as on March 31, 2026 from Rs 79 crore as on December 31, 2025. The net interest bearing funds to equity ratio was 0.26 as on March 2026 versus 0.13 as on December 2025. Borrowing costs eased to 9.5 percent by March 31, 2026, down from 10.1 percent a year earlier.

Gross debt increased to Rs 462 crore as on March 31, 2026 from Rs 262 crore as on December 31, 2025. Management framed this as manageable, citing operating cash generation and headroom to raise fresh debt while maintaining a healthy debt equity profile. The presentation also notes that the gross and net debt figures may differ in financial statements due to reporting under accounting standards, and separately highlights that the debt profile statement does not include OCDs of INR 110 crore issued to HDFC Platform 2 for a joint project development in Bangalore.

On the balance sheet, shareholders funds increased to Rs 649 crore as on March 31, 2026 from Rs 598 crore a year earlier. Inventories rose to Rs 2,222 crore from Rs 1,489 crore, consistent with an expanding development base.

Business development and portfolio: scaling by geography and structure

Arvind SmartSpaces used FY26 to broaden its development engine, not just by adding projects but by diversifying structures and geographies. Cumulative new business development topline potential for the year stood at around Rs 3,140 crore.

The company entered the Mumbai redevelopment segment with its first residential apartment project in Santacruz, with a stated top line potential of around Rs 300 crore. It also acquired three premium residential high rise projects on an outright basis in Bengaluru across Sarjapur and Whitefield with a combined top line potential of around Rs 1,740 crore and total saleable area of 1.3 million sq ft. Earlier in the year, it added a premium residential high rise project in Vastrapur, Ahmedabad, with top line potential of around Rs 400 crore and saleable area of 3.6 lakh sq ft, acquired on an outright basis.

In Q2, the company entered Baroda with a horizontal township project with around Rs 700 crore top line potential under a joint development model. After year end, in April 2026, it signed a high rise project in Goregaon, Mumbai, with a top line potential of around Rs 2,400 crore and total saleable carpet area of around 0.67 million sq ft under a joint development model.

This mix matters. Joint development and development management models can reduce upfront land capital, while outright acquisitions can help tighten control over timelines and product decisions. The portfolio data also shows that Arvind SmartSpaces continues to be largely residential. Ongoing and planned portfolio by value is 93 percent residential and 7 percent commercial or industrial. The mix is also tilted toward horizontal formats: 65 percent horizontal and 35 percent vertical.

At a portfolio level, the company reported having delivered 9.8 million sq ft, with ongoing projects of 57.9 million sq ft and planned projects of 29.9 million sq ft. It also noted that the overall portfolio area decreased due to discontinuation of the Surat project.

Geographically, the portfolio value spread is shown as 51 percent Gujarat, 29 percent Karnataka, and 20 percent Maharashtra. The expansion path is described as phased: from Ahmedabad and Gandhinagar to Bengaluru in 2014, Pune in 2019, and Mumbai in 2025.

One practical way to read the pipeline is through the company’s estimated operating cash flow table, which totals an estimated unrealised operating cash flow of Rs 4,970 crore after adjusting for a surplus or deficit line. The presentation clarifies that this is at EBITDA level, after allocation of corporate overheads, and represents only the company’s share. It also notes that for development management projects, net operating cash flow for the company would be limited to development management fees.

Capital partnerships and governance: the platform approach continues

Arvind SmartSpaces continues to highlight its strategic partnership with HDFC Capital Advisors as a key pillar. The company describes a Rs 900 crore partnership under H CARE III for a residential development platform with revenue potential of Rs 4,000 to 5,000 crore. Proposed investments from Arvind SmartSpaces and H CARE III are described as Rs 300 crore and Rs 600 crore, respectively, and three projects have been acquired till date.

The company positions this as patient capital that supports growth while limiting balance sheet strain, with H CARE receiving waterfall based payouts and the company retaining operating rights. The presentation also notes the earlier preferential issue of Rs 85 crore to HDFC Capital Advisors and promoters, and a prior investment structure that included OCD funding and an equity stake.

On shareholder returns, the board recommended a final dividend of Rs 2.25 per equity share of face value Rs 10 each.

What to watch from here

Arvind SmartSpaces enters FY27 with a sales engine that looks stronger than its accounting revenue line suggests. The record booking year of Rs 1,550 crore and record collections of Rs 1,100 crore point to steady end customer demand across its key markets and formats. The jump in unrecognized revenue to Rs 3,733 crore gives visibility into future reported numbers, though the timing will depend on project completion milestones.

The other key theme is controlled reinvestment. FY26 operating cash flow of Rs 417 crore supported a heavy investing year, with Rs 638 crore deployed into land payments and approvals. Net debt increased to Rs 167 crore, and gross debt rose to Rs 462 crore, but the company is still operating at modest leverage relative to equity. Borrowing costs also eased to 9.5 percent, which helps as the company scales.

The portfolio strategy is becoming clearer. Management is using multiple land sourcing models, expanding into Mumbai through redevelopment and joint development, and deepening Bengaluru with outright acquisitions. This mix, if executed well, can balance growth with capital intensity.

The quarter’s underlying message is disciplined execution with an eye on scale. If the company can keep converting bookings into collections and collections into cash flows while bringing more projects to completion, the gap between operational performance and reported revenue should narrow. That is likely to be the main bridge investors track over the next few quarters.