Synopsis:
Arvind SmartSpaces reported strong year-on-year growth in revenue and profitability for Q1FY26, but its stock stayed near 52-week lows after a sharp sequential decline in financials. Net profit rose 140 percent YoY to Rs 12 crore, while revenue fell 37.4 percent QoQ to Rs 102 crore, impacting investor sentiment.
Shares of a leading real estate development company came under slight pressure after it posted a sharp quarter-on-quarter decline in revenue and profitability. Despite posting strong year-on-year growth in revenue and profitability, shares of the company remained under pressure, hovering near their 52-week low.
The stock in focus is Arvind SmartSpaces Ltd, which has a market capitalization of Rs 2,833.5 crore. The stock opened at Rs 620 and touched a low of Rs 613.90, down 1.8 percent from its previous close of Rs 624.95. The current price is less than 2.2 percent above its 52-week low of Rs 601.
What’s the News?
Quarter-on-Quarter (Q1FY26 vs Q4FY25): Arvind SmartSpaces reported a consolidated revenue of Rs 102 crore in Q1FY26, down 37.4 percent from Rs 163 crore in Q4FY25. Operating profit fell 38.2 percent to Rs 21 crore from Rs 34 crore in the previous quarter. Profit before tax declined by 52.8 percent to Rs 17 crore from Rs 36 crore, while net profit dropped 45.5 percent to Rs 12 crore from Rs 22 crore in the last quarter. Operating margin stood at 21 percent.
Year-on-Year (Q1FY26 vs Q1FY25): On an annual basis, the company reported a 37.8 percent rise in revenue from Rs 74 crore to Rs 102 crore. Operating profit more than doubled, rising 133.3 percent from Rs 9 crore to Rs 21 crore. Profit before tax surged 142.9 percent from Rs 7 crore to Rs 17 crore, while net profit jumped 140 percent from Rs 5 crore to Rs 12 crore, highlighting the strong operational recovery over the past year.
FII holdings declined from 2.01 percent in March 2025 to 1.60 percent in June 2025, indicating some degree of cautiousness among institutional investors.
Comments from Management
Commenting on the Q1 FY26 performance, Mr. Kamal Singal, Managing Director, Arvind SmartSpaces Ltd. said, “Our financial performance continues to remain strong, driven by strong execution. In Q1, revenue grew 37 percent YoY to Rs. 102 crore, Adj. EBITDA improved 205 percent YoY to Rs. 24.5 crore, and PAT increased 159 percent YoY to Rs. 12 crore. Further, we continue to generate positive operational cash flows and the balance sheet remains strong with Net Debt at Rs. (50) crore.”
He added, “We are on track to conclude the ongoing business plan of adding new projects with a cumulative topline potential of Rs 5,000 crore across Gujarat, Bengaluru and MMR. We remain positive about the demand scenario we are witnessing in the sector. Relatively lower interest rates, supportive government policies, and rising disposable incomes continue to support homebuyer demand.
Over the medium to long term, we believe the sector will witness further consolidation in favour of organised players, driven by stronger execution, rising capital intensity, and improving cash flows. This is an opportunity we are well prepared to capture, backed by our healthy balance sheet, growing brand equity, and disciplined approach to business development.”
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Operational Highlights
The company reported bookings of Rs 175 crore in Q1FY26, compared to Rs 201 crore in Q1FY25. Collections also declined to Rs 191 crore from Rs 249 crore last year. However, adjusted EBITDA jumped 205 percent to Rs 24.5 crore. Net Debt (Interest bearing funds) at Rs. (50) Cr as on June 30, 2025 from Net debt of Rs. 27 Cr as on Mar 31, 2025. Net Debt (Interest-bearing funds) to Equity ratio stood at (0.08) as on June 30, 2025 as against 0.04 as on Mar 31, 2025.
About the Company
Established in 2008 and backed by the 120-year-old Lalbhai Group, Arvind SmartSpaces is one of India’s prominent real estate development companies, headquartered in Ahmedabad. The company has developed approximately 106 million square feet of real estate across cities such as Ahmedabad, Gandhinagar, Bengaluru, Mumbai Metropolitan Region (MMR), and Pune.
Leveraging the brand strength of the Arvind group and a track record of timely project deliveries, the company is positioning itself as a key player in the evolving Indian real estate market, with an eye on consistent growth and stakeholder value creation.
Written by – Manan Gangwar
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