Arvind SmartSpaces Limited (NSE: ARVSMART, BSE: 539301) reported higher sales momentum and cash collections in the December quarter, even as reported revenue and profitability declined due to the timing of revenue recognition, according to the company’s Q3 & 9M FY26 information update released on Feb. 10, 2026.
Key Q3 FY26 highlights
- Quarterly bookings rose 48% year on year to ₹331 crore, led by sustenance sales in Ahmedabad and Bengaluru projects.
- Collections increased 38% year on year to ₹317 crore in the quarter.
- Nine-month bookings hit a record ₹938 crore, up 5% year on year.
- Operating cash flow for Q3 FY26 stood at ₹169 crore, up 128% year on year.
- Unrecognised revenue climbed to ₹3,289 crore as of Dec. 31, 2025, indicating future revenue visibility.
- Net interest-bearing debt stood at ₹79 crore, with a net debt-to-equity ratio of 0.13.
Operational performance
The company reported its highest-ever nine-month bookings of ₹938 crore, supported by steady demand across Gujarat and Karnataka. Q3 FY26 bookings were driven by projects such as Uplands 2.0 & 3.0, Aquacity, Arvind Everland and The Edge, reflecting traction across both horizontal and vertical residential formats.
Collections remained strong in the quarter at ₹317 crore, taking nine-month collections to ₹744 crore, up 5% year on year. The company said cash flows benefited from phased launches and strong conversion at ongoing projects.
Financial performance
Despite higher sales momentum, revenue from operations declined to ₹166 crore in Q3 FY26 from ₹210 crore a year earlier. Adjusted EBITDA fell to ₹44.4 crore, with margin compressing to 27% from 29% a year ago. Profit after tax declined to ₹29.2 crore in the quarter, compared with ₹50.2 crore in Q3 FY25.
For the nine months ended Dec. 31, 2025, revenue from operations stood at ₹408.7 crore, down from ₹550.2 crore in the year-ago period. Adjusted EBITDA declined to ₹100 crore, while PAT stood at ₹59.2 crore. Management attributed the decline to the lag between fresh bookings and revenue recognition under project completion accounting.
Business development and pipeline
During FY26 to date, the company added new residential projects with a cumulative topline potential of about ₹2,510 crore. New additions included premium high-rise developments in Sarjapur and Whitefield in Bengaluru and Vastrapur in Ahmedabad, as well as entry into Vadodara via a horizontal township project under a joint development model.
As of Dec. 31, 2025, the company’s project portfolio comprised 98.3 million sq. ft. of completed projects, 46.9 million sq. ft. under execution, and 53.7 million sq. ft. in planned projects, providing a multi-year development pipeline.
Balance sheet and cash flows
Net interest-bearing debt increased to ₹79 crore at the end of December 2025 from a net cash position in September, reflecting land payments and project investments during the quarter. The company maintained that leverage remains conservative.
Operating cash flow for the nine months reached ₹321 crore, supported by higher collections and disciplined cost management. Management reiterated its focus on phased launches, joint development structures and capital-efficient growth to maintain healthy cash generation.
Outlook
Arvind SmartSpaces said it will continue to deepen its presence in core markets of Ahmedabad, Bengaluru and the Mumbai Metropolitan Region, while maintaining conservative leverage and an asset-light approach through joint development and development management models.
Summary
The developer reported strong booking and cash flow momentum in Q3 FY26, with record nine-month sales and rising unrecognised revenue offering visibility. However, reported revenue and profit declined due to the timing of revenue recognition. The expanding project pipeline and healthy operating cash flows position the company for execution-led growth in the coming quarters.