Arvind SmartSpaces Q2 FY27 results: net profit up 25.9% to ₹22.75 crore, revenue up 12.0%

How did Arvind SmartSpaces perform in Q2 FY27?

Arvind SmartSpaces reported consolidated revenue of ₹157.36 crore for the July–September 2026 quarter, up 12.0% from ₹140.51 crore in Q2 FY26. Total income was ₹162.43 crore against ₹144.04 crore a year earlier, an increase of ₹18.39 crore. The results are presented on a consolidated basis, and the board also approved the unaudited standalone financial results for the quarter and half year ended 30 September 2026.

EBITDA for the quarter was ₹55.26 crore, up ₹25.73 crore from ₹29.53 crore in the year-ago quarter, and the EBITDA margin widened by 14.1 percentage points to 35.1% from 21.0%. Profit before tax rose to ₹32.37 crore from ₹25.30 crore, and net profit rose to ₹22.75 crore from ₹18.07 crore. Basic EPS was ₹3.93 against ₹3.09, while the net profit margin was 14.5% against 12.9%.

Against the previous quarter, Q1 FY27, revenue fell 50.5% to ₹157.36 crore from ₹317.63 crore, and EBITDA fell 64.7% to ₹55.26 crore from ₹156.42 crore. The margin narrowed by 14.1 percentage points to 35.1% from 49.2%. Net profit fell 76.6% to ₹22.75 crore from ₹97.39 crore, profit before tax fell 75.8% to ₹32.37 crore from ₹133.90 crore, and basic EPS fell 82.0% to ₹3.93 from ₹21.8.

What changed in Arvind SmartSpaces' costs and profit?

Total expenses were ₹130.06 crore in Q2 FY27, up ₹11.32 crore or 9.5% from ₹118.74 crore a year earlier. Finance costs rose the most, up ₹19.39 crore or 305.4% to ₹25.74 crore, while employee cost rose ₹18.63 crore or 94.4% to ₹38.36 crore. Other expenses increased by ₹17.12 crore to ₹42.18 crore and cost of materials by ₹3.95 crore to ₹12.79 crore. Depreciation was up ₹0.82 crore to ₹2.22 crore. There was no exceptional item in the quarter.

Other income rose to ₹5.08 crore from ₹3.52 crore in Q2 FY26, an increase of ₹1.56 crore. Tax expense rose ₹2.39 crore to ₹9.62 crore from ₹7.23 crore. The filings do not give a stated reason for the increase in finance costs or employee cost. Against the previous quarter, total expenses fell by ₹58.06 crore to ₹130.06 crore, though finance costs rose ₹3.61 crore and employee cost rose ₹6.08 crore.

Management said in the investor presentation that revenue recognition follows transfer of control with project completion and satisfaction of performance obligations, and that strong sales momentum in fresh bookings does not reflect in financial performance because of a lag between the two.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹474.99 crore, up 96.1% from ₹242.28 crore in H1 FY26. Total income rose 93.5% to ₹484.46 crore from ₹250.43 crore. Profit before tax increased to ₹166.27 crore from ₹41.88 crore, and net profit rose to ₹120.14 crore from ₹30.03 crore. Basic EPS for the half year was ₹25.73 against ₹5.54.

The half-year figures show a larger rise in profit than in revenue. Net profit was up 300.1% and profit before tax was up 297.0% for the period. Management's investor presentation reported H1 adjusted EBITDA of ₹197.4 crore at a 42% margin, against ₹55.6 crore at a 23% margin in H1 FY26.

What do the balance sheet and cash flow show?

Total assets stood at ₹4246.6 crore at 30 September 2026, up from ₹3593.56 crore at 31 March 2026. Total equity was ₹842.55 crore against ₹896.15 crore, and borrowings rose to ₹969.9 crore from ₹577.45 crore. Cash was ₹82.1 crore against ₹126.29 crore. Inventories rose to ₹2698.61 crore from ₹2222.16 crore, trade receivables to ₹23.23 crore from ₹15.46 crore, and trade payables to ₹280.04 crore from ₹201.9 crore.

For H1 FY27, operating cash flow was ₹59.58 crore against ₹134.69 crore in H1 FY26, while investing cash flow was -₹269.3 crore against ₹19.59 crore. Financing cash flow was ₹165.52 crore against -₹166.85 crore, and capital expenditure was ₹17.23 crore against ₹10.38 crore. The company's investor presentation showed closing cash of ₹60 crore for the period.

How has Arvind SmartSpaces done over the last 8 quarters?

Revenue over the last eight quarters moved from ₹101.76 crore in Q1 FY26 to a peak of ₹317.63 crore in Q1 FY27 before falling to ₹157.36 crore in Q2 FY27. Net profit followed a similar shape, rising from ₹11.96 crore in Q1 FY26 to ₹97.39 crore in Q1 FY27 and then falling to ₹22.75 crore. The EBITDA margin peaked at 49.2% in Q1 FY27 and was 35.1% in Q2 FY27.

The EBITDA margin bottomed at 20.6% in Q4 FY25, while revenue bottomed at ₹101.76 crore in Q1 FY26. Revenue rose year on year in each of the last two quarters, and profit rose year on year in each of the last three quarters. Net profit of ₹22.75 crore in Q2 FY27 was above the ₹18.07 crore recorded in Q2 FY26.

What else did the company announce?

The board met on 5 November 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review report issued by the statutory auditors, Walker Chandiok & Co LLP. The meeting commenced at 03:15 PM and concluded at 04:40 PM.

The board also approved the acquisition of 1,500 equity shares of Arvind Global Capability Center Private Limited, constituting 15% of its paid-up equity share capital. The target company was incorporated on 1 April 2026 in the business and management consultancy services segment. Consideration was Rs. 15,000 paid in cash for 1,500 equity shares of Rs. 10 each, and the acquisition was expected to be completed within one month from the board approval. The company said GCC would provide centralised business support and shared services to group entities.

What did Arvind SmartSpaces' management say?

Management said Q2 FY27 bookings rose 110% to ₹906 Cr and collections rose 77% to ₹418 Cr. It said H1 adjusted EBITDA reached ₹197.4 Cr at a 42% margin. Management also said fresh launches in Bengaluru and Ahmedabad, along with a new Sarjapur Road JDA, took FY27 new business-development top-line potential to about ₹3,100 Cr, and that net debt/equity was 0.26x with unrecognized revenue of ₹4,550 Cr.

Management said the FY27 new business development represents an aggregate top-line potential of approximately Rs. 3,100 Cr. It listed estimated completion dates of 2026 for Chirping Woods, Fruits of Life and High grove, 2027 for Uplands 2.0 & 3.0, and 2028 for Aquacity.

Management said revenue recognition is based on transfer of control with project completion and satisfaction of performance obligations, and that strong sales momentum in fresh bookings does not yet reflect in financial performance because of a lag between the two. It said Arvind Sylva, launched in August 2026 at Sarjapur Road, Bengaluru, recorded more than ₹500 Cr of bookings, about 60% of inventory, within 30 days, and that Arvind Iconia in Vastrapur, Ahmedabad generated ₹81 Cr of bookings, about 21% of inventory. It also said Bengaluru generated 69% of Q2 bookings and Sylva contributed ₹507 Cr of the ₹906 Cr total.

Management noted as risks that gross debt increased from ₹153 Cr at 30 September 2025 to ₹712 Cr at 30 September 2026 while net debt moved from -₹32 Cr to ₹200 Cr, and that reported gross debt excludes ₹195 Cr of HDFC Platform OCDs. It said H1 land payments and approvals of ₹338 Cr exceeded ₹233 Cr of operating cash flow, and that inventories were ₹2,699 Cr against total assets and liabilities of ₹4,247 Cr at 30 September 2026.

How did other Residential Commercial Projects companies do?

Among 40 Residential Commercial Projects companies that have filed this quarter, the median revenue growth was 17.6%. Arvind SmartSpaces' revenue growth was slower than 18 peers and faster than 22 peers. Of the 40 peers whose profit was compared, 22 reported higher profit.