Anarock IPO: Operating cash flow turns negative in FY26 despite 34% revenue jump
Synopsis
Key Takeaways
Anarock Property Consultants, the real estate consultancy firm preparing for a ₹1,000-crore initial public offering (IPO), posted strong revenue and profit growth in FY26 — but its operating cash flow slipped into negative territory, according to the company's draft red herring prospectus (DRHP) filed with regulators. The cash flow reversal, driven by a surge in trade receivables, has drawn attention as the company readies itself for a capital markets debut.
Revenue and Profit Performance
Net profit rose to ₹93.22 crore in FY26 from ₹60.78 crore in FY25, while revenue from operations climbed 33.83% to ₹881.90 crore from ₹658.95 crore a year earlier. The growth trajectory stretches back further: in FY24, Anarock reported revenue of ₹509.23 crore and net profit of ₹44.94 crore, reflecting steady compounding over three financial years.
The Cash Flow Concern
Despite this earnings momentum, operating cash flow swung to an outflow of ₹12.07 crore in FY26 from an inflow of nearly ₹93 crore in FY25 — a sharp reversal that the DRHP attributes largely to a significant build-up in trade receivables. Trade receivables rose to ₹464.21 crore at the end of FY26, up from approximately ₹316 crore a year earlier.
Anarock said the increase was partly linked to higher revenue and the timing of billing and revenue recognition, particularly for business booked towards the end of the financial year. Trade receivables represent payments due from customers for services already delivered and recognised as revenue — a gap between reported income and actual cash collected. This disconnect between accounting profit and cash generation is a metric that institutional investors typically scrutinise closely ahead of a listing.
Acquisition Activity and IPO Timeline
On 27 September 2026, Anarock acquired a 53.68% stake in architecture and design firm DSP Design Associates for ₹64.01 crore through a mix of fresh investment and purchases from existing shareholders. The company filed its IPO papers just three days later, signalling an aggressive expansion-and-list strategy.
This comes amid a broader wave of real estate sector listings in India, as residential property demand — particularly in the premium and luxury segments — has sustained elevated volumes since the post-pandemic recovery cycle.
About Anarock
Founded by Anuj Puri in 2017 following his exit from JLL India, Anarock has evolved from a residential property advisory firm into a diversified real estate services platform. The company now operates across transaction advisory, commercial leasing, investment advisory, project management and engineering services, technology-led real estate solutions, and retail, hospitality, industrial, logistics, land and valuation advisory segments. As of 31 March 2026, it employed 2,192 permanent employees across 15 Indian cities and maintained a presence in the Middle East.
With the DRHP now filed, Anarock's IPO journey will hinge on how investors weigh its strong revenue trajectory against the cash flow optics — and whether the receivables build-up proves transient or structural.