Why Did Arvind Smartspaces Experience a 65% Profit Drop?
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Synopsis
Arvind Smartspaces Limited has reported a staggering 65% decline in net profit for Q2 FY26. Despite the drop, the company showed signs of recovery with a notable increase in quarterly bookings. This article delves into the financial challenges faced by the real estate developer and the factors contributing to its performance in the competitive market.
Key Takeaways
- Net profit dropped by 65% to Rs 14 crore.
- Revenue fell 47% to Rs 140.5 crore.
- Quarterly bookings surged 147% to Rs 432 crore.
- Collections improved 23% sequentially to Rs 236 crore.
- Adjusted EBITDA rose 27% sequentially to Rs 31 crore.
Mumbai, Nov 3 (NationPress) The real estate firm Arvind Smartspaces Limited announced a significant 65% decline in its net profit, amounting to Rs 14 crore for the quarter ending September 30 (Q2 FY26), down from Rs 41 crore in the same quarter last fiscal year (Q2 FY25).
The company's revenue also saw a 47% year-on-year drop, falling to Rs 140.5 crore from Rs 265.5 crore the previous year, as detailed in its stock exchange statement.
Moreover, EBITDA witnessed a 56% decrease, recording Rs 29.2 crore down from Rs 66.4 crore in Q2 FY25, with margins contracting to 20.7% from 25% a year prior.
In the first half of FY26, Arvind Smartspaces achieved bookings of Rs 607 crore, slightly below Rs 666 crore from the same period last year.
Collections for this half-year totaled Rs 427 crore, compared to Rs 497 crore in H1 FY25.
Revenue from operations amounted to Rs 242 crore, down from Rs 340 crore a year ago, while adjusted EBITDA was Rs 55.5 crore, compared to Rs 91 crore previously.
The company's profit after tax (PAT) for the first half stood at Rs 30 crore, a decrease from Rs 47 crore last fiscal year.
On a sequential basis, the company's performance showed improvement in Q2 FY26, with quarterly bookings rising 147% quarter-on-quarter to Rs 432 crore, mainly due to the successful launch of Arvind Everland at Mankol, Sanand.
This project achieved robust sales of 954 units, resulting in bookings of Rs 400 crore—almost 82% of the launched inventory.
Collections in the quarter improved 23% sequentially to Rs 236 crore, although they were slightly lower than Rs 263 crore recorded a year prior.
Revenue from operations increased 38% quarter-on-quarter to Rs 140 crore, yet remained below Rs 266 crore in Q2 FY25.
Adjusted EBITDA rose 27% sequentially to Rs 31 crore, while PAT surged 51% quarter-on-quarter to Rs 18 crore.
Point of View
It’s crucial to recognize that while Arvind Smartspaces Limited has faced significant profit declines, the recent surge in bookings indicates a potential turnaround. The real estate sector remains volatile, and understanding market trends will be essential for stakeholders navigating these challenging times.
NationPress
04/11/2025
Frequently Asked Questions
What caused the profit decline for Arvind Smartspaces?
The profit decline can be attributed to decreased revenue and challenging market conditions affecting the real estate sector.
How did quarterly bookings perform?
Quarterly bookings rose by 147% to Rs 432 crore, driven by the successful launch of the Arvind Everland project.
What were the overall financial results for H1 FY26?
In H1 FY26, the company recorded bookings of Rs 607 crore and collections of Rs 427 crore, both lower than the previous year.
What is the current outlook for Arvind Smartspaces?
Despite the profit drop, the increase in bookings suggests potential recovery and growth opportunities in the future.
How did the revenue from operations change?
Revenue from operations decreased to Rs 242 crore in H1 FY26, down from Rs 340 crore the previous year.
