Arvind SmartSpaces Ltd. (ARVSMART) AI Stock Analysis

• Market Cap: ₹24.61B
• Dividend Yield: 0.98%
• Average Volume (3M): 1.39K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.53
• Revenue Growth: 13.62%
• EPS Growth: 34.30%
• Country: IN
• Employees: 415
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 6.30
• Shares Outstanding: 45,866,978
• 10 Day Avg. Volume: 1,273
• 30 Day Avg. Volume: 1,385
• PEG Ratio: 0.18
• Price to Book (P/B): 5.49
• Price to Sales (P/S): 4.60
• P/FCF Ratio: -28.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹750.00
• Price Target Upside: 26.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 22.55
• Revenue Forecast (FY): ₹7.56B

• Rating: 63 Neutral
• Price Target: ₹571.00 ▼(-3.90% Downside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Arvind SmartSpaces Ltd. demonstrates strong financial performance with robust revenue growth and profitability, though liquidity risks from negative cash flow are concerning. Technical indicators suggest a neutral to slightly bearish trend, and the valuation appears fair with a reasonable P/E ratio. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Margin Sustainability

Sustained gross margin of 43.5% and improved net margin of 15.5% indicate durable pricing power and effective cost control in project execution. This margin profile supports reinvestment in new launches and provides a cushion against cyclical pressure in real estate over the next several quarters.

Efficient Capital Returns

An ROE of 18.5% alongside a moderate leverage ratio (~0.48) reflects efficient use of equity and a balanced capital structure. This combination supports attractive shareholder returns while retaining capacity to fund new projects without aggressive additional leverage, a durable strength for development cycles.

Business Model & Market Focus

A core model of acquiring/aggregating land and monetizing through residential and commercial sales in urban markets provides predictable project economics from bookings and construction-linked collections. Established development capabilities and market focus enable repeatable launches and long-term revenue visibility.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow and shrinking free cash flow reduce internal funding for construction and land acquisition, increasing reliance on external financing. Over 2-6 months this can delay project completions, strain liquidity, and raise funding costs for new launches or working capital needs.

High Liabilities vs Assets

An equity ratio of ~22.4% indicates elevated liabilities relative to assets, heightening vulnerability to slower collections or market downturns. Structurally, this limits balance sheet flexibility, increases refinancing and covenant risk, and can constrain the pace of new project starts if conditions worsen.

Recent Revenue & EPS Weakness

Reported declines in revenue (~-14%) and EPS (~-32%) signal recent softness in sales absorption or margins that could persist into future quarters. For a developer, weaker top- and bottom-line trends can force slower launches, discounted pricing, or higher marketing incentives, pressuring long-term profitability and cash conversion.

Arvind SmartSpaces Ltd. Business Overview & Revenue Model

Company Description

Arvind SmartSpaces Limited engages in the development of real estate projects in India. It develops residential, commercial, and industrial projects located in Ahmedabad, Gandhinagar, Bengaluru, and Pune. The company was formerly known as Arvind Infrastructure Limited and changed its name to Arvind SmartSpaces Limited in November 2016. Arvind SmartSpaces Limited was incorporated in 2008 and is headquartered in Ahmedabad, India.

How the Company Makes Money

Arvind SmartSpaces primarily makes money by developing real estate projects and monetizing them through sales to end customers. The main revenue stream is recognized from (i) sale of residential units (apartments/villas) and (ii) sale of plotted developments, typically based on the company’s accounting policies for real estate (for example, percentage-of-completion or upon handing over/registration, depending on the project and applicable accounting standards). Cash flows are driven by customer booking amounts, construction-linked installment plans, and final collections at possession/registration. In addition to core sales revenue, the company can earn other operating income related to its projects such as fees/charges collected from customers (e.g., maintenance-related collections or similar project-linked recoveries) where applicable; if such line items are not separately disclosed in available information, they are not determinable. The company’s economics are influenced by its project pipeline (launches and inventory), land acquisition or development-rights structures (outright purchase vs. joint development/joint venture arrangements), construction costs, pricing/absorption in its target micro-markets, and access to project financing/working capital to fund construction until customer collections are realized. Specific, named partnerships and their quantified contribution to earnings are null if not available from provided data.

Arvind SmartSpaces Ltd. Financial Statement Overview

Summary

Arvind SmartSpaces Ltd. shows strong revenue growth and profitability improvements, with a robust gross profit margin. The balance sheet is stable with a moderate debt-to-equity ratio and strong return on equity. However, high liabilities relative to assets and negative operating cash flow pose liquidity risks.

Income Statement

Arvind SmartSpaces has demonstrated strong revenue growth, with a significant increase in total revenue over the past year. The gross profit margin is robust at 43.5%, indicating good cost management. The net profit margin has improved to 15.5%, reflecting increased profitability. However, EBIT and EBITDA margins have slightly declined, showing some pressure on operational efficiency.

Balance Sheet

The company’s debt-to-equity ratio stands moderately at 0.48, suggesting a balanced capital structure. The return on equity is strong at 18.5%, indicating efficient use of equity capital. However, the equity ratio is 22.4%, showing a relatively high level of liabilities compared to assets, which could pose a risk if not managed carefully.

Cash Flow

Cash flow from operations has turned negative, which is a concern for liquidity management. The free cash flow has also decreased significantly, indicating potential challenges in covering operational and capital expenses. Nonetheless, the company has a reasonable free cash flow to net income ratio, showing some ability to generate cash relative to its income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.16B	7.13B	3.41B	2.56B	2.57B	1.49B
Gross Profit	2.96B	3.10B	2.49B	1.30B	1.31B	713.77M
EBITDA	1.69B	1.91B	1.21B	504.19M	543.53M	425.02M
Net Income	922.50M	1.10B	415.71M	256.07M	250.58M	87.47M
Balance Sheet
Total Assets	27.09B	26.71B	21.02B	15.11B	11.36B	9.26B
Cash, Cash Equivalents and Short-Term Investments	2.66B	2.43B	1.66B	1.48B	1.53B	366.47M
Total Debt	1.70B	2.85B	1.10B	1.46B	301.68M	1.89B
Total Liabilities	19.07B	18.63B	14.76B	10.15B	6.59B	5.76B
Stockholders Equity	5.98B	5.98B	4.95B	4.66B	4.39B	3.11B
Cash Flow
Free Cash Flow	1.24B	-1.15B	145.68M	-1.12B	1.51B	789.15M
Operating Cash Flow	1.35B	-999.38M	305.01M	-1.01B	1.61B	910.15M
Investing Cash Flow	195.93M	-419.30M	-277.64M	-815.18M	292.93M	-420.42M
Financing Cash Flow	-1.67B	1.34B	-33.18M	952.64M	-740.09M	-194.23M

Arvind SmartSpaces Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 594.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARVSMART, the sentiment is Neutral. The current price of 594.2 is above the 20-day moving average (MA) of 534.39, above the 50-day MA of 553.62, and below the 200-day MA of 610.33, indicating a neutral trend. The MACD of -10.07 indicates Negative momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 45.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ARVSMART.

Arvind SmartSpaces Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ARVSMART	63 Neutral	₹24.61B	23.57	―	0.98%	13.62%	34.30%
MARATHON	62 Neutral	₹25.56B	28.99	―	0.19%	-21.43%	18.96%
KOLTEPATIL	57 Neutral	₹29.21B	195.93	―	1.01%	3.05%	―
AJMERA	56 Neutral	₹22.51B	36.99	―	0.47%	-1.25%	-5.48%
ASHIANA	56 Neutral	₹30.68B	12.74	―	0.85%	24.58%	122.16%
HUBTOWN	55 Neutral	₹27.01B	39.33	―	―	64.29%	―

Arvind SmartSpaces Ltd. Corporate Events

Arvind SmartSpaces Publishes Notice on Special Window for Demat of Physical Shares

Arvind SmartSpaces Ltd. has notified the stock exchanges that it has published newspaper advertisements on February 28, 2026, in the Financial Express (all-India English edition) and its Gujarati Ahmedabad edition. The advertisements relate to a special window for transfer and dematerialisation of physical shares, in line with a recent SEBI circular on share demat and transfer compliance.

By formally documenting these publications under Regulation 47 of the SEBI Listing Obligations and Disclosure Requirements, the company is reinforcing regulatory compliance and providing clarity to shareholders holding physical share certificates. This move supports the broader market transition toward dematerialised securities and may help streamline share transfers and reduce operational and settlement risks for investors and the company alike.

Arvind SmartSpaces to Join Small Cap Showcase Conference on 16 February 2026

Arvind SmartSpaces Ltd. has informed the stock exchanges that its management will participate in the Small Cap Showcase Conference organized by Avendus Spark on 16 February 2026. The company noted that the meeting schedule is subject to change based on any exigencies from either investors or the company, signaling ongoing engagement efforts with the investor and analyst community.

By taking part in this conference, Arvind SmartSpaces is seeking to enhance its visibility among small-cap focused investors and analysts, potentially supporting its capital markets profile and valuation. The disclosure underscores the company’s adherence to regulatory requirements on timely information sharing with stakeholders.