Realty stock jumps after acquiring residential project in Bengaluru with revenue potential of ₹550 Cr

Synopsis: Arvind SmartSpaces has acquired a new residential high-rise project in Whitefield, Bengaluru which spreads across 4.18 acres and offers a saleable area of around 4.6 lakh square feet, further strengthening its presence in one of the city’s key residential markets.

The shares of this realty company engaged in development and delivering real estate solutions consisting of residential, commercial and industrial projects, were in focus after adding a new project with revenue potential of Rs. 550 Crores. 

With the market capitalization of Rs. 2725 Crores, the shares of Arvind Smartspaces were trading at around Rs. 596 per share which is ~40 percent less from its 52 weeks high of Rs. 992. The stock is trading at a P/E of 29.6 where as industry P/E stands at 33.6

What is the NEWS

Arvind SmartSpaces has acquired a new residential high-rise project in Whitefield, Bengaluru, spread across 4.18 acres with a saleable area of ~4.6 lakh sq. ft. and an estimated top-line potential of ~₹550 crore. The project has been acquired on an outright basis, offering better control over execution and profitability.

This marks the company’s 9th high-rise project in Bengaluru, reinforcing its focus on premium residential developments in high-demand micro-markets such as Whitefield, which benefits from proximity to IT hubs and strong end-user demand. The addition strengthens Arvind SmartSpaces’ project pipeline, revenue visibility, and long-term growth outlook.

Company Overview and Financial Highlights

Arvind SmartSpaces is primarily engaged in the development and delivery of real estate solutions, with a strong focus on the residential segment, which accounts for around 89% of its portfolio and includes villas, plotted developments, and apartments, while commercial projects contribute the remaining 11%. 

Geographically, the company has a concentrated presence in Gujarat (61%), followed by Karnataka (28%) and Maharashtra (11%), reflecting its focus on high-growth urban markets. To date, Arvind SmartSpaces has delivered about 9.7 million square feet, and its growth pipeline remains robust with ~47 million square feet of ongoing projects and ~52.2 million square feet of planned developments, providing strong long-term revenue visibility and expansion potential.

Year on Year analysis: the revenue from operations has decreased from Rs. 266 Crores to Rs. 141 Crores, down 47 percent. Operating income has decreased from Rs. 66 Crores to Rs. 30 Crores, down 54 Percent. Net profit has decreased  from Rs. 43 Crores to Rs. 18 Crores, down 58  percent. 

Quarter on Quarter analysis: The revenue from operations has increased on a quarterly basis from Rs. 102 Crores to Rs. 141 Crores, up 38.2  percent. Operating income has  increased from Rs. 21 Crores to Rs. 30 Crores, up 42 percent. Net profit has increased from Rs. 12 Crores to Rs. 18 Crores, up 50 percent. 

Written By Vachan Kadli 

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